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India-Israel Trade: Ready For The Big Leap

Mr. Shauli Katznelson is the Deputy Director General of the Israel Export and International Cooperation Institute (IEICI) and is the in-charge of its six professional departments. He has also served with the Israel Discount Bank.

Ms. Efrat Cohen is the Director of the Economic Department. She is in- charge of the planning and economics department at IEICI. Ms. Efrat Cohen

A u t h o r ' s I n d e x

Mr. Shauli Katznelson

India and Israel – Unbeatable Duo In Synergies & Complementarities

Ms. Haya Miller is the Deputy Managing Director at MATIMOP- Industry Center for R&D Israel.

Mr. Raul Goldemann is the Director of

the International Cooperation Program, Asia & Pacific in MATIMOP - The Israeli Industry Center for R&D. He also served as the Director of the German-Israeli R&D Cooperation Program for six years.

Ms. Haya Miller

Mr. Raul Goldemann

Challenges of Collaborative Business Innovation

Dr. Gadi Ariav is the Associate Professor of Technology and Information Systems Management at Tel Aviv University. His international academic career spanning 25 years, includes the founding of international MBA programs and the Georges Leven High-

Tech Management School (HTMS) at Tel Aviv University. His current academic focus is on the global management of innovation.

Prof. Nadav Liron is the Professor of Applied Mathematics at Technion – Israel Institute of Technology, and Director of the Samuel Neaman Institute (SNI) for Advanced Studies in Science and Technology since 2003. He has been Vice President for Academic Affairs of Technion

from 1995-98, and Chairman of the Department of Mathematics from 1988–90.

Mr. Naftali Moser is the Research Fellow and Program Coordinator of the 3IP India-Israel Innovation Program at SNI. Naftali previously held positions at the Israel-US Binational R&D Fund (BIRD); the Peres Center for Peace and several high-tech companies.

Dr. Gadi Ariav

Prof. Nadav Liron

Mr. Naftali Moser

Secret Engine Behind Israel’s Innovation

Ms. Nava Swersky Sofer is the President & CEO of Yissum. Ms. Swersky Sofer joined Yissum at the end of 2005, bringing to the position twenty years of venture capital, industry and legal experience gained in Europe, US and Israel. Ms Swersky Sofer chairs the board of Atox Bio, Novagali, Tiltan Pharma, Optonol, and several other companies, as well as the non-profit regional development organization Bio-Jerusalem.

Ms. Nava Swersky Sofer

Opportunities Knock: The Case for Hi-Tech Cooperation Between India And Israel

Dr. Orna Berry is the Chairperson, Israel Venture Association and Venture Partner, Gemini Israel Funds. As a Venture Partner at Gemini, Dr. Berry applies her expertise in the high-tech arena to assist and advise Gemini portfolio companies. She is currently Chairperson of Prime Sense. Orna is the outgoing Chief Scientist and Director of the Industrial R&D Administration of the Ministry of Industry and Trade of the Government of Israel. Orna co-founded ORNET Data Communication Technologies Ltd. and was there until its sale to Siemens in 1995. Orna has also served as the Chief Scientist of Fibronics, a senior research engineer at IBM and UNISYS, and a consultant to Intel.

Dr. Orna Berry

Nano Science and Technology: Glimpses of Activities and Opportunities in India

Dr. Ashutosh Sharma is an Institute Chair Professor and the Coordinator of the DST Unit on Nanoscience and Technology at the Indian Institute of Technology, Kanpur. Ashutosh’s group works in the areas of nanomechanics, interfacial instabilities, thin films, functional interfaces, wetting and self-organized patterning of soft materials, where he has authored over 150 peer-reviewed papers and have co-edited two research monographs. A recipient of several Indian and international awards, Ashutosh is an elected fellow of all the academies of science and engineering in India and has served on the editorial advisory boards of Journal of Colloid and Interface Science, Chemical Engineering Science, Canadian Journal of Chemical Engineering and Indian Chemical Engineer.

Renewable Energy: Scripting Success of Israeli Companies in India

Mr. Noam Ben -Oze r , be fo re establishing “Focal Energy”, was the founder of “Focal Advisory”, a strategic and finance-related advisory firm in Boston. Prior to founding Focal

Advisory, Mr. Ben-Ozer founded iPhrase Technology, a high-tech firm based in Boston, and served as its CEO from 199 9 through 2002. iPhrase reached multi-million dollar revenue base before being sold to IBM in 2005 From 1994 until 1999, Mr. Ben-Ozer is a Director at Equity One, the largest real estate investment trust in the Southeastern US (EQY).

Mr. Ran Shahor, before establishing “Focal Energy”, from 2001 through 2006, was the managing partner of “Star Ventures”. Star is a $1B global venture capital group based in Germany, US and Israel. Prior to that, Mr. Shahor (retired Brigadier General) had a long and decorated career with the Israeli Defense forces, and served as the Military Secretary of the Israeli Defense Minister and the head of Special Forces Units. Mr. Shahor is also a lawyer.

Strengthening Ties in Semiconductor Industry

Ms. Poornima Shenoy is the President of India Semiconductor Association

Dr. Vidya Mulky is Research Adviser at India Semiconductor Association.

Dr. Vidya Mulky

Ms. Poornima Shenoy

A u t h o r ' s I n d e x

Opportunities Galore in Indian Infrastructure

Mr. Ajay Khanna is the Deputy Director General of the Confederation of Indian Industry (CII). In CII, he is overseeing key areas – infrastructure, creative industries, Brand India and activities related to World Economic Forum. Prior to this, he was the CEO of the India Brand Equity Foundation (IBEF).

Mr. Ajay Khanna

Dr. Ashutosh Sharma

1) Unlimited Opportunities for Israeli Companies in the Indian Healthcare Sector

2) Indian Retail Unlocks Potential For Israeli Companies

Mr. Sateesh Kulkarni is the Director at Corporate Catalyst India Pvt Ltd., a leading firm providing assistance to foreign companies set up operations in India. He has also been associated with the Israel Export and International Cooperation Institute (IEICI).

Mr. Sateesh Kulkarni

Mr. Ran Shahor

Mr. Noam Ben-Ozer

India: Rising Star in BioPharma World

Dr. Iris Shafir is the CEO of I-Connections, a company which builds business partnerships between Israeli technologies and the Indian market. She is also a director of its partner, Good Relations India, a 20-years old corporate-strategy and PR firm.

Dr. Iris Shafir

Author's Index

India-Israel: Ready for Cooperation in Water Technologies

Mr. Dan Meiri is the General Manager of Agritech Non- Profit Organization c/o Kenes Ltd., Tel Aviv, Israel.

Mr. Oded Distel is Director Israel NEWTech, National Water Technology

Program of the Ministry of Industry, Trade and Labor, State of Israel Mr. Oded Distel

Mr. Dan Meiri

Indian Legal Framework for Foreign Trade And Investment

Mr. Sudip Mullick, Partner, Khaitan & Co., heads the real estate, property and commercial law practice of Khaitan & Co, India. He advises a range of large Indian and multinational clients in various business sectors.

Ms. Avaantika Kakkar, Associate, Khaitan & Co., is a member of the corporate and securities team of Khaitan & Co, India. She specializes in all aspects of M & A deals, private equity investments, acquisitions on stock markets, going private in India, and foreign exchange laws.

Mr. Sudip Mullick

Ms. Avaantika Kakkar

Incandescent Growth ofIndian Financial Sector

Ms. V. Sashikala is the CEO of the State Bank of India, Israel. She has a rich experience in Corporate Banking, Merchant Banking and International Banking besides Retail. Ms. V. Sashikala

India's Human Resource Brand in The Age of Global Recruiting

Mr. Daniel Avidor is the Founder, President and CEO of Redmatch, a software firm for internet recruitment tools. Prior to this, he has also served as the General Manager of the Aurora Editorial Group. He also has an extensive background in international financing working for HSBC, Republic Bank and the Israel Bonds.

Mr. Daniel Avidor

Cross Border Business Negotiations

Mr. Gideon Snir is a Researcher and Consultant in the areas of Organization Development and Cross Cultural Negotiations. He has held managerial positions and has been involved in business promotion in the private sector in Europe, Africa and Asia including five years in India.

Mr. Gideon Snir

Developing Synergies in Agri-Business

Dr. Sannadi Baskar Reddy is the Senior Assistant Director for Agriculture-Water-Rural Development, FICCI and also headed technology team at NGO Pragya. He has been instrumental in execution of various Water Resource and Renewable Energy projects. One of his projects has won the Energy Globe Award 2005.

Mr. Nitin Srivastava is the Research Associate at the Agriculture-Water-Rural Development Division, FICCI. Having worked with several national and international development agencies, he holds considerable experience in Rural Development initiatives.

Dr. Sannadi Baskar Reddy

Mr. Nitin Srivastava

Israel Building on Success in Indian Rural Sector

Dr. Martin Sherman is a research fellow in School of Government at Tel Aviv University and the academic director of the Jerusalem Summit think-tank. He has also served as senior advisor to the Minister of Agriculture.

Dr. Martin Sherman

Ambassador's Message ..................................................................................................8

Challenges of Collaborative Business Innovation ...........................................................10

India-Israel Trade: Ready for the Big Leap .....................................................................14

India and Israel – Unbeatable Duo in Synergies & Complementarities ..........................18

Opportunities Knock: The Case for Hi-Tech Cooperation between India and Israel ........20

Secret Engine Behind Israel’s Innovation .......................................................................24

Nano Science and Technology: Glimpses of Activities and Opportunities in India .........26

India: Rising Star in BioPharma World ..........................................................................32

Strengthening Ties in Semiconductor Industry ............................................................. 36

Unlimited Opportunities for Israeli companies in the Indian Healthcare Sector ............ 40

Opportunities Galore in Indian Infrastructure ............................................................... 44

Renewable Energy: India-Scripting Success of Israeli Companies in India ................... 48

Israel Building on Success in Indian Rural Sector ......................................................... 50

Developing Synergies in Agri-Business ........................................................................ 56

India-Israel: Ready for Cooperation in Water Technologies ............................................61

Indian Retail Unlocks Potential for Israeli Companies ................................................... 63

Incandescent Growth of Indian Financial Sector ........................................................... 66

Indian Legal Framework for Foreign Trade and Investment ............................................70

India's Human Resource Brand in the Age of Global Recruiting .....................................72

Cross Border Business Negotiations ..............................................................................74

Business Article: The Worldwide Leader in Software DRM, USB-Based Authentication, and Secure Web Gateways ................................................................... 77

Business Article: The Specialty Foundry, Brings Business and Technical Advantages to Chip Companies In India ........................................................................ 80

editor: Harun riaz

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Marketing: ajit Thakur

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CONTENTS

�I n d I a - I s r a e lP o t e n t i a l a h e a d

I am happy to present this publication on “India-Israel: Potential Ahead”.

Two years ago we had brought out a publication on “India-Israel in Focus” which featured success stories in India-Israel cooperation, possibly also as example and encouragement for others. The publication had covered such experiences in information technology, agriculture, banking, telecommunication etc.

2007-08 marks the 15th anniversary of the establishment of diplomatic relations between India and Israel. Over the years, trade and economic relations have come a long way. Annual bilateral trade which stood at US $200 million in 1992, reached over US $3 billion at the end of 2007. Israeli companies have invested in all major growth centres in India including IT, telecommunications, biotechnology, pharmaceuticals, medical equipment manufacturing, agriculture, jewellery and now in real estate and infrastructure. Indian companies have started investing in Israel with major investments spanning pharmaceuticals, irrigation equipment, tyre manufacturing and IT/software. The State Bank of India, the largest Indian bank, started its operations in Israel in March, 2007. The India-Israel Industrial R&D Fund, set up by the two Governments in 2005, is now in the 5th round of call for proposals, after successful funding of projects identified in the earlier rounds.

It is in this framework, that we have brought out the current publication, focusing on the potential in some of the high growth areas that include biotechnology, agriculture and food processing, health care, high-tech, innovation, industrial R&D, semi-conductors, energy, banking, infrastructure, retailing, human resources etc.

We trust that the information provided in the publication would encourage further interest in cooperation between companies and business organizations of the two countries.

Ambassador's Message

H.E. Mr. Arun K. SinghAmbassador of India to Israel

Foreword

� I n d I a - I s r a e lP o t e n t i a l a h e a d

10I n d I a - I s r a e lP o t e n t i a l a h e a d

India is one of the two components that make up Chindia – the block of

countries which colloquially def ines g lobal izat ion. The phenomenal economic growth, with its mammoth consumer market and its special need as a huge economy makes India an obvious topic of interest across the business world. India’s main challenge lies in its difficulty of establishing genuine high-tech businesses, which develop and commercialize innovative products. The idiosyncrasies of the Indian economic structure and culture are making every effort to materialize such commercial interests.

On the other hand, Israeli economy is world-class yet small global player with its unique value proposition. It is a very small economy, dominated by a few huge economies, namely – US, EU, China and India. Yet, the world values Israel as the proven and reliable source of technological innovation and is keen to tap into its distinct resources.

Over the years, the economic ties of India and Israel have matured and brought with them business experience, success and failure stories, understanding of the business environment and cultural setting of India.

Yet the innovative collaboration forms the key element in Indo-Israeli economic future. India has been a primary factor in

the realization of innovative business models with its lucrative off-shoring and outsourcing opportunities, from relatively low-end call centers to high-end sophisticated data mining. The innovative collaboration between two countries conforms to their complementary strengths, creates and distributes wealth evenly among the participants and serves well the broader strategic interests of both countries.

Such innovat ive bus iness collaboration has been exploited on limited scale, and is still in its infancy. Unfortunately, on this front, there is a growing sense of urgency. There is a widely held perception that these relationships should be examined within five to seven year time-window, a closing window of opportunity for Israel

to establish its value proposition as a sustainable proposition viz. the Indian economy. Further, there is a widening belief that missing that opportunity may adversely affect the well being of the Israeli economy. For India, the issue is more of expediency and efficiency; with its current pace of growth, the Indian economy will eventually acquire the necessary innovative capacities in product design, high-tech products and business models. The acquisition of these capacities can be faster and at low cost if the prospects for innovative Indo-Israeli collaboration will materialize.

This identifies a need to formulate public policy as well as national incentive schemes, both in Israel and in India. Exercises should be conducted to identify and

Challenges of Collaborative Business Innovation

As India and Israel collaborate in business innovation, they are confident to gain stronghold on their positions in global technololgy value chain. Write

Dr. Gadi Ariav, Prof. Nadav Liron and Mr. Nafatli Moser.

Business innovation

11 I n d I a - I s r a e lP o t e n t i a l a h e a d

study corresponding “market failures” in the collective response of individual businesses to the above opportunities and threats. In particular, the accumulated oppor tunis t ic response o f individual enterprises to the new global economic conditions may miss the required mutual repositioning of the Israeli economy viz. India and vice versa.

Structuring collaborations in the flat world

Never before in history had a developing country – India, in this case – become a central player in global markets of advanced technology products in such a short time, without having progressed through the various development stages as did Western European countries, Japan and the USA.

This development, popularly labeled as “globalization” has captured wide interest among experts and layman alike. Tom Friedman has de facto defined the contours of the globalization discourse in his widely read books. In The World is Flat Friedman recognizes the following flattener which he actually gleaned from his visits and interviews in India.

Specifically, the collapse of the geopolitical order in 1989 have expedited the turn of India to Western economic vocabulary, which led to its decision to establish diplomatic relations with Israel. The commercialisation of the internet and the development of work flow technologies allowed Israeli businesses to integrate India based operations into their regular business processes. It has likewise allowed Indian businesses to link their operations with products and services that originated in Israel.

Some of the Flateners highlighted by Friedman address a growing mana-gerial sophistication with respect

to the redesign of business models, which is of great significance and feasibility for the collaborative innovation in the Indo-Israeli economic future. In particular, the change in relationships between center and periphery in networked organizations, the growing sophistication of re-division of labor (“outsourcing” and “insourcing”), as well as the broadening of the scope of search for outsourcing opportunities

(“offshoring”). It is customary to think of the above within a faulty mental frame of western enterprises as the decision makers and Indian businesses as the subjects of these decisions. Recent trends give ample evidence that the reverse direction is gaining momentum; specifically, we envisage Indian enterprises making their global sourcing decisions. There are already Chinese outsourcing posts serving the needs of the Indian

Commercialisation of internet and development of work flow technologies allowed Israeli companies to integrate

India based operations into their regular business processes

Business innovation

Bombay Stock Exchange


software industry. The challenge in the Israeli-Indian corridor is to create the conditions within which Indian enterprises – whether private or public projects – will consider Israeli partners as their default sources.

According to the cluster-based distilled view of the global economic web, Israel constitutes a single cluster of technological innovation, while India is comprised of perhaps three or four namely, Bangalore, Pune and Mumbai, Gurgaon and Noida, and Hyderabad and Chennai.

With all the differences in scale and stage of development, Israeli and Indian governments face similar challenges in nurturing their respective roles, which are

Both countries have to develop mechanisms to gear start Indo-Israeli collaboration. The Indian Tech-Parks and Special Economic Zones should be advertised more vigorously in Israel while tax incentives, joint incubation opportunities and R&D subsidies should be made known by both governments. Ultimately, the joint branding of Indo-Israeli collaboration will matter, either within India or in third party destinations.

Corporate tasks in the flat world

The corporate innovation within the Indo-Israeli context implies the study of all possible forms of significant economic opportunities

India’s remarkable presence among Fortune 500 companies world wide.

This raises multi-disciplinary issues, for corporate and public policy alike, calling for the wise application of contemporary basics of international business. Corporations (and governments) need to think in terms of sophisticated global arbitrage – how to take advantage of the complimentary capacities, forcing companies to identify and utilize sticky resources, to build and maintain the economic network architecture, to cope with the dynamics.

Past as a prelude to the future

The landscape of Indo-Israeli innovative collaboration is remarkably broad. The relative strengths and complementarities of the Israeli and the Indian clusters surface in many expert opinions and suggest wide list of areas with relatively easily identifiable economic potential in collaboration. Israeli and Indian experts agree on the following list of domains:

• Finance: oReal estate oInsurance oFinancial individual

services

• Industry: oPharma – Affordable

medicine oAviation and aeronautics oAll aspects of IT production

and service oEnvironmental and water

technologies

• Infrastructure: oElectric power oRoads oTraffic and light trains

• Movie industry• Education – on all levels• Retail infrastructure and direct

retail operations

Economic future of India and Israel lies in collaborative business innovation

Business innovation

of great significance on the Indo-Israeli relationships. For instance, the urgent need to support high quality education. It is evident - expertise is “sticky” and provides the primary force behind multi-national collaboration. It is high-value workforce that fuels the sustainable collaboration, not inexpensive labor.

Other cr i t ical issue is the contribution of the individuals, who possess insights into Indo-Israeli business cultures. These are NRIs of both nations who understand the settings of both countries well and can steer businesses toward success. The (superficial) interest of young Israelis in India is well known, but it is the explosive interest of undergraduate students in East Asia which promises to provide the necessary cultural infrastructure for collaboration.

“to do things differently”, for instance:

1. Introduction of new goods with new quality suitable for the taste, norms and buying power of the Indian market.

2. Introduction of new methods of production for Israeli products, relying on India’s quintessential capacity to produce world class products in remarkably frugal infrastructure. This may introduce radical cost structures into global pricing for mutually produced products.

3. The conquest of new source for raw materials or partially manufactured goods, exploiting high-volume low cost Indian operation with tightly FDA-compliant operation in Israel.

4. Structuring the business model is the real challenge so that Israeli spirit of invention complements

India has one of the most liberal policy frameworks for foreign direct investment

and foreign technology transfer

• Health care and medical equipment

• Agro and Rural systems: oAgro technical systems and

engineering oAgricultural initiatives for

productivity enhancements

In that l ight , India-Israel Innovation Program launched by the Samuel Neaman Institute (SNI’s “3IP”) is an independent research which seeks to translate national interest into sustainable action plan in the support of India-Israel business. Since 2004, 3IP initiative has evolved concretely and in June 2006 found a place in the portfolio programs at SNI.

The practical challenges of collaborative business innovation

raise composite strategic issues, addressing policies for innovation, science, technology and higher education for both countries. There are three closely interrelated layers of action:

1. State to State: The macro economic in f ras t ruc ture for business collaboration. The two governments have established I4RD, the India-Israel Initiative for Industrial R&D, to support innovative new product development by Indian and Israeli companies.

2. Business to Business: There is already intense cooperation existing between companies in both countries. Companies on both ends need to understand the incentives for collaborative innovation.

3. Academia to Academia: Mutually informed insights are the imperative for scientific collaboration, business joint research, faculty and student exchange. This will also form the basis for institutional cooperation between Indian and Israeli Universities.

Innovative collaboration may benefit India, but for the Israeli economy, it is a “must”. India’s determination shows that the country will be eventually ready to perform innovative R&D, which may position Israel outside the global technology value chain. Israel must have a strategy which encompasses this huge challenge. Israel should concentrate on the areas in which Israel has a comparative advantage. For Israel to achieve the above, there is a clear and great necessity for thinking, planning and proposing solutions to issues in a systematic way.

Business innovation


Indian economy is one of the largest and fastest growing economies of the world, with

a rapidly expanding consumer class. Sharing strong ties with the country, Israel recognizes India’s emerging role in shaping the new global order and has always been proactive in developing closer business ties with the country.

India and Israel bilateral relations took off to the higher trajectory with the establishment of embassies in each other’s States in 1992. Since then, significant progress has been achieved. Today, India is the 7th largest export market of Israel and the second largest in the developing world. Over the years, bilateral trade in goods has witnessed steep rise of more than 20 per cent annually, touching US $3.3 billion in 2007.

In 2007, Israel exported US $1.6 billion of goods to India. The trade between India and Israel primarily rested on a single commodity - diamonds. Diamond export from Israel to India itself accounted for 56 per cent of total exports in the first three quarters of 2007. When diamonds are excluded, India’s ranking among Israel’s export destination markets falls from the 7th place to the 12th! Neither India nor Israel is the producer of rough diamonds, and the diamond industry is also not characterized by substantial added value. Israel and India are focusing on increasing the non-diamond trade and strengthening bilateral relations.

India-Israel Trade Ready for The Big Leap

The economic engagement between India and Israel is set to move into higher gear, as recent trade figures and high-level interactions indicate. Write

Mr. Shauli Katznelson and Ms. Efrat Cohen.

The volume of non-diamond exports has increased steadily, from almost nil in 1992 to US $497 million in 2006 and reached US $718 million in 2007.

Besides diamonds, major export sectors to India include telecommunications, mining, machinery and equipment. The telecommunication sector registered 18 per cent growth rate in the first three quarters of 2007 and accounts for 13 per cent of total Israeli exports to India, totaling US $160 million.

Israeli imports from India have grown at an impressive average annual rate of more than 24 per cent since 1992 and reached US $1.68 billion in 2007. As already mentioned, diamonds are still a major component of imports; more than 60 per cent of the total Israeli imports from India are diamonds. Non-diamond imports consist mainly of chemicals, textiles and metals.

Chemical imports grew at a rate of 42 per cent in 2006, reaching US $164 million. Textile imports grew by 5 per cent to US $114 million in 2006.

The world investment report (UNCTAD) ranked India as the second most attractive

destination for investments in 2005

trade


trade

Impressive service sector of India and Israel

Export of services is one of the fastest growing sectors in the world, especially in India. The Indian services sector has been moving the ladder with an impressive growth rate of 10.8 per cent, recorded in the year 2006-07, faster than the average annual growth of 8.2 per cent recorded in the first four years of India’s Five Year Development Plan (2002-2006). Service exports reached US $81.3 billion in 2006-07, and are fast catching up with the country’s merchandise exports of US $127.1 billion.

With high growth in the services sector, India has outlined a clear strategy for this sector, and is ranked 10th in service exports according to the World Trade Organisation (WTO). Its share of global commercial service exports rose to 2.7 per cent, after totaling 2.2 per cent in 2005, while merchandise exports amounted to one per cent only, on the 28th position.

Diamond is the primary trade commodity. If diamonds are excluded, India’s ranking among Israel’s export destination markets

falls from 7th to 12th

Israel was ranked 33rd in service exports in 2006 and its share of global commercial services has been growing at a stable 0.7 per cent for the last 5 years, which is twice than Israel’s share in global goods exports.

Israel, like India, has realized the enormous potential in the services sector and is in the process of developing a national plan to support and accelerate the export growth rate of the service sector.

An Israeli Trade Delegation in India


Israeli services trade grew by 10 per cent in the first three quarters of 2007, amounting to US $15.3 billion. 30 per cent of Israel’s commercial service exports are mainly in the areas of computers, software and R&D.

Israeli computer-related and software exports totaled 4 billion dollars in 2006, amounting to 18 per cent increase compared to 2005. In the first three quarters

The world investment report (UNCTAD) ranked India as the second most attractive destination for investments in 2005. The management consulting firm, AT Kearney, placed China on first and India on second positions in its 2007 Foreign Direct Investment Confidence Index.

India has one of the most liberal policy frameworks for FDI and foreign technology transfer.

High-tech exports

High technology industries have played a prominent role in the Israeli economy particularly during the last decade. Only 15 years ago, most of the country’s technology was concentrated in military/security related industries. Today, Israeli companies are significantly established in high tech industries worldwide and Israel is No.1 in the rankings of Nasdaq-listed high tech companies outside of the USA and Canada.

Israel has proposed a Free Trade Agreement (FTA) with India to boost the burgeoning

economic and bilateral ties

trade

of 2007, computer-related and software exports amounted to US $3.2 billion, representing a 17 per cent growth rate. Israel’s R&D exports totaled US $1.8 billion in 2006, an increase of 38 per cent compared to 2005.

Foreign direct investment

India is one of the largest recipients of Foreign Direct Investment (FDI) in the world. According to The Economist intelligence unit, country received more than US $17 billion in 2006, accounting for 1.5 per cent of world inward direct investment flows.

Services, telecoms, electrical equipment, real estate and transportation were the five major sectors that received the majority of FDI in India last year.

According to the recent interview with the former Israeli Ambassador in India, Mr. David Danieli, Israeli accumulated investments in the country have grown to US $1 billion in the last four years. Israeli investments have diversified from IT, pharmaceuticals, solar energy and telecoms to real estate and infrastructure. Over 1,000 Israeli companies have established presence in India through joint ventures and research and development centers.

High tech exports totaled US $11.2 million in the first three quarters of 2007, accounting for 46 per cent of Israel’s aggregate exports. This represents 9 per cent growth compared to the same period last year.

Israel’s technological strengths can be exploited for the benefit of both countries by complementing India’s competitive advantage in production capacities.

The Israeli and Indian economies are compatible in many aspects. An international comparison index of the World Economic Forum, namely the global competitiveness index, places Israel on 4th ranking in availability of the latest technologies and 3rd

and agro technology are areas where existing cooperation can be enhanced and new areas can be explored. Cooperation can take place in the Indian market as well as in third country markets.

In conclusion, there is a long way to go for realizing the full potential of bilateral trade. Israel has proposed a Free Trade Agreement (FTA) with India to boost these burgeoning economic and bilateral ties. Recently conducted research by Israel’s Ministry of Trade and Labor to examine the potential worth of such an agreement showed positive results.

There is most certainly a great potential and good existing business relations between the two countries. Both are modern, democratic, and young societies; a great platform for making opportunities a living reality. Both India and Israel are looking forward to a fruitful and exciting journey ahead.

in availability of scientists and engineers. India is also known for the latter, while its strengths are concentrated in the size of its domestic market and its higher education and training system. India is ranked 8th in the quality

of its management schools, and in math and science education, it is ranked 8th and 11th respectively. Therefore, there is wide scope for cooperation in R&D, JV and other businesses .

According to the ranking by the World Bank’s Doing Business 2007, India ranks 120th in the ease of doing business out of 176 economies examined. On the other hand, Doing Business also reports a significant improvement for India in the Trading Across Borders indicator (jumping 63 points in rank from the previous

year), with a reduced number of documents, costs and days for both imports and exports.

Telecom, software, biotechnology, genomics, nanotechnology, water technology, security systems

Israel has proposed a Free Trade Agreement (FTA) with

India to boost the

burgeoning economic

and bilateral ties

trade

1�I n d I a - I s r a e lP o t e n t i a l a h e a d

The potential of India-Israeli collaborations is outstanding. There is a

growing realization in political circles of two nations that this potential can only be realized by the joint partnerships of private sectors, which led to the establishment of government-led initiative, i4RD.

The governments of both nations want more and more Indian and Israeli companies to position themselves and their R&D centers in each other’s countries to exploit mutual technological know-how. This would also

India and Israel – Unbeatable Duo in Synergies and Complementarities

Ms. Haya Miller and Mr. Raul Goldemann on Government Bilateral framework, India-Israel Initiative for Industrial Research

and Development, i4RD.

allow them to experience each other’s talents. The main thrust of this government-led initiative program is to generate business opportuni t ies by e f fec t ive partnership between government and private sector. The role of the government is to enable cooperation in trade while the role of the private sector is to execute, and, i4RD functions to facilitate the cooperation between these two elements.

The “India-Israel Initiative f o r I n d u s t r i a l R e s e a r c h and Development” i4RD, a government bilateral framework,

has been set up with an aim to help companies in finding new technologies and suitable cooperation partners in India and Israel to support innovative Industrial R&D projects with substantial potential for market success. In this way, i4RD along with government organizations, MATIMOP and GITA, advances the innovative capabilities of the Israeli and Indian enterprises. Both governments hope that India-Israel scheme would facilitate commercially successful one-time relationships, leading to longer-term strategic alliances and even

Meeting at the 13th Technology Summit & Technology Platform in New Delhi. Hon'ble Mr. Kapil Sibal, Minister for Science & Technology & Earth Sciences, Government of India, H.E. Mr. Mark Sofer, Ambassador Extraordinary

and Plenipotentiary Ambassador of Israel to India, Dr. Y P Kumar, Head International Corporation, Department of Science & Technology, India, Mr. Yair Amitay, Managing Director of MATIMOP – Israeli Center for R&D

india-israel initiative

1� I n d I a - I s r a e lP o t e n t i a l a h e a d

india-israel initiative

Mr. Raul Goldemann, Director International Cooperation Program Asia & Pacifi c, MATIMOP – Industry Center for R&D and the GITA/DST Team at the 13th Technology Summit & Technology Platform in New Delhi

mergers among Indian and Israeli companies.

SMEs – Focal Point of i4RD

SMEs are the most vulnerable section of the business enterprises, which have to consistently strive to gain foothold in increasingly competit ive global market. In their zeal to expand their business operations beyond geographical markets, SMEs face a number of challenges, such as exploring new lucrative markets and technologies, expanding the international presence of their technology, and using opportunities for cooperation with business partners. At the same time, they also face growing adjustment pressure due to intensifying global competition.

i4RD recognizes that the progress of any country is direct ly linked to the growth of its SME community. Thus it brings an unique opportunity for SMEs to participate in the research and development program and add

value to their business operations. During the program, SMEs interact and work closely with their Israeli counterparts to enhance their technological know how and sharpen their competitiveness.

India-Israel: Unbeatable duo

The experts at i4RD believe that India and Israel can make an unbeatable duo. Despite dif ferences in culture, and religion, both nations share a number of similarities, such as resilience, passion for learning, language (English), ‘Carry on’ attitude despite seeming chaos, similar concerns and problems, indomitable spirit in the face of insurmountable challenges.

W h i l e I s r a e l ’ s s t r e n g t h s include high entrepreneurial energy, outstanding innovation

capabilities, modern high-tech infrastructure and the ability to improvise, India’s strengths lie in its large and talented human resource, g lobal economic orientation, investment supportive environment, strategic location, world-renowned entrepreneurship and management skills. These complementary advantages, if exploited by the business communities of two nations through increasing collaborations, will enable India and Israel to emerge as the leading economies across the world.

Realizing the immense potential in economic engagement between India and Israel, the governments have created an excel lent framework, i4RD to facilitate business between the private sectors of two nations.

i4RD is an excellent government framework to facilitate business between private sectors

of India and Israel


Many a scientist has toiled for decades in his or her chosen field

before suddenly being struck with the revelation - sometimes by chance and possibly while still awake in the early hours of the morning - that leads to an important discovery. Now while not an exact analogy, something similar happened to me regarding the relationship between Indian and Israeli hi-tech. I have been a computer scientist for many years and have always been aware of Indian technological know-how, from when I was researching for my PhD at the University of Southern California in the early 1980s, through positions I held in the US at the Rand Corporation and Systems Development Corp. (later part of Borroughs and then Unisys).

However, it was not until 2004 that it struck me that India and Israel were ideal hi-tech partners and that encouraging cooperation could help both countries maintain their leading positions in the sector.

The tipping point came whilst I was collaborating with Alok Aggarwal and other experts on a project for the Association of Computing Machinery (ACM), which had established the Job Migration and Globalization Task Force to examine global off-shoring, a trend that India has been at the forefront of. Dr. Aggarwal was a

Opportunities Knock: The Case for Hi-Tech Cooperation between

India and IsraelThe technology industries of the two countries can play complementary role in

each other’s growth. Envisages Dr. Orna Berry.

former executive at IBM in the US and India and the founder of Evalueserve, a company specializing in contracting market research and intellectual property registration for major banks, multinational corporations and research establishments. It was his knowledge and experience - often conveyed via conference calls between the US, India and Israel (when it was always the middle of the night for one of the participants) - that helped change my understanding and thinking in reference to cooperation between India and Israel.

The e lements for such an understanding were always there. In my experience, Israelis and Indians are hard working, ambitious, fun to be around and enjoy teaming up together. There is plenty of scope for coadjuvancy, especially in software, as the Israeli and Indian technology sectors have differing but complementary characteristics. The two nations can harness these qualities by working together and by learning from each other as well, with the respective governments having important roles to play to facilitate this. Ultimately, the relationships that develop will boost trade between the countries and help them deal with the effects of the global economic climate on hi-tech financing.

One reason why Israel and India can benefit from working

together is that they have both developed advanced IT sectors. As such, the most obvious areas of collaboration include software and services, and Software as a Service (SaaS), whereby customers use an application via the Internet rather than buying it and installing it on their own systems. For Israel, India is a huge market that also has a large pool of capable hi-tech professionals. Israeli companies can better provide both types of offerings mentioned and cover greater geography by teaming up with their Indian counterparts.

A n o t h e r o p p o r t u n i t y f o r cooperation lies in new media on the Internet. India is just as much of a potential market for Internet TV as anywhere in the world, and with its mammoth and diverse population there is a need for the cost-effective distribution of on-demand content over the Web. Consumers already watch TV via their computers, and while broadband penetration is small, the country’s demographics and rising prosperity suggest that it has huge room for growth. Israeli companies that could benefit from this trend include Arootz and ConteXtream, which are developing infrastructure technologies that will facilitate the mass provision of video over the Internet.

What these two start-ups share in common with successful companies in India as well as

hi-tech


hi-tech

in Israel is that they are very outward-looking. Shailendra Jain, the former American-Indian CEO of Israeli company Adamind, says that this trait makes India-Israel corporate cooperation all the more natural. “IT businesses in both countries are inherently set up to be internationalist in their approach to sales and business development, as evident in their success over the last two or more decades in North America and Western Europe. This makes them more open to cross-border collaboration,” Mr Jain says.

However, while Israel designs products for developed markets, says Ajoy Mallik of IT company TATA Consultancy Services (TCS), India innovates for developing markets that are playing catch-up. “It therefore makes sense to work closely together because the two will eventually converge,” says Mr Mallik, who is the Global Head of Venture Capital and the TCS-Co-Innovation Ecosystem at TCS.

Mr Jain notes that the ability of Indian and Israeli firms to cooperate “closely together” is facilitated by the characteristics of their personnel.

“There is some similarity between hi-tech workers in the two

countries. The Israeli IT sector is comprised of entrepreneurs with a strong basis in mathematics and computer science, while the Indian IT sector also has a strong foundation in the sciences, with employees coming through the tough national technology institutes,” he says. “However,” adds Mr Jain, “Israelis have a love for trying new things and rapid idea development while Indians are culturally more conservative and lean more towards the applied and scaleable aspects of IT engineering as opposed to always trying to break new ground. These two approaches can balance each other out nicely.”

This can especially be the case if, as Mr. Mallik says, Israelis and Indians can learn to absorb each others’ strengths to augment their own capabilities.

“Israel has been a leader in disruptive and market changing innovation. India is very good at sustaining innovation - knowing how to do the same things, better, faster, cheaper, more efficiently, and with more return on the invested effort. Studying how Indian companies do this would be very beneficial,” he says.

I would add that Israeli companies

can learn from their Indian counterparts about services and scaling too, and increasing product ivi ty in t radit ional industries through IT.

On the flip side, Mr Mallik says that India can learn from Israel about how to mould perceptions about its technology sector.

“The stereotypical view of Indian hi-tech firms usually includes the words offshore, software, low-cost and outsourcing; however, unbeknownst to many, we have a lot of companies that are exceptionally innovative in product development too. We should stop hiding this secret and let the world know about it, just as the Israelis have done with their technology,” he says.

One reason why Israeli technology has become so world-renowned is because of the Israel-US Binational Industrial Research & Development (BIRD) Foundation, a government-level organization that provides funding to joint projects between US and Israeli companies. While BIRD facilitates a framework for Israeli companies to learn from their US partners, it has also helped open US eyes to Israeli technological innovation, not least because of the success


hi-tech

of the schemes that the fund has helped finance. In the 30 years since BIRD was established, the 740 projects it has invested in have generated sales of over $8B. The foundation’s contribution has been $245M.

Although Israel and India have set up an initiative called i4RD to help finance partnerships between companies from the two countries, the BIRD model should be studied to see how the impact of i4RD can be maximized. Just as with BIRD, the India-Israel scheme will hopefully facilitate commercially successful one-time relationships that could lead to longer-term

strategic alliances and even mergers. It should also ensure that more Israeli firms expand their presence in India and vice versa. I would very much like to see major Indian companies opening offices and R&D centers in Israel, as this would allow them to more effectively exploit Israeli technological know-how and provide Israelis insight into Indian best practices. There are obstacles to this occurring but it is something that should still be encouraged. Whatever partnerships do develop, all the relevant parties need to ensure that they align their expectations and clarify all the pertinent issues right at the start of any collaboration. It sounds obvious

but it’s not something that always occurs; i4RD should help ensure it does.

If the initiative is successful, like BIRD, it will become an excellent example of how a partnership between the government and private sector can be efficacious. Part of the job of the former is to enable cooperation and trade while the role of the latter is to execute, and i4RD should facilitate all these elements.

Another way for the Indian and Israeli governments to enable bilateral commerce is by better adher ing to Wor ld Trade

Organization agreements so that their regulatory environments for trade and finance are more aligned. In addition, investors must be encouraged to use their profits to regenerate business, as this will swell the number of firms engaged in partnerships and cross-investments, thus boosting trade.

Such cross investments could provide an answer to the competit ion between India and Israel for foreign finance, which risks jeopardizing joint opportunities. One model that could be propitious is that of a triangle involving India, Israel and a leading Western country such as the US or the UK. The operations

would be established in India and Israel and the money would come from the Western nation, with the returns being shared between all three countries. Some firms use this model already, including one from San Diego that supplemented large Indian operations by establishing complementary offices in Israel. However, more of these operational structures need to be developed.

This is especially so because of the effect that global economic trends are having on start-up financing. On the one hand, the problems of sub-prime mortgages could benefit the sector, since investors have realized that leveraged investments

can cause difficulties. On the other, some US investors are sitting on their cash, as they are more cautious and because the fall in the value of the dollar means that they get less for their money. And although the euro is strong, Europeans put less of their capital in hi-tech.

So for macro- and micro-economic reasons, India and Israel have much to gain from working together, and the possibilities are endless, with natural areas of cooperation existing in software and IT services. Other areas will soon become important as

well and it is vital that we grasp the partnership opportunities that present themselves. These opportunities should increase with the successful management of i4RD, which, as much as anything, provides a framework for two countries that vie for foreign investment to work together for their mutual economic benefit. However India and Israel do collaborate, though, Gemini Israel Funds and the Israel Venture Association will always be happy to facilitate cooperation in any way we can.

The basis of this article was an interview conducted and written by Yigal Grayeff, In-house Writer, Gemini Israel Funds.

Mr. Satish Ghatpande, Executive Director

Established in 1992 and based near Pune, PPIIL, an ISO 9001:2000 company, is today

a leader in the field of Micro Irrigation in India.

PPIIL offers a wide range of products and solutions in the field of precise Irrigation and Intensive agriculture cultivation.

Our solutions includes complete tailored Drip and Micro Sprinklers systems and Turn-Key projects for All Agriculture sectors such as Row Crops, Horticulture, Green Houses, Plantations, Orchards, Nurseries and more.

PPI(I)L’s services include Survey, Planning and Design facilities for Drip, Mini & Micro Sprinklers, Foggers, Misters, Fertigation equipments, etc. for various field crops, horticulture crops, plantations, landscape, Greenhouse and Poly-house Irrigation systems.

Having technical agreement with world’s leading manufacturers, PPIIL has exclusive Distributorship for marketing of various other Irrigation Equipments like Filters, PVC Ball Valves, Plastic Fittings, Control Valves, Automation and more.

In the field of Landscape we represent Rainbird-USA for their Landscape and Golf Irrigation Products like Pop-up Sprinklers, Automation Devices, Central Control Systems, etc…

To complete our “All Under One Roof” services for Agriculture, PPIIL has introduced various grades of Water Soluble Fertilizers imported from Belgium & Israel.

Along with its advanced systems, PPIIL also provide comprehensive Agronomic Guidance and Knowledge Transfer Programs on Irrigation, Fertigation and all parts of cultivation. Our goal is to maximize the user’s benefit from PPIIL’s systems.

The Company has around 250 qualified professionals, which includes, Production Experts, Surveyors, Application Engineers, Agronomists, Soil Scientists, and Sales Engineers to meet the growing marketing requirement.

PPI(I)L has a wide spread network of distributors all over India for the sales & services of all products and projects.

PPIIL is well-known for its quality products and quality services.

Few of our prestigious customers & projects executed in India

1. APMIP: The company has been allotted an area of 34000 ha. as part of 1st phase of prestigious Micro Irrigation Project by Govt. of Andhra Pradesh (APMIP) for immediate implementation

2. Kuppam Project: PPIIL has installed Advanced Micro Irrigation System of Israel on an area of 1000 acres for Vegetables. This project is backed by fully integrated Agriculture Development Services of BHC.

3. Terna Sahakari Sakhar Karkhana (Sugar Factory): Sugarcane Project of 6500 acres consisting of about 2000 farmers in a sugar factory command area.

4. CCL Flora, Bangalore: Asia’s second biggest and India’s biggest high-tech Floricultural P r o j e c t c o m p r i s i n g o f complete automatic Green House Irrigation and Cooling System.

5. Dr. Punjabrao Krishi Vidyapeeth, Akola: A unique Project of Cotton Cultivation

on 350 acres comprising of Pressure Compensating Drip I r r iga t ion Sys tem wi th a Computerized Central Control.

6. High-Tech Green Houses: The company has done more than 25 high-tech Green Houses of sizes more than 10 acres.

7. Reliance Industries Ltd.: A project of Green Belt and Landscape Development over an area of more than 1000 acres at Jamnagar Refinery, and other projects at Delhi, Mumbai, Bhopal of RIL & RPL.

8. Sahara India Commercial Corp. Ltd.: A project of Landscape Irrigation system comprising of Automatic Irrigation system over area of 200 acres at Amby Valley and Lucknow.

9. Srivardhan Bio-tech: A Hi-tech green house project of 66 acre area under variety of crops – Likely to be Asia’s biggest green house unit.

10. Best Roses, Navsari: Gujarat’s biggest Floriculture Project of 30 acres with full automation.

11. Punjab Agri Food Parks Ltd.: Imported citrus R & D Green House and Drip Irrigation Project at Sirhind, Chandigarh.

12. Field Fresh Foods Pvt Ltd.: A unique pilot project for export vegetables on 200acre open field and 42 acre protected cultivation – 1st Phase. An Initiative of Airtel Group in Punjab.

13. GGRC: Gujarat Govt’s prestigious MIS Project – The company has been allotted an area of 10000 ha.of which 2300 ha. has already been completed.

Besides above, the company has successfully executed Irrigation system over 1,00,000 acres area on various crops.

PLASTRO PLASSON INDUSTRIES (INDIA) LTD. is a Joint Venture between Finolex

Group - India (www.finolex.com), Plastro Gvat (www.plastro.com) and Plasson Ltd.

(www.plasson.com) – Israel.

Business article


innovation

Technology transfer is all about turning the fruit of excellent academic research

into commercially viable products and bringing capital to the academic institutions for further research. Today, technology transfer offices or companies exist in all leading universities around the world. Israel is a pioneer in this field, setting up technology transfer companies among the first in the world some 45 years ago. In fact, all leading economies of the world namely, America, Europe and Japan all joined the foray after Israel.

Israeli academia serves as the breeding ground for many. Its cutting-edge technology transfer companies are then responsible for the commercialization of products with annual sales of over US $7 Billion.

Many of the products, we use, originate from academic research. For example, many of the world’s top pharmaceutical and biotechnology drugs as well as agricultural products such as tomato, pepper and watermelon seeds, to name a few are the boon of academic research. Google and Yahoo both found their grounds in Stanford University; the algorithms used to encode television broadcasts were developed in an Israeli University, and the list goes on. Academic research is an engine of growth. The fruits of the academic research coupled with the right commercial partners result in

Secret Engine Behind Israel’s Innovation

Israel’s world-class innovative technologies are the products of dedicated work of its academia and technology transfer companies,

reveals Ms. Nava Swersky Sofer.

advanced products and services to society.

The essence of the technology transfer process

Technology transfer companies face the challenge of bridging the two very different worlds of academia and business, often complete opposites in their outlook and operations. Academia is knowledge based, driven by curiosity and a number of publications. Academia does not consider the concept of time as a boundary and looks at the broadest scope. The business world is based on products, driven by profits and prefers confidentiality that leads to commercial advantages. It is a world dictated by milestones and timeframes, and is highly mission focused.

The first task faced by technology transfer companies is the protection of intellectual property generated by the University’s researchers. In Israel, as in the United States and most European countries, such intellectual property is owned by the academic institution, which in turn shares part of the revenue with the inventors.

Once the intellectual property has been protected – typically in

the form of a patent application - technology transfer specialists turn to match making, committed to finding the right commercial partner for each intellectual property asset. This is done using a variety of services and core competencies:

• Funding – locate and attract capital for the various development stages of the IP asset in exchange for commercial exploi tat ion rights.

• Licensing Agreements – work with the industry leaders who are best positioned to commercialize a specif ic intellectual property and bring it to market.

• Joint Ventures – establish a l l iances wi th s t ra teg ic companies that help in fostering and furthering the development of an invention towards market launch.

• Company Crea t ion – establish spin-offs in instances where a given technology would be better suited or more commercially viable, if it were exploited as a pure-play company.

• Networking – utilize the e x t e n s i v e n e t w o r k o f international contacts to locate relevant partners.

Fruits of the academic research coupled with right commercial partners result in

advanced products to society


• Co l l abo ra t i on – work extensively with the researchers to facilitate inter-disciplinary academic collaborations.

Hebrew University of Israel: breeding ground of innovation

Enjoying a vibrant patenting environment, Israel comes third in the world in patents per person, after the USA and Japan. Half of these patents are in life sciences, biotechnology and medicine. The Hebrew University of Jerusalem, for example, ranks 12th worldwide in biotechnology patents, right behind Harvard at 11th place.

A leading survey conducted by the University of Texas for Shanghai Jiaotong University ranks Israel 12th worldwide in academic research, and the Hebrew University of Jerusalem 1st in Israel and 60th

licensed, and more than 60 spin-off companies were established, raising over US $150 million from leading investors in the past year alone.

With partners in just about every big technology-oriented company around the globe, including Century Pharmaceuticals in India (and 3M, Bayer, DuPont, Eli Lilly, IBM, Intel, Johnson & Johnson, Lucent, Merck, Microsoft, Nestle, Novartis and Teva, to name a few), Yissum is a powerful liaison between interested industry and investors and the University researchers.

Yissum has commercialization successes in various fields including biotechnology, drugs and drug delivery, agriculture, hi-tech, nanotechnology, cleantech and many more.

and Prof. Haim Rabinowich from the Hebrew University of Jerusalem‘s Faculty of Agriculture. With 2006 sales of $70 million and a total of over $1 Billion in sales over the past 20 years, they formed the basis for the success of Israel’s top two seed companies, Hazera and Zeraim Gedera. Both, in turn, were acquired by leading multinationals – Vilmorin and Syngenta, respectively – and continue to maintain significant operations in Israel employing many graduates of the very same faculty of Agriculture. Yissum is proud of its role in establishing Israel as a leading centre in the world market for seeds.

DOXIL® , the on ly cancer medication of Israeli origin currently on the world market, was developed by Hebrew University researcher Prof Yechezkel Barenholz and his colleague Prof Alberto Gabizon, currently Head of Oncology at Shaarei Tzedek Medical Centre in Jerusalem. The Doxorubicin HCI liposome injection is Alza’s lead product for oncology and provides relief to many ovarian and breast cancer patients around the world. 2006 sales were $375 million.

Exelon®, a chol ines terase inhibitor developed by Prof. Marta Weinstock-Rosin of the Hebrew University’s department of Pharmacology, treats the symptoms of Alzheimer’s disease and other dementias. Licensed to world leader Novartis, 2006 sales were $525 million. A new once-a-day patch formulation is now being launched around the world, providing further relief to patients and caretakers.

Israel is a world leader in technology transfer, and Israeli experts – including Yissum’s top management – are proud to assist governments, universities and other organizations around the world in maximizing the potential of their academic research.

worldwide. Yissum (meaning ‘application’ in Hebrew) is in charge of the technology transfer for the Hebrew University. To date, Yissum has registered more than 5,400 patents covering some 1,500 different technologies. Of those, about 450 technologies are

Yissum’s success stories

The long shelf life & cherry tomatoes success story involves the development of the world’s most popular cocktail hybrids for greenhouse production of Cherry Tomatoes by Prof. Nachum Kedar

innovation


The (prefix) suffix nano- has so widely permeated

and has so strongly lodged in the entire fabric of science and engineering from biology to space travel that a general introduction to the scope and goals of nanoscience and technology is neither warranted, nor possible in a modest space. Yes, nanoscience is the understanding of emergent properties, behavior and structures in that twilight-zone between the molecular and the bu lk and yes, nanotechnology is the exploitation of th is unders tanding towards realization of hitherto impractical or even impossible goals, devices and materials that span the realms of measurements and computing, sensors, all hues of nano-electro-mechanical-systems (NEMS), drug-delivery, implants, cosmetics and foods, genomics, and materials for opto-electronics, catalysis, composites, membranes and materials with functional and “smart” uses. Much of the nano-

Nano Science and Technology: Glimpses of Activities and

Opportunities in IndiaAs Israel has made significant strides in both the infrastructure and product development in nano, Dr. Ashutosh Sharma foresees a tremendous potential for collaborations between India and Israel in nanosciences and technology.

Left images: spherical nanoparticles of SiC made by high temperature chemical pyrolysis of ball-milled Si in hexane; Center image: ZnO

nanonails made by evaporation of Zn under oxygen and argon ambience. Right: Cu2O nanocubes made by anodization of Cu in distilled water.

nano technology


related activities today could be catalogued under the four major components: nanomaterials, nanoprocesses, nanostructures and nanodevices. The pipedream of nanotechnology of course remains to build useful things atom-by-atom and molecule-by-molecule.

N a n o - T e c h n o l o g y a n d Nanosciences are not a single discipline, but a knowledge-intensive, highly interdisciplinary and multidisciplinary theme that is both an “enabling technology” for the betterment of existing products, as well as a potential “disruptive technology” in many spheres. Nano- is already influencing a wide range of products and processes with far-reaching implications for the global economy, and India is no exception.

For anything deeper, one will have to reason with at least a small fraction of some one hundred and fourteen million sites in that a mere mention of the word nano on the Google throws up in flat 0.11 seconds on computer screen. Now add the fact that nano-research has used several billion dollar worth of funding from the government and industrial sources and that the estimated potential market for the nano products in the next 20 years is may be worth about US $1000 billion, and one starts to get a sense of the excitement, power and promises of the nano. Indeed, the nano-engine is fuelling exponential growths of all the indicators that inspire awe, opportunities and optimism.

Of course, “Prediction is very hard, especial ly when i t ’s about the future”. However, by all indications, nano is here to stay. For one, the future of nanotechnology involves, integrates and impacts the three big themes of this millennium: the atom (materials), the computer

(information) and the gene (biology). Thus, nanoscience and nanoengineering are not the watertight compartments that have defined the disciplines of the yore, but truly inter-disciplinary activities that are forcing us to reevaluate, redefine and reshape the scope and tools of all engineering endeavors, as well as of chemistry, physics, biology and all hues of materials sciences.

A Road Map for India

Sure, nanotechnology today is some of what we used to do,

but now under a new banner; some of it is what we used to do inefficiently or insufficiently on micrometer or even larger scales; and some of it is truly novel and truly nano. Regardless, all of it has been useful in defining a separate identity for the young discipline, which will help produce the second generation of researchers more comfortable with this identity and far more adapt in a greater variety of nano-tools, concepts and techniques. The new identity is also likely to foster a far greater appreciation of nano-

nano technology


techniques from the disciplines that today appear very diverse and unrelated. Thus, the future will most likely be a creative and useful coming-together of the “bottom-up” and the “top-down”, the “dry” and the “wet”, the “soft” and the “hard” and the living and the insentient. At the same time, nanotechnology is rather uniquely suited for integration of sciences with engineering and boasts of a far quicker turnaround time from the lab to the marketplace compared to the other mature disciplines.

Contrary to the widespread impression, the most popular products of nanotechnology today and in the near future are not necessarily in the high or exclusive technology, but in the fast

filter applications (automotives, pollution control…) as well as applications in chemicals separations and processing, batteries, fuel cells and a wide spectrum of biomedical uses. The potential of even apparently simple products is simply mind-boggling.

Since nanotechnology is still in its infancy, it is driven largely by new ideas and new applications that can be quickly translated into market reality. This is an advantage that may not hold ten years down the road when the law of diminishing returns finally catches up. Clearly, now is the especially opportune time for the universities to provide a big thrust to the nano-research, which explains the flurry of new

include fast moving consumer goods, pharma and medicare products, energy (solar, fuel cells..), agriculture and food, environmental pollution control and remediation, clean drinking water (control of bacteria, arsenic, fluoride, organics and pesticides!). In general, products and fabr icat ion processes involving “soft” materials such as polymers, rather than silicon based electronics, hold greater potential in the Indian context. In opto-electronics, a promising area is polymer and organic based devices where control of structure, texture and interfaces on nano-scales is the key to device optimization. The most popular products of nanotechnology today and in the near future are in the fast moving consumer goods (paints , detergents , pharmaceutical, automotive, etc.) where nanotechnology is an enabling factor in formulating far better products with better economy. This is certainly important in the Indian context.

Other promising themes where a host of unique structural, electronic and transport properties that emerge on small scales can be exploited are microreactors, high area and selectivity catalysts, nanocomposites, nanotribology, nanopatterning and coatings, etc., to name only a very few!

Study of bio-based or inspired nanoscale systems exhibits novel properties, including relationships among chemical composition, physical shape, and function. Potential applications include improved drug and gene delivery, biocompatible nanostructured materials for implantation, artificial photosynthesis, clean energy, and nanoscale sensory systems, such as miniature sensors for early detection of cancer. Encapsulation and more efficient packaging of drugs including targeted and controlled release applications are especially significant in the

In India, Nanotechnology is driven largely by new ideas and new

applications that can be quickly translated into market reality

moving consumer goods (paints, detergents, pharmaceutical, etc.) where nanotechnology is an enabling factor in formulating far better products; in some cases, even with better economy. This trend is confirmed by the list of top nanotechnology products such as smart ski wax, breathable water-resistant sky jacket , wrinkle-resistant, stain-repellent threads, deep-penetrating skin cream, performance sunglasses, nanocrystalline sunscreen and high-tech tennis rackets and balls with many more.

One can thus begin simply by examining the nano-possibilities in the existing familiar products and technologies. For example, mass produced polymer ic nanofibers, suitably carbonized and functionalized, can displace the entire gamut of today’s

nano-centers in academic settings across the globe. It is hoped that the scope of both the collaborative research and teaching will enlarge enormously in the near future. Indeed, the very nature of high impact, useful nanotechnology research demands a shift from the customary multidisciplinary approach to interdisciplinary research; the latter implying an intimate nonlinear mixing of different “scientific silos” akin to a chemical reaction rather than the preservation of old and often rigid identities.

For India, the priorities in nano in the immediate future will most-likely be driven by the applications where new ideas (rather than existing massive and expensive infrastructure) hold the potential for success. As a few select examples, these areas

nano technology


context of developing nations as this provides an opportunity for re-packaging of generic inexpensive drugs.

N a n o t e c h n o l o g y i n f o o d and agribusiness spans over

nano technology

applications in food packaging, sensors, controlled release scaffolds for fertilizers, spray f o r m u l a t i o n s w i t h b e t t e r fo rmula t ion spreading on hydrophobic leaves and the use of nano in better utilized pesticides

and fertilizers, as a few select examples.

Development of novel and simple methods for the nano-patterning, nanofabrication and nano-manufacturing using soft-

materials (e.g., polymers) on nano- to micrometer scales by a variety of self-organizing and self-assembly methods is another area with potential. This is of critical importance, since every single nanotech application demands creation of structures with certain desired features, e.g., pixels, channels, porosity, surface area, connectivity, etc. Bulk nano applications involving structural colors, super-wetting, ultra adhesion and other functionalities require inexpensive, rapid and large area patterning strategies. For example, these could include a combination of routes such as phase change and phase separation, layer-by-layer synthesis, e-field and magnetic field induced patterning, templating, stress-engineering, ink-jet inspired printing, dip-pen, molecular-rulers, and nanosphere liftoff, etc. Special challenges are in the development of techniques for fast, parallel, large area, defect free pattering which will make it commercially viable for opto-electronic, NEMS and sensor applications.

Development of new methods for the creation of nanoparticles and woven and non-woven nanofibres with ultra-high specific areas, selectivities and interfacial properties with a view towards applications in composites, membrane separations, VOC removal, catalysis, reactors and adsorption.

Major Nano-Initiatives in India

The Government of India, in May 2007, has launched a Mission on


Nano-Science and Technology (Nano Mission) with an allocation of nearly 250 million dollars spread over 5 years. This is both a continuation and a qualitative leap from the earlier investments in the nano infrastructure building starting from the year 2001.

The focus in the first phase of nano-initiative (2001-2007) was on the creation of infrastructure and resources in the form of centers of excellence distributed over the entire nation, human resource development and funding of individual R&D projects. The overall leadership of the nano-initiative and the mission are provided by Professor C.N.R. Rao, National Research Professor & Linus Pauling Research Professor at the Jawaharlal Nehru Centre

Nuclear Physics, Kolkata (Prof. M.K. Sanyal).

In addi t ion , 7 cente rs o f nanotechnology with more specific missions have been established at Amrita Institute of Medical Sciences, Kochi, Kerala (Implants, Tissue Engineering, Stem Cell Research; Prof. Shantikumar V Nair,); S.N. Bose National Centre for Basic Sciences, Kolkata (NEMS & MEMS / Nano products; Prof. A.K. Raychaudhuri); National Centre for Biological Sciences, TIFR, Bangalore (Nanoscale phenomena in biological systems & materials; Prof. G.V. Shivshankar); I I T - B o m b a y , M u m b a i (Nanoelectronics , polymer nanosensors, nanobiotechnology; Prof. Ashok Misra); Indian Institute of Science, Bangalore

mission aims at capacity-building and training of large number of manpower in the emerging skills and themes. Equally importantly, the Nano Mission will support the development of products and processes for national development, especially in the areas of high relevance such as safe drinking water, materials development, sensors and drug delivery. Towards these goals, linkages between educational and research institutions and industry on one hand, and international collaborations are being actively promoted, as are full Public Private Partnerships.

A road map for India-Israel collaborations

Israel has made significant strides in both the infrastructure and product development related to nano. Based on my experience with the Israeli institutes and the work of scientists there, there is tremendous potential for collaborations of mutual benefit in nanosciences and technology. There is considerable expertise and work related to nano at Israel universities such as Technion-Israel Institute of Technology, Tel Aviv University, Weizmann Institute and Hebrew University. Some special features of India-Israel cooperation may include participation of Israeli and Indian companies in development of new technology with academia, exchange of graduate students and faculty, IPR generation and sharing, conferences and sharing of infrastructural resources. Although, the research concerns and themes in nano are rather global, I do think that there is special expertise and interest in Israel related to the themes discussed above in the context of India. The rapport that already exists between the scientists of the two countries should go a long way in making this mutually beneficial scientific collaboration a huge success.

Nanotechnology research demands a shift from the customary

multidisciplinary approach to interdisciplinary research

for Advanced Scientific Research, Bangalore.

There are currently 11 centers o f nanosc iences in India . These are Indian Association for the Cultivation of science, Kolkata (Prof. D. Chakravorty); IIT Madras, Chennai (Prof. T. Pradeep); University of Pune (Prof. S.K. Kulkarni); S.N. Bose National Centre for Basic Sciences, Kolkata (Prof. A.K. Raychaudhuri); National Chemical Laboratory, Pune (Dr. S. Sivaram); Jawaharlal Nehru Center for Advanced Scientific Research, Bangalore (Prof. G.U. Kulkarni); Benaras Hindu University, Varanasi (Prof. O.N. Srivastava); IIT, Kanpur (Prof. Ashutosh Sharma); IISc, Bangalore (Prof. S. Chandrasekaran); IIT Delhi (Prof. B.R. Mehta); and Saha Institute of

(Nanodevices, Nanocomposites, Nanob iosenso r s ; P ro f . S . C h a n d r a s e k a r a n ) ; I n d i a n Association for the Cultivation of Science (Photovoltaics & Sensor Devices; Prof. D.D. Sarma); and IIT, Kanpur (Printable Electronics, Nanopatterning; Prof. Y.N. Mohapatra). A special center with focus on computational materials science including computational nanosciences is established recently at Jawaharlal Nehru Centre for Advanced Scientific Research, Bangalore (Prof. Balasubramanian).

The Department of Science and Technology, Government of India is the nodal agency for implementing and coordination of the Nano Mission. In addition to a large number of specific research and development projects, the

nano technology


Biotechnology industry of India is on a roll. Registering an annual

growth rate of over nine per cent, biotech and pharmaceutical sector of the country is witnessing

India: Rising Star In Bio-Pharma World

The pace at which Indian biotech industries are gaining strength in international biotech arena, it is impossible for global pharmaceutical supply

chain to ignore their relevance, opines Dr. Iris Shafir.

billion in 2005-06 and recorded a revenue of US $2 billion in 2006-07. Driven by the average growth rate of 30–35 per cent (more than double the industry’s global growth rate), the sector is expected to touch US $5 billion revenues by fiscal year 2010. The industry players are quite excited at these promising prospects. Many Indian pharmaceutical companies are concentrating all their energies on acquisitions of foreign companies with an aim to expand their market reach and gain easy entry in regulated markets. Companies are increasingly adopting the strategy of acquiring existing generic drug marketing companies that hold valid licenses.

India: emerging global clinical trial center

Indian biotech industry, based upon industry inputs, is all set to emerge as a hub for global clinical trials, and custom research. Factors like a formidable pool of medical knowledge, a large patient population and diverse diseases - not only make clinical research viable but also a significant market for biotech medicines. Besides, low manufacturing and R&D costs, sophisticated technological infrastructure, English-speaking workforce coupled with strict adherence to Good Clinical Practice (GCP) and Good Laboratory Practice (GLP) and a government commitment

Biopharmaceutical

an unswerving growth trend. Often being compared and overshadowed by the dazzling performance of IT sector, India’s biotech business is now on a full swing and has carved a formidable presence across the globe.

A large pool of high quality scientists, world-class research and development facilities, and strong institutional networks,

3-solomixCompleteHoriz

are the factors that have helped India to become a booming star in the biotech world, lending its healthcare market an edge over its competitors. India is a fast emerging land of unique

opportunities for the world biopharma companies in the global market. Multinational biopharma companies across the world are flocking to India in large numbers and targeting bio-pharma market to market, manufacture, conduct clinical trails and recently, to outsource medical research.

The sector has surpassed US $1


to Intellectual Property Protection has led to a major spurt in business activity.

According to the Confederation of Indian Industry (CII), the clinical research outsourcing market in India, which was at US $120 million in 2005 is expected to touch figures anywhere between US $500 million and $1 billion by 2010.

Over the years, the government has taken several initiatives to fetch more foreign investments into the sector. The Drugs Controller General of India (DCGI) is continuously striving to make Indian bio-pharma market in accordance with the International Conference on Harmonization

Y in October 2005 led to the categorization of medical devices that would require DCGI clearance prior to import, manufacture, or marketing in the country.

BioPharma outsourcing – manufacturing and biotech R&D

For several years, the Indian pharmaceutical market had been

Related Aspects of Intellectual Property (TRIPS) under the World Trade Organization (WTO) and subsequently tightened regulations and increased GMP compliance. This move, coupled with the increasing pressures on profit margins and time to market of global pharma companies made India an attractive destination for pharma outsourcing.

Today, the estimated value of Indian pharmaceutical industry is at US $10.4 billion, which is growing annually at the rate of 10 per cent. While it accounts for only about two per cent of the world market, it enjoys the reputation of being the fourth largest market in product volume segment.

Hayward Manufacturing

Medair Biopharma

Biopharmaceutical

guidelines for clinical research. Under Pharmaceutical regulation, which is governed by Schedule Y of the Drugs & Cosmetics Act, new chemicals need permission from the DCGI before being administered to human subjects in a clinical trial.

The amendment to Schedule

described internationally as a complete inappropriate market for R&D based manufacturing. The market was dominated by copied generic drugs produced at low-cost by Indian companies.

In 2005, the Government of India introduced the Trade

Factors like formidable pool of medical knowledge, a large patient population

and diverse diseases make India, a viable clinical trial centre


Indian pharmaceutical companies offer a whole range of services with FDA approved facilities for drug development, along with the cost saving benefit of around 30 per cent. Consequently, leading global pharma companies have made India their Active Pharmaceutical Ingredient (API) hub.

Increasing number of Israeli companies find the Indian market attractive for biotech R&D. One such company is the Israeli start-up Target-In, which has recently signed a licensing agreement with Century Pharmaceuticals based in Vadodara, India, to co-develop its treatment for cancer, asthma and allergies.

India attracting global APIs

The Indian pharmaceutical industry is characterized by its high fragmentation, leading to intense competition in market. Domestic production meets approximately 70 per cent of the country’s requirement of bulk drugs and almost all the demand for formulations. Most essential drugs are under government price controls and only 15 per cent of its population is covered by medical insurance.

Biopharmaceutical

The country is ushering into a new era of product patents. The new developments in Indian pharma industry encourages global pharma companies to approach Indian API manufacturers for outsourcing and to partnering with Indian companies for

marketing & sales of final product. Consolidations are being witnessed among drug companies, hospital groups, medical distributors and retail druggists.

Incentives for potential investors have been in offer by the Indian

India emerges as strong API market for its low cost, FDA approved drug

development services

global pharma companies are looking forward to India for sourcing of APIs, off-shoring of clinical development and product development and marketing and sales of the final product through collaborating with domestic players. India enjoys a solid competitive advantage in the new product patent regime and no global pharmaceuticalsupply chain can ignore its relevance.

Biopharmaceutical


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A l a d d i n . c o m

Government, such as allowing 100 per cent foreign FDI for drug manufacturing and 10-year tax holidays for knowledge-based start-up companies.

Israeli companies are seeking to market in India, predominantly by joint ventures with local partners, as in the case of Enzymotec, which recently signed an exclusive in-licensing deal with a leading Indian pharma company Elder Pharmaceuticals Ltd., to sell

its cholesterol reducing dietary supplement, CardiaBeat, in India. Earlier this year, Elder snapped up 20 per cent stake in the UK vitamin & food supplement specialist NeutraHealth to tap into the growing trend for health-related products.

I n s u m m a r y , I n d i a ’ s P h a r m a c e u t i c a l s e c t o r i s increasingly emerging as an integral part of the world pharma value chain. Large numbers of


Concentrated innovations and tireless endeavour i n e l e c t r o n i c s h a s

transformed the face of Israel in global arena. The electronics sector excelled in incorporating varied industries and components in interdisciplinary areas. Textile, printing, agriculture and medicine are a few of the industries that now have electronics at their core.

Strengthening Ties in Semiconductor Industry

As all crucial factors and government assistance are in place, India offers a great outsourcing and R&D research hub to Israeli companies.

Ms. Poornima Shenoy & Dr. Vidya Mulky have the details.

night-vision systems and electro-optic-based robotic manufacturing systems.

T h e c o u n t r y h a s g a i n e d immense reputation for its large concentration of researchers and skilled manpower in electro-optics and lasers. A high level of special ization has been achieved in the areas of electro-

and networking communications, consumer electronics, automotive, defence and more, representing prime opportunities for investment and cooperation.

Not only consolidating its strengths in semi-conductor industry, Israel is also making headway into designing and manufacturing machineries that are used in the industry.

• About 80 per cent of Israel's total output is in the electronics (including semiconductors)

In the field of communications, R&D-based applications include digital processing, transmission and enhancement of images, speech and data. The products range from advanced telephone exchanges to voice systems and telephone-line doublers.

Today Israel is a world leader in fibre optics, electro-optic inspection systems for printed circuit boards, thermal imaging,

optic testing, measurement and imaging systems, laser materials processing, e lectro-opt ical component manufacturing and medical systems.

Israel has long been recognized as a leading force in the semiconductor industry. The semiconductor sector drives growth in many markets including microprocessors, data and voice communications, wireless, IP

technology


and information technology industries.

• Israel is the home to close to 10 per cent of the world's electronic designers.

• Over 60 per cent of al l electronics industry employees in Israel are highly educated engineers and scientists.

• Israel's fabless sector is third only to the USA and Taiwan.

The Indian semiconductor industry

The Indian semiconductor design industry consists of VLSI design, board design and embedded software companies. These are spread across the country and constitute both multinational and domestic companies. Bangalore is the hub of design activity, with increasing presence in Noida and Hyderabad.

The industry turnover is estimated at US $4.6 billion at present, with an engineering workforce at

around 102,120. It is estimated to reach US $43 billion by the year 2015 and provide jobs to 780,000 engineers.

Captive companies or subsidiaries of multinationals have scaled up to carry out end-to-end design

Major attractions of the Indian semiconductor market

• The Tota l Market (TM) revenue for semiconductors in India during 2006 was es t imated a t USD 2 .69 billion. Telecommunications,

ISA-EYI Benchmarking Study 2007 identifies talent as the key factor in growth of the

Indian semiconductor industry

technology

and development activities. Design start-ups in India are set to rise from 710 in 2006 to 3248 in 2015.

The ISA-Fros t & Su l l ivan design industry status 2005-2006 indicates nine out of the global top 10 fabless companies and 11 of the global top 20 semiconductor companies have India operations.

Although, in the past, India’s chip manufacturing has been restricted in its scope, the announcement of the Semiconductor Policy 2007 opens doors to global investors in both chip manufacturing and its ecosystem and related hi-tech manufacturing.

Information Technology and Office Automation (IT & OA) and Consumer Electronics segments contributed to 82.6 per cent to the TM revenues. The rise of these key user segments is anticipated to catapult the semiconductor TM revenues to US $5.49 billion in 2009, growing at a CAGR of 26.7 per cent.

• The Total Available Market (TAM) revenues were estimated at US $1.26 billion in 2006. This is approximately 50 per cent of the TM, which highlights that the other half of the semiconductor market is still untapped. The gap between TM and TAM revenues is expected to reduce by 2009 as


semiconductor TAM revenues are set to grow at a CAGR of 36 per cent. Semiconductor TAM revenues are expected to touch US $3.18 billion by the end of the forecast period.

• The top 5 end-user products are identified as the key drivers of the sector during the period 2007-2009 are:

- Mobile handsets - Desktops and notebooks - GSM base stations - Set top box and - Energy meters

• The top 4 semiconductor

products, identified as key drivers for revenue are:

- Microprocessor driven by desktops, notebooks and telecom equipment;

The ISA-EYI Benchmarking Study 2007 clearly points out that India advantage is its talent factor. Talent is a key differentiator and a focus area to facilitate sustainable growth. Some of the main findings which position India as an attractive design hub are: availability and scalability of talent, quality of talent, quality of technical education and the talent cost advantage.

Factors driving semiconductor companies to India

• Highly dynamic markets demanding new product v a r i a n t s / m o d e l s a r e pressurizing original equipment manufacturers OEMs/product companies to outsource for reducing the product development cycle.

investments in India are looking at the growing domestic market by 2015 and the consistency of consumption growth in end-user markets.

Apart from the factors, the driving forces behind the growth of the sector are the rapidly flourishing domestic market, strong education infrastructure, low cost design talent, short product lead times, reduced entry barriers, excellent government support, and last, but not the least, the improving infrastructure.

India-Israel: Industrial R&D cooperation

In recent times, Indian companies are becoming R&D oriented, doing collaborative research as well as outsourced research and development. This includes R&D for/with Israeli companies. Factors that aid increased cooperation are:

• Adequate knowledge about each others’ capabilities.

• A support system to bring interested companies of the two countries together and facilitate their working.

• Indian companies getting oriented more towards Israeli market from the current tilt towards the US, European and East Asian markets.

• Need for Israeli companies to look at joint new product development with Indian counterparts rather than looking to only outsource services to India.

Currently, the ground is ready for joint R&D work leading to commercialization of products and processes not just for the local markets but also for international markets. There is also scope for training in the field of advanced technologies and joint technology development and commercialization, institute-industry interaction etc.

technology

- Analog driven by mobile phone, monitors and UPS;

- Memory driven by desktops, notebooks, servers and telecom infrastructure;

- TV and audio systems, e n e r g y m e t e r s a n d converters, mobile and telecom infrastructure.

(Source: ISA-Frost & Sullivan s emiconduc tor marke t update 2007/08)

• Declining margins and research and development budgets initiated companies to look for cost-effective centers without compromising on the quality of work.

• Availability of a huge base of engineering workforce coupled with proficiency in English.

• Capt ive compan ies i . e . subsidiaries of multinational companies, making strategic

Bi-national cooperation in industrial R&D, the segment in which Israel has a competitive edge is very different than bi-national scientific cooperation, the segment in which both countries have good experience. Collaboration in these two segments will be a learning experience for India and Israel.

In an effort to promote cooperative research, the two countries should also look forward to bring together their scientists, research institutes, companies, S&T administrators, policy makers and think-tanks.

References:1. Department of Commerce, Government

of India, August 2007-India’s foreign trade data-April-June

2. Information on electronics: articles and news: Electronics industry in Israel, May 18 2007

3. New thrust to Indo-Israel trade, The Hindu, December 19 2006

4. Israel wants trade with India doubled , The Hindu Business Line, October 14 2006

5. Indian Economic and News Bulletin, From the Commercial Wing of Indian Embassy in Israel, April 5 2006

6. Israel India for Pact to Boost trade , Tribune News Service, November 11 2005

7. Israel-India, Final report of the Joint Study Group, November 2005

technology


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8. India-Israel set to promote bilateral trade, Deccan Herald, December 9 2004

9. Indo-Israeli Fund for R&D mooted, www.sify.com, June 2004

10. Indo-Israel trade meet to boost economic ties, The Hindu Business Line, January 10 2004

11. Why doesn’t India plug in? The Hindu, November 28 2001

12. Cosmetics, electronics thrust areas for Indo-Israeli trade, Manjula Sen, Indian Express, July 26 1998

13. India and Israel evolving strategic partnership, P.R. Kumaraswamy Mideast Security and Policy Studies, No. 40, September 1998, Begin-Sadat Center for Strategic Studies, Bar-Ilan University


India's one of the largest service sector industries is healthcare. With an estimated revenue of

about US $30 billion, constituting more than 5 per cent of GDP, the Indian healthcare sector has been growing at a frentic pace in the past few years. Driven by the increasing health conscious and growing middle class, which can afford quality healthcare, India has emerged as the well placed healthcare market with immense new opportunities.

India with multitude of opportunities

In this phase of the economic upswing, India is witnessing changes in its demographic profile accompanied with lifestyle diseases and increasing medical expenses. Coupled with expected increase in the pharmaceutical sector, the total healthcare market in the country has the potential to rise from US $53 billion industry to US $73 billion (6.2 per cent to 8.5 per cent of GDP) in the next five years. Private spending accounts for almost 80 per cent of total healthcare expenditure. According to CII-McKinsey study on ‘Health in India’, Indians will spend US $ 45.76 billion on healthcare in the next five years.

The fact that nearly 90 per cent of the private healthcare is met

Unlimited Opportunities for Israeli companies in the Indian

Healthcare Sector

by the unorganised sector opens a huge potential market for the organised sector. Also, the rising Indian middle class along with its increasing purchasing power and willingness to pay for quality healthcare has been a prime driver for emergence of high quality health facilities. Although the government-run public sector has taken a lot of initiatives for development of

healthcare care facilities, they were unable to satisfy end-consumers, which has brought private players into the picture. Several private companies have stepped in and established hospital chains across the country.

Going by the present trend, the private healthcare sector will form the largest chunk of healthcare

In the wake of booming economy and strong government support, international companies are pushing the boundaries of their markets and reaping big

rewards in Indian Healthcare Sector, finds out Mr. Sateesh Kulkarni.

healthcare

Owing to the health conscious middle class, which is ready to pay for quality, India

emerges as well placed healthcare market


Healthcare Holding, Malaysia-based Columbia Asia, Dubai-based EMAAR Group, and US based Prexus Healthcare Partners.

Realizing the latent promise in this sector, most players have big investment plans lined up. Apollo is spending about $200 million by 2009 while its chief competitor, Fortis Healthcare Ltd is in the process to add 28 hospitals to its 12-hospital chain by 2012. Wockhardt Hospitals is expected to raise its chain to 30 hospitals. Real estate developer, Ansal Properties and Infrastructure Ltd. have tied up with Fortis group to build hospitals. Investment firms - Apax Partners, IFC and Trinity Capital have recently invested over US $200 million in hospital firms.

healthcare

Nearly 90 per cent of the private healthcare is met by unorganized sector, a huge potential market for organized sector

are making their entry into Indian market through joint ventures and technology and training collaborations with their Indian counterparts.

Some of the prominent corporate hospital networks in the country are Apollo Hospitals, Fortis Healthcare, Max Healthcare, Wockhardt Hospitals , and Manipal Group. Simultaneously, a number of new players like Artemis Health Institute, Paras group and MediCity among others are also in the process to set up their establishments in the country.

The global majors, who have evinced keen interest to tap the opportunities, include Singapore-based Parkway Group and Pacific

in India by 2012 and is likely to double to US $35.7 billion by that time. And, if health insurance cover is extended to the rich and middle class, this estimated figure is expected to increase by an additional US $8.9 billion.

Emergence of private players

The wide range of lucrative opportunities offered by the Indian healthcare market have made it a major draw for a number of local and foreign companies. Apart from investing in setting up healthcare infrastructure, a growing interest can be seen among domestic and international financial institutions, private equity funds, venture capitalists, and banks to exploit new arising opportunities. There is a huge potential across a wide range of segments such as drugs and pharmaceuticals, medical equipment, diagnostics and research. In the hospitals and medical devices segment alone, currently around 20 international players are competing to grab a pie in the sector. These players


Radiologists at the Max Hospital in New Delhi review cardiac data

long-term capital. Import duty on medical equipment has been set to 5 per cent and depreciation limit is set to 40 per cent to encourage imports of such equipments.

To give a fillip to medical tourism, a new category of visa ‘‘Medical Visa’ has been introduced by the government.

Opportunities in Health Sector

The str iking feature about the Indian healthcare sector is an array of new ‘avenues of opportunity’ offered by the sector. The key areas offering this opportunity are:

Medical infrastructure

Medical infrastructure forms the largest portion of the healthcare pie. Going by the current low bed per thousand population ratio in India, an additional 1 million beds are needed to attain a respectable bed to patient ratio. Out of this, about 9,00,000 beds are expected to be introduced by the private sector entailing a total investment of US $69.7 billion over the next six years.

healthcare

Government support offered to investors

The widening up of the scope of opportunities in health sector and the large number of inflow of private players are attributed to the government’s liberal National Health Policy.

Under National health Policy, the government has offered a number of incentives for facilitating entry of the private companies in this sector. These incentives include allocation of land at subsidised rates for new hospital projects, allowing 100 per cent FDI subject to approval. The National Health Policy, aiming at widening the extent and coverage of healthcare, envisages a greater role for the private sector in the urban primary care and tertiary care sectors along with the growth of private health insurance. Building healthcare infrastructure in the rural areas is another area, which is high on the priority of government for which, special tax exemptions are on offer for private players.

Infrastructure status is conferred on the healthcare industry allowing private hospitals to raise cheaper

TelemedicineIn order to provide access to quality healthcare facilities to a large segment of the Indian population, telemedicine, an innovative technology, is being integrated into the healthcare model for effective utilization of scarce human resources.

Training & EducationTraining for personnel in the health sector - doctors, nurses, technicians and healthcare administrators – is another area that brings lucrative opportunity for both domestic and foreign players. For the foreign players, there is a dual advantage; first to gain a foothold in the education sector and second is to open up a source of talent for their own countries.

Medical equipment The medical equipment industry, valued at US $2.17 billion (in 2006) is growing at the rate of 15 per cent per year. This will reach US $4.97 billion by 2012. Currently over 65 per cent of the medical equipment is being imported. There is an immense

prospect of making India a manufacturing base, leveraging on its high quality engineering skills and strong IPR regime.

Medical Textiles

Growth in medical infrastructure will be accompanied by demand for associated products and services. One such important industry is medical textiles, which is expected to almost double up to US $753 million by 2012 from the current size of US $405 million.

Medical value travel

The cost of advanced surgeries in India is a miniscule percentage of the costs incurred in the west. With hospitals moving in for quality accreditations like JCI, NABH & ISO and tie-ups between insurance players and hospitals,

healthcare

medical travel will witness a major spurt. The estimated value of the industry will reach $1.48 billion by 2012 from its current size of $450 million.

Health insurance

With increasing emphasis on health insurance and an aggressive sales pitch by private health insurers, premiums grew to 133 per cent for private players, whereas the overall industry premiums grew at 47 per cent. Taking such healthy figures in consideration, the health insurance sector is expected to reach US $3.8 billion in collected premiums by 2012 as compared to US $711 Million in 2006.

Clinical trials and Health services outsourcing

Clinical trials and Health services

outsourcing are other areas that display immense potential for growth in years to come. Clinical trials industry is expected to touch US $1 billion by 2010, while Health services outsourcing sector is set to grow to US $7.4 billion by 2012.

Sensing the vast potential offered by the Indian healthcare sector, domestic and international players including investment firms are investing their funds in large amounts. Hospital chains are collaborating with corporates and private equity firms.

In the wake of huge gap between demand and supply and low but increasing penetration of organized sector, healthcare industry of India guarantees stable cash flows with 30-40 percent profit margins.

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into steady growth and a history of successful mergers and acquisitions, establishing

Aladdin as an invaluable partner for software developers and Internet security professionals.

Aladdin’s products include: the USB-based eToken device for user authentication

and e-commerce security; the eSafe line of content security solutions that protect

PCs and networks against malicious, inappropriate and nonproductive Internet-borne

content; and HASP SRM, the hardware and software-based digital rights management

suite of solutions, protecting the revenues of developers.

For more information in IndiaPlease Call +919967552929 or email [email protected]

North America T: +1-800-562-2543, +1-847-818-3800 UK T: +44-1753-622-266 Germany T: +49-89-89-4221-0France T: +33-1-41-37-70-30 Benelux T: +31-30-688-0800 Spain T: +34-91-375-99-00 Italy T: +39-333-9356711Israel T: +972-3-978-1111 China T: +86-21-63847800 India T: +919-82-1217402 Japan T: +81-426-607-191All other inquiries T: +972-3-978-1111


Opportunities in Indian i n f r a s t r u c t u r e a r e immense , a l though

implementat ion remains a challenge. It is estimated that over US$ 500 billion is required to be invested in infrastructure over the next 5 years, mainly in highways, railways, airports and ports. The Indian government is encouraging foreign investment in this sector. Therefore, Israeli companies wishing to be involved in the challenging task of building modern state-of-the-art infrastructure for India, can find it a very rewarding experience.

Introduction

The infrastructure sector has finally come into its own in India. With the economy growing at a rapid pace over the past few years, an acute shortage in infrastructure capacity is being felt across the country. Realising the criticality of infrastructure in sustaining economic growth, the government has paid a lot of attention to this sector since it came to power. The Committee on Infrastructure headed by the Prime Minister meets regularly to discuss and finalise policy initiatives. The Planning Commiss ion has also been actively involved in developing a framework for public-private partnerships in infrastructure sectors with sector-wise programmes and financing plans.

Indian Infrastructure: Opportunities Galore

Identified as the key for the economy to hit 10 per cent growth, booming Indian infrastructure, backed by strong government support, is the storehouse of opportunities for Israeli business

community. Writes Mr. Ajay Khanna.

Large investments are envisaged for infrastructure development in the next 5-6 years through a combination of public and p r iva te invo lvement . The government has identified the PPP approach as the cornerstone of its policy on infrastructure development. The advantages of PPP in supplementing scarce public resources, creating a more competitive environment and improving efficiencies are well established. A beginning has already been made in most sectors. The Delhi and Mumbai airports are being modernized and upgraded through private sector participation. All highway projects are being awarded to private sector players on a BOT basis where the concessionaire is allowed to collect and retain tolls for the period of the concession.

Many Opportunities for Foreign Investment

The government is encouraging foreign investment in India’s infrastructure sector. Government approval is not required for FDI of up to 100 per cent in most sectors and foreign investors are generally allowed to repatriate up to 100 per cent of their profits from investments in India. Sectors such as ports and highways in the infrastructure space have been able to attract a fair amount of FDI. Major international players in the ports sector such as Maersk and others have invested in India. The consortia that are modernizing the Mumbai and Delhi airports include foreign airports that have formed partnerships with local developers. Many of the BOT contracts for building highways

Infrastructure


have been awarded to foreign players. Israeli firms that have expertise in any of these areas would find it rewarding to invest in India.

Further, the Indian infrastructure story has seen huge interest from foreign financial investors. For example, a large number of private equity funds are investing in companies that own operational infrastructure assets as well as assets under construction. Nagarjuna Constructions and IVRCL are two Indian companies that have benefited from such in te res t . Ind ian f inanc ia l institutions such as IDFC and IL&FS have raised foreign debt to fund infrastructure projects. There are many such opportunities available in the infrastructure space.

Plan (and assuming that GDP growth is maintained at 9 per cent every year), the requirement works out to about US$ 500 billion over the entire Plan period. This estimate also matches a tally of the investments required in each sector.

Infrastructure

Electricity: Capacity addition in the power sector has remained below target for several years

A section of the Golden Quadrilateral highway between Chennai - Bangalore now, leaving the performance

of the power sector much below what is desired. India plans to add 70,000 MWs of power generation capacity over the next five years. The projected investment in the electricity sector, including conventional and non-conventional energy, is US$ 150 billion..

US$500 Billion Required Over Next 5 Years

The Planning Commission has attempted to measure the amount of investment required in the infrastructure sector over the five-year period of the Eleventh Plan (2007-08 to 2011-12). If India’s

investment in infrastructure were to rise from 5% of GDP currently to 9% by the terminal year of the


Mumbai-Pune Expressway

Infrastructure

Telecom: Opening up the telecom sector has led to massive investments and expansion in supply coupled with improvement in quality. The teledensity at over 22 per cent has exceeded all targets. An investment of US$ 65 billion is projected for the telecom sector during the Eleventh Plan. Over 60% of this is expected to come from the private sector.

Highways: India is currently engaged in a massive programme to modernise and upgrade its highways. Model road concession agreements have made it much easier for private sector players to participate in the world’s largest highway program. The projected investment in the roads sector, including national highways and rural roads is US$ 76 billion, of which over 60 per cent is expected from the public sector.

Railways: The Indian Railways is preparing an ambit ious investment program including the construction of dedicated freight corridors between Mumbai-Delhi and Ludhiana-Kolkata. Projected investment for the railway sector during the Eleventh Plan is US$ 62 billion. This includes an investment of US$ 5.75 billion in the Metro Rail projects of various cities.

Airports: There is an urgent need to address capacity constraints in airports. With the entry of private sector players, the aviation sector has been experiencing unprecedented growth rates of over 20 per cent. The modernization of the Delhi and Mumbai airports are being undertaken by private sector companies, while the Kolkata and Chennai airports are being modernized by the government owned Airports Authority of India. The government is also planning to revamp 35 non-metro airports in the coming months. Two new international airports at Bangalore and Hyderabad are being developed through the

public-private partnership route. An investment of US$ 8 billion is projected for airports during the Eleventh Plan, of which 74 per cent is expected from the private sector.

Ports: The government is planning to develop 76 new berths by 2012 of which 53 are to be undertaken through PPPs. US$ 18 billion of investment is projected for the ports sector during the Eleventh Plan, in which PPPs are expected to play a dominant role.

Sector-wise Investment Anticipated in the Tenth Plan and Projected for the Eleventh Plan (at 2006-07 prices)

SEcTORS US $ billion @Rs. 41/$

Sectoral shares (%)

US $ billion @Rs.41/$

Sectoral shares (%)

Electricity (incl. NcE) 70.5 35.2 150.4 30.5 Roads and Bridges 31.7 15.8 76.1 15.4 Telecommunication 22.5 11.2 65.1 13.2 Railways 20.3 10.1 62.2 12.6 Irrigation 32.1 16.0 53.1 10.8 Water Supply and Sanitation

15.6 7.8 48.6 9.9

Ports 1.3 0.7 18.0 3.7 Airports 2.1 1.1 8.5 1.7 Storage 2.3 1.1 5.5 1.1 Gas 2.1 1.1 5.0 1.0 Total 200.5 100 492.4 100 Source: Planning commission of India


Urban Infrastructure And Housing: Needed Urgently

Over the last decade, the real estate market has witnessed exponential growth. Commercial real estate has boomed with a rapidly growing economy and an

increasing number of organized sector players. On the other hand, rising incomes and access to finance has lead to unprecedented rise in housing demand. Despite

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the areas where investment is urgently needed. The government launched the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in December 2005 for a seven-year period to provide funds for the improvement of cities. Local governments can leverage these funds for financing projects that will provide better civic amenities.

Overall, we see exciting times ahead for the infrastructure sector. The opportunities are immense but implementation remains a challenge. Whether or not investments will match what has been targeted remains to be seen. But there is a sense of urgency among policy makers that has not been witnessed before. The private sector is also looking forward to being involved in the challenging task of building modern state-of-the-art infrastructure for India. Foreign investors, who may have held back in the initial phase, will certainly find it a rewarding experience to participate in this phase of India’s growth.

Infrastructure

With the boom in real estate and housing, there is an urgent need to upgrade urban infrastructure. Drinking water, sanitation and sewage, urban transport and municipal services are some of

Mumbai-Worli Sea Link

rising investment in this sector, the demand-supply gap is likely to remain high in the medium-term. This sector is also attracting a considerable amount of FDI, given that 100% FDI is allowed under automatic route in townships.

Mumbai-Pune Expressway


With depleting natural e n e r g y r e s o u r c e s , exploration for alternative

energy resources occupies the top position on national agendas of countries around the world, pledging billions towards clean energy initiatives. Search for newer and alternative energy resource has become all the more essential part of national agenda of the fastest developing nation like India. And, when India is well identified as energy guzzler to fuel its meteoritic economic growth in international arena, the momentum to promote clean-energy business is translated into the next big investment boom, with investors rushing to finance start-ups in clean technology.

As the nation is faced with rising energy costs, dependency on foreign oil and an overall environmental risk, the energy sector has experienced s igni f icant opportuni ty . The estimated gap between supply and demand of power of the country stands somewhere between 50,000 and 100,000 megawatts, which is growing every year by one and a half times of the entire capacity of the State of Israel. Indian authorities have been doing their best to meet these challenges by enhancing

Renewable Energy: Scripting Success of Israeli

Companies in IndiaRenewable energy in India may not seem a lucrative bet to many. But

Mr. Noam Ben-Ozer and Mr. Ran Shahor of Focal Energy are confident of the success of their venture in the country, finds out Ms. Shilpi Aggarwal.

participation of public, private and foreign investors in this sector.

In recent times, India has become keen to transform and make this industry more hospitable to foreign investors than it used to be in the past. An Ernst & Young report says that India has emerged as the third most attractive market for renewable energy in the world, owing to the outstanding government support both at national and regional level for foreign and local investors in renewable technologies. The renewable energy policy stated in the 11th five year plan of the Government of India is aiming at renewable and a non-conventional source to eliminate the huge gap of demand and supply in power sector, translating into a further impetus to the investments and growth rate of this sector.

One such company, which has shown immense interest in Indian non-conventional energy market is Focal Energy. The young company was established with the vision of investing and managing a portfolio of income generating assets in energy and infrastructure.

After exploring a number of potential overseas geographies, it did not take long for this ambitious enterprise to decide to focus all its efforts on the distributed and renewable energy market of India. In India, Focal Energy is focusing primarily on two overlapping sectors of the energy market, which, it believes, would play a big role in addressing the energy gap of India - Distributed energy and Renewable energy.

Distributed energy in a country may seem like a narrow focus to outsiders, especially when non-conventional energy in India is not yet considered a mature or well-tested market for foreign investors against the most sought after technology and infrastructure sectors. To this, Mr. Noam Ben-Ozer and Ran Shahor, founders of the company retort back, “We know that it is a bet, but we are very comfortable with this. We are confident not only of the magnitude of the opportunity, but also about our approach”. Similar sentiments are also echoed by Sunder Srinivasan, Focal Energy’s partner in Bangalore, who has years of experience in renewable energy investments in India, “Focal Energy has made a very impressive progress in building capabilities in India in a short timeframe. Our approach has been aggressive and,

non-conventional energy


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We partner with domestic players who take the initiative to advance small to mid size (typically up to 50 megawatts) renewable energy plants that are either already in operations or are ready to be constructed. We get involved with new plants only when the site and all necessary clearances and long-term power contracts are already in place”. Mr. Shahor further cited the example of partnership of the company with the Israeli Electric Corporation to assess and support the planning of a captive coal power plant, the initiative that has recently led to the signing of a memorandum of understandings (MoU) between Focal Energy and ISPAT Industries, one of India’s largest private companies, owned by the prominent Mittal family.

Through his experience in Indian market, Mr. Ben-Ozer advises to potential investors, “India is a huge market, promising attractive financial returns on investments. What you actually need i s concent rated and meticulous investment in terms of time and resources. Capabilities should be built right from the ground. I suppose, our extensive experience here greatly helped us in comfortably raising capital into Focal Energy and investing it in specific opportunities in India. At the end of the day, what gives immense satisfaction to us is the fact that with our strict focus on renewable energy, we and our partners are doing something good for India as well as for the entire world.”

non-conventional energy

at the same time, meticulous and cautious. You have to take time and invest resources to know the market, its players, and its risks and opportunities”, explains Mr. Srinivasan. The result is evident from the active and broad pipeline of investments in renewable and distributed energy of the company in India.

From the beginning, the company set the goal of becoming a true local enterprise. Today, it has representation of dedicated and industry-experienced executives, and a broad and effective network in four key cities of India. On the issue of partnership with local players, Mr. Shahor says,” We do not assume someone could come from overseas and do it alone.


Since independence, India has always been focusing on the development of its rural

population. For India, agriculture represents much more than a mere slice of economic pie – it is the very lifeblood of the country, the source of livelihood for its 70 percent of the population, the base upon which the entire edifice of the nation rises.

India’s Minister of Finance, P. Chidambaram in his February 28, 2007, budget speech made a point, “I shall now take up our main challenge: agriculture. I may recall the words of Jawaharlal Nehru, who said “Everything else can wait, but not agriculture.” In YaleGlobal On-line on April 20, 2007, Indian Mira Kamdar said,”The Indian government cannot afford to … let rural India languish. The best strategy it can embrace is one where farmers’ needs dictate innovative solutions from the bottom up and

Israel Building on Success in Indian Rural Sector

Israel joins hands with India to expedite the development of its largest and most viable sector, rural sector. Dr. Martin Sherman outlines

some important initiatives in this regard.

where social entrepreneurship can flourish along with an increasingly empowered and prosperous rural population”.

These excerpts reflect the rationale behind an ambitious initiative currently being formulated at the Samuel Neaman Institute (SNI) at Haifa’s Technion, which could open up an enormous range of diverse opportunities for Israeli business in India.

Challenges of Indian rural sector

India’s agricultural sector has been underperforming for several years - especially in relation to the other booming sectors in the burgeoning economy. The

International Herald Tribune (IHT) has refered it as the bane of the Indian economy. As the IHT article, in February, 2007 puts, 115 million farming families, dispersed among more than 600,000 villages, whom growth has left behind. They are unable to increase their yields at the pace at which urban consumption is growing, causing prices to rise. The farm sector, which employs two-thirds of the country but accounts for just one-fifth of the economy, has grown at slightly more than 2 percent a year for the past several years. That is a far cry from the 9.2 percent growth projected for the broader economy in the fiscal year ending March 31.

Efforts to enhance socio-economic realities of Indian rural sector cannot be limited

to merely improving yields and upgrading cultivation techniques

rural india

Farmers at work in a Paddy Field


There are several reasons for this predicament, both social and structural. One of the major problems is the small size of Indian farms, with almost 70 per cent of farmers having holdings of less than two hectares (twenty dunams) and some as small as half an acre (two dunams). Moreover, the situation is further exacerbated by the fact that over the time, even these inadequately sized units become smaller and smaller- and therefore less and less competitive – because of continual sub-division due to inheritances. Indeed, a 2003 report by the Earth Policy Institute pointed out that in India: As land holdings are divided for inheritance with each succeeding generation, the 48 million farms that averaged 2.7 hectares each in 1960 were split into 105 million farms half that size in 1990… The average Indian family…will be hard pressed to pass on viable parcels of land to future generations.

This is a situation that generates serious economic problems, which permeate throughout the entire economic and social fabric of the nation. The YaleGlobal On-Line source notes, while farmers struggle, agricultural production cannot meet demand. Rising food prices are fueling inflation, causing real suffering among the 850 million Indians who live on small income.

On the one hand, these are circum-stances that clearly represent a looming socio-economic crisis but on the other hand, they equally clearly represent an economic opportunity of enormous dimensions for the corporate world. It is toward the latter that the SNI initiative addresses itself.

Opportunities for Israeli companies

To facilitate the orderly trans-formation of Indian agriculture to

To facilitate the development of rural sector, it is essential to devise ways to increase income of the small farmer, and provide him alternative and/or additional rural-

based sources of living

rural india

meteoric growth will also bring unprecedented commercial and economic spin-offs for those involved with it.

Need for molistic approach

Agriculture is the point-of-departure for any initiative aimed at the enhancement of the socio-economic realities in rural sector. Efforts cannot be limited to merely improving yields and upgrading techniques of cultivation. If the benefits of more efficient and productive agriculture are to translate into sustainable enhancement of the lives of the rural population, an integrative systemic approach is essential. This will entail developing the means for marketing the increased agricultural output, the logistics systems to transport it from the farmer’s field to the consumer’s kitchen, via appropriate storage, refrigeration and packaging facilities. It will also require development of various processing

modern and competitively viable configurations, it is essential to devise ways to increase the income of the small farmer in India, and provide him alternative and/or additional rural-based sources of livelihood. The inevitable quest to identify and implement such means of transformation will open up vast areas for Indo-Israeli collaboration. Israeli agricultural expertise and know-how are among the most advanced in the world. Accordingly, the contribution Israel can make toward advancing Indian agriculture - both by enhancing existing activities and by introducing new ones - is considerable.

Indeed, i t may not be an exaggeration to assert that the development of India’s rural sector could be one of the most momentous undertakings of this century, if addressed with a judicious mix of resolve and intelligence, of political will and intellectual force. This


industries to make produce more durable and the means of consuming it more diverse.

It is important to note here that the Indian retail sector is undergoing a rapid revolution with international supermarket chains establishing themselves throughout the country. This too will have far reaching impact, not only on patterns of consumerism, but on Indian agriculture as well, creating serious challenges for existing structures, and opening up opportunities to apply more advanced techniques to address the increasing demands of quality control - such as computerized systems of the kind developed and operated in Israel.

In addition, despite criticism that retailing of food is reducing the availability, and increasing the cost of food, the bio-fuel industry - including the cultivation of crops for raw material as well as establishment of fuel production plants - is likely to become a growing part of India’s rural sector in the coming decades. For example, in some areas of India, ethanol production is being proposed to facilitate transfer from rice cultivation to maize in order to prevent depletion of ground water and reduce energy consumption required for irrigation.

All of this will put increasing demands on the rural infrastructure systems – such as roads, rail and communication systems - which will have to be upgraded to adequately accommodate the changing needs of the rural sector. Another area of crucial importance, and one in which Israeli companies could make considerable contribution, is that of water management – again across a wide range of activities, from irrigation to conveyance and conservation, to sewage recycling and the exploitation of marginal waters.

Development of Non-Farm income sources

However, rural development cannot hinge on the enhancement of agriculture and its derivative activities. In fact, as levels of agricultural productivity rise, so the levels of agricultural employment fall – creating potential for social unrest and increase in the urban migration into India’s already overcrowded cities. As a report for the Asian Development Bank points out: “…employment opportunities in rural India need to be increased….Rural employment in India has been synonymous with the employment in agriculture sector; however, with the demographic pressure on land and limited opportunity of expanding cultivated area, the role of non-farm sector is becoming important.”

Here again Israel ’s inputs could be invaluable. Israel has experience in weathering severe crises in the agricultural sector and its experience in generating additional non-farm sources of

income for the rural population - such as rural tourism, outdoor recreational activities, cottage industries and so on, could be of particular practical worth in this regard.

Unconventional aspects of the rural development

Another sphere which dovetails with the desire to upgrade the quality of rural life and provide non-farm sources of employment, is the establishment/expansion of rural clinics. Development in this area not only provide valuable services to rural communities, but also offer employment (initially for less skilled positions in maintenance and clerical positions) and training (for skilled and professional positions) for the local residents. This opportunity also opens up opportunities for Israeli firms to equip and supply such clinics. A recent article in the Indian Journal of Medical Ethics entitled “Governance in Healthcare” by Bashir Mamdani, focused on the administrative

SNI has successful collaboration with India in the field of IT, Hi-Tech, Science and

Technology, and now in rural development

rural india


A doctor at a clinic in Patna, Bihar State, India talking to patients in remote villages, March 2007

challenges facing health care in rural India. This revealed how opportunities for Israeli firms may arise in unexpected avenues. Among other things, the article suggests enhanced monitoring equipment in clinics could dramatically improve the poor work attendance medical staff, just like in the case of school teachers.

Other innumerable opportunities, not directly associated with rural development, were highlighted in an article, “Smart Money for India’s Rural Poor”, in FortuneMagazine. In the article, the renowned economist Lord Meg-hnad Desai suggests that the Indian government should adopt the use of biometric “smart cards” to transfer government payments to the half a billion rural poor rather than by the current post office system. Both ICICI Bank and Citibank are exploring this possibility, which in principle has been endorsed by Finance Minister P. Chidambaram. This illustrates how advances in seemingly unrelated fields can be integrated into the development scheme for India’s rural sector.

The SNI initiative

The recognition of the huge potential for Israeli companies in India’s rural sector prompted SNI to embark on this initiative, in which the overall aim is to promote awareness of this potential and accelerate its realization. Head of the SNI, Prof. Nadav Liron put the rationale of the “enlightened self-interest” that lies behind the initiative in the words that say, “The aim is to help India to help Israel.”

Located on the campus of Haifa’s Technion, Israel leading technological institute, SNI has easy access to a wide range of relevant competencies – from agricultural engineering to medical science; from biotechnology and food engineering to hydrological

research and water management. SNI also has developed a successful ongoing cooperative relationship with India in the field of IT and Hi-Tech, interfacing with the Department of Science and Technology (DST) and the Technology Information, Forecasting and Assessment Council (TIFAC).

It therefore seems only logical that SNI expand its “Indian Initiative” to this additional sphere which is of crucial importance to India.

In Israel the relevant organs of the Ministry of Foreign Affairs and Ministry of Agriculture- the Center for International Cooperation (MASHAV), The Center for Inter-national Agricultural Development Cooperation (CINADCO) – have conveyed their support for the project.

approach. Special emphasis will be placed on the mutual benefits, derived from Indo-Israeli collaboration. SNI will initially focus on the States of Punjab and Haryana, to devise a model that could be subsequently expanded to other regions of the country.

2. A “bottom-up” problem-solving effort designed, in collaboration with its Indian counterparts, to identify issues of particular urgency in specific areas, and to explore ways to apply Israeli expertise and experience in effecting solutions.

3. The identification of Israeli corporations with the relevant know-how and competencies to meet Indian needs and to offer “best practices” proposals based on proven Israel i expertise and its adaptation

rural india

Application of SNI initiative

In principle, SNI initiative is being conducted on three different planes:

1. The formulation of a compre-hensive policy document, in cooperation and consultation with its Indian counterparts, that would comprise a strategic blueprint for the development of the Indian rural sector, along the lines of integrated, holistic

to prevailing conditions in India.

In this way SNI serves as a catalyst for Israeli business enterprises to benefit from the enormous potential, offered by India’s rural sector across a wide range of diverse activities – from research and consultancy via cultivation and water management to commerce, manufacturing, and finance.

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Agriculture is the largest sector in the Indian economy feeding a popu-

lation of billion and providing employment to over 50 per cent of its workforce. India’s supply strength in agriculture is immense with the potential to emerge as the leading agro economy of the world. The key drivers favouring India’s potential are diverse agro climatic conditions, highest arable land-to-land size ratio and the largest irrigated land network. That is why, agricultural sector in India has made a niche by being the second largest producer of fruits, vegetables and wheat in the world. Despite success on many counts, Indian agriculture faces numerous challenges and constraints, which have become the centre stage of policy discussion. Over the years, several reasons have been cited for consistently poor performance of agriculture, foremost being a deceleration in the crop productivity, lack of technological, and rudimentary production practices among many others.

Israeli Agriculture Synonymous with Technology

While India has not yet been able to capitalize on its strengths and has ended up as net importer of food grains rather than being a food basket of the world, Israel on its part is the leading country in the development of technology, that despite Israel’s geographical limitations, places it well ahead

Developing Synergies in Agri-Business

of countries in agricultural output. Agriculture in Israel contributes almost two per cent of the nation’s GDP and plays a vital role as a major food supplier to the local market while being an important component of Israeli exports. All this is attributed to Israel’s focus on technology in its agriculture sector, a sharp contrast to agriculture in India.

The intensive technology driven nature of Israel's production stems from its strong emphasis to overcome scarcity of its natural resources, particularly water and arable land. Comparison in the yields of various horticulture

crops in India and Israel sums up the state of agriculture in both the countries.

Developing Synergies in Agriculture and Food Processing

The Federat ion o f Indian Chambers of Commerce and Industry (FICCI) study ‘India Israel Partnership Potential Synergies in Commercial Relations’ depicts significant variations in value addition and wages per employee in both countries. To quote an example, under commodity grouping processed meat, fish, fruits & vegetables and fats, value

Dr. Sannadi Bhaskar Reddy and Mr. Nitin Srivastava highlight the ripe time for India and Israel to forge partnerships in agriculture and

allied sectors for mutual benefits.

agriculture

Factor price advantage of India along with advanced agri-technologies of Israel offers

unique business proposition


Source: FICCI ‘India Israel Partnership Potential Synergies in Commercial Relations’; FICCI 2005

addition per employee in India stands at US $4055 per employee as opposed to Israel’s US $34860 per employee. But, what puts India favourably against Israel is its cheap labour, which under the same category costs as low as US $794 per employee per year against Israel’s US $23871. Consequently, factor price advantage of India along with advanced and efficient processes of Israel presents a unique business proposition for a sustained and profitable partnership. Indo-Israeli collaboration can be extended across the complete agri-value chain starting right from production, aggregation, transportation, warehousing, processing and final marketing of the product. Besides, there are several opportunities in allied sectors of agriculture elicited below:

Micro Irrigation: Today, Israeli companies command a market share of about 50 per cent in the US $1-1.5 billion global micro irrigation market1. Micro irrigation industry is growing 15 per cent annually.

Although, total potential for micro irrigation in India is 69.5 million hectares of which only 2.6 million hectares of land at present has been brought under micro irrigation. This reflects a huge market potential for

There is a collaboration since 2007 between Israel’s Plastro Plasson Irrigation and the Rajasthan State Agriculture Marketing Board (RSAMB) to create “Rajasthan Olive Cultivation Ltd” (ROCL)3 for growing olives in Rajasthan. Many such partnerships need to be forged to transform desert lands in India to agricultural oasis.

Fresh/Processed Fruits & Vegetables: The consumer demand for fresh Fruits & Vegetables (F&V) is estimated at US $32.5 billion

and is growing at a CAGR of 11 per cent in India. Less than two per cent of the total F&V produced in India is processed into juices, jellies, pickles, jams etc. One major issue with the processing sector in India is lack of scale in most units, which in turn is linked to the absence of backward and forward linkages. 100 per cent FDI is permitted in food processing. New Wave of Organized Retailing in India: With rising disposable incomes at a rate of 1.6 per cent per annum and changing food habits, India has emerged

agriculture

micro irrigation in the country. However, a major challenge lies in developing low-cost technologies that suit Indian conditions.

Transforming Indian Deserts into Agricultural Oasis as in the Arava:2 As Israel has mastered the technology of desert agriculture, implemented in Arava, Thar Desert of India is definitely an area where transfer of technology can be envisaged. Israelis can definitely improvise technologies for Indian deserts with their vast experience in desert agriculture and help transform Indian desert into agricultural oasis.

Source: FAO


agriculture

as a huge market for food products. The food market forms nearly 53 per cent of the consumption expenditure and is witnessing an increasing trend of 7.8 per cent per annum. Food consumption pattern too has been registering changes with preference shifting towards processed products driven by health, lifestyle and convenience considerations. In fact, share of cereals in the total food basket is declining. Segments such as fresh fruit beverages/snack foods, meat, fish & eggs, milk and milk products are going to dominate the food basket.

While the organized form of food retail accounts for less than 1 per cent of food consumed in India amounting to US $215 billion, balance sales are accounted for by the neighbourhood Mom & Pop stores. Food retailing has grown at about 40 per cent per annum for the last two years and this momentum is likely to increase with the entry of international private players (like Reliance, ITC, Bharti-Wal Mart, Aditya Birla group and Tatas). The growth rate is likely to be in excess of 50 per cent per annum for the next 4-5 years.

Retail giants in Israel like Supersol, Blue

Indo-Israeli Agriculture Cooperation

A 3-year comprehensive Work Plan for cooperation in the field of agriculture was signed in May, 2006 between India and Israel. The priorities for joint collaborations are agriculture research, energy efficient greenhouses, irrigation, input delivery mechanisms, dairy development through genetic upgradation, recycling of wastewater, and exchange of genetic material, higher education and training.

As a part of India-Israel cooperation in the field of agriculture, a demonstration farm project has been built in PUSA, New Delhi. Israeli irrigation companies Netafim and Plastro Plasson Industries have their presence in India for over a decade. Tahal group developed water resources development plan for state of Rajasthan.

Mashav programmes have played a significant role in empowering Indians on various agriculture technologies by sponsoring them for short-term courses in Israel. FICCI has now partnered with Mashav and Israeli Embassy in New Delhi to organize “on the spot training courses” on various subjects at multiple locations in India.

Israel’s Plastro Plasson Irrigation and the Rajasthan State Agriculture Marketing Board (RSAMB) signed MOU for growing olives in Rajasthan

India-Israel can collaborate across the complete

agri-value chain

Square, Big and Yellow should take note of the size of the Indian market and put India on their expansion plans. Indian market is complex compared to other international markets due to the difference in social dynamics. As 100 per cent Foreign Direct Investment (FDI) is allowed in Cash and Carry operations, these chains can start their operations by investing in this segment. At the same time, these chains have to establish backward linkages with farmers, which would be beneficial in long term. As and when the FDI policy is relaxed, these chains can start their retail operations.

Cold Chain Infrastructure Improvements can make Indian Outsourcing Hub: The cold chain infrastructure has been


table 1: Fdi in indian agribusiness9

• FDI in seed industry is permitted without any limits• FDI upto 100% is permitted in tea plantations, but prior government approval is required.

Compulsory divestment of 26% equity in favour of Indian partner or Indian public within five years is mandatory

• No FDI is permitted in farming. Foreigners or OCBs cannot own farmland (excluding Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisciculture and cultivation of vegetables, mushrooms, etc. under controlled conditions and services related to agro and allied sectors)

Food processing

• FDI is limited to 51% with automatic approval for most products (except in the case of malted foods and flour, alcoholic beverages and those reserved for small scale industries wherein foreign equity ownership up to 24% is allowed)

• Higher FDI is allowed on a case-to-case basis on prior approval• 100% FDI is allowed with automatic approval to NRI or OCBs• FDI up to 74% is allowed with automatic approval for cold storage facilities

Alcoholic Beverages & Others

•100% FDI is allowed for alcoholic beverages, prior government approval required•100% FDI is allowed in Cash and Carry wholesale

agriculture

the missing link in the process of agriculture, post-harvest storage and transportation in India resulting in colossal wastage of fruits and vegetables. The value loss in the horticulture supply chain is estimated to be US $7.5 – 10 billion.

The development of cold storage4 infrastructure in India is as low as 15 per cent of the total horticulture production. Fast changing consumer preferences and rapidly evolving organized retail business has given a big fillip to cold chain industry. 100 per cent FDI is permitted in this sector and the sector is expected to grow at 20-25 per cent per annum. Total investment required for establishing quality infrastructure is estimated to be US $7.7–9.3 billion.

Exploring the market for Indian Organic Products on Supersol Shelves: Estimated total area5 for certified organic is of 2.55 million hectares, with the production of 0.3 million tones of which 0.12 million tones are being exported. India is best known as

Israelis can use their vast experience and improvise technologies for agriculture in Indian deserts

an exporter of organic tea and also has great export potential for many other products such as spices, fruits and vegetables. The major players in Indian organic agriculture and food include the Coffee Board, Spices Board, Ion Exchange Enviro Farms, Indian Organic Food, Ecofarms India, Atik, Narmada Agropharma, and Ananda Bag Tea Co, among


others. Furthermore, corporate houses like Reliance, Godrej Agrovet and ITC Foods are also keen in this segment.

In Israel last year6, the organic food market grew at 25 per cent, more than the average of 20 per cent of the Western world. There was a significant price difference of approximately 60 per cent observed between conventional products and organic products. Thus Indian companies can capitalise on the opportunities for export of organic produce to Israel.

Opportunities in Indian Dairy: Being world's largest dairy industry, Indian milk production is close to 100 million tones,

Israeli-Holstein genetic sources, Nutrition technology known as Total Mixed Ration (TMR), dairy equipment and Indian organized dairy retail market.

Favourable Policy Environment

Indian government has accorded highest priority to agriculture and food processing. Stringent domestic regulations such as amendment of the Agriculture Produce Marketing Commission Act (APMC Act ) a l lowing corporates to procure directly from farmers, permitting contract farming and setting up of private markets have been introduced. A number of regulations and acts have been simplified and a new Integrated Food Law is in place. FDI is encouraged in food processing and some core agriculture activities (table 1). A number of fiscal incentives and schemes have been formulated to attract foreign investments.

T i m e i s r i p e f o r f o r g i n g partnerships in agriculture and allied sectors between India and Israel for mutual benefit. Contribution of the agriculture to mainstream economy would be significant provided the two countries leverage on each other’s niche viz. factor cost advantage and diverse resources of Indiaand Israeli technological know-how.

Footnotes:1 Israel: Water Works for the World?

Business Week, December2 Israel’s Agriculture at a Glance:

Publication by Ministry of Agriculture and Rural Development and IEICI

3 Shalom Namaste Newsletter: http://delhi.mfa.gov.il/mfm/Data/111650.doc

4 India: The Next Destination for Agri Business; Yes Bank Report 2006 –Table 1: Opportunities in Food Processing in India

5 Processed Food and Agri Business- Opportunities for Investment in India: FICCI-KPMG Knowledge Paper 2007

6 http://www.apeda.com/organic/PresentStatus.htm

7 http://www.israeliagriculture.com/news/index.html

8 India: The Next Destination for Agri Business; Yes Bank Report 2006

9 The Dairy Industry in Israel 2006: Publication by Israel Cattle Breeders Association and Israel Dairy Board

10 India: The Next Destination for Agri Business; Yes Bank Report 2006 - Table 1: FDI in Indian Agribusiness

agriculture

Total potential for micro irrigation in India is 69.5 million hectares of which only 2.6

million is exploited

providing employment to millions. In terms of trade, the value of output from livestock is at about US $43.3 billion in 2004-05, of which milk accounted for 68 percent. The estimated consumer demand for milk and milk products is US $35 billion growing at about 8 per cent per annum. The market size7 of processed products in the organized and unorganized sector is estimated at US $10 billion and US $25 billion respectively.

The sector is competitive with other large milk economies in the world such as New Zealand, EU and USA; however, it is far behind in comparison to Israeli dairy industry. The Israeli cow has the highest national milk8

production/cow/year in the world. Although, not all the mechanized and automated dairy practices can be implemented in India, various opportunities exist for Israeli companies such as Sion, Ambar, Lachish Industries, SCR among many others in areas like


The issue of water and environmental technologies is gaining momentum

across the world. In the times where majority of the world population is struggling with acute water stress, Israel’s innovative water technologies and systems come as a great respite.

The strategic geographical and political location of Israel and its diverse climatic conditions have turned Israel into a world-wide laboratory to several water technologies and systems. Water in Israel is a State issue and completely owned and run by the government through the Israel Water Company – “Mekorot

India-Israel: Ready for Cooperation in Water Technologies

Cooperation in water technologies can be mutually beneficial for India and Israel, opine Mr. Dan Meiri and Mr. Oded Distel.

Israel”. The country has a very strict water law that clearly states all sources of water in Israel are public property and every person is entitled to use water, as long as

water technology

including 60 start-ups and 8,000 employees with specialties in desalination, irrigation systems, purification technology and management of water sources. Israeli water technology exports crossed US $1 billion in 2007.

I s r a e l i c o m p a n i e s h a v e considerable expertise in the areas of drinking and industrial water supply, sanitation, waste water treatment, sewage recycling, conservation and rainwater harvesting, and drip irrigation.

Colespray-569

it does not cause salination or depletion of the water resource.

Israel’s water technology sector is composed of 270 companies,

Hydro Power Station


water technology

India loses almost 50 per cent of surface water due to the dearth of storage facilities. It is estimated that by 2025, India is likely to face acute water shortage. In such a scenario, desalination plants will be of great help to the country. Israel, a country where the world`s largest Reverse Osmosis desalination plant is located (Ashkelon), have much to offer India in this area. In fact, Israel Desalination Enterprises Technologies (IDE) won two tenders to build three desalination plants

Israeli Residential Water Treatment Unit

Life Straw

Telos plant in Israelin India for US $9.5 million. One plant would supply about 3,000 cubic metres (105,900 cu ft) of drinking water a day, while the other two would supply about 1,200 cubic meters each. In 2002, IDE built a plant capable of producing 5,500 cubic meters in India’s western Gujarat province.

Israel has much to share with India when it comes to water technologies and the two countries can greatly benefit from mutual collaboration. India on its part can help in scaling up and mass production as well as provide a platform for cooperation in R&D.

They have several useful technologies on offer such as desalination plants, water filtering and purifying systems, metering, pipes and plumbing equipment. Israel is well known for its advanced irrigation methods, high rate of reused water, advanced national water management system and the world`s largest Reverse Osmosis desalination plant in Ashkelon.

Israeli water technology for India

Parts of India have weather conditions similar to Israel and face acute shortage of water. Presently, India has only 12 hundred thousand hectares under drip and sprinkler irrigation system, while there are 690 hundred thousand hectares, which are still available for implementation of such systems. Israeli companies having devised advanced irrigation solutions can offer India suitable technologies in this respect. Some of the Israeli companies active in drip irrigation are: Netafim, NaanDan-Jain, Galcon, Plastro, Metzerplas, and Phytech. Successful implementation of technologies like drip irrigation and rain water harvesting can irrigate up to 50 per cent of India’s uncultivable land.


Retail is India’s largest industry, accounting for over 10 percent of the

country’s GDP and around eight percent of employment. With about 16 million shops, translating to 14 retail shops for every 1,000 persons, India has the highest shop density in the world i.e. one shop for every 20-25 families. In cities, the density is much higher. Delhi, for example, has nearly 45 shops per thousand persons. This is much higher than the US, and Singapore (4 per thousand) and UK (about 5 shops for every 1,000 persons) taken together!

Ranked among the ten largest retail markets in the world, the sector has emerged as one of the most dynamic and fast paced industries with several global players entering the market. The organized retail sector, which now accounts for five per cent of US $280 billion retail market, is projected to account for 30 per cent of the market size in the next

Indian Retail Unlocks Potential for Israeli Companies

10 years. The low penetration levels of organized retail in India and the fact that the market size is set to grow at a frentic pace provide a huge potential for retailers to tap a highly unexplored market.

The study by McKinsey Global Institute aptly titled ‘The Bird of Gold – The Rise of India’s Consumer Market’ points to the fact that if India continues on its current high growth path, income levels will almost triple in the next two decades and India will climb from its position as the 12th largest consumer market today to become the world’s fifth largest market by 2025. India’s much-talked about consumer ‘middle class’ will swell by over ten times. Though the estimates of Indian growing consumer middle class given by various researchers vary widely - from 20 million households to 80 million households, nevertheless, it is a big market. By 2025, over 23 million Indians (more than the

population of Australia today), will be counted amongst India’s most affluent citizens.

Income growth will be the biggest driver of increasing consumption. The whopping 80 per cent of consumption growth is expected to derive from rising income. Indian spending patterns are also evolving. Consumer shopping preferences have already started seeing a sea change, with basic necessities like food declining in relative importance and shopping for luxury goods and lifestyle products on an upsurge.

The rising income is increasingly l e a d i n g t o t h e d r a m a t i c transformation of lifestyle of Indians, moving from traditional spending on food, groceries and clothing to lifestyle categories that deliver better quality and taste. Modern retailing satisfies rising demand for such goods and services with many players e n t e r i n g t h e b a n d w a g o n

Surging for exponential growth, the Indian retail industry entices the world retail giants, says Mr. Sateesh Kulkarni.


in an attempt to tap greater opportunities. The Indian retail industry though predominantly fragmented through the owner-run “Mom and Pop outlets” has been witnessing the emergence of a few medium sized Indian retail chains, namely Pantaloon Retail, RPG Retail, Shoppers Stop, Westside (Tata Group) and Lifestyle International. Given the attractiveness of the Indian retail sector, foreign retailers like Wal-Mart, Carrefour SA, Europe’s largest retailer and Tesco Plc, the UK’s largest retailer, are keen to enter this growing market, despite the Indian retail sector being closed to foreign direct investment. At present, only single brand foreign retailers can own up to 51 per cent of the equity.

Entry routes for foreign investors

India has kept the retail sector largely closed to outsiders ostensibly to safeguard the livelihood of nearly 16 million small storeowners. Foreign retailers, at present, are subject to a set of regulations. For example, only single brand retailers can now own up to 51 per cent of the equity - this forces them to enter into JV with a local partner. Large format discount retailers - like Sears, Carrefour and Target are still not allowed in India. Yet, the Indian market is too attractive to be overlooked and global retail giants are biding their time. Wal-Mart studied the Indian market and now has a joint venture with Bharti group. TESCO is also weighing its options.

The policy of permitting 51 per cent of FDI in single-brand product retailing has led to the entry of global brands such as Nike, Louis Vuitton, Lladro (porcelain goods), Fendi (luxury products), Damro (knock-down furniture), Argenterie Greggio (silverware, cutlery, traditional home accessories and gift items)

government at the center and state governments ruling the states. This implies that there are multiple sets of clearances needed for retailers. Apart from a role of the Central government, there are clearances from various state governments, city corporations, distr ict administration etc. Negotiating will these bodies may be a challenging task for the global retailer.

Another limitation in setting up operations in India is the availability of real estate space, particularly in the metros. New

and Toyota (retail trading of cars), into retail trading. FDI is also allowed in the wholesale business. Metro is already operating through the cash-and-carry wholesale mode.

The road ahead

Government is also considering opening up of the retail trading for select sectors such as electronic goods, stationery, sports goods, and building equipment.

India has a federal structure of governance, with a national

Table A: Entry routes to India’s Retail sectorEntry Route Methodology and specific casesFranchise agreements

• Most widely used entry route by multinational retailers – Fast food retailer Domino’s entered India through master

franchise route while Pizza Hut entered through regional franchisee

Cash and Carry wholesale trading

• 100% FDI allowed. The wholesaler deals only with smaller retailers and not consumers

– Metro AG of Germany was the first significant global player to enter India through this route

Strategic licensing agreements

• Foreign company enters into a licensing agreement with a domestic retailer

– Mango, the Spanish apparel brand entered India through this route with an agreement with Piramyd

– SPAR entered into a similar agreement with Radhakrishna Foodlands Pvt. Ltd

retail


retail

Table B: A select list of tie-ups in Retail

Year Company Acquirer/JV partner Products Stake

2005 Liberty Shoes Future group Retail (Footwear) 51%2005 Indus League

ClothingFuture group Retail clothing 68%

2005 Odyssey India Deccan Chronicle Holdings

Leisure retail chain(books, music, toys)

100%

2005 Landmark Tata Trent Books, music, accessories

74%

2006 Bistro Hospitality TGI Friday’s Food retail 25%2006 Indus League

clothing (Future group company)

Etam group France

Lingerie and women’swear retailing

50%

(JV)

2006 Tata Group Woolworth, Australia

retail chain for consumer durables

2006 Raymond Grotto SpA Italy

lifestyle collection 50%

(JV)2007 Walmart Bharti

Enterpriseshypermarket 50%

(JV)2007 Pantaloon Retail

IndiaLee Cooper Denim apparel products

and accessories 50%

(JV)2007 Spar Landmark

GroupHypermarket

2007 Food Bazaar (Future group)

ITC Food Retail

2007 Cure & Care Aditya Birla and Jubilant Organosys groups

wellness boutiques

tie-ups in the offing have seen global brands joining hands with realty majors in India, perhaps to get round this problem. Italian fashion brand Dolce & Gabbana plans to enter India via its single brand retailing joint venture with real estate major DLF, while Parsvnath Developers, India’s fourth largest listed real estate firm, is in talks with French retailer Casino Group for making its foray into retail.

As the sector evolves and retailing expands across the length and breadth of the country, it is likely to face shortage of talent and a dearth of experienced people for managing complex supply chain, merchandising function and other related skills. This will remain a challenge as retailers try to match global benchmarks and maximizing returns. Training the local workforce will therefore be an area that will have to be given a serious thought.

Lastly, there is a huge hidden challenge. Indian consumers are different. The cultural differences have to be accounted while designing the store - setting up the merchandising mix, servicing the customer in the store etc. These cultural factors come in several flavors depending on which part of India you are

Despite being closed to foreign direct

investment, Indian retail sector attracts global retail giants

like Wal-Mart, Carrefour and Tesco

operational at. As management guru CK Prahalad says, “India is like a kaleidoscope. Every time you turn it, you get a different perspective – enticing, different,

and ‘real’. The basic requirement for understanding Consumer India is to recognize that there are no simple algorithms to segment it. It is the methodological nuances that allow one to get at the heart of this opportunity”.

Yet , th is complex market , India, has a lot to offer. And for anyone who understands it, the opportunities are substantial.


L to R are: Ms. V. Sashikala, CEO, SBI Israel Branch, Ambassador Mr. Arun K. Singh, Mr. O.P. Bhatt, Chairman SBI and Dr. Stanley Fischer, Governor, Bank of Israel at the inauguration of the State Bank of India operations in Israel

Financial sector

India has been traditionally rich in land, labour and enterprise but not in capital,

even though for centuries, the community based money-lenders had serviced the financial needs of the people. This had affected India's growth for many years especially since the advent of the British rule.

After independence, however, India followed a policy of socialistic, secular democracy and moved towards nationalization of many of the old generation private sector banks in 1969. The financial system was fairly well protected for many years, but after a near crisis in the country’s finances in 1991, the liberalisation of the financial controls took place in the country and India

Incandescent Growth of Indian Financial Sector

began to tap into the vast pool of capital available within the country and around the world. The liberalisation process was initiated with the banking system and has since been gradually opening up the sector.

Financial Sector Reforms

India adopted a ‘gradual but steady’ approach to reform rather than a ‘big-bang’. The reforms have been viewed as a process, not as an event. The approach has been cautious, with appropriate sequencing of measures, complementary reforms across sectors (e.g., monetary, fiscal and external sector), and development of financial institutions and markets. The objective has been to progress

with harmony across all sectors.

Resultantly, India emerges in recent years as one of the most developed financial markets amongst the developing world. Especially, its banking sector is said to be one of the most well managed financial systems in Asia that escaped the East-Asian crisis which plagued many countries in the mid 90s; the country now offers tremendous scope for both banking and non-banking financial institutions from other countries.

In the non-banking segment, the insurance sector, which has recently been opened up for private sector, offers greater scope for foreign insurance companies to participate in local joint ventures.

The sky-rocketed stock values and the prudent macroeconomic management indicate the robust growth of Indian financial sector.

Ms. V. Sashikala illustrates Indian financial system and its tremendous scope for foreign investment.


Another lucrative but undertapped market till sometime now is health insurance where there is an immense scope for foreign investment.

The reform process of 1991 also reined in the stock market, which thrived in the western parts of India in its unique form for many years. The Security Exchange Board of India (SEBI) has been gradually given more teeth. With the full computerization and networking of the stock markets, on-line trading in Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), the stock exchanges have become more regulated. The BSE Sensex increased from 13,072 at end-March 2007 to 19,243 at the end of October 2007. However, the derivative market is yet to mature; options and futures were introduced only recently but more needs to be done in this market.

Mutual Funds were introduced only in the late 80s and gradually, the private sector funds, which were allowed in the last five years or so have established themselves very well. This may be attributed to the booming share market in the country. The real test of their strength would be over a cycle.

The Government of India has enacted the Right to Information Act, 2005 which is applicable to the financial organizations as well. The Right to Information Act is meant to give the citizens of India access to information under control of public authorities to promote transparency and accountability in the organisations.

Indian currency is currently not a globally tradable currency; India has decided to accelerate

the implementation of the third phase of the recommendations of the Committee on Fuller Capital Account Convertibility (CFCAC) and is surging ahead in this direction.

India believes that financial sector reform process should be ‘inclusive’ in the sense that the benefits of reforms are to be shared by all the sections, in particular, the vulnerable sections. This has been a very significant electoral issue in both provincial and national elections.

Opportunities in India

During 2003-07, the Indian economy has entered a high-growth phase, with GDP growth averaging 8.6 per cent per annum. The acceleration of growth during this period has been accompanied by a significant moderation in volatility, especially in industry and services sectors. The structure of domestic output has distinctly shifted in favor of the services sector, while growth in industry is also accelerating. Indian industry appears to have responded well to global competition through restructuring and technological upgradation in recent years. India’s growth is mainly driven by domestic consumption, which contributed, on an average, to almost two-thirds of the overall demand.

Even though, over the years, the basic objectives of monetary policy, namely price stability and ensuring credit flow to support growth, have remained unchanged in India. Of late, considerations of macroeconomic and financial stabil i ty have assumed an added importance in view of the

increasing openness of the Indian economy.

A noteworthy feature of the ongoing structural transformation of the Indian economy is the significant increase in domestic saving and investment rates. Domest ic inves tment ra te increased from 24.3 per cent in 2000-01 to 33.8 per cent in 2005-06 and domestic saving rate from 23.7 per cent in 2000-01 to 32.4 per cent during 2005-06. The household sector continued to be the major contributor to gross domestic saving with its saving rate placed at 22.3 per cent in 2005-06, while on account of rise in profit, the saving rate of private corporate sector rose to 8.1 per cent in 2005-06. Over 95 per cent of investment in India is financed by domestic savings. Given the fact that Indian per capita income is increasing rapidly and policy efforts towards financial deepening for achieving a more inclusive growth are underway, savings rate in India could even rise further in the medium to long term. This should help continue to finance the investment needs of the economy domestically, without dependence on foreign savings. The sustained economic growth since 1990s has also been associated with some reduction in poverty, under-employment and disguised unemployment. This also indicates the opportunities for mutual funds/investment funds abroad to tap the Indian savings, when India opens its markets.

During 2006-07, money supply (M3) increased by 21.3 per cent on a year-on-year basis and was well above indicative projections for the year. It largely reflected the surge in capital flows in the country. Non-food credit extended by the scheduled commercial banks (SCBs) increased by 28.4 per cent during 2006-07 on top of 31.8 per cent in the previous year. The growth of bank credit has favoured retail

Rising bank credit favours retail lending in “non-credit” markets say, housing, realty, transport and non-banking financial firms

Financial sector


Financial sector

lending, particularly housing, real estate, trade, transport and professional services and non-banking financial companies – sectors which hitherto were not significant in the credit market. These developments led to a lively debate on the signs of overheating in the economy but subsequent moderation in inflation has diffused the attention.

Banking Sector

Inflation is a major concern in India. The Reserve Bank of India (RBI), India’s prime regulator prefers the indirect routes like Open Market Operations for controlling inflation rather than direct interest rate changes. At the same time, there has been no

hesitation in taking recourse to direct instruments also, if circumstances warrant them.

Early in 2007, when inflation peaked to over 7 per cent, the RBI did not hesitate to enhance the provisioning requirements and risk weights for select categories of banking assets, namely real estate, housing, consumer finance and capital market exposures. There has also been close monitoring of off-balance sheet exposures of banks. Detailed guidelines have been issued, on product, accounting and prudential aspects of credit derivatives. A framework for governing banks’ linkages with systemically important deposit taking and non-deposit taking non-banking financial

companies has also been put in place. The RBI has put in place appropriate safeguards to ensure stability, taking account of the prevailing governance standards, risk management systems and incentive frameworks in the foreign, public, private and cooperative banks as also related non-banks.

RBI has laid a road map for allowing more and more foreign banks branches. Currently, the Indian banks have to meet certain social obligations, from which foreign banks are partially exempted. The regulatory framework in India, in addition to prescribing prudent ia l gu ide l ines and encouraging market discipline, is

Besides, 100 per cent NBFC subsidiary can also be established subject to clearance by Foreign Investments Promotion Board (FIPB), Government of India.

External Sector Reforms

Following a planned strategy of liberalisation, India’s external sector has become more resilient. During the last three years, exports and imports have been growing at an average rate of around 25 and 35 per cent respectively. The current account remained in surplus during 2001 to 2004, before turning into a modest deficit since then. There was a significant strengthening in the capital account resulting in

As domestic saving and investment rates are rising rapidly, investment funds abroad

surge to tap Indian savings

increasingly focusing on ensuring good governance through “fit and proper” owners and directors of banks. The Reserve Bank has issued detailed guidelines on ownership and governance in private sector banks emphasizing diversified ownership. Foreign direct investment in the private sector banks is now allowed up to 74 per cent, subject to the prescribed guidelines. Again, 100 per cent foreign direct investment is allowed in 19 activities under the automatic route in Non-Bank Financial Companies (NBFCs). There are minimum capitalisation norms for such investments.

continued acceleration in the foreign exchange reserves, which was around US $ 261.1 billion on October 19, 2007. The rupee appreciated by 10.3 per cent against the US dollar, by 2.4 per cent against the euro, and by 5.4 per cent against the pound sterling.

The exchange rate of rupee became market determined from March 1, 1993 and by August 1994, India became current account convertible by accepting Article VIII of the Articles of Agreement of the IMF. There was simultaneously a significant rationalization of


the tariff structure in a gradual manner providing opportunity for domestic industry to equip itself to face global competition. For instance, the customs duty on non-agricultural products has come down from 150 per cent in 1991-92 to 10 per cent in 2007-08. A qualitative change was brought about in the legal framework for liberalization by the enactment of the Foreign Exchange Management Act (FEMA) in June 2000. The extent and timing of capital account liberalization is properly sequenced with other concomitant developments such as strengthening of banking sector, fiscal consolidation, market development and integration, trade liberalization, and the changing domestic and external economic environments. The priority has been to liberalize inflows relative to outflows, but all outflows associated with inflows have been totally freed. Among the types of inflows, foreign direct investment is preferred for stability while excessive short-term external debt is eschewed. A differentiation is made between

corporates, individuals, and banks. Operationally, the process of managing the capital account consists of operating two routes, namely automatic and non-automatic. Consistent rebalancing in the desired direction is done by expanding the automatic route and by moving most of the prohibited transactions to the non-automatic but approval route and at a later stage, to an automatic or deregulated regime.

Prospects, challenges and strengths

• Real GDP growth for 2007-08 placed at around 8.5 per cent, assuming no further escalation in international crude prices and barring domestic or external shocks.

• Inflation to be contained close to 5.0 per cent in 2007-08 and to the range of 4.0–4.5 per cent over the medium-term.

• Risk of inflation, emanating f rom h igh and vo la t i l e international crude prices, the continuing firmness in key food prices and uncertainties from

global developments continue to persist.

• In the banking sector, re-pricing of risks by financial marke t s and danger o f downturn in some asset classes. Excessive leveraging has enhanced the vulnerability of the global financial system. Large changes in liquidity conditions are obscuring assessment of risks, with attendant uncertainty. Given the flux associated with both financial markets and monetary policy settings globally, India cannot be immune to these developments.

• The challenge for Reserve Bank, now, is to manage the current transition to a higher growth path while containing inflationary pressures and focusing on financial stability. The Reserve Bank is maintaining enhanced vigilance to be able to respond appropriately to the prevailing heightened uncertainties in global financial, as well as, monetary conditions.

• In the medium term, the decreasing share of agriculture in the GDP, while over 60 per cent of the workforce is still dependent on agriculture. Enhanced growth of the agricultural sector is vital for ensuring food security, poverty alleviation, price stability, overall inclusive growth and sustainability of growth of the overall economy. The manufacturing sector has recorded robust growth, despite several infrastructure deficiencies. The inadequate a v a i l a b i l i t y o f m o d e r n infrastructure and shortage of skilled manpower are the most critical barriers to the growth of the manufacturing sector.

Acknowledgements: RBI publications

note: The views expressed herein are of the author only and not of the organizations.

FDI in private sector banks is up to 74%. In NBFCs, 100% FDI via automatic

route is allowed

State Bank of India, Israel

Financial sector


Owing to the liberal and transparent system of foreign direct investment,

India has emerged as an the attractive business destination. Broadly, FDI is permitted up to 100 per cent in most sectors without requiring any prior regulatory approval. The Foreign Investment and Promotion Board (FIPB) considers proposals for foreign participation, on a case-to-case basis, to invest up to 100 per cent in sectors which do not qualify for approval under the Automatic Route.

Foreign Institutional Investors (FIIs) are allowed to invest in the Indian capital markets under the portfolio investment scheme, provided they register themselves with the capital market regulator, the Securities and Exchange Board of India (SEBI) and comply with the exchange control regulations framed by the Reserve Bank of India (RBI).

A foreign company planning to set up business operations in India has the following options to set up a business entity:

− As an incorporated entity under the Companies Act, 1956 through joint ventures or wholly owned subsidiaries.

− As an unincorporated entity t h r o u g h l i a i s o n o f f i c e /representative office or project office or branch office of a foreign company. Such offices can undertake a limited set of activities under the regulations of the RBI.

In addition, Indian companies have been excellent targets for venture capital and private equity investment over the past decade. Being a country of vast dimensions, in varied stages of development, India makes an outstanding mix of old and new economy sectors.

Key Economic Laws

Contract

The Indian Contract Act, 1872 (ICA) is based on the common law principles of contract and is codified as the ICA. There are separate statutes dealing with contract of partnership, contract for sale of goods, negotiable instruments and the specific performance of contracts.

Intellectual Property

Indian law of Intel lectual Property Rights (IPRs) is very comprehensively covered by statutes in India. As a consequence of being a signatory to the Agreement for Trade- Related Aspects of Intellectual Property Rights, India has become more in compliant with internationally accepted minimum standards of IPR protection.

Legal protection for databases is also being considered. Indian courts and tribunals enforce the law irrespective of the nationality of the parties, if the relevant IPRs have been registered in India or if the claimant is a national of a country who is also a signatory to the international conventions of which India is also a party.

legal FrameworK

Indian Legal Framework for Foreign Trade and Investment

As India positions itself as an attractive business destination, Mr. Sudip Mullick & Ms. Avaantika Kakkar give an account of basic Indian

legal framework in the context of foreign trade and investments.


While India does not have a specific statute governing data protection and trade secrets, it is possible to provide for strict contractual obligations, seeking to impose an obligation of confidentiality on employees and other persons who become privy to secrets and other confidential information.

Labour Laws

I n d i a i s a m e m b e r o f t he In t e rna t iona l Labour Organisation and has enacted several legislations to provide a safe working atmosphere for labourers.

The Indian regime of labour laws makes a distinction between skilled and unskilled labourers and also the nature of employment that the workforce may be involved in. Therefore, it is not as if all the statutes would apply to all sets of employees of the Indian economy. In short, it may also be said that the labour laws governing skilled employees and the ‘white collar’ work force are a lot less complicated than those governing a wage earner or salaried person below a certain level of income.

Indian statutes set high standards for health and safety and part of the enforcement machinery contemplates regular inspection of the workplace by inspectors appointed by the government. The labour courts follow a simpler set of procedures than ordinary civil courts for the purposes of settling labour related disputes.

Anti-trust

India has witnessed many large horizontal and vertical mergers. However, there was no statute seeking to regulate such mergers in India other than a vague reporting requirement under the MRTPA. The Competition Act, 2002 sought to introduce merger regulation in India.

Tax

The Indian tax reg ime i s often perceived as onerous and ambiguous in terms of implementation and the rates of taxation in India are high. This has however, not deterred investment and business in India. The Government of India has also, in some cases, developed and introduced special tax regimes providing tax holidays and breaks to certain sectors as per its economic agenda for development.

India has entered into more than sixty-five bilateral treaties with various jurisdictions for avoidance of double taxation and development of trade and investment. It has developed and established international tax jurisprudence. A non-resident can approach the Authority for Advance Ruling for certainty regarding Indian tax implications in respect of transactions in India.

Foreign Exchange Law

The inflow and outflow of foreign exchange and the regime for investment and borrowing in foreign exchange in India are governed under the Foreign Exchange Management Act, 1999 and the rules, regulations, circulars and clarifications issued by the Reserve Bank of India (India’s central bank) and the Foreign Investment Promotion Board.

Alternate Dispute Resolution

India has a strong legal system but the number of matters pending before the courts made the system slow and often, cumbersome. This was even more so for commercial disputes, where time was literally money. The scheme of the Arbitration and Conciliation Act, 1996 (ACA) was devised to provide an alternative mechanism for resolving disputes.

The ACA, based on the UNCITRAL Model Law on International Commercial Arbitration, provides for an alternate dispute resolution mechanism in India:

• International commercial arbitration, where the seat of arbitration is in India and;

• Enforcement of international c o m m e r c i a l a r b i t r a t i o n agreements and awards under the New York Convention and Geneva Convention where the seat of arbitration is outside India.

The Indian legal system is easily categorized as ‘mature’, not only does it derive from a rich jurisprudence, it has been quick to adapt to its freedom from the past, create new law and re-interpret meaning in context of the present. Very few acquainted with the commercial laws of India could complain of them being archaic. Having said this, it is important to caution anyone seeking to put the Indian legal system to the test. Things take time! Indeed, the Indian courts are very often overburdened with a backlog of cases and the one fear any litigator would suffer from is the time and effort involved. Arbitration is an easy and relevant alternative for resolving commercial disputes and very often, cross border agreements make provision for recourse to arbitration outside India, subjecting the agreement to a procedural law different from Indian law. Much depends of course, on the residence of the parties to such a contract and the commercial understanding between them.

The principles of Indian law are neither vague nor overly restrictive. There are also very few circumstances that are not contemplated under Indian statutes, which inspire as much faith in their letter and spirit, as the statutes and codes of any free country in the world.

legal FrameworK


India is one of the largest economies of the world. In the recent years, owing to

its huge manpower base of over 440 million, vast pool of English speaking graduates, diversified natural resources, fastest growing economy, and strong macro-economic fundamentals, it has emerged as one of the most attractive business destinations for foreign investments. After several years of methodical approach and prudent stance on macroeconomic management, Indian economy recovered from its jobless growth and is now experiencing an unprecedented economic boom. Its liberalized market of over 200 million middle class consumer base presents a wide range of lucrative opportunities to Israeli entrepreneurs.

On the other hand, Israeli economy worth US $100 billion ranks among the top seven countries for patents per capita worldwide. In addition to this, with its largest number of start-up companies in the world in proportion to its population, Israel offers interesting positions and quick cash-in opportunities for young talented Indians. This

India's Human Resource Brand in the Age of Global Recruiting

Indian employment market has gained world-wide recognition for its large pool of young, able and unlimited work force. Mr. Daniel Avidor brings to light the

challenges and potential of this thriving market for Israeli businesses.

would underline the fact that there is again a huge scope to take the current momentum of cooperation between two nations to the next level. Both Israel and India can envisage cooperation in a range of fields, resulting in greatly rewarding and mutually beneficial partnership.

Challenges of Indian Employment Market

Indian talent and the quality of Indian graduates are world-renowned. Israeli companies have also started recognizing that India, being the second largest populated nation in the world, is the pool of young, able and seemingly unlimited workforce. After Europeans and Americans moving their activities to India, it is the turn of Israeli entrepreneurs who are flocking to India in large numbers to procure talent and add value in their recruitment processes.

Increasing presence of f o r e i g n r e c r u i t m e n t companies in Indian market has made the search for right candidates for ensuing positions challenging. There is evident difficulty i n s o u r c i n g s k i l l e d manpower in India due to the rapid growth of local companies. Local companies are expanding operations outside of the country and encouraging e x p e r i e n c e d I n d i a n

employees to forgo traditional opportunities at home and work overseas instead.

Apart from increasing competition among foreign companies in wooing the best talent from Indian market, the other key feature of Indian employment market that fuels the existing challenges is the instability of Indian workforce. Due to the increased demand and availability of mammoth opportunities, Indian employees are more prone to job-hopping.

Recruitment Methods in India

Just like in Israel, the widely used recruitment method in India is networking. Social networking

employment marKet

Israel, being a home to the world’s largest number of start-ups, brings

interesting lucrative positions for

talented Indians


is the most cost effective and efficient way to recruit individuals, who are not only eligible for the said position but also culturally fit with the organization as they get referred internally. In addition, a number of staffing agencies operating in India can assist companies in their search for the right candidates. The traditional newspaper advertisements are another widely used method of recruitment in India that spread the word about recruitment by a new company.

Apart from these methods, organizations can also make use of increasing number of job portals offering online job-hunting services to achieve their objectives. Educated young talented Indians tend to use job portals as the first hand method for job seeking.

Searching Candidates over the Internet

The technology has fundamentally changed the way in which recruitment processes were being conducted. As the technology trend moves towards online recruitment,

both recruiters and jobseekers accelerate the use of the online platform for talent-hunting and management. At the same time, it is important to note that use of internet does not always guarantee a result oriented recruitment procedure.

Undoubtedly, internet technology exposes an organization to a large pool of potential candidates. This holds more relevance in the context of Indian employment market where every year millions are added to the list of job seekers. Companies generally report enormous number of resumes flow for each position published over a job portal. With the ease of online delivery of resume, large numbers of candidates apply for the positions and send their resumes without taking their qualifications and job profile into consideration. This would translate into tough time for recruiters. Companies in India are reported to process around 440,000 resumes to

shortlist 6,000 candidates. In such a scenario, using unique software solutions that automate, streamline the entire hiring management process, quickly and intelligently and maximize the efficiency in attracting, engaging and hiring the best talent is crucial in Indian employment market due to the volume of candidates and the growing number of open positions. Such systems help to free up time for recruiters to focus on value addition to the recruitment process.

An Israeli company, Redmatch has developed a unique matching technology which automatically, in real time, matches candidate's profile and preferences with position requirements. It offers robust tracking and reporting c a p a b i l t i e s . T h i s s y s t e m is expected to be launched soon in India by a new job portal, operated by a major player in the market.

The personnel of Redmatch welcoming the visitors from India at the facilities of Redmatch in Israel

In India, every year millions are added to the list of job seekers

employment marKet


In the era of globalization, organizations are increasingly operating their businesses

in multicultural environment. Individuals f rom di f ferent nationalities may present similar perspectives, but there are differences attributed to their cultures. Culture is the deep rooted aspect of individual’s personality that remains with him all through his life. No businessman can avoid bringing his cultural assumptions, perceptions and other behavioral traits during negotiation process, leading to unsuccessful business deal.

On the other hand, it has been seen that better understanding of each other's cultures help companies to improve the results of negotiation situation. Thus, we can say, cultural differences can influence business negotiations in significant and unexpected ways.

In 2007, a survey was conducted in order to identify the effects of cultural differences on business negotiation process between India and Israel. The survey was done in the supervision of Prof. Rajen Gupta from Management Development Institute Gurgaon Universi ty, as part of the initiative of the Israel Export and International Cooperation Institute, in cooperation with the Confederation of Indian Industry, All India Association of Industries, Indian Merchants’ Chamber, the Indian and the Israeli Embassies in Tel Aviv and New Delhi, and the Israel- India Chamber of Commerce.

The objective of the survey was to improve the economic results in the business dealings of the private sector companies of two nations. The survey covered 100 businesspersons from each country who were personally involved in cross-border business negotiations (during the last ten years). The survey dealt with important issues such as time perception of cultures, mutual expectations, Israeli “low context” culture and Indian “high context” culture and the sense of togetherness, among other issues.

Findings of the survey

The general notion that the Israeli culture tends towards the “West” and the Indian inclination is

towards “Orient” was supported. Differences were found in relation to time, context perception and the style of communication besides cultural similarities in familial collectivism and risk avoidance, which have an effect on the negotiator’s behavior.

Interestingly, it was found that most of the participants could not identify cultural differences at all, and related ‘misunderstandings’ to the partner’s personality (“He is not reliable, cannot be trusted… inconsistent.. etc”). Only towards the end of the interview, many began to realize that, it is the culture rather than the personality that influences their perceptions.

It has been seen that most of the failures in negotiations are caused

Indians provide situational reasons for failure in negotiation, while Israelis find

problems with personality of Indian counterparts

cross Border Business

Cross Border Business Negotiations

No business can remain unaffected by the cultural differences. Then, how can Indian and Israeli companies? The stereotypical attitudes of “west” and “east”

creep here as well, claims Mr. Gideon Snir.


by the competitive strategy (win-lose) applied by both sides. Again, unidentified by most of the participants, they attributed it to the cooperative strategy (might be due to the political incorrectness). On the contrary, cooperative strategy was found to be the reason for most of the successful negotiations wherein both sides reached satisfactory agreements (win-win).

Each side tends to blame the other for failure in negotiation and attributes the success to itself. Very few businessmen came forward to accept the responsibility of the failure. An interesting difference is that Indians tend to provide situational reasons for misunderstanding and failure in negotiation, while the Israelis tend to relate the problems to the personality of their counterparts, a phenomena which reflects a profound cultural difference in perceptions.

Cultural ‘misunderstandings’

Time perception: A substantial difference was found in time perception. For Israelis, time is precious and a perishable commodity. This underlies their thrust for quick and fast gains, which are translated by Indians as a tendency of being assertive and aggressive. The Indian time perception is more relaxed (“there is always a new opportunity”). They put emphasis on first evaluation of the counterpart, and developing mutual trust relations, and then reaching comfortably long term decisions. From Israeli point of view, these are signs of a lack of decisiveness, and disrespect for other’s concerns.

Relationships: The Indians attribute high importance to personal relationships, as a basis for long term business commitment. Although recognizing these values, Israeli approach is more instrumental in this regard, rather

than emotional unlike Indians, leading to communication gaps.

Expectations: Since the cultures are apparently perceived to be similar in openness and informality, this develops high mutual expectations from both sides and when this does not happen – the disappointment and mistrust entail.

On one occasion, the Indian businessman made a point, “I am looking for business partner, not for trader. I want you to invest, share the risk, and give a sense of long term commitment rather than

on my past investment. Consider my situation the same as you expect me to consider your budget limitations”.

When the Israeli solutions fail to fulfill the overly high expectations on the one hand, and on the other hand the Indian market doesn’t yield the expected gains at the desired pace, the disappointment to both sides is high.

Mutual trust: There is the lack of mutual trust between the two sides. Indian suspicion is fed by the general notion that occidental traders are often exploitative and


Indians should say ‘No’ without feeling guilty and Israelis should say ‘Yes’ without feeling that they have been taken for a ride

a feeling of someone who has come here to make a “hit” and leave. Offer me what I need rather than what you have to sell. We acknowledge the fact that you have the technology and know-how, in which we are presently lacking in. At the same time, you have to acknowledge our needs and financial constraints. Your help is important and eventually you too will enjoy from the fruits of success, just be patient!”

The Israeli businessman, based on his counterpart’s promises for high and quick gains from the giant Indian market, avers, “I worked very hard to reach high level of technology. I expect you to appreciate and be ready to pay for it. I don’t have the luxury to surrender it for free. Your perception of me as occidental (western) doesn’t mean I have unlimited resources. I don’t have that stamina of a Marathon runner as you have; I am a short distance runner. Therefore I expect quick returns

Israeli suspicion stems from its unique existence reality and the tendency to self support. When both sides are unsure of the motives and intentions, negative stereotypes take the place of high and mutual appreciation of each


other’s talents and capabilities.

Context dependent culture: India has “high context” culture where behavior, reactions and interpretations are not constant but change and adapt to the circumstances. Life is not painted in black and white only but with intermediate colors as reflected in nature. The result is flexible negotiation style, conforming to the changing reality.

This inconsistency eliminates behavior anticipation, which is often interpreted by the Israeli, as Indians’ instability, sense of uncertainty and distrust. On the other hand, Israeli “low context” culture leads to the bold, direct and assertive approach, interpreted by the Indian as insensitivity, impoliteness, disharmony and intolerable aggressiveness.

The Indians don’t say “No” and the Israelis don’t say “Yes”: Indians don’t say “No” explicitly. Indians have hundreds of ways to say “no” implicitly, and expect the other side to understand the message, accept it and carry on while maintaining their relationship without burning bridges for future opportunities.

The Israelis, however, feel d iscomfor t wi th uncer ta in situations in life and therefore interprets the avoidance to say a clear ‘no’ as lack of openness, holding cards close to the chest, and unfairness. The ability to say a clear “no” is admired by the Israelis, who consider this directness as a symbol to openness and frankness.

The Israelis don’t say “Yes” easily. In financial matters, the Indian holds the image of the occidental Israeli as of a millionaire. Thus he expects him to be benevolent, generous and willing to share his technology possibly free. The typical Israeli, being far from that image, avoids wastefulness and acts with caution, when

it comes to expenses, which is translated by the Indian as chronicle miserliness.

The Israeli considers his relations with India carefully. He finds difficult complying with the high Indian expectation for long term investments and sharing his technology and knowhow at no cost. And, since still he perceives India as a remote country with limited control, he tends to avoid taking risks and holds a tough stand with prices, especially when in case of trouble he has no chance for legal remedy as in Europe.

This clash of interpretations of the similar reality, derived from the cultural differences, creates mutual suspicions. And, the effects can be observed in the process of negotiation.

Complementary advantages

N o t w i t h s t a n d i n g s e v e r a l d i f f e r e n c e s , I n d i a n s a n d Israelis share a bonding of cultural closeness. The Indians appreciate Israelis directness (if not too bold), sincerity, drive to success, determination to solve a problem and attain goals and the potential to develop warm personal relations. On the other hand, Israelis appreciate Indian extraordinary analytical thinking, holistic approach towards life, resourcefulness in problem solving and warm hospitality. Both are very argumentative societies and enjoy “brain battle” over new enterprises or for finding the best solution to any issue.

T h i s s e n s e o f o p e n n e s s , informality, familial and close friendship is of great value for the companies of both sides, lending

Most often, negative stereotypes take the place of mutual appreciation of each other’s

talents and capabilities

a solid base for development of sustainable working relationships and cooperation. To the world, Israel is known for its excellent technological capabi l i t ies . India, for the Israelis, is a huge developing market with unlimited potential and strong manufacturing capabilities.

Conclusion of the survey

The survey and the discussion on cultural effects on negotiation created an insight among the participants about the importance of mutual learning of each other's culture, understanding the behavior and their different interpretations which can eliminate stereotyping and enable positive communication.

The Indians recommend the service of local agents as a cultural bridge and a source for understanding of the unique Indian market. The Israelis of Indian origin community can be of great support. Presentations, advertisements, professional symposiums and exhibitions are other methods to increase awareness in th is regard. Emphasis should be given to increase exchange of students.

For Israeli businessmen, it is recommended that they adjust the level of expectation to reality and adopt the Indian cultural negotiation style in relation to time, communication, personal relations and trust and conduct with much more patience.

The Israelis recommend the Indians to behave more openly, use explicit communication style, promise for achievable, stick to their commitments, understand the importance of time and quality factors.



Business article

Aladdin is dedicated to being the leading provider of security services and solutions used to protect digital assets, enable secure business, and maximize the benefits from creating, selling, distributing and using digital content.

Since its founding in 1985, Aladdin has grown to the leadership position in the Software Digital Rights Management (DRM) and Enterprise Security fields. With proven technology, a history of steady growth, successful mergers and acquisitions, Aladdin has proven to be an invaluable partner to software developers and Internet security professionals.

Aladdin Knowledge Systems has spent over two decades providing the most innovative and secure solutions. Its reputation is built upon a comprehensive line of products satisfying the security needs of organizations operating in a world where fast and secure information accessibility is a necessity. These products include HASP SRM®, the leading Software Rights Management products; eToken TM, the next generation authentication key; and eSafe®, integrated content security solutions.

HASP SRM – the industry’s first fully-integrated hardware and software based software Digital Rights Management solution The highly dynamic, increasingly competitive nature of today’s software market means that in order to stay ahead of the competition, software vendors must differentiate their offerings – in everything from capabilities and features, to distribution methods and licensing models. End-user needs and demands are growing. Not meeting these means not making the sale. Software vendors who aspire to success must have the flexibility to respond quickly to changing customer needs and market conditions.

Traditionally, software vendors looked for a way to protect their product and their intellectual property through anti-piracy, anti-reverse engineering, and the creation of inventive business models through secure licensing. Today, the situation has changed, and the needs of software vendors have evolved. In order to keep pace with a dynamic

market, there are two things they require more than ever: the flexibility to respond quickly to changing market demands; and better management of their product lifecycle. Meeting these two requirements means software vendors can differentiate themselves from the competition.

HASP SRM – the industry’s first fully-integrated hardware- and software-based software Digital Rights Management solution – provides software vendors with the flexibility necessary to meet these requirements. This translates into the ability to not only define a specific business model per customer, but also to decide on a specific level of protection based upon industry, geography, product value, or a number of other relevant factors. This flexibility, in turn, translates into more revenue as software can thus be fine-tuned to the particular needs of each market niche.

The Worldwide Leader In Software DRM, USB-Based Authentication,

And Secure Web Gateways

With the introduction of HASP SRM, Aladdin has gone a long way toward helping the industry arrive

at a definition of Software DRM as a business enabling technology solution. Zippy Aima, Research

Analyst - Digital Media Practice, Frost & Sullivan


Business article

HASP SRM puts life-cycle management firmly in the hands of the software vendor. Role-based tools allow them to separate the processes of protection, definition of business models, and operations. Known as Protect Once – Deliver ManyTM, this revolutionary technology means that software vendors can now instantly respond to market changes, without repeating the implementation of protection through a new round of development.

The process is simple: A company’s R&D team implements protection once via the API and HASP Envelope; the decision makers in the company then create business models based upon varying needs of the markets; and operations fulfill customer orders, selecting the appropriate protection method together with the business model, and matching parameters to the business models relevant to the particular order. There is no need to return to R&D for re-protection each time a new business model is needed. Likewise, only a single gold master exists. The software vendor now has a single product offering the flexibility to choose the protection method (hardware- or software-based protection keys), delivery method (CD/DVD or ESD), and licensing options (a wide variety of single-user and network licenses). This means more business at reduced cost.

The innovation behind HASP SRM reflects Aladdin’s position as a technology leader in the Digital Rights Management market. At the same time, it opens new horizons for software publishers wishing to protect their Intellectual Property, increase their sales, reduce their product life-cycle costs, and increase customer satisfaction.

eToken – Strong Authentication in an Instant Access WorldIn today’s environment, the need for organizations to increase connectivity to their networks, enhance their online services, and open new opportunities for electronic business is bringing ever-growing attention to the importance of securing user access. In addition, the recent barrage of identity theft and corporate fraud cases has brought corporate responsibility and the protection of sensitive data into the spotlight.

eToken is the world leader for USB-based authentication, providing strong user authentication and cost-effective password management solutions. eToken can be used to securely generate and store keys, passwords, and digital certificates, so users need only remember a single password and can securely carry their credentials with them wherever they go. eToken supports a wide range of security solutions including secure network and VPN access, single sign-on, pre-boot authentication and disk encryption, email encryption, digital signing, and more.

The eToken family includes a variety of strong authentication tokens, including eToken

PRO, the flagship USB token; eToken NG-OTP, the first-ever USB smart card token integrated OTP capability; eToken NG-FLASH, offering USB smart card authentication functionality with the addition of flash memory for mobile data storage; and eToken PASS, a compact and portable OTP token. eToken offers flexible customization options including custom colors, logo printing, and integrated RFID technology for combined logical and physical access.

eToken security applications include the eToken PKI Client for secure hardware token based PKI deployments, offering the industry’s broadest client platform support including Windows Vista, Linux, and Mac OS; and eToken Single Sign-On, providing secure credential management together with strong authentication in a single solution that is flexible, easy to deploy and easy to use.

We will see passwords yielding to stronger authentication methods in most organizations during the next seven years. Within the next two years, we will see that the threat of malware in remote access

situations will make passwords totally obsolete.Ant Allan, Research Vice President, Gartner, September 2006

Easy management is a significant asset of the eToken product family. The eToken Token Management System (TMS) enables full life-cycle management of all eToken devices and associated security applications from one centralized system. TMS is seamlessly integrated with Microsoft Active Directory, allowing organizations to easily deploy their authentication solutions. TMS features enhanced web-based user self-service and administrator management tools, handling of exceptions such as employee-on-the-road lost token scenarios, and full reporting and auditing. In addition, TMS includes capabilities designed to cater to the specific business needs of managed security service providers.

Leading eToken technology partners include Microsoft, Cisco, VeriSign, IBM and Check Point.

Business article

eSafe – Extreme Capacity, Maximum Security in the Enterpise and Server Provide Environment

Enterprises worldwide are constantly exposed to ever-increasing numbers of malware – from spyware, Trojans, and viruses, to spam and malicious phishing sites. Gaps in content security, especially when corporate users access the Web, can result in increased risk and costs – from lost employee productivity and increased network bandwidth consumption, to increased network security breaches and potential legal liability.

Today’s content security solutions face more challenges than ever. New ‘Web 2.0’ content makes the situation even more difficult as threats can be embedded in Web services, hacked sites, and user-generated content sites such as social networks, wikis, webmail, and more. Consequently, organizations demand solutions which can operate within heterogeneous environments; handle new types of content and associated threats; are able to scale to meet increasing content volume demands; and offer lower operational costs.

Unlike other solutions, eSafe does not rely on ‘blacklist’ methods of blocking threats by individual signatures or blocked site lists. eSafe enables multi-layer, policy-based management of Internet content traffic, transparently blocking zero-day attacks and suspicious elements. This ensures web browsing security, email and webmail security, and security as a value-added service to service providers and their customers – from consumers, through small business, to mobile operators. Larger organizations benefit from a practical gateway-based web surfing solution, enabling transparent, Internet surfing security, strong anti-spyware, and no sacrifice of network performance.

eSafe’s proven SecureSurfingTM solution also gives ISPs the ability to protect their customers from spyware and phishing threats by ensuring a “clean pipe” of tiered security services. This “clean pipe” means ISPs can quickly and easily provide customers with a truly safe Internet connection.

Designed specifically for cellular providers, eSafe’s Mobile Content Security Gateway (MCSG) offers mobile operators the ability to provide their subscribers with centralized protection against the growing number of mobile viruses and spam. Situated between the Internet and the cellular provider network, eSafe MCSG inspects the content of MMS and WAP traffic, as well as HTTP and SMTP content.

IDC reports that the content security market is to reach $7.5 billion by 2008. As a technology leader, eSafe is in prime position to take advantage of this – even more so with the backing of major eSafe solution partners such as Cisco Systems, Check Point Software Technologies, IBM, and Crossbeam Systems.

SECURINGTHE GLOBAL

VILLAGE


eSafe®





HASP SRM®


Since 1985, Aladdin Knowledge Systems (NASDAQ: ALDN) has been at the forefront of

the software commerce and Internet security fields. Proven technology has translated into

steady growth and a history of successful mergers and acquisitions, establishing Aladdin

as an invaluable partner for software developers and Internet security professionals.

Aladdin’s products include: the USB-based eToken device for user authentication and

e-commerce security; the eSafe line of content security solutions that protect PCs

and networks against malicious, inappropriate and nonproductive Internet-borne

content; and HASP SRM, the hardware and software-based digital rights management

suite of solutions, protecting the revenues of developers.

For more information in IndiaPlease Call +919967552929 or email [email protected] other inquiries Call: +972-3-978-1111

The market is demanding a secure-Web gateway (SWG) solution that provides not only traditional

URL-fi ltering but also malicious software (malware) fi ltering, as well as application control for Web

applications such as instant messaging (IM) and, eventually, voice over IP (VoIP or Internet

telephony) - Gartner, March 2007

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Business article

Tower Semiconductor, the Specialty Foundry, Brings Business and Technical Advantages to Chip Companies in India

By Mr. Rafi Nave

to the OEMs who, in turn, serve the end markets.

These one-of-a-kind features are quite often conceptual, architectural or design. But in many cases, they also hinge on specialized manufacturing technologies that deliver essential qualities that their special solution requires. These added features may be common to a given segment, or may be exclusive to that specific fabless customer. This situation gives rise to the

The current very-large-scale-integration (VLSI) industry is crowded with over a

thousand fabless semiconductor companies worldwide, each of which is trying to compete in the various and ever-evolving electronics markets – consumer, c o m m u n i c a t i o n s , o f f i c e automation, and the likes. In order to differentiate amongst themselves, each company attempts to identify the ‘secret potion’ that will make its products most unique and more appealing

specialty foundry model namely, a wafer manufacturing company that specializes in specific technologies and solutions that product companies require.

The emerging India Semiconductor industry may benefi t f rom cooperation with such specialty foundries.

The Specialty Foundry Model

In order to illustrate the role of a specialty foundry, the analogy

Mr. Hagay Dvir, Tower’s representative (4th from right) with the Israeli delegation in India

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Tower Semiconductor Ltd.Tower was founded 14 years ago as a local Fab, mostly serving two IDMs [National Semiconductor and Motorola Semiconductor]. Over time it learned how to approach additional customers, in the US, Europe and Asia. Its technology offering expanded and improved as a result of the interaction with customers and of the accumulated experience. This helped making Tower a credible competitor in the global markets. Such an experience may be of value to young Indian companies who seek global success.

Tower is seeking Global reach. Namely, increasing the number and diversification of its customers and partners, by collaborating with companies in many countries. The India Semiconductor industry is no exception!

Fabless product companies that identify need for the specialized technologies Tower provides, such as CIS, RF, Power Management or Embedded NVM may find in Tower an attractive supplier that will shorten their time to market and support the technical requirements of the Indian product companies.

Furthermore, Fabless companies that identify a differentiation opportunity by introducing special process or device may collaborate with Tower to develop them jointly.

Tower’s engineering teams, in the process, device and design domains, can address the customers’ challenges and come up with creative solutions. The CAD and IP experts may guide and assist product design companies to attain best performance from a given Silicon generation.

The Indian Chip Design companies may team up with Tower to provide services to customers around the world. Tower nurtures a special ‘Authorized Design Centers’ program to ensure the quality of the solutions and to assure tight alignment between the Design and Manufacturing services. Emerging Indian foundry companies may benefit from Tower’s experience and get to a smoother start and ramp-up by applying the accumulated experience and available cost-effective solutions and putting it to practical use.

Indian companies that see interest in such synergetic collaborations are encouraged to contact Tower and pursue the opportunities together.

For further contact:Hagay Dvir

VP Business Development, Europe & AsiaTower Semiconductor Ltd,

P.O.Box 619 Migdal Ha’emek, 23105 Israel. Tel: 972-4-6506420; Mobile: 972-52-8747124; Fax: 972-4-6547788

E-mail: [email protected] Tower’s web site: http//www.towersemi.com

Business article

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sometimes applied is that of a specialty retail store. In case of shopping for groceries, clothes and basic necessities, the most efficient is to visit supermarkets or large retail stores such as Wal-Mart, Safeway, Sears or Macy’s. But, if one has a special need, for instance, they want a specific book or various high-end consumer electronics, most consumers would prefer a specialty shop, such as a bookstore or a retail establishment that specializes in consumer electronics. This is because the specialized store generally offers its customers a much broader product selection. In turn, customers increase the

probability of finding exactly what they desire, and are also able to seek professional advice from specialized staff.

The same applies to VLSI foundry services. Customers who seek basic CMOS processes and devices, such as mostly digital products – will, more than likely, end up working with a larger foundry that has the depth and breadth of manufacturing services needed. However, if the product implementation entails a need for specialized processes and/or device solutions – then they may turn to the specialty foundry.

One such example is Israel based Tower Semiconductor, a second-tier foundry, which is specialized in a number of domains like CMOS Image Sensors (CIS),

Mixed Signal, RF and Power Management technologies, in order to provide customers with competitive solutions, coupled with professional support to assist in applying these features and turn ideas into successful products.

Customizations

Going back to the specialty retail shop analogy when customers look into implementing their innovated products, they may rely on the existing technologies that manufacturers have; be it standard-logic or special segment solutions. But in certain cases, the differentiator hinges on a

special capability that must be implemented as a specialized addition to the basic process.

Such a special feature necessitates development that is exclusively for that customer. It may be simple, or very complex, and it may take a couple of months or even a full year to develop.

This is a special solution and offering that serves as a means of differentiation amongst specialty foundries, and hence success, for both the chosen foundry and the customer.

The foundry must understand the workings of end applications and to anticipate upcoming trends, and their implications on future needs, so it may develop the solutions ahead of the game and

be there, ready, when the need arises. And lastly, the specialized foundry must adopt a customer-oriented culture and operational approach in order to extend the needed support to help customers absorb the solutions and correctly apply them to their products.

Collaboration with the Indian Market

India , the most populous democracy on earth, and Israel, one of the smallest, both celebrated their 60th independence day last year. Their industries have a lot in common: They both rely on

vast cadres of qualified engineers and scientists. Both entertain entrepreneurial spirits coupled with highly dynamic business initiatives.

Israel has a head start on Hi-Tech and Semiconductor development. This experience of more than thirty years can be of immense value to Indian companies that are at their initial stages, aspiring to penetrate into global markets. Such co-operations may have far-reaching impact on the overall India economy, society and know-how enhancement. Hence, collaboration with global companies, such as Tower and many others will have great value to Indian companies and its evolving semiconductor industry.

Business article

Composite


SECURINGTHE GLOBAL

VILLAGE


eSafe®





HASP SRM®



Aladdin’s products include: the USB-based eToken device foruser authentication and e-commerce security; the eSafe lineof content security solutions that protect PCs and networksagainst malicious, inappropriate and nonproductiveInternet-borne content; and HASP SRM, the hardware andsoftware-based digital rights management suite of solutions,protecting the revenues of developers.


North America T: +1-800-562-2543, +1-847-818-3800 UK T: +44-1753-622-266 Germany T: +49-89-89-4221-0 France T: +33-1-41-37-70-30Benelux T: +31-30-688-0800 Spain T: +34-91-375-99-00 Italy T: +39-333-9356711 Israel T: +972-3-978-1111 China T: +86-21-63847800India T: +919-82-1217402 Japan T: +81-426-607-191 All other inquiries T: +972-3-978-1111

INDIA ISRAEL POTENTIAL AHEAD

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