Opportunities

• US based Small & Medium Enterprise Consortium (SMEC) is a group of entrepreneurs from across the globe. Its member companies range from USD 5 mn to USD 100 mn. It has announced to invest INR 25,000 mn in Andhra Pradesh for providing thrust to SMEs, particularly IT. The said investment is expected to generate 25,000 jobs directly and over 80,000 indirectly in the state.

They propose to set up a consortium to bring together start-ups that will avail common facilities for a faster and better growth. According to consultancy group McKinsey estimates, by 2008 India's software, services and IT outsourcing industry would be worth USD 70 billion annually, employing four million people and contributing 7 percent to the Gross National Product. Source: Financial Express

• It is projected that by 2012, the number of telecom towers in the country will be 3 times the existing 0.11 mn nos. of telecom towers. Today the telecom tower business is not only attracting many start-up businesses but almost all major telecom players are also spinning off their tower segments.

While it is a highly capital intensive business, investment companies are scouting for funding the right entrepreneur because of its huge growth potential. The payback time is approximately 5 years for these tower companies. They have been found to be 10 percent more capital efficient and 20 percent more operation-efficient than operators because, this is their core business. While incremental costs go up only 10 percent, revenues in the form of rentals can increase up to 80 percent.

The entry barriers to this industry are low since no license is required to start the business. But on the flip side, the setting up of a single telecom tower requires nearly 40 clearances, despite the huge demand to install towers for expanding telecom networks. With the growth of many small tower companies having 50 to 100 towers in their portfolio there are many acquisition opportunities in this sector. Source: Economic Times

• Intel foundation has contributed USD 60,000 to Intel’s “Empowering Lives” programme wherein employees of the company will be training rural women to become ICT Entrepreneurs in Kuppam village in Andhra Pradesh. This programme will be extended to other states through an NGO – Digital Empower Foundation. Source: DNA India

• The Gujarat Government has joined hands with Reliance Industries, General Motors, Essar, Welspun and Adani to design courses for educational institutes and training to graduates in order to create a talent pool for the Industry. The project will be monitored by Gujarat Industries Commissioner.