Indian Shares

"The Asian Development Bank (ADB) has raised its forecast for Asian growth, saying that stronger consumer spending will help offset weaker exports." Full Article....

Shareholders in the steelmaker Corus have overwhelmingly voted to accept a £5.75bn takeover offer from Indian firm Tata Steel. More than 97% of its shareholders backed the deal at an extraordinary general meeting, creating the world's fifth-largest steel group. More than  97% of Corus shareholders backed the deal.

• Letter to stock Exchange - Corus Shareholders approve Scheme of Arrangement
• Tata Steel Offer

"No longer is India seen as one of investment's wild frontiers, where you can make big bucks if you take big risks. Increasingly, Western companies are viewing India as a market in which they simply can't afford not to be present."

Source: The Independent

Various news articles are reporting that UK giant Tesco is looking to expand into India with Mahindra & Mahindra rather than the Tata group.

"Some 36 Indian billionaires led by Lakshmi Mittal, the steel magnate, now feature on the list, boasting a total wealth of $191 billion between them."

Source: The Times

The BBC reports that:

"The Argos retail name is to be taken to India through a franchise deal with two of the country's leading store chains. Argos will license its brand and product catalogue for use in retail outlets in India, with the first due to open in Mumbai later this year. Argos, which is part of the Home Retail Group, said the deal would give it a "foothold" in a fast-expanding market."

Several other British retailers including Mothercare have used the franchise model to enter India.

Renault and Nissan are setting up a joint venture with India's Mahindra & Mahindra to build a new $900m (£458m) car plant in the city of Madras (Chennai). Mahindra, India's fourth-largest car firm, will own 50% of the venture with its partners controlling the rest. Production is expected to start in 2009 with the target of producing 400,000 cars a year.

Foreign firms are flocking to India because of the economy's strong growth and low costs. With Ford and Hyundai having already opened plants in Madras (Chennai).