IDEA News & Updates for February 2004. (confidential internal mailer for friends & associates only)   1. IDEA hosted a mission from a leading Swiss Bathroom Products company to Gujarat. They are interested in either Brownfield acquisitions or a Greenfield projects in ceramic products. Detailed discussion on the investment climate in Gujarat, including salient features such as availability of natural gas and peaceful labour were discussed. Profiles of interesting opportunities maybe posed to the investors. 2. IDEA hosted a visit of a leading law firm specializing in FDI promotion. Tie ups with local law firms was discussed. Any associates needing legal assistance may contact IDEA. Capacity building exercise for sectors such as oil & gas, telecom is being taken up. E 3 has also created strategic business unit to cater to all infrastructure sectors and can support legal and financial advisors. 3. IDEA hosted an evening from visitors of a leading Japanese trading companies food & agro cell. A list of Gujarat based companies was furnished to undertake export import trade and any proposals can be forwarded to Mitsui. Ongoing program in power projects, chemicals, railways, Port based projects such as sulphur handling & grain handling were discussed. 4.IDEA associates, were referred by iNDEXTb to meet with a leading industry association in South Gujarat looking to set up or acquire captive power projects. Suitable acquisition opportunities are being scouted to take advantage of the new act. 5. IDEA was invited by top management of an oil & gas company for suggestions to set up an energy management institute in Gujarat and facilitate grant aid. IDEA successfully arranged meeting with international commercial consulates and facilitated tie up with a with a leading management institute in Asia to undertake the feasibility. Detailed discussions were held on the concept. 6.IDEA is assisting Gujarat based pharmaceutical companies to look at suitable acquisition opportunities in Europe & USA for which there is a good demand. Number of private equity funds are also looking to participate in Gujarat based opportunities and one such opportunity is being looked at as Pre IPO placement. Associates are encouraged to create supply of such venture capital opportunities for which there is an appetite for investors in sectors such as pharmacy, FMCG, infrastructure and Oil & gas in large projects. 7.Sepeartely IDEA received a proposal for export of bulk pharma products to Africa, Middle East & South Asia from an associate in North India. Any inquiries may be forwarded to the exporter. 8 Pharma Sector would also be one of the sectors emphasized for cooperation with Latin American Countries being organized by Gujarat Chamber of Commerce along with other suggestions such as biodiversity business, oil & gas, food & agro and textiles sectors. Any suggestions for potential tie ups with Latin America are welcome. Separate proposals for US, Euro, Japanese based cooperation are also being undertaken and investment and trade inquiries are invited. 9. IDEA received proposals from a unit for Papaya cultivation & Papaya Enzyme manufacture The proposals are for equity investors i.e. strategic partners or venture capital funds or supplier credit options. 10. IDEA received a proposal from a technology company developed distance learning software & hardware that can be promoted for corporate training or adopted by NGO’s for basic education in Mathematics. The proposals are for equity investors i.e. strategic partners or venture capital funds. 11. A senior associate of IDEA who is the President of IIM A alumni association, Ahmedabad chapter organized a talk on Macroeconomic Framework of Gujarat at the IIM A. This is a part of a three year study along with the Columbia university lead by Prof Jeffery Sachs who is also advisor to the UN Secretary General. A copy can be available on request. Separately IDEA has also sent its comments on the micro level feedback from investors. IDEA is keen to revive projects discussed with IIM A on investment promotion efforts in cooperation with its associates from Washington. Much work would have to be done as there is much hype in the present boom. 12. Aventure capital fund, initially supported by the UN, and presented in the financing for development conference in Monterrey Mexico, is looking to invest in other venture capital units as a fund of funds. The area of interest is IT or IT enabled services, in stations outside Bangalore. Suitable Proposals maybe discussed. 13. IDEA’s associate in New York & Canadian commercial consulate. have sent a proposal for tie up of master franchisees for a coffee retail chain. Suitable Proposals maybe discussed. 14. IDEA is working out framework for a mission from a top ten international bank interested in Oil & Gas sector financing, along with other core infrastructure sectors from highly rated clients. This is a part of the ECB boom in general and as such tie ups with all multilateral agencies and export credit agencies for supplementary capital and longer tenures or higher risk than Indian banking system have been put in place. 15. A leading Gujarat based ICT company is looking to diversity in the BPO sector. They are looking for suitable tie ups for BPO work. Any suggestions are welcome. 16. IDEA is seeking investor side mandates from container port operators for a state of the art facility coming up in Gujarat. Any tie ups with leading shipping lines are welcome and same are discussed with IDEA’s associates in Canada & Mumbai. 17. Leading Special Economic Zones in Gujarat are looking to attract investors in all sectors and provide success fee to intermediaries. Contact for details with any specific investment proposal. Sector include miner based, trading units, petrochemical applications, gems & jewelry garments, food processing etc. 18. IPO boom: is looking to participate in the IPO boom either as private placements from leading insurance & pension funds or to assist leading merchant bankers to subscribe the IPO’s. Opportunities maybe forwarded to IDEA’s associates in Singapore & Boston. 19. Cluster Development is a new concept emerged in last ten years. As per leading strategist Michael Porter the ingredients for success are that it is private sector driven, encourages a critical mass to build on as a tactic rather than fresh Greenfield development. A Sr. associate of IDEA had pioneered this approach in Gujarat and subsequently inquires are being received from other states as well. In the next step the concept would be used as a resource raising exercise to tap domestic and international sources of developmental capital. SME Clusters are also being adopted by leading Multinational companies as a sourcing base and some examples included Rio Tinto in diamonds & Uni lever in food & agro sector for commercial as well as corporate citizenship programs i.e. realizing it makes business sense to respond to the need to give back. 20. International Schools are an important ingredient for providing good soft infrastructure to investors, especially ex pats as it is easy to fit into or slip out of the curriculum. A leading educational consultant who had assisted to set up the Dhirubhai Ambani international school in Mumbai is keen to tie up with existing or green field projects keen to go international in curriculum. 21. SME proposals are sought for debt financing. The same are to be posed to a top ten SME development bank in the World for which a matchmaking session would be held along with iNDEXTb in near future. ..................................................................................... India Development & Environment Agency, IDEA, a new investment promotion initiative A 1/8, Tirthjal, Satellite Ring Road, Ahmedabad, 380 015. Tel: ( 079)  2673 0005 (dir)  Fax ( 079) 2630 9801 website www.ideagujarat.com  email idea@icenet.net Mobile 98240 17302