Tag Archives: India

By Me and a Colleague Yesterday: Blackstone Buying HP Enterprise’s Stake in Indian Outsourcing Firm Mphasis for $825 million

The story begins:

Hewlett Packard Enterprise Co. said on Monday it planned to sell its majority stake in Indian outsourcing firm Mphasis Ltd. for about $825 million to Blackstone Group LP, as the U.S. technology company seeks to shore up capital following a recent decline in revenue.

Blackstone will purchase at least 84% of HP Enterprise’s majority stake in Mphasis for 430 rupees ($6.49) a share, showing the private-equity firm’s optimism in Mphasis’s prospects even as the industry faces technological challenges.

Besides buying HP Enterprise’s stake, Blackstone said Indian takeover laws require it to buy 26% of Mphasis’s shares via a mandatory tender offer to the company’s public shareholders. Depending on the demand for that offer, the private-equity firm said it could end up spending as much as $1.1 billion on its investments in Mphasis.

HP Enterprise said its decision to sell its position in Bangalore, India-based Mphasis aligns with the company’s capital allocation priorities, which it has said include directing investments toward developing new products and services. The company also has said it would pursue more mergers and acquisitions.

By Me Last Week: Tech Talent is Returning to India

2016-03-02RETURNEES

I had a story Wednesday on the front page of our Business & Tech section. You can see it in this image, under the headline “India Welcomes Home Tech Talent.”

It’s about Indian-born entreprenuers who are increasingly returning to their home country to build startups.

The piece, available online here, begins:

BANGALORE, India—Last year, Abhinandan Balasubramanian quit his job at a London-based financial-technology company. The startup scene in his native India was booming, and he wanted in.

The 25-year-old Mr. Balasubramanian moved to Mumbai and in December launched his own business there: Altflo, a global online marketplace for assets such as real estate and shares in investment funds.

Basing Altflo in India was an easy decision, Mr. Balasubramanian said. “The cost of scaling the company is much lower in India,” he said. Office space and talent are “multiples cheaper than in the U.K.”

Lured by a flood of venture-capital funding, relatively inexpensive labor and the size of the potential market in the world’s second-most-populous country, entrepreneurs and technology workers with Indian roots have been coming home in increasing numbers.

By Me Last Week: How Apple’s Trying to Win India

2016-01-27_apple_india

An ad for Apple’s iPhone 6S in the Bangalore, India airport

I was in India recently working on a story about Apple’s strategy to win over consumers in the world’s second-most-populous country.

The piece, which ran last week, begins:

NEW DELHI—Amid concerns that China’s slowing economic growth could sap demand for iPhones, Apple Inc. is increasingly turning its attention to one of the last big countries it has yet to conquer: India.

The Cupertino, Calif., company has been quietly building market share in the world’s second-most-populous nation by boosting advertising, bulking up its distribution network, arranging interest-free phone loans and lowering prices.

On Wednesday, Apple said it has sought the Indian government’s approval to open its own retail stores and sell products online. Apple currently sells its products in India through a network of Indian-owned distribution companies and retailers.

“India has huge potential” for Apple, said Rushabh Doshi, an analyst at research firm Canalys in Singapore.

Click through to read the rest.

With Apple yesterday saying in its quarterly results that iPhone sales have been growing at the slowest pace since the device was introduced in 2007, emerging markets are increasingly important for the tech titan.

That’s because hundreds of millions of people, many of them young, are upgrading smartphones or buying them for the first time in countries like India, Indonesia and Brazil — while at the same time some larger markets, like China, may be getting saturated.

(Price, of course, is an issue in India: The annual GDP per capita is $1500, and Apple is trying to sell phones that cost upwards of $1000 there, though some models also cost less than half that. But as I wrote in the story, Apple offers payment plans, and still sells older, less expensive models like the iPhone 4S and 5S in the country.)

In the conference call for Apple’s earnings, CEO Tim Cook had this to say about India:

  • Cook also mentions India, saying the demographics looks good for Apple. The population is young, and Apple is putting a lot of resources into building there.

And:

To TimmyG: Cook spent a long time talking about India — longer than I was able to keep up with. But his point was yours: that this big and growing nation is made up of a young population.

Indeed. Stay tuned to see how Apple fares in the quarters and years ahead.

Recent Stories: Google CEO Visits India

I was in India recently covering the first offiical visit Google CEO Sundar Pichai has made to his home country.

In the scenesetter, I wrote about the importance of India to Google — and other big U.S. tech companies, like Facebook:

NEW DELHI— Alphabet Inc.’s Google became a global technology titan serving developed-world consumers on their personal computers, but it is now increasingly turning to a new kind of customer for growth: people on low-cost smartphones in poor countries.

The Mountain View, Calif., company’s efforts to reach users in emerging markets will be in the spotlight this week, when Google Chief Executive Sundar Pichai makes his first official visit to India since taking the top job in August.

In the next story, from Delhi, I wrote about what Pichai says Google is doing, specifically, to try to get more people online in India:

NEW DELHI— Sundar Pichai, chief executive of Alphabet Inc.’s Google, on Wednesday outlined the technology titan’s plan to increase Internet access in India, underscoring its focus on the world’s second-most-populous country.

A partnership with the Indian government to offer free Wi-Fi at railway stations across the country is on track to open in 100 stations by the end of 2016, Mr. Pichai said during his first official visit to the country in which he was born since taking the top job in August.

Mr. Pichai told a conference for software developers in New Delhi that the first station to get the Wi-Fi service will be Mumbai Central, in the city on India’s west coast, next month. The initiative was announced in September.

The 43-year-old Mr. Pichai also said that Google’s parent company, Alphabet, is pushing ahead with Project Loon, which aims to use high-altitude balloons to provide Internet access in remote areas of the country.

I also wrote about a talk Pichai gave to university students in Delhi. The brief story, which proved especially popular online, is headlined Google’s Sundar Pichai on How India Can Produce More Tech Leaders Like Him:

Google Chief Executive Sundar Pichai on Thursday said the Indian education system, which nurtured him, needs to allow students to take risks, and to fail, if it wants to produce more global technology leaders.

Mr. Pichai also reiterated his message that Google, a unit of Alphabet Inc., is bullish on growth in India, “an amazingly young, vast country,” he told students packed into a gymnasium on the campus of Delhi University.

On Wednesday, Mr. Pichai outlined at a conference for software developers more of the Mountain View, Calif., company’s plans to boost Internet access in India as it looks to the fast-growing country for future growth.

The 43-year-old, who was raised in the southern Indian city of Chennai and attended the elite Indian Institute of Technology before moving to the U.S., said he has been struck by how much India’s startup sector has grown over the past few years and also by the enthusiasm of its entrepreneurs.

There is a “unique opportunity” to build new tech companies in the country because of its huge scale, he said.

Asked how India might improve its educational system to create more executives like him, Mr. Pichai, who joined Google in 2004 and took the top job in August, said “It is important to teach students to take risks.”

 

 

 

 

Me on Bernard Leong’s Analyse Asia Podcast

Bernard Leong interviewed me for this week’s episode of his Analyse Asia podcast, which is about tech, business and media in the region.

We discussed three India-related issues I’ve written about for The WSJ (and have mentioned on this blog): Facebook’s Internet.org project, Google’s Android One, and the talent cruch for top startup coders in the country.

You can play or download the episode above, or click through to listen to it on the podcast’s home page, where you’ll also find the show notes. You can also search your favorite podcast app for Analyse Asia; it’s the most recent show.

Happy listening.

By Me Yesterday: ‘What the New H-1B Visa Reform Bill Could Mean for Indian Outsourcers’

The story begins:

Life could get tougher for Indian outsourcing firms that do business in the U.S. and for Indians who want to get visas to work there.

A key part of India’s outsourcing industry has long been to send thousands of its information-technology engineers and programmers to the U.S. on skilled-worker permits known as H-1B visas.

But two U.S. senators are renewing their efforts to force employers to try to hire Americans first before foreign workers.

Chuck Grassley, an Iowa Republican and chairman of the Senate Judiciary Committee, and Illinois Democrat Dick Durbin last week introduced a bill that would require all companies that want to hire workers under H-1Bs to first try to hire U.S. citizens.

By Me Yesterday: ‘Flush Indian Startups Face Shortage of Skilled Workers’

The story begins:

BANGALORE, India—Software engineer Anshul Goel graduated from college in 2013. In the 2½ years since then, the 24-year-old has switched jobs three times, jumping from one Indian tech company to another, and doubled his salary.

Mr. Goel, who specializes in writing code that e-commerce startups and others use to predict customer behavior, says he is deluged with emails from headhunters. “My mailbox is full of them,” he said. “And it’s not only me.”

Indian startups, flush with cash from foreign venture capitalists, have been on a hiring spree as they race to scale up and beat rivals in an increasingly competitive market. Venture capitalists have poured some $4.54 billion into India’s startups so far this year, surpassing the $4 billion invested last year, says Indian data tracker Venture Intelligence. But a shortage of skilled workers is driving up wages and turning into a serious hurdle to companies’ expansion plans.

The country is home to millions of information-technology workers, veterans of India’s huge outsourcing industry. But, tech executives say, few of them have the cutting-edge abilities that startups in businesses from e-commerce to ride-booking apps crave.

I also wrote a post at our Digits blog about perks some workers are securing:

Free rides to work, cool offices with tasty food, new smartphones — it’s a good time to be a talented software engineer in India.

Stories this Week: Google’s Android One and Project Loon in India

A scoop by a colleague and me earlier this week: Google’s taking another shot at low-cost smartphone success in India.

The story begins:

Alphabet Inc.’s Google helped launch a line of low-cost smartphones in India more than a year ago, part of a strategy to win more customers in fast-growing emerging markets. It was a flop.

Now, the tech giant is trying again by relaxing its rules, giving phone makers more latitude when it comes to features and price.

Google and India’s Lava International Ltd. plan to release a new low-cost smartphone in the coming months as part of the Android One program, people familiar with the matter say. The initiative aims to give users in developing economies an inexpensive way to get online through its Android mobile operating system.

Separately, I wrote an explainer: “Five Things to Know About Google’s Android One.

Meanwhile, here’s a quick post I wrote about the search giant targeting India for its stratospheric Internet balloons effort, Project Loon:

Google parent company Alphabet Inc. says it is discussing with the Indian government an ambitious project to use high-altitude balloons to provide Internet access in remote areas, the latest sign of U.S. tech firms’ interest in the world’s second-most-populous country.

Known as Project Loon, the Alphabet plan involves a network of balloons floating in the stratosphere that would serve as “floating mobile-phone towers.” The initiative is meant to connect people who now lack online access.

By Me This Week: Zuckerberg Visits India

The story begins:

Shut out of China, Mark Zuckerberg is training his sights on India as a source for future growth.

The Facebook Inc. founder arrived in India on Tuesday as he continues working to expand the company’s reach in a billion-person economy becoming increasingly important in the social networking giant’s quest to add new users.

It is Mr. Zuckerberg’s second visit to India in the last 12 months. During the last one he met with Prime Minister Narendra Modi and launched a free Internet initiative.

Connecting more people in the developing world has become an important goal for Mr. Zuckerberg and his firm. India’s population of more than 1.2 billion people, millions of whom speak English, will be one of the biggest targets for the company’s global growth plans, analysts say, as China doesn’t allow its citizens access to the website.

I also helped some colleagues out with a liveblog for the town hall Q&A Zuckerberg held in Delhi.

Click through for a re-cap of the event, in which Zuckerberg defended Facebook’s controversial free Internet project, Internet.org, which I mentioned writing about few weeks back.