Friday, August 19, 2005

The Seeds of the Next Silicon Valley

How Indian tech companies are helping to incubate startups


At the Indian Institute of Technology (IIT) campus in Kharagpur, near Calcutta, a small team of engineers is beavering away on what they hope will prove a killer competitor to the BlackBerry. At IIT Bombay, an earth sciences professor is about to launch a company that will tap the vapor of geothermal springs to drive turbines, generators, and power stations -- the first company to do so in India. Across the country, at IIT Madras, students and professors have spun off a startup that's working on a no-frills network computer aimed at the Asian corporate and government markets that will sell for just $100. "We dream of building billion-dollar-product companies here," says Ashok Jhunjhunwala, an electrical engineering professor at IIT Madras. "We believe we have laid the foundation for them."

No one knows how many of these products will take off. But the odds are that some of the fledgling companies will make real money. Dozens of such projects are now taking shape at India's elite IITs. In the same way that Stanford University and Massachusetts Institute of Technology helped spawn Silicon Valley and Route 128 in the 1970s and '80s, Indian institutions are encouraging professors and students with business ideas to take the plunge. The schools are providing initial office space, labs, and seed money to "incubate" startup companies. Some are also building tech parks to attract companies willing to collaborate. Since India began opening its economy in the early 1990s, the six (recently expanded to seven) IITs have created some 50 new companies. The pace has accelerated in the last three years.

That's a big change from the early days. When they were conceived in the 1950s, the IITs churned out top-notch engineers to meet an almost insatiable appetite from the country's steel, construction, power, chemical, defense, and textile industries. The schools so excelled at the task that they became a world-famous source of engineers, particularly for the U.S. But actual involvement by the schools in startups was almost nonexistent. Now students and professors alike are busy trying to become entrepreneurs in commercially applicable areas where IITs are strong, such as telecom, microelectronics, computer sciences and software, heat transfer and, of late, biochemistry and biotechnology.

The big challenge is finding funding. IIT Kanpur, for example, has a budget of just $1.15 million to sprinkle around a half dozen projects. IIT Madras has teamed up with institutions such as ICICI Bank Ltd. (IBN ), State Bank of India, and other local state-run sources to raise up to $230,000 for each of its 16 companies. And IIT Kharagpur is creating its own fund. "We have plans for a $230 million venture fund that we will raise from our alumni, investors, financial institutions, and the government," says Partha Pratim Chakrabarti, dean of sponsored research and industrial consultancy at IIT Kharagpur. All these efforts are necessary because Indian startups aren't much on the radar screens of American venture capitalists, who invested only $240 million in Indian companies last year. They invested $20.4 billion in the U.S.

Funds are rarely available for companies that don't have a track record of sales and customers. For example, Midas Communications Technologies Ltd., an IIT Madras spin-off that makes broadband and wireless telecom equipment, finally raised $10 million from American venture capitalists Argonaut Private Equity in July, 2004, seven years after it was founded. Midas' sales are expected to top $104 million this year, 50% higher than 2004. Its success is a boon for IIT Madras, where the electrical engineering department helped develop the technology for Midas products. Midas and other licensees of the technology paid the IIT $3.5 million in royalties last year.

Of course, applied research and business incubation at India's top technology institutes remain a far cry from their U.S. peers. But dozens of IIT spin-offs are a start. If India's software and tech stars can start to attract more venture funding, the breakthroughs of the future may come just as much from Bombay and Madras as Silicon Valley and Boston.

Courtesy: Yahoo

1 Comments:

At 12:57 PM, Blogger darrelmartin7646 said...

='Brand New News Fr0m The Timber Industry!!'=

========Latest Profile==========
Energy & Asset Technology, Inc. (EGTY)
Current Price $0.15
================================

Recognize this undiscovered gem which is poised to jump!!

Please read the following Announcement in its Entierty and
Consider the Possibilities�
Watch this One to Trad,e!

Because, EGTY has secured the global rights to market
genetically enhanced fast growing, hard-wood trees!

EGTY trading volume is beginning to surge with landslide Announcement.
The value of this Stoc,k appears poised for growth! This one will not
remain on the ground floor for long.

KEEP READING!!!!!!!!!!!!!!!

===============
"BREAKING NEWS"
===============

-Energy and Asset Technology, Inc. (EGTY) owns a global license to market
the genetically enhanced Global Cedar growth trees, with plans to
REVOLUTIONIZE the forest-timber industry.

These newly enhanced Globa| Cedar trees require only 9-12 years of growth
before they can be harvested for lumber, whereas worldwide growth time for
lumber is 30-50 years.

Other than growing at an astonishing rate, the Global Cedar has a number
of other benefits. Its natural elements make it resistant to termites, and
the lack of oils and sap found in the wood make it resistant to forest fire,
ensuring higher returns on investments.
T
he wood is very lightweight and strong, lighter than Poplar and over twice
as strong as Balsa, which makes it great for construction. It also has
the unique ability to regrow itself from the stump, minimizing the land and
time to replant and develop new root systems.

Based on current resources and agreements, EGTY projects revenues of $140
Million with an approximate profit margin of 40% for each 9-year cycle. With
anticipated growth, EGTY is expected to challenge Deltic Timber Corp. during
its initial 9-year cycle.

Deltic Timber Corp. currently trades at over $38.00 a share with about $153
Million in revenues. As the reputation and demand for the Global Cedar tree
continues to grow around the world EGTY believes additional multi-million
dollar agreements will be forthcoming. The Global Cedar nursery has produced
about 100,000 infant plants and is developing a production growth target of
250,000 infant plants per month.

Energy and Asset Technology is currently in negotiations with land and business
owners in New Zealand, Greece and Malaysia regarding the purchase of their popular
and profitable fast growing infant tree plants. Inquiries from the governments of
Brazil and Ecuador are also being evaluated.

Conclusion:

The examples above show the Awesome, Earning Potential of little
known Companies That Explode onto Investor�s Radar Screens.
This s-t0ck will not be a Secret for long. Then You May Feel the Desire to Act Right
Now! And Please Watch This One Trade!!


GO EGTY!


All statements made are our express opinion only and should be treated as such.
We may own, take position and sell any securities mentioned at any time. Any
statements that express or involve discussions with respect to predictions,
goals, expectations, beliefs, plans, projections, object'ives, assumptions or
future events or perfo'rmance are not
statements of historical fact and may be
"forward,|ooking statements." forward,|ooking statements are based on expectations,
estimates and projections at the time the statements are made that involve a number
of risks and uncertainties which could cause actual results or events to differ
materially from those presently anticipated. This newsletter was paid $3,000 from
third party (IR Marketing). Forward,|ooking statements in this action may be identified
through the use of words such as: "pr0jects", "f0resee", "expects". in compliance with
Se'ction 17. {b), we disclose the holding of EGTY shares prior to the publication of
this report. Be aware of an inherent conflict of interest resulting from such holdings
due to our intent to profit from the liquidation of these shares. Shar,es may be sold
at any time, even after positive statements have been made regarding the above company.
Since we own shares, there is an inherent conflict of interest in our statements and
opinions. Readers of this publication are cautioned not
to place undue reliance on
forward,|ooking statements, which are based on certain assumptions and expectations
involving various risks and uncertainties that could cause results to differ materially
from those set forth in the forward- looking statements. This is not solicitation to
buy or sell st-0cks, this text is or informational purpose only and you should seek
professional advice from registered financial advisor before you do anything related
with buying or selling st0ck-s, penny st'0cks are very high risk and you can lose your
entire inves,tment.

 

Post a Comment

<< Home