Showing posts with label IIPM FACULTY. Show all posts
Showing posts with label IIPM FACULTY. Show all posts

Monday, July 29, 2013

Nirbhaya's Ballia

This place boasts of a Prime Minister called Chandrasekhar. It is also 'hometown' to India's most talked about gang rape victim Nirbhaya. Puja Awasthi travels across Ballia to find aspirational Bharat clashing with resurgent India

“Myself, Shilpi Pandey. I am prepare for BHU Mass Communication and journalism admission (sic)”, bubbles the 21-year-old who lives in Sri Ram Vihar Colony in Uttar Pradesh’s Ballia. Like Pandey, there is at least one member from every family in this midsized colony studying English at the branch of what is locally advertised as ‘India’s largest institute of spoken English’. Pandey spent three months -- two hours for five days every week — at the institute to fix a lack of confidence and came out convinced that she had finally set out on the path to a bright future, her ‘bright’ being a career in the television industry. “I will do whatever it takes and go wherever I have to,” she says with admirable determination once the conversation has settled into Hindi- a language she is more comfortable with.

Some 40 km from Pandey’s home, in the village of Medourah Kalan, that dream to make it big has propelled a few members from almost each of its 500 families to seek a life outside the district which offers few employment opportunities, despite being dotted by some 80 degree colleges. The victim of the gang rape that happened on December 16, 2012 in Delhi, belonged to one such family.

“When the incident happened, girls were scared to go to college which is 10 kilometres from here. But staying back is not an option. Development has not come to us. There is no future here”, says Paras Nath Yadav, the 40-year-old former pradhan of the village.

Yadav’s two brothers live and work elsewhere and he admits that had it not been for an early political initiation, he too would have quit.

Back in Ballia, Rajeev Kumar, the head of the political science department at the Shri Murli Manohar Town PG College sits in his airy, first floor office where a gleaming slim screen computer rests atop a dusty table, and explains that an acute feeling of insecurity is driving migration in the district’s 90 per cent-plus rural population. “Half of those who work as farmers do not own land. They suffer forced labour and sexual exploitation. Despite the river (Ganga) changing course, land surveys have not been re-done. Local elites have been permitted a free run in establishing unlawful control over land. Trapped in such dismal circumstances, low castes migrate with the hope that hard work elsewhere will allow them a chance at a decent life. In the case of the middle class, it is the spirit to exert which is at work”, he says. An example of that spirit having outpaced what the district has to offer is served by Kumar’s own work place where the library is in the process of being digitalised and the campus is being turned into a Wi Fi zone despite 10-hour electricity cuts being the norm. Below his office, girls make a beeline to fill in forms that will make them eligible for the state government’s free laptop scheme (aimed at those who cleared their class 12 examinations last year), but none of those questioned have an answer to how the machines will work in the absence of power. “That is why I want to get out”, says a science undergraduate. Fair point.

The push factors for migration (ie lack of employment opportunities) that work so forcefully in Ballia, are not unique to it. They spread across Uttar Pradesh, which makes up the largest slice of rural and urban interstate migrations that have contributed to adding approximately 22 million new people to the population of destination cities, of which Delhi remains the most popular.

In 1983, it was to Delhi that Badri Singh, the father of the gang rape victim migrated in search of a better life. Working double shifts as a loader with a private airline and getting less than five hours of sleep a night, he had made peace with the realisation that while the better life would skip him, it would definitely come to his three children.

It is the tantalising possibility of this promise that feeds the migratory stream despite lowly skilled migrants mostly ending up in ghettos and drawing the ire of original inhabitants of the destination city. The perpetrators of the December 16 crime in Delhi which rocked an entire nation, also migrants from small towns and villages, were the ugly consequence of a fading of that promise and the resulting economic, social and psychological deprivation.

Yet, with each generation, the illusion of the promise grows more fantastic.“In big cities, it is easier to get returns on your hard work. You are not known for your caste. Your qualification and your job speak for you”, offers 17-year-old Vivek Singh who is a first year student of commerce at a local college. He is aiming for a “MBA with good marks” after which he hopes to find a “manager’s job in a financial company”.  His reference point is an uncle who is in the army, not his father who is a teacher.

To underscore his point on caste, Singh says that while the whole world was raising its voice in support of the 23- year-old Delhi gang rape victim, in Ballia, she was still defined by her standing in the caste hierarchy. “We took out a candle march and burned some effigies, but there was constant talk about her caste, and about her parent’s failure to control her. Imagine that happening in a big city where factories are well developed”, he asks, connecting economic prosperity with a more inclusive social milieu.

In the course of a day spent in Ballia, this is not the sole disturbing observation on the Delhi gang rape victim. Says Ramendra Dwivedi, a local journalist,“There was a muted but palpable sense of resentment that a family of lowly standing had garnered undue attention. The question kya mila (what did the family get) was of greatest interest. The conflict between big city values and small city aspirations was marked.” Dwivedi’s observation points to the complicated relationship between migration and acculturation, a relationship burdened by loss, alienation, dislocation and isolation. It hinges on a complicated equation--clinging to the security of a native identity hawked through culture and caste-based associations while reworking old ties through an economic lens.

Much of the blame for the lack of opportunities lies with the government. In the cause and effect logic of economic activity, the absence of basic infrastructure has turned industry off the region. Thus, while the per capita income of western Uttar Pradesh stands at Rs 15,869, 21 districts of eastern UP have an income of only Rs 9,288 per person.

Industry experts believe that focused hard sell can improve the districts’ economy, as the western region is saturated with industries. In the absence of that focus, eastern UP’s income has remained worse than even that of Bundelkhand which with a per capita income of Rs 12,878 attracts special packages from the centre and the state—a regional anomaly that is explained in part by the more acute nature of distress in Bundelkhand where debt and drought have fuelled farmers’ suicides and captured political imagination. The state’s freshly announced ‘New Infrastructure and Industrial Investment Policy, 2012’ which offers 100 percent exemption in stamp duty and a capital interest subsidy scheme for industries set up in the eastern districts of the state, is yet to yield results. Only the proposed airport at Kushinagar has drawn investor interest for its tourism affecting potential.

More specifically, of the 104 Industrial Entrepreneurs Memoranda (IEM) the initial application for approval to start an industry, filed between April 1, 2012 and January 31, 2013, not a single one proposes an industry for Ballia or for any of the other eastern district except Varanasi and Sonebhadra. This is a telling contrast to Noida, which has attracted 35 new proposals. Even the 1,047 km Ganga Expressway—an access controlled eight lane project that was announced in 2007, to connect Ballia to Noida and thus fuel a more even growth, has been stalled in court.

Ballia’s most recent cause for dissent came from this year’s Railway budget which announced a bi-weekly train to Delhi, but selected its point of origin in Mau (71 kilometres from Ballia), despite representations to the ministry that a train be introduced from Ballia in memory of the bahadur beti (brave daughter) as she is locally referred to.

Krishna Kumar Upadhyay, better known by his moniker `Kaptan’ is the convenor of the Purvanchal Vikas Manch, a body demanding statehood for the state’s eastern region. He connects the example of the train to the other slights that are regularly handed to Ballia. “From the inability to procure land to the disinterest of entrepreneurs, from the non-feasibility of having a medical university to the administrative logic of not setting up a university —there is always a ready answer for why things cannot happen in Ballia”, he says as he prepares to leave for Delhi to press for a route change for the train and demand a 50 per cent reservation quota for Ballia on it.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles

Thursday, June 06, 2013

The Curious Case of Imran Khan

Years ago when Imran Khan decided to join the political fray in Pakistan, he acted and sounded like a novice. More like a starry eyed teenager eager to please everyone than a seasoned cynical politico who knows the nuances of the game. Almost two decades later now, he has barely changed. But the political contours of Pakistan have. And that is why, just days before the historic general elections in Pakistan, Imran Khan has turned relevant, and uncomfortably so.

While the jury is still out whether Imran Khan and his PTI will manage to win the election or at least do well, what is certain that he will not remain at the sidelines as he was in the previous polls. In a nation where frenzies are whipped as easily as it can be, Imran Khan indeed expanded his base after years of dedication. The so called Imran Khan Tsunami that people are talking these days started with barely registered ripples in Pakistan’s otherwise volatile political water.

So, what has made Imran Khan so relevant? The answer is, changing times and demography. Asif Ali Zardari’s PPP indeed became part of the history by becoming the only elected government in Pakistan to complete its term. However, apart from that, it has pretty little to show or talk about. Its five years tenure has been marred by an economic freefall, spate of bombings and suicide attacks, energy crisis and more. Meanwhile, a whole new lot of youngsters have blotted the electoral rolls. This new, urbane and upwardly mobile, group has decidedly different aspiration from its preceding generations. But like most of the other places in the world, this generation is also dangerously apolitical, and proud about it. For such a generation, Imran Khan came as an obvious choice.

A man with the supposed magic-wand. A man who dwells on the surface of a problem and refuse to probe deeper. A man who gives simple (or rather simpleton) solutions to complex problems. In short, suitably suited for this generation.

For example, while he is a vociferous opponent of Drone attacks in Pakistan, he is clueless about what alternative options can Pakistan choose to replace this. Or, while he is a great advocate of dialogue with Taliban, he fails to mention how previous attempts to engage them in dialogue have only given them time to regroup and strengthen their position. Every uneasy answer is buried. No surprise that he caught the fancy of this generation.

But that is not to say that Imran Khan is merely a construct of circumstances. To insinuate that would be callous. If Imran Khan has made himself relevant in the ethnicity ridden South Asian politics, it says a lot about the man’s character.

“As such, Khan is a departure from leaders who hail from political dynasties, such as the Bhuttos or the Sharifs, and boast immense rural landholdings. Since the PTI boycotted the 2008 general elections and has no representation in parliament, the party's record is also clean. Khan is thus better positioned than the PML-N to denounce the corrupt practices of "Mr. Ten Percent," as Pakistan's President and co-chairman of the ruling Pakistan People’s Party (PPP) Asif Ali Zardari is widely known,” says noted Pakistani political commentator, Huma Yusuf.

Your correspondent had a chance to see his impact in Karachi, a city that epitomises ethnic fissures in Pakistan. In a city where voters have traditionally voted either for MQM, ANP or PPP depending on whether they are ethnic Urdu speakers, Pashtuns or Sindhi, and where voting away from the ethnic line is considered even worse than betrayal, Imran Khan has attracted votes across ethnicity. Although he is still expected to bag more of Pashtun votes than those of Mohajirs, it is no surprise that he has made a mentionable dent in both ANP as well as MQM’s vote.

It is because the issues he raises are of national and international importance and affect average Pakistanis in more ways than one. Take for example his opposition to America’s involvement in Pakistan in particular and the region in general.

“Anti-American rhetoric is common among Islamist hard-liners and religious party leaders, but Khan’s urbane appeal as a former cricketer who won international acclaim means he can reach a wider, less religious audience and position himself as the acceptable face of anti-Americanism,” says Badar Alam, editor of Pakistan’s Herald Magazine. “When mullahs talk, people don't stop to listen. "But when a Western educated clean-shaven man does the same, it does suit them.”

Also, compared to both Zardari and Nawaz Sharif, Imran Khan can actually brag his selflessness. For example when Parvez Musharraf asked him to become the Prime Minister of Pakistan, he promptly refused. It was a rare gesture in a region where seasoned statesmen have been known to become Prime Minister for as less as 13 days even when it was clear to them that they will not be able to gather the requisite numbers to survive.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Monday, June 03, 2013

Bogged down by capacity constraints

Given the growth in cargo traffic and maritime trade, ports in India are in urgent need of capacity augmentation in order to meet the country’s growing economic needs and also to grow its share of international trade.

India, which has a long and meandering coastline stretching 7,500 kms, expects its ports – 13 major ports and around 200 non-major ones spread across the nine maritime states that dot its western and eastern corridors – to demonstrate efficiencies to sustain the demands of its growing international trade. About 95% by volume and 70% by value of the country’s international trade is carried on through maritime transport. Over the past decade, Indian ports have seen a sharp surge in traffic, which grew four-fold to 9.7 million TEU (One TEU represents the cargo capacity of a standard intermodal container, 20 feet long and 8 feet wide or 6.1 m long and 2.44 m wide) in 2011, from 2.4 million TEU in 2001 – a staggering growth of 395%.

Unfortunately, India’s ports are ill-equipped to meet this surge in traffic demand as they have not been able to significantly ramp up their capacity and efficiency. Several port projects in the PPP as well as private mode are facing delays on account of regulatory approvals. Take, for instance, projects such the mega container terminal of Chennai, 4th container terminal of JNPT, Vizhinjam port project of Kerala, Rewas port of Maharashtra and the offshore container terminal of Mumbai port, all of which have been delayed. Delays in getting the security clearance, complicated bidding process, poor response of developers and legal issues are the major factors holding up these projects.

Among the PPP port projects that have been hit worst by delays include the construction of six riverine jetties at Kolkata port with 4.5 million tonnes capacity worth Rs.3 billion. Besides, at the Paradip port Trust, construction of the new coal terminal is still in limbo due to want of certain clearances. Some of the other projects awaiting security clearance include conversion of berth No. 8 as Container Terminal at V. O. Chidambaranar (Tuticorin) port. Private players in infrastructure like the Adanis and Punj Lloyd have been denied security clearance for the coal import terminal at the government-controlled Mormugao port in Goa. Similarly, Lanco Infratech has been denied permission for developing a container terminal project for cargo berth facility at Tuticorin port.

As a result of these project delays and unwillingness on the part of the government to award private players port development projects, India has not been able to achieve the target of its capacity expansion. According to the Planning Commission, the capacity of Indian ports will have to nearly double to 2,302 million tonnes (MT) over the next four years to be able to handle the fast growing cargo traffic. The total capacity of the port sector is envisaged to be 2,301.63 MT, to meet the overall projected traffic of 1,758.26 MT by 2016-17, as per the 12th Five Year Plan (2012-17) document. The Planning Commission estimates that cargo traffic by the end of the 12th Plan would be 943.06 MT and 815.20 MT for the major and non-major ports respectively, with corresponding port capacities of 1,241.83 MT and 1,059.80 MT respectively. In light of the fact that our port-handling capacity is way short when compared to the throughput of major ports globally, the Planning Commission has set a target of expanding the annual capacity of major ports to 1229.24 MT by the end of March 2017.

However, till date, no Indian port is capable of handling large container vessels. Most international cargoes are off-loaded at Colombo or nearby ports and then transported to India in bits and pieces. This incapability robs Rs.10 billion from traders. Worse, the turnaround time for ships entering our ports is inordinately high, aggregating 4.67 days and leading to high levels of congestion. The high turnaround time at our ports also leads to pre-berthing delays for ships, which can vary from 2 hours to 40 hours, depending on the port and cargo with the overall average for FY12 being 11 hours.

Addressing concerns related to turnaround and pre-berthing time calls for urgently ramping up our port infrastructure. Already, the dilatoriness in resolving such issues is beginning to impact our cargo trade adversely. Traffic at Indian ports grew by just 2% in 2011-12 (a sharp contrast from 9.2% CAGR recorded during 2005-06 to 2010-11), points out Prof. Sham Choughule, Visiting Faculty, Mumbai University and Member, Port and Logistics Committee of Maharashtra Chambers of Commerce & Industry. Clearly, innovative solutions are needed to stem the tide of declining port traffic. L. Radhakrishnan, Chairman, Jawaharlal Nehru Port Trust, suggest that alternative means of transport such as coastal shipping and inland water transportation should be promoted inviting PPP along with larger viability gap funding by the Government. He also warns about how the tariff guidelines of TAMP (Tariff Authority for Major Ports) are harming private initiative. “The tariff cuts enforced on private terminal operators by TAMP are not benefitting exporters/ importers but are actually getting passed on to international shipping lines.” He suggests that this anomaly needs to be corrected since no authority similar to TAMP exists anywhere else in the world.

To boost capacity augmentation of our existing ports and develop newer ones to meet the demands of growing trade, the Indian government has come out with an action plan spanning ten years. The Maritime Agenda 2010-2020 envisages an investment of Rs.1,650 billion in the port and shipping sector by 2020, of which the majority will be from private investors. The Ministry of Shipping also proposes to build an overall port capacity of 3200 MT by 2020 to cater to the projected traffic demand. This near tripling of capacity in less than a decade’s time is proposed to be achieved by undertaking upgradation of existing ports and development of new major ports.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Wednesday, May 08, 2013

Can Naresh Goyal turn around Jet Airways like he did a decade back?

The airline industry does attract colourful figures like the media-shy Naresh Goyal. It would seem that the smell of gasoline encourages more emotions than economic decisions. Bleeding bottomlines, a confused operational model, a mixed fleet and an unforgiving environment. How can Goyal rescue a company in such turbulence?

It’s impossible to capture Naresh Goyal’s style of running his airline in a simple phrase. Rather, if there’s any one who loves dirty little business secrets, this czar of Indian aviation is right up there. We are not referring to his ownership of 18 lesser-known companies, or even how he manages the cash flow at the Isle of Man-based Tail Winds Limited (which owns a 79.99% stake in Jet). It’s his decision-making style that keeps people guessing which foot he will put forward next. If there is a CEO in India Inc. who can fire 2,000 employees and recall them in a day by politely blaming his management in public for keeping him in the dark, it is the very diplomatic Goyal (in October 2008). If there is a businessman who can dare to risk souring a two decade-long relationship with a supplier as powerful as Boeing by placing a $3 billion-worth order for 15 Airbus A330s only because Boeing couldn’t assure ‘immediate’ delivery of the aircraft he’d wanted, it is the impatient Goyal. ‘Gut-feel’ is the word that explains how he takes decisions at Jet. Till date, his intuition has led him down the right lane in a market where the honours are unevenly divided. But the common sight of heavy losses at Jet in recent quarters, and the revelation that the airline had been trying to save Rs.350 million by delaying service tax payments (in March this year) makes many believers doubt this fact.

But he isn’t new to having his back to the wall. A decade back, Goyal had come to face with a similar situation. An airline bleeding for four consecutive years (losses totalling Rs.5.25 billion between FY1999-2000 and FY2002-03) in an industry that had only bad news (losses of airlines in India during the period amounted to Rs.25.51 billion) made critics question the longevity of Jet. But Goyal brought his airline back into the black (Jet made profits of Rs.10.35 billion in the four years leading to FY2006-07). He did well by paying attention to cost-cutting and better utilisation of Jet’s fleet – between FY2002-03 & FY2006-07, Jet’s annual expenditure per aircraft dropped 41.13% to Rs.971.41 million and its load factor increased 39.21% to 71%.

The present situation is in part a reflection of what occurred ten years back. During the past four years, Jet’s losses have risen to Rs.11.14 billion (with an accumulated loss of Rs.17.3 billion) and the industry is struggling for life (losses of Rs.244.68 billion). The challenge for Goyal is clear – save the airline. Problem is – this time, the numbers read worse. That the company has reported negative earnings of Rs.10.62 billion in just the past four quarters (leading to Q3, FY2011-12) is only a quick summary of the trouble tale. Over the years, competition has intensified implying a division of the revenue pie, Jet’s market share has plummeted (from 48.7% in 2002 to 28.8% today), swinging moods in EU and US markets haven’t helped Jet’s international operations (which contributes to 55% of its topline; during Q3, FY2011-12), ATF prices have skyrocketed (by 235.5% in the past eight years), a weakening rupee has made aircraft-leasing, en route navigation costs and fuel more expensive and recent actions by the fuel supplying companies and the IT department have only made living tougher for Jet. What should Goyal do?


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Monday, May 06, 2013

"India can't afford to ignore a big market like EU”"

Ajay Sahai, Director General & CEO, Federation of Indian Exports Organisation (FIEO) reasons why Indian government needs to aggressively push for the conclusion of India-EU FTA

B&E: Critics argue that through the FTA the European Union is eyeing India’s highly lucrative retail pie and as such the Indian retailers would be on the receiving end. What’s your take?

Ajay Sahai (AS): India is gradually developing into an open-market economy and I don’t think there should be any problem when it comes to opening its doors to the European Union. I am totally in favour of the FTA as it will not only expand our market reach, but will also make us more competitive. If there are certain sectors, which the government feels need protection, then it should surely safeguard their interest. In fact, the FTA needs to be negotiated in that manner.

B&E: Don’t you think that the liberalisation of retail services under the FTA can also put pressure on small farmers’ livelihoods? Not only do big supermarkets ask for very high standards and reject produce on grounds of not meeting that quality, they can gradually take away farmers’ access to local markets. Isn’t it true?

AS: If we are talking within the context of WTO membership, then we are not a signatory to the agreement on government procurement. But if EU wants the government procurement clause to be integrated in this FTA, India needs to be really cautious. The reason is simple. The stakes are indeed high for India as sectors as diverse as railways, energy and telecommunications to construction and health, hitherto reserved for domestic constituencies and used to address economic and social inequalities and to promote domestic growth and development, are slated to be up for grabs by EU firms. Government procurement in India has a social objective and it should be fulfilled at any cost.

B&E: Which sector has a significant upside potential if the India-EU free trade agreement comes into play?

AS: The Indian apparel and textiles industry will see a major boost once the FTA is signed. The EU accounts for about 50% of India’s annual apparel and textiles exports of over $13 billion. Hence, the FTA holds a lot of significance for the domestic textile industry, which at present is outpriced by its less developed counterparts in the region. For instance, apparels produced in India cost around 15-20% more than those produced in Bangladesh. Because of its least developed country status Bangladeshi textiles and apparels enjoy duty-free access to the EU markets, which is not the case with Indian garments. Currently, we are also losing market to China, which will change as soon as the FTA comes into play.


Saturday, May 04, 2013

Exorcising the demons of the 1962 Indo-China war

Fifty years ago, India and China fought a bitter and brutal war sparked off by mutual distrust and acrimony. Today, though both countries continue to build and strengthen bilateral ties, the memory of that war still haunts the two countries .

The commemoration of 50 years of the India-China war is now upon us. On October 20 1962, China launched a two-pronged offensive in Ladakh and across the McMahon Line, overrunning Indian forces in both theatres and capturing Rezang la in Chushul in the western theatre, as well as Tawang in the eastern theatre. Then, a month later, on November 20, the Chinese declared a ceasefire and announced the withdrawal from the conflict zones.

After the war, India claimed that China was occupying about 33,000 square kilometres of its territory in the Aksai Chin region of Ladakh. China laid control over Aksai Chin, a high altitude desert, and established the current Line of Actual Control following the short border war. Despite the region being nearly uninhabitable, it remains strategically important for China as it connects Tibet and East Turkistan, China’s occupied western frontiers.

Excuses have been thrown up for the Indian military debacle. India was ill prepared; it believed in non-violence; it trusted the Chinese and in the ‘Hindi-Chini bhai bhai’ shibboleth. Fingers have been pointed, most famously at then prime minister Jawaharlal Nehru, defence minister Krishna Menon, and Lieutenant General B.N Kaul, who was in charge of the army on India’s eastern frontier. But even fifty years later, people of India are not still unaware of the circumstances and reasons that led to India’s defeat.

Successive Indian governments have refused to release the Henderson-Brooks report that investigated the lapses of 1962. The report submitted by Lt.Gen. Henderson Brooks and Brigadier P.S. Bhagat in 1963 was presented to prime minister Jawaharlal Nehru and a couple of ministers. Unfortunately, the report remains “top secret” till date. The government made a statement in Parliament on May 10, 2012 that the Report of the Operations Review Committee on the 1962 war will not be published following an order of March 19, 2009 by a Bench of the Central Information Commission as it is likely to have a security bearing on army’s operational strategy in the north-east and deployment of forces along the line of Actual Control.

According to a widespread view among many scholars of the India-China war, China wrongly believed that India was going to seize Tibet after providing political asylum to the Tibetan leader Dalai Lama. Also, India’s forward policy of building new outposts along the de facto line of control, even pushing that line forward, annoyed China immensely. According to a recently published book on the India-China war by a senior Indian Revenue Service (Customs and Central Excise) official K.N. Raghavan, India erred in unilaterally fixing her borders with China in 1954. This, along with India’s decision to give asylum to the Dalai Lama, made China suspicious of India, says the book, titled ‘Dividing Lines’.

Despite the 1962 war, the border dispute between Indian and China has proved to be a tough nut to crack. The two countries share a border that is approximately 4,000 kilometres long but border disputes continue to prevent the full normalization of relations despite almost a quarter decade of negotiations. The Sino-Indian war crystallized and enshrined the suspicions and stereotypes that each side held of the other. To this day, Beijing suspects that India, with the help of the U.S., strives to undermine its rule in Tibet in order to balance against China’s growing power.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Friday, May 03, 2013

This one's for you Lance

The charges levied against Armstrong are devoid of substantive proof, and he must seek legal recourse

“I have never doped. These charges are baseless and motivated by spite,” is the response from Lance Armstrong, seven times winner of Tour de France, the prestigious cycling competition, countering charges levelled against him by the doping monitoring body, USADA, which has also stripped him of all titles and honors and banned him from competing in the future. USADA claims that Lance Armstrong has been cheating the cycling fraternity since 1996, and also claims that blood samples collected from him in 2009 and 2010 are fully consistent with their claim. What one is perplexed about is why USADA was silent for so long, if they had found the blood sample manipulation long back in 2009? Also, USADA’s assertion of Armstrong’s guilt from the 1990s lacks substantive proof.

Lance Armstrong has pointed fingers against USADA’s CEO, Travis Tygart, and has termed this as a ploy for vendetta and dismissed it as being sans merit. The Armstrong’s defense is neat and solid: he has been accused of doping for 16 years, yet in over 500 drug tests conducted to him, he failed in none.

Support is pouring in towards Armstrong – from his ex-coach Johan Bruyneel, his sponsor Nike and even from his competitors like Alberto Contador. UCI (the Tour de France organiser) has now revealed that USADA has even failed to hand over the so-called “evidence file” to UCI despite various reminders.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Tuesday, April 30, 2013

“My dream is to turn JNPT into a hub port”

Luxman Radhakrishnan, Chairman, Jawaharlal Nehru Port Trust, on the potential of JNPT becoming a trans-shipment hub and how it will benefit Indian trade

B&E: Can JNPT be turned into a trans-shipment hub? 
Luxman Radhakrishnan (LR): JNPT is a major and sensitive port for Indian trade. Last year about 56% of the country’s total volume of container handling was done through JNPT. Since JNPT is a major port on the western coast, it can also be developed as a trans-shipment port.   

B&E: What is being done to make JNPT a trans-shipment hub? 
LR: The Ministry of Shipping has identified JNPT and Kochi as hub ports on the west coast and Chennai and Vishakhapatnam on the east coast. In order to make JNPT a major hub for India-related shipping, the depth of the Mumbai-JNPT channel will first be dredged to 14 metres and then to 17-metres depth. In order to be fuel-efficient and competitive it is important for ships to be very large and this requires a hub port to have depth. My dream is to bring big ships to JNPT and turn it into a hub port, and I expect to see it happen in this decade itself. 

B&E: How will Indian trade benefit from JNPT becoming a hub port? 
LR:  It will ensure larger capacity mother vessels to call at JNPT with bigger parcel sizes. This will lead to higher productivity for the terminal operators as well as ensure savings for importers and exporters. The latter will be able to avoid trans-shipment charges and extra freight they have to pay to feeder vessels by bringing the cargo directly to JNPT in the mother ships. In the process, we will be able to save 80% of the trans-shipment revenues that currently goes to Colombo.

B&E: When do you plan to start the dredging?
LR: 
The dredging to 14 metres depth for the first phase should take about 24 months to complete (from the time the work starts). As soon as the first phase is completed, we should be ready with the detailed project report. We even have the necessary clearances to take the work ahead for the second phase. The dredging for the second phase will be to 17 metres depth.
 
B&E: What are the average pre-berthing waiting time and turnaround time at JN Port?
LR: 
During fiscal 2011-12, the average pre-berthing time has decreased to 8 hours 24 min. from 13 hours 40 min. in 2010-11. Even the turnaround time has been reduced to 36 hours in 2011-12 from 41 hours 2 minutes.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 

Saturday, April 27, 2013

"I only bother about production volumes"

C. S, Verma, CMD, SAIL – India’s largest public sector steel company and the second-most profitable in the business in India Inc., refuses to believe that dampened economic sentiments are making life difficult for Indian steel businesses. For him, 10% is how the trajectory of growth appears for the industry. He might be right.

B&E: Besides being one of the highest profit-makers in India Inc., in recent years, the Rs. 503.5 billion topline-earning SAIL has worked on marketing its brand. How important is the brand to the company and its stakeholders?
Chandra Shekhar Verma (CSV):
Today, branding activity in the steel industry in India is on the rise. And from September 1, 2012, the government of India will introduce the mandatory BIF standard, which will make branding compulsory for industry players. As far as SAIL is concerned, today, roughly 20% of our sales come from products that are branded. So, in times to come, brands and the power of branding will hold great importance for all in the steel industry. At present, we have more than 3,000 dealers and 67 warehouses across the country, so we expect branding to hitherto impact positively the efforts of SAIL as far as strengthening its front and back-ends are concerned. Investments in branding will also give us a distinguishing upper-hand over competition that is rising each day.

B&E: You mentioned competition – can you elaborate?
CSV:
Today, government policy allows free import of steel from overseas – therefore it is a case of survival of the fittest. And this is again where I come back to the branding bit. We had to create brand equity in the minds of customers. Due to the marketing activities in recent past, I can say that SAIL has got a brand awareness that is unmatchable. Whenever customers or government officials talk about steel, they talk of SAIL. And the popularity of our slogan which goes as, “There’s a little bit of SAIL in everybody’s life”, proves the how SAIL has been able to position itself in a cluttered market where there are more than six to seven big players.

B&E: India’s steel consumption grew only by 5.5% in FY2011-12 to 70 million tonne due to lower demand from industries like auto, FMCG and construction. This figure shows lack of investment in industrial projects. There is all the talk about a slowdown in the steel industry – what is your take on how your company has performed vis-à-vis the industry during FY2011-12?
CSV:
I don’t agree that either the Indian economy or the steel sector is facing a slowdown. India is a demand centre as far as consumption of steel is concerned, and even last year, despite an increase in production, we had to import steel to fulfil just our domestic demand. And the fact that the government has planned a total investment of one trillion dollar during the 12th Five-Year plan period is definitely an encouragement for investors and participating companies in the steel industry. Moreover, to achieve 1% growth in GDP, there has to be a growth of 1-2 times in production of steel. To be realistic, yes, we are not completely insulated from the happenings in Europe and US – the slowdown and crises across various markets have impacted India, but the fear of slowdown only lives in the mindset of people in this country. Today, the installed capacity of steel in India is about 82 million tonne a year, which is going to rise to about 140 million tone by the end of the current Five-Year plan and then to more than 200 million tonne by FY2020-21. The reason for a slowdown in the sector in Europe and US is that they are oversaturated economies and the low 1-2% growth in their economies cannot drive forward demand of steel. But if you look at growth of the steel sector in India it has averaged 8-10% over the past few years. And this growth will continue.

B&E: So you claim that the previous financial year was not a challenging period for SAIL?
CSV:
Challenges were there. They still are. But the growth of more than 8% in demand and production of steel in India over the past few years, due to the India growth story, has been more than encouraging for us. There are challenges galore. More and more players are entering the industry today. The market is a free import market so if we are not cost competitive, there will be imports from China. Today, the total installed capacity of steel in the world is 1.8 billion tonne. Of this, 50% capacity is in China. And China is our next door neighbour. So, if we do not control costs and therefore prices, there will be free imports from China. So there are many more such challenges in the industry in India, but the opportunities outweigh the threats. And this is really not the case with other economies in Europe. India presents a growth opportunity for this industry.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
 

Saturday, April 20, 2013

Honda is out. Hero goes on... but with challenges multiplied! What next?

With Honda, Hero was growing in stature. Now that the Japanese are gone, questions are being raised on how well can Hero master in-house engine technology. Can Pawan Munjal silence his critics?
 

I n the Indian two-wheeler market during the 1980s, the closest you could get to being a rockstar was working for Bajaj Auto – the scooter maker. Thirty years later, much has changed. Bajaj no longer rules the minds of commuters in India. From occupying over 80% of the Indian two-wheeler market, the company today has a loose grip over only 18.15% of the category. Two reasons. Competition is the lesser excuse. Hero MotoCorp is the main. The Pawan Munjal-led giant controls 45.46% of the market, and at no hour seems to be losing the elasticity of its youth!

The company’s leader is an introvert. But that is where the shyness ends. Munjal, over the past few years has increasingly started to love sunlight. Today, at every new product launch, you can see the 57 year-old share his excitement with onlookers. Pawan Munjal, MD & CEO of Hero MotoCorp, is the new rock star of the Indian two-wheeler industry. His employees too, perhaps, feel the same. But many critics in the industry don’t feel as upbeat about his company. They are open about it. Some say that there isn’t much happening at Hero MotoCorp – not after Honda decided to abandon ship. Truth is – the Honda-goodbye was an important Munjal-plan that worked.

Those who are familiar with Munjal know this is true. According to him, the JV was proving a deterrent for the Hero Group to expand at a rate that it was capable of. Add to this, Honda’s presence not only meant allowing a future to shape up that had a crippled-for-technology Hero Group struggling with competition but also the fact that it had to play by Honda’s rulebook as far as expansion into international markets was concerned (implying a no-expansion policy for Hero in Asia & Latin America – markets where Honda bikes were sold).

And so it happened in December 2010. Honda was out. Eight months later, Hero Honda became rechristened as Hero MotoCorp, and there was apparently no happier a man in the whole of London (where the unveiling of the new identity was done) than Munjal. The launch of Hero-branded products like Impulse followed and the company ended 2011 on a happy note, with sales of 6.12 million units during CY2011 – a y-o-y growth of 19.2%. The numbers following the ouster of Honda looked encouraging. But questions were still being asked about the company’s future. “What will happen when Honda stops allowing Hero MotoCorp to use its technology in June 2014?” was the most common.

Munjal was silent for months. Then in the fourth week of February 2012, he spoke. He announced his company’s partnership with US-based two-wheeler manufacturing company Erik Buell Racing (EBR). The partnership was the answer to people who wondered what Hero would do after Honda. First, it will begin by borrowing technology to make its machines by paying a royalty that is lower than what it paid Honda (Rs.1.87 billion per quarter). Second, it will invest in R&D to create its own technological platforms to serve the global market starting mid-2014. Looks good on paper, but easier said than done.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles

Friday, April 19, 2013

B&E Indicators

PE investments up 24% in 2011

Private Equity (PE) firms invested $10,117 million over 441 deals in India during the 12 months ending December 2011, compared to $8,187 million across 362 deals during the previous year. These figures, which include VC (venture capital) investments and exclude PE investments in real estate, take the total investments by PE firms over the past five years to about $47 billion across 2,062 transactions.

IT – still the hot favourite

With 137 investments worth about $1,752 million, Information Technology and IT-Enabled Services (ITES) companies topped in terms of both investment value and volume during 2011. The Energy industry absorbed $1,651 million across 43 deals, while Manufacturing attracted $1,598 across 37 transactions. Engineering & Construction companies and Food & Beverages companies also attracted special investor attention during 2011.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
 

Tuesday, April 16, 2013

B&E Indicators

Choppy commodity markets

On the back of global concerns about demand and appreciation in exchange rates, non-energy commodities have registered an approximate decline of 7.6% yoy in October 2011. Due to a decline in global industrial production, metals were the worst hit. Improving supplies also led to fall in prices of agricultural commodities. Crude prices dipped below $100/bbl due to slow demand but light/sweet crude and distillate markets will be tight in the upcoming peak winter.

Flourishing agri-supplies


A more robust supply scenario is leading to a fall in prices of agricultural commodities., led by raw materials like rubber and cotton. Most commodities have registered bumper crops like coffee (Brazil & Vietnam), fats & oils (Malaysia & South America) and wheat (increasing production in Australia, Canada, Russia and the Ukraine & Argentina). But uncertainties still remain about the longevity of this scenario.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Face

Monday, April 15, 2013

Laying the ground for a second coming

After years of struggling with its CDMA technology in India, Qualcomm is looking for business avenues in the smartphone space. However, its real potential seems to lie elsewhere.

The Indian telecom industry has been witnessing an unprecedented fall in subscriber additions of late. For the last 4 months, the net additions have been less than 10 million every month and still descending on monthly basis; taking the total to 611.75 million by August 2011 (COAI). However, low cost handset makers are getting upbeat about revolutionising the 2nd largest telecom market in the world even after over half of it is taken.

Riding on the wave created by Google’s free operating system Android, which surpassed Nokia’s outdated operating system Symbian in 2010, even chipset manufacturing companies like Qualcomm are eager to have their share of the pie in Android’s feast, which is all set to cross 49% market share by 2012 (Gartner). The worldwide smartphone market is expected to grow by more than 55% yoy in 2011 and around 472 million phones will be shipped through the year. It is projected that shipments will reach 982 million by 2015 with Apple’s iPhones & Samsung’s Galaxys leading the segment currently.

Many OEMs naturally believe in the low cost handset market for an emerging market like India. Qualcomm CEO Paul Jacobs shares the view. After facing significant reversals in India due to the far lower success rate of CDMA services, due to which even its largest customer RCom switched a few years back to a dual service portfolio, Qualcomm is looking to make amends. In 1990, Qualcomm pioneered the designing of CDMA-based cellular base stations, which has been its forte. Being the OEM of mobile phone chipsets, (Qualcomm CDMA technologies contributed 61% of its revenues in FY 2010), Qualcomm was once able to derive huge royalties from the companies it served with CDMA (globally, LG and Samsung contributed over 10% each in the same period). But India is very low in contrbution despite significant investments by the company.

The San Diego-based company’s strategy is to leverage the expanding availability of 3G services (as its core competency is producing 3G compatible chipsets) and after successfully tapping the biggest handset market of the world (China accounted for 29% of Qualcomm’s revenues of $10.99 billion for the year ending September 2010), the company has now decided to follow the footsteps of its Chinese competitors and bring out a sub-$100 phone with a Qualcomm chip in order to cater to the needs of the price sensitive yet feature conscious Indian market. Huawei and ZTE have already launched Qualcomm chip powered Android handsets in that range in China.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Face

Saturday, April 13, 2013

A case of going broke?

With market volatility making life difficult for equity-driven brokerage houses, the players are scouting for newer, innovative tools. But have their efforts really paid off?

Biologists have applied game theory to explain genetic mutations. Legal arbitrators have used it to understand negotiations. And brokerage houses are fast mastering it to muscle out competition with every means possible. For these brokerage outfits, it is an age where profits talk, survival of the fittest is the style of living, and constant evolution of their model is a necessary deed. But at what cost?

With the market continuing to misbehave, many broking houses that had mushroomed during the great financial markets boom (2004 to 2007) find themselves in a soup. As many as 48 firms were even forced to surrender or shut shops on NSE & BSE between July 2010 and June 2011. And for the lot of 1,800-odd that continue to breathe, most (predominantly dependent on equity broking) are struggling due to the continuous fall in revenue, which during the past two years has been as killing as a 25% drop on a q-o-q basis. This has left them figuring out: “what next?”

On the surface, the situation may not look as bad, because turnover (equivalent to the total values of deals conducted – both institutional & retail) of the domestic equity brokerage industry did grow by 46% in FY2010-11 to touch Rs.339 trillion ($7.48 trillion; as per ICRA). But a look at the particulars give wrinkles to well-wishers. 86% of the turnover during FY2010-11 was contributed by the low-margin derivatives segment (average broking yield of 3-5 basis points). On the other hand, the contribution of the lucrative cash segment (yield of 10-12 bps) continued to decline. As per ICRA, between Q2, FY10 and Q4, FY11, the average daily trading volumes (on BSE & NSE) in the cash segment fell by a high 33% to Rs.161.15 billion. This implied a fall in the share of the cash segment at the exchanges from 26% in Q2, FY10 to just 10% in Q4, FY11. This change in trading mix, coupled with sustained high competition that triggered a price war in a highly fragmented market, dragged down average rate of commission to 0.15% from 0.4%, ensuring a 1 bps fall in brokerage yield y-o-y to the sub-4bps levels in FY2011. In FY2010, the average daily turnover (ADTO) of emerging segments like options and commodities – which were once imagined to fuel growth – grew at 127% and 110% respectively. [Currently the ADTO of commodities is Rs.460 billion, with a broking yield of 1-2 bps or lower.] Another fast-growing segment is called currency trading (in which trading in India started in September 2008 and today, the ADTO is at Rs.450 billion with broking yield between 0.6 to 0.8 bps). These three tools appear attractive, but have not worked in the name of diversification. Reason: ultra-low yields.

Another not-so-successful attempt – in recent years, to create a diversified revenue stream, brokerage houses have ventured into capital market related funding activities. But while this move was expected to earn them money in a sunbathing mode, the outcome has been quite the contrary. The capital market financing book (which consists of margin funding, loan against shares & promoter funding) of 19 large brokerage outfits (tracked by ICRA; which has increased to over Rs.160 billion by March 2011 from Rs.120 billion in March 2010), has taken a beating due to a constant rise in cost of funding (courtesy: RBI’s rate hikes), and the failure to pass on the cost to the clients. Result: return on equity invested for the financing business is down from 15% to 12% (and even this is sans the operating expenses & credit costs).


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles