Showing posts with label IIPM New Delhi. Show all posts
Showing posts with label IIPM New Delhi. 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

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
 

Wednesday, April 24, 2013

“We’ll try to close the gaps in our after-sales process”

Neeraj Garg, Member of Board & Director, Volkswagen Passenger cars, talks about the automaker’s plan of action in the all important Indian market

B&E: As compared to what Volkswagen has achieved in markets like China and Europe, it is still early days for the automaker in the Indian market. What it is that VW wants to achieve in India?
Neeraj Garg (NG):
As a company, we are looking at becoming a key driver of the growth in India’s automobile market. After we started launching products in the high-volume segments three years back, we have been able to gain a strong position in the Indian market. As compared to a sales volume of 3,000 units in 2009, we sold 33,000 in 2010 and 78,000 in 2011. We are today the sixth-largest passenger car manufacturer in the country. Is this where we want to stop? Certainly not!

B&E: Globally, VW has a plan to become the market leader by 2018. While it is expected that the company will be able to achieve that milestone before the set year, what is your view on the market share that you would like to achieve in India by, say 2018?
NG:
What I’d like to say is that if VW wants to keep growing, we will have to keep on expanding our sales volumes here. We are among the top three globally. And because India is a strategically critical market for us, we have to build a very strong footing for ourselves in this domestic market. Three years back, the awareness level of our brand was single digits. Hardly anyone knew what VW stood for. Today, that awareness level has risen by 800-900%, which is a significant jump. Although in this respect we are still way behind companies like Maruti, Hyundai and Tata – whose awareness levels range from 90%-99% – I think we have been able to communicate well with our target segment. We have the potential to climb up the ladder. However, this process will take time. Today, we are catering to only 40% of the total market with our seven-product line-up. Hoping that the industry will sell more cars than the 2.2 million cars sold last year, all I can say is that we are right on track.

B&E: You have outpaced the industry in terms of growth over the past few years. What is the action plan for this year?
NG:
This is the time to check whether we are ready for the long-term growth of the domestic market or not. We plan to fill the gaps in our system and consolidate what we have achieved so far in India. For instance, since our sales network has grown exponentially, there are gaps in the after-sales process. We will also be addressing issues like manpower training et al.

B&E: And what about the novelty factor, since your competitors have launched many new models over the past few months?
NG:
All our products are new in any case. Vento is one year-old, Jetta is just six months-old and Passat is just nine months-old. India is very different from the developed markets where manufacturers have to snatch away market shares of other manufacturers to grow. India has a lot of headroom for all manufacturers to grow and we will be able to scale up volumes by opening more dealerships and infusing more efficiency into our system.


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

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
 

Monday, April 08, 2013

A script made for ‘unhappily ever after’ endings?

Corporate cultures trying to manage creative processes are viewed with suspicion. And considering how they are destroying our film industry, it’s not without reason

For the most part, corporate cultures have been quite adept at creating highly efficient and result oriented business processes and adhering to them to ensure more predictable outcomes. Managing creative processes, on the other hand, has often been considered the Achilles Heel for professional managers. Therefore, when the trend of corporatization of India’s film industry began a few years back, there was reason enough to view the entire phenomenon with skepticism. And today, if we look back at the string of box office disasters that they have led to, those fears are justified.

Our most recent debacle in this regard is Mausam, the Shahid Kapoor-Sonam starrer directed by Pankaj Kapur and co-produced by Vistaar Religare (JV of financial services player Religare & Vistaar Entertainment), Eros International Media & Cinergy. The final verdict on its performance isn’t out yet, but it opened to around 40% bookings and initial word-of mouth is making it worse. The most interesting aspect of the movie over the last week has been the Twitter war that Shahid unleashed. Film critic Taran Adarsh had tweeted that Mausam’s numbers were below average, to which Shahid shot back saying, “So all those trying so hard to s***w Mausam can go s***w themselves.” Adarsh replied back saying that Shahid should introspect into the movie’s shortcomings rather than “maligning him (Adarsh) on a public platform”! In fact, one industry source tells us, “All of Religare’s projects are big flops and one suspects foul motives behind spending so much money into big films.” Other notable examples of such terrible flops or rank average performances come to mind. Raavan was one of the biggest of last year; reportedly bought by Reliance for Rs.1 billion. Reliance Big Pictures was also involved in Kites, another box office failure (both lost an estimated Rs.1 billion together). UTV’s Ronnie Screwvalla has a background in the entertainment industry, but he is now well known for deploying the corporate model. And last year, UTV Motion Pictures was party to another huge debacle – Farah Khan’s Tees Maar Khan (reportedly saved only by opening collection of around Rs.500 million) apart from Sanjay Leela Bhansali’s Guzaarish (lost around Rs.350 million), which also failed to enthuse the box office. This year, the record has continued with Saat Khoon Maaf, which failed to enthuse audiences. PVR Pictures was involved in two big ones - Khelein Hum Jee Jaan Se (lost around Rs.300 million) with Ashutosh Gowarikar Productions and also acquired domestic theatrical rights of Action Replayy (failed despite being a Diwali release & lost Rs.150-200 million). Their co-production Aisha with Anil Kapoor also flunked.


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

Thursday, March 28, 2013

Pravin Kumar

In an Interaction with B&E’s Akhilesh Shukla, Pravin Kumar, CEO, Spanco BPO speaks on The Company’s entry into The African Subcontinent, tie-up with Bharti Airtel, Expansion plans and The Challenges in Employee retention that lie ahead

B&E: While the entire BPO industry runs on the off-shore business model, Spanco is interested in onshore businesses. What’s the reason behind this?
Pravin Kumar (PK)
: You’re right. At Spanco, we believe in focusing on the onshore business model – as much as 60% of Spanco’s revenue comes from onshore businesses while the rest is from offshore. The benefit of being in the onshore business model is that it minimises the risk of losing business. Besides, at Spanco, we believe in domain knowledge – that is why we just go for select clients and sectors. Most of our clients are from the BFSI, telecom and banking sectors.

B&E: What are the major investments that you are making in your Africa business, especially after getting shortlisted by Bharti Airtel for customer care and back-end support services?
PK:
As soon as we entered into the African market, we got the contract from Bharti Airtel. As a result, we became the largest BPO in Africa on day one itself, with a work force of 2,200 people. We have improved the service level with the existing manpower and infrastructure. Earlier, these customer care centres managed to answer only 30% of the calls; it has now improved to 90%. As a result, the number of calls received per day dipped to 12,000 per day from 15,000 per day (as a result of increased customer satisfaction). We have committed an investment of $20 million for the next three years and are planning to hire 1,500 people by the end of March 2011. In the next two years, we will take the manpower level to 8,000. Further, to leverage our India experience, we plan to train some of the workforce in Africa at our facility in India. We have plans to take 100-125 work forces in batches to India for training. This will start from the next financial year.

B&E: What is the kind of growth opportunity you see for BPO businesses in Africa? How is the market different from that of India?
PK:
The BPO sector would be one of the biggest employers in the African subcontinent. In the next five years, this sector will employ half a million people in the region in both domestic and international market. The best part of the continent is that they have people who naturally speak English and French. In some parts of the Africa, they speak Arabic also. Their accent is very close to the European countries. The time difference is less in comparison with India. Besides, as the unemployment rate is high, the workforce is cheaper. The average monthly salary ranges from $200-300. We see a huge growth opportunity for ourselves. The market will become at par with our India operation in a span of approximately three years.

B&E: Apart from the customer and back-end support of telecom operators, what are the other businesses you are planning to tap in the sub-continent?
We already have a tie up with Bharti Airtel for $226 million for running its customer care and back-end support for the next five years. The telecom market in Africa will certainly evolve. After Bharti Airtel’s entry, we have witnessed Spanco’s revenues go up. Besides that, we have also got an opportunity to run 66 Airtel showrooms in Africa. We will soon sign the agreement. That business will also flourish with the growth of telecom market in the region. Spanco would foray into power distribution and power reforms too. The power availability in some parts of Africa is as low as 15%, the maximum is 40%. We can add value to these two areas and the sector has a huge opportunity. And yes, e-governance has a high potential for growth too in the continent.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

Tuesday, March 12, 2013

She’s Not Yet a Woman To Me

Is Your Child Growing up Too Fast? Check in Time So That ‘Too Much, Too Young’ Doesn’t Leave you with 'Too Little, Too Late'...

Lolita was a literary marvel or a sleaze roll, depending on how you look at it. In any case, whether inside Nabokov’s classic, or outside of it, sexually precocious children are a discomfiting idea to most of us, except maybe wannabe reality-show makers who would stop at nothing.

Sexual precocity is just one of the fallouts to be imagined in tandem with the surging global trend of children attaining early puberty. As if the unbridled consumerism of our times wasn’t already blurring the lines between childhood, adolescence and adulthood, there comes the distressing and confusing, er, period of puberty for children. While 9 to 13 years is considered the normal bracket for pubertal development – a sequence of physical changes – to start, imagine getting pregnant at 10! A girl in Jerez, Spain, all of 10 years, accomplished just that and gave birth to a baby girl last month, at an age when most others like her are only expecting siblings.

It is tempting to get into the moral and legal propriety of consensual sex between minors – the father is a boy of 13 – but choosing to restrict the discussion to its biological complications, we wonder what it is to be burdened with maternity at such a tender age. Dr. Nikita Trehan, Gynaecologist and Laparoscopic Surgeon, says, “It is a very bad idea, since bone development isn’t complete in young mothers. In addition, the mother and fetus will be competing for nutrients during pregnancy. The risk of stillbirths and other health-related problems with the baby increase too.”


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

Wednesday, March 06, 2013

Throws light on Czech’s post-USSR relations with Russia

In an exclusive conversation with Akram Hoque and sayan ghosh, H.E. Miloslav Stasek, the Czech Republican Ambassador to India, shares his views on EU, NATO and US and throws light on Czech’s post-USSR relations with Russia.

B&E: How are your relations with post-USSR Russia?
MS:
We accept each other. We understand Russia is a superpower. It is a very important source of energy because most of the oil and gas coming to Czech Republic is sourced from Russia. In this perspective, Russia is our strategic partner. However, Russia must accept that we are an independent country now. The political dynamics of central Europe have completely changed. We are a member of Western Europe now. The issue of establishing American defence systems is being addressed and we are having regular discussion with Russia on this front. With the new American administration in place, Barack Obama is now thinking of a new system which could handle this issue.

B&E: There are strong rumours that Czech Republic wants the loans ($10 million) back that it gave to Communist countries like North Korea under your Communist regime. Your comments?
MS:
We want all our money back (laughs)! After the collapse of the communist regime, we would like to settle all our debts unofficially with all the countries. The money loaned out was invested in some projects that were initiated through the government. We are now talking to international institutions like IMF to find a solution for this issue. North Korea is not the only country where our money is. There are countries like Sudan ($11 million) and Bolivia where these issues need to be settled.

B&E: There has been negligible criticism over hate-crimes against minority groups like Gypsies. Is the Government bothered about this?
MS:
The government is bothered and we have assigned one of our ministries the charge of this entire issue. The ministry is focussing on how livelihood of Gypsies can be improved. They have all the rights like any other citizens. The problem is the integration of Gypsies in the national society because they live in cross communities. They don’t send their children to school even for basic education. So the challenge is to change their mentality. That is also a problem with US and Canada.

B&E: As an Ambassador, what are your plans for fortifying relations between India and Czech Republic?
MS:
I will do all I can to enhance the extended relations we have with India. I will try to enhance people-to-people, economic, cultural, security and military cooperation. There is a huge potential and we would like to benefit from the economic development of India.

Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

Monday, March 04, 2013

FORD INDIA: VANTAGE POINT

From a company that was normally counted as an interesting niche player in India, Ford has suddenly become the flavour of the season with the Figo. Our editorial team member walks through Ford one fine lazy afternoon and gives ‘the scoop’ by Sanchit Verma

He proved to be right on the money, as the Figo has changed the entire status quo for the company in just about three months. Thanks to Figo, Ford now stands about neck-to-neck with GM (19,964 units) in the compact car segment with sales of 18,495 units in the April-June period (compared to just 221 units last year). The first ever compact car by Ford India sold more than 17,000 Figos and over 24,000 purchase orders in place already and that's within its first 16 weeks in the market. In fact, advance bookings are touching the 6,000 figure, which creates a different set of problems for the company. Figo's fuel efficiency and highly competitive price have given Ford the momentum it needs to potentially disrupt the market dynamics in the automotive sector. Great start. But as the Honda tagline goes (changed to my choice): Why so late? It must be my imagination, but I can almost feel a bubbly new-found energy on this visit to the Ford plant. A senior worker tells me that the plant is based on the One Ford strategy initiated by Mulally, which is aimed at better use of common Ford design platforms globally and greater integration of production & purchase teams. I nod away; I’ve read it somewhere already.

"The engine plant was created with a 'best of the best' approach," says Michael Boneham, President & MD, Ford India, when he meets me. He seems a picture of exuberance and optimism – competitors tell me that that’s been the case since the success of the Figo (but again, read his interview to me in the latter section of this story). As I walk through the stamping, body and paint shop, I get a better view of the all new revamping being done to transform a manual assembly hub into a globally standardised and technologically advanced manufacturing hub, which will have over 4,000 employees working in-and-out. Along with them, a team of 92 robots (imported from Korea) also work round the clock to achieve production efficiency and quality paint jobs with high degrees of accuracy and quality, applying the new three-step wet solid paint and giving the glossy finish. The plant is poised for big volumes as it has doubled its capacity since renovation. As I move on, I come across the flexible assembly line, which assembles both of the 1.4 litre diesel and 1.2 litre petrol engines. I reach the TCF part where the interiors, chassis, engines and wheels are fitted, before it passes onto quality testing. Here it passes environment tests as per emissions norms – I look and marvel at the car as it is rolled out, giving out an impression of being an advanced engineering graduate; I’m not, but what the heck.

I’m told Ford has finally gone the way of localisation to reduce total cost of ownership. Add to this the investment, led by Ford Motor Company, in Figo – and the combination is apparently winning. It has led Ford India to take a new route and has given it capital leverage to rapidly build up a dealership network. Ford has a current network of 166 dealers, which it plans to expand to 200 by the end of this year. On a competitive basis, Indian consumers are known to be very particular about ease of serviceability – at least my dad is – and this gives brands like Hyundai and Maruti an exceptional advantage. If Ford manages the same, it would potentially be a good push for their up-market portfolio too.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Saturday, February 09, 2013

BP (ERSTWHILE BRITISH PETROLEUM): GULF OF MEXICO OIL SPILL DISASTER

B&E’s Steven Philip Warner talks to various global oil & climate experts from the likes of Goldman Sachs, Credit Suisse, Standard & Poor’s, Argus Research, JBC Energy & Varda Group to find out what awaits BP’s fate? Will BP, which as recently as two months back was the second most valued oil major in the world, disappear?

He still does. And the main one comes in the name of the bill on the clean-up and litigation, which bears the potential to dent huge holes in BP’s pocket. After setting-up a relief fund of $20 billion, in cooperation with the Fed, many experts are forecasting future outflows that could create suicidal pressures on BP’s bottomlines. London-based Kim Fustier, Global Oil & Gas Analyst, Credit Suisse tells B&E, “These total to $28 billion, $35 billion and $49 billion post-tax respectively. We have cut the FY2010-11 EPS outlook for BP by 13% on average to reflect higher clean-up costs and a higher cost of debt. We have cut two quarters of dividends in the second and the third quarter.” BP also has total committed acquisitions amounting to $8.9 billion (as of mid-April 2010), which will further reduce heavily its surplus cash balances, which stood at $5.3 billion, as at the end of March 2010. There is some relief in the form of committed undrawn credit lines amounting to $5.25 billion, however, most of this will fructify only in late 2011 and 2013.

Till date, BP has spent $1.70 billion in the clean-up act; the liabilities are scheduled to touch $6.44 billion for 2010 and $7.08 billion for 2011 (estimates by Credit Suisse). At current oil price levels and debt-equity ratio of the company ($77 per barrel and 30.8% respectively, as on June 22, 2010), the company can afford to pay up anywhere between $6–$7 billion, without disturbing its balance sheet. In defense of BP’s financial competence, Michele della Vigna, Energy Analyst of Goldman Sachs tells B&E, “BP’s cash balances, operating cash flow generation, and bank lines should collectively be sufficient to meet liquidity needs. BP’s near-term financing needs are covered by committed bank lines of more than $10 billion, which would likely obviate the need for BP to turn to the capital markets at a time of stress.” Sounds like the BP ship is prepared for the next iceberg.

But clear and present hope for Hayward’s big oil ship is like spotting a Rolls Royce in Charlotte’s poor suburbs in Northern Carolina. If oil prices fall even slightly below the $70 billion mark, and if BP maintains its current debt-equity ratio, then it can pay up nothing more than $5 billion per year, without raising more capital. In that case, it will either have to opt for higher debt or equity dilution, and in the worst case – sale of assets.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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