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

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

Tuesday, May 07, 2013

International

Intel: change of guard

Otellini’s successor to come into a hard landing

The Paul Otellini era at Intel Corp is drawing to a close. Intel’s legendary CEO will call it a day in May 2013, after working for an astounding 40 years in the service of the world’s largest chip maker. The news came as a shocker, as Otellini, 62, surprised the tech community by announcing to retire three years before Intel’s mandatory retirement age. He has had a stellar record at the helm of Intel since 2005. Intel’s revenue increased by 57% to reach $55 billion at the end of 2011. He also settled an antitrust suit against Intel for $1.25 billion, and went on to convince Apple to put Intel chips in its computers.

Otellini will hand over the baton to a new incumbent at a critical juncture in the company’s 44-year-old history. Until not very long ago Intel strode the tech world like a collossus, enjoying over 80% share of the global market in computer chips and processors. But those days of glory are now a fading memory as new rivals and upstarts such as Qualcomm and ARM Holdings have eaten into the turf that was once Intel’s happy hunting ground. The company also found itself turning up late for the party as new players made rapid gains by moving in fast and capitalising on the big shift towards mobile devices.

The Intel board has begun its search in earnest for a worthy successor who can turn around the flagging fortunes of a company beset by an eroding market share and falling PC sales. Last month Intel’s Q3 net income fell by more than 14% to $3 billion on falling PC sales (its core competence area). According to market research firm Gartner, PC sales fell flat for the seventh quarter in a row during the second half of 2012 and the outlook for the future doen’t look bright either. Will Otellini’s successor be able to step up to the plate and revive Intel’s business in these challenging times?

HP: DEAL gone sour


Autonomy deal blows up in the face

Bad luck seems to have become a constant companion of the US technology major Hewlett-Packard (HP). The latest downer is it’s purchase of Autonomy, a British software company, for a whopping $11 billion last year. How HP, an old warhorse of the tech race, could have been so naive to jump at a deal, which had disaster written all over it from the word go? Autonomy’s numbers were fishy to begin with. Its stated profit margins of around 50% did not seem to translate proportionately into cash flow and its claim of double-digit organic growth in software license revenue appeared too good to be true. And despite being warned by analysts that it was forking out too high a price for the acquisition, the computer maker went ahead with the deal. Not surprising that it has now unravelled with destructive force leaving behind a toxic trail of accounting rigmarole. HP is now engaged in salvaging the situation and limiting its damages. The company has written down $8.8bn in the value of the deal. It has also fessed up to “serious” accounting improprieties at the British company. However, it will take some time before HP is able to clean up the mess and leave the stink behind.


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

LETTERS TO THE EDITOR

Distinguished teamwork

Thank you for providing me with the opportunity to participate in the Inside China article (Business & Economy cover story for the month of August 2012). I am impressed by the knowledge and expertise of the authors and the overall quality of production. Your staff did a terrific job of adding graphics, tables, photos and editorial changes to my humble story. It has received positive reviews from friends, family and colleagues for its level of professionalism and polished appearance. I especially enjoyed reading the China: Read. Learn. Repeat article by Prof.A. Sandeep. The focus on the Chinese auto industry was spot on and well written. I am pleased to be associated with such a distinguished collection of experts. Thank you once again.

Arthur C. Wheaton
Director, Western NY Labor and Environmental Programs & Faculty of Industrial Relations, Cornell University ILR School

Great issue on Reverse Innovation/Exnovation

The Business & Economy issue on ‘Reverse Innovation/Exnovation’ (cover story for the month of October 2012) was simply a great issue and I totally loved it. You have exactly captured the essence of reverse innovation. In my view, Reverse Innovation represents the biggest opportunity for India in sectors as diverse as transportation, energy, health care and education.

Prof. Vijay Govindarajan
Earl C. Daum 1924 Professor of International Business, Tuck School of Business University of Dartmouth


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
 

Thursday, March 07, 2013

GOLF IN INDIA: MULTIPLIER EFFECTS

They say Multi-Billion dollar deals are supposed to get signed when you play golf with the plutocrats. Strangely, the Nabob Parvenu class in India hasn’t quite resonated with such fables despite golf’s presence for quite sometime in India. Thus, just to put paid to current perceptions of the pseudo-club, B&E does a quasi-subjective survey of the sport (and is surprised)

One key example that met our eyes was Digraj Singh, who runs Digraj Golf Inc., a corporate golf business, which has got even the likes of Thomas Cook interested in associating monetarily with the sport in a big way. Digraj started a landmark league that stretched golf: usually a golfing event for men is for 4 days, and for women, 3 days. Digraj Golf Inc. started a league this year that is played in Delhi for over 2 months. And ‘stretching golf’ is not only in terms of the time golf is being played. The plan is to extend the tournament to all those golfers (and by PGTI data, there are 100,000 golfers in India today) who want to play but are either not professionals or do not have the money to pay for regular golf event. Indiver Rastogi, Head, Enterprise Business Unit, Thomas Cook India Ltd, says he and Rakshit Desai, Executive Director, Travel Services, had been thinking of doing something with golf for some time. “So when Digraj came up with the idea of a league with such a broad base, we did not take much time at all to get associated,” he said. They saw golf as an area of change. The Indian Golf League, of which they are the title sponsors, allows their customers to play golf for two months. This was unimaginable before Digraj came up with the league concept.

No wonder, the best brands are teeing off to catch the golf train. Rolex, Mercedez Benz, Seagram, LG, Audi, Aircel, Tata Steel, Indian PSUs SAIL, ONGC... you name ‘em and they are there. The reason, explains Parmar, is that foreign companies realise that India has two major assets lacking in other countries: sprawling landscapes that can house golf courses and a booming economy with a massive disposable income in the hands of the middle and upper middle classes for the country to become the regeneration crib for golf.

From a comparatively insignificant 80 contestants for the Indian Junior Tour some five years ago, there are now 200. But more than any other index, the amateur golf story in India is marked by the stepping in of the US-based sports marketing behemoth, IMG, which now has a joint venture with Reliance Industries (Nita Ambani being the presiding deity for Reliance’s sports investment) to give scholarship to four young golfing talents, who’d be given comprehensive education plus golf training in the Florida-based Leadbetter (named after the golfing legend) institute. The IMG Reliance JV’s Indian golf programme will invest a million dollars on each selected talent, who would go to Florida for an 11-hour per day gruelling course of formal education plus golf training from this year on.


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, February 06, 2013

A stitch before time?

After having failed to acquire Africa’s MTN, Sunil Mittal has now set his eyes on Zain to enter Africa. But his best bets could be much closer home than he thinks.

Africa? A book one thumbs: listlessly, till slumber comes...”: Countee Cullen

Businesses today couldn’t help but disagree with Countee Cullen’s poetic rendition of the Dark Continent. Companies across the globe have been increasingly laying out plans to acquire invaluable assets in the continent where the fruits of global economic growth have been the slowest in the coming. Understandably, it’s a key to Bharti’s ambitions towards becoming a powerful emerging market telecom giant; ambitions that seem to be growing by the day, undeterred by rounds and rounds of MTN disillusionment.

Bharti Airtel kickstarted 2010 with the announcement to acquire a 70% stake in Bangladesh’s Warid Telecom International (a wholly owned subsidiary of UAE’s Dhabi Group) for about $300 million. This was a landmark deal for Bharti Airtel, as it was the company’s first acquisition in the international market. Though the company also has operations in Sri Lanka, it was not through inorganic route. But given that it is only the fourth largest operator in the entire country and has a current subscriber base of 2.9 million subscribers, the company has made it clear that they might be looking at further acquisition in the Bangladeshi markets. Further, on the heels of this acquisition came out hushed rumours that the company was looking at strategic stakes as well as other options to enter Bhutan.

Add to it the fact that starting from February 15, 2010, Bharti Airtel has entered into exclusive talks with Kuwaiti telecom major Zain to acquire its assets in Africa (except for its operations in Morocco and Sudan). This exclusive talk period would last till March 25, and the deal is expected to be worked out till May. It is noteworthy that this is Bharti’s third attempt to enter the African market as it has tried to woo another MTN to enter into an alliance twice in the past and failed in both the attempts.

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.



 

Friday, January 18, 2013

Parents: Happy and Gay!

Same-sex couples are coming out for adoption…

One of the best gifts that one could give someone is ‘life’. You may not be God, but in the form of a parent, you could be his personification for a child. Like Sushmita Sen has shown, it’s not essential to be with someone to be a parent either. Being a parent may not be easy, but this call of eternal love and emotion comes from within. In the present day scenario, there has been a surge in the number of gay couples going through adoption agencies. Adoption sure is a tough decision, and so is the procedure. Even for a conventional couple, child adoption isn’t easy. After a formal application and an NOC from CARA (Central Adoption Resource Agency), the couple has to wait till the authorities find a child suitable to their expectations, and unlike the common belief, parents are not permitted to choose their baby. Adoption isn’t as difficult abroad as is it in India, but it’s nearly impossible to adopt here if you’re gay. Homosexuality has found legal acceptance and sex between gays is no longer a crime, but according to the Supreme Court ruling, there have been no comments as regards marriage rights between gay couples or their adoption rights.

It’ll be long before India opens up to the idea of gays getting married and thereafter adopting a child legally, but for those, for whom love knows no boundaries, such beautiful relationships already exist. “I just got my son married to a girl. I found him on the Bandra Station when he was 13-years old. I raised him and supported him to be able to earn his bread. No one taught me how to be a mother, but I knew it... it is a feeling which comes from within. My partner and I never feel that we are incompetent as parents,” says Mr. Girish Kumar a.k.a. ‘Nihsa’, who lives with his partner Mr. Praveen Sharma. Just like all parents, even gay couples assume roles within a family. One assumes the role of the father and the other, that of a mother. All these feelings come to them very naturally. A child strives for love, care, tenderness and optimum support and guidance. These aspects of one’s life are not subject to sex, and can be fulfilled by anyone who feels for it in the right manner.


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.
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
IIPM – FLP (Flexi Learning Program)

Wednesday, January 16, 2013

Kemah Tinggi Hotel

‘Welcome to paradise’ is what this luxury villa subtly whispers in your ears the moment you step in…! Defining luxury in a whole new way is what Kemah Tinggi is all about. Unmatched hospitality and exquisite comfort cushions you from the hectic city life. Kemah Tinggi (high pavilion) derived its name from the dramatically tall and open-sided structure in the centre of this luxury villa. Regular life needs to take a breather and this is the place to unwind. With exquisite calmness that one is greeted with, and immaculate service, one feels as if relaxing at the Creator’s Spa. Curl up with a book in your hand on a comfortable hammock while watching the palms sway to the beats of your favourite music and enjoy the waves crashing near you. It’s time for you to welcome this paradise of a moment into your life!

The view: One could watch the sunset in the evenings across the rice paddies and the frangipani trees offering shade to the lush lawns. The luxury villa has been tactfully designed in a fashion that it gives one the most spectacularly scenic view of the Indian ocean.

Archi type:
Specially designed with its soaring columns and dramatic roof, guests could frame the views across the sparkling pool and lawns towards the green rice fields and crashing waves of the Indian Ocean. The interiors are understated with Balinese accents and are tastefully decorated with rich and neutral tones. The contemporary aesthetics at once seem sophisticated and simple and at the same instance they are intimate and casual.

Bon appétit: Contemporary specialities, along with Asian and Indonesian dishes, are bound to trigger your taste buds. A highlight is the special children’s menu that is ready to pamper your little ones. Balinese cuisine suggests a few exotic specialties such as Lawar, Bebek Betutu and Babi Guling which are a must try.

Around the corner: Bali is such a small island that everything is... well, just around the corner. It’s best to set camp at a luxury villa like Kemah Tinggi which is in the suburbs and offers tranquillity. At the same time, it is close to all sites worth a visit such as the Seminyak, Kuta Beach, Ulu Wato (cliff top temple).


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.

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
IIPM – FLP (Flexi Learning Program)

Friday, January 11, 2013

A lesson taught ...and learnt?

from the ceo to the office boy, from the business tycoon to the paan waala, from urban to rural; mobile handsets have travelled a great distance in india, and so has nokia. but thanks to the latest twists in the tale, nokia may need to adapt quite a bit very soon

The ‘Black & White’ era went into decline mode in India way back in 1982, when the first colour TV sets were introduced on the occasion of the Asiad Games (movies were already in colour, though; interestingly, India’s first indigenously produced colour film was Kishan Kanya; way back in 1937). But the ‘grey’ era continues to be strong till date. Not on your screens, my friend, but in markets. Ask the MNCs and they will recount, in horror, countless stories on how the grey market has, time and again, wreaked havoc with their plans.

And that was just the beginning of Nokia’s quagmires when it entered the Indian market in 1995. It was a market where mobile phones and services were a luxury item. With the prices that these models commanded, you could get a decent second hand Fiat car in those days!

There were a few key planks on which Nokia played its cards, and played them well. Firstly, they developed phones specifically for the Indian market, with durability to withstand Indian conditions and features like torch, vernacular SMS, news feeds, et al. Also, with other players like LG, Sony and Samsung being perceived as diversified consumer electronic companies, Nokia scored heavily on the fact that it had a core focus on mobile phones & developed strong brand equity.

Also, it developed phones for all price points. They backed this up with an intensive distribution strategy and were greatly helped by the tie up with HCL Technologies. “We realised that one of the main challenges was the geographical spread of the consumer and hence we invested extensively towards overcoming this challenge,” reveals Vineet Taneja, Director, Marketing Nokia India.


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

Thursday, January 10, 2013

“No schemes! No gimmicks!!”

LG finally had it right the third time in india. now it is decisively upping the stakes

B&E: What factors have worked for you in India?

VT:
We have been in the Indian market for 14 years now, and believe that our foresight and belief in the country and commitment to the telecom market, along with work with the government have helped grow the telecom industry. Nokia devices today straddle a comprehensive range of products at every price point for all segments. India is not only its second largest market globally, but is also one of the only three countries, where Nokia has an end-to-end presence, including a manufacturing unit, R&D centres and over 10,000 employees.

B&E: What strategy did you adopt in the initial days to help you penetrate the Indian market?

VT:
Nokia had a holistic approach towards developing the market and growing its consumer base. Our strategy has hence been focused on investing before time, understanding different consumer needs, building a strong product portfolio that caters to all segments of the market and making our products and services relevant to the Indian market. We were the first to invest in setting up a robust distribution network, to understand the potential of having an effective after sales network. Today, our reach and scale is amongst the best in consumer durable industry, let alone handset industry.


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

Tuesday, January 08, 2013

The Idiot Box

There are ads, and then there are those 10 that have personified the concept of how branding can be made to work for the product most efficiently and effectively. From creativity to brand recall, from concept to execution, these 10 advertisements have grabbed our attention – thanks to the commitment of the teams that created them. We present you with our review of the top three ads.

It’s the cable guy, stupid

Advertiser:
Tata Sky
Baseline: Isko laga dala, toh life jingalala
Agency: Ogilvy India

4Ps B&M Take: The problem in DTH services (which you don’t have in other industries) is that customers can rarely identify differentiated services. Your competitors offer the same channel-packages as you do, their transmission signals are comparable to yours; and most importantly, in a market like India, even the pricing factor doesn’t give you an edge. But one DTH player is seen making an effort to break through the clutter with effective communication. In its recent TVC campaign (“Sorry Sir”), Tata Sky converts this ‘clone’ technology problem into a human behaviour problem, and uses it to its full advantage. The most recent of the TVCs (‘Sorry Sir 2’), shows how a married man begins to doubt his wife’s intentions, when at an hour-and-a-half past midnight, he finds her discussing films on the phone with a stranger. His wife explains that she had no option but to watch films and decide on which ones to watch next on her own, as he could not spare time to take her to the movies. The doubting husband waits for her to leave the room. Then he gets to the phone and redials the last dialled number in an attempt to find out more. “Welcome to Tata Sky. May I help you?” is the response he gets from the other end. He is relieved (apparently, Indian women don’t date cable guys). The man hardly realises during this call that his wife is standing right behind him. What follows is the wife’s glaring expression, with a voiceover saying, “Sorry Sir, par Tata Sky ki service kuch hai hi aisi. Koi bhi zaroorat ho, hamarey call centres aapkey liyey 24 ghantey khuley rehtey hain...” The TVC has a non-complex script and set, but scores points in terms of impact and clarity of message (the 24x7 customer service), with a dash of humour. Sans noise and a big celeb, this creation and execution (by the Tata Sky team at Ogilvy and director Vivek Kakkad) is worth more than a shout of jingalala! (Yes, we know, ‘jingalala’ still sounds crappy...)


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