Showing posts with label iipm-article. Show all posts
Showing posts with label iipm-article. 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

Saturday, June 01, 2013

Beyond Matryoshkas & Marshrutkas

With its fabulous museums, rich cultural life, breathtaking architecture and history in every nook and corner, Moscow, beyond doubt, will remain forever etched in your heart. By Saurabh Kumar Shahi

Sheer mention of the word Moscow evokes myriad of imagery among the Indians of all age group. For the people in their mid-50s and beyond, Moscow evokes the best of Soviet Union days. A mishmash of culture, literature, politics—both cladestine and otherwise—heritage and much more. For children, Matryoshka Dolls and Nikulin Circus evokes pleasant memories. But then, there is a sudden blackout. As USSR disintegrated in the early 90s and India started looking for greener pastures, the affect was seen widely. The flights between Indian cities and Moscow dwindled as their national carrier, Aeroflot, started making news for the wrong reasons. Lured by the post-Cold war Europe and further West, tourists started looking for more options. Amidst all these, Moscow started slipping from the radar. A decade or so later, it remained a shadow of its former self.

However, as it is said that one bounces back after hitting the rock bottom; the same stood true for Moscow as well. The over exposure of Western cities, the desire to explore what is near and the plain nostalgia has put Moscow back on the travel map. Meanwhile the city has added so much to its profile that a fresh look has become necessary.   

Basics first. If there is one carrier that has completely reinvented itself in the last few years, it is Aeroflot. Gone are the days of rickety planes, soggy food and torn carpets. Aeroflot now boasts of one of the youngest fleets of aircrafts in the world served by Boeing, Airbus and indigenous Antanov and Ilyushin. It has direct connections to almost all the big metropolises in India and has a sector leading luggage allowance.

Moscow, because of its sheer size and importance, is served by as many as four international airports. However, without exception, if you are not planning to take your private jet or sneak inside a commercial jet, you are most likely to use either Sheremetyevo or Domodedovo International Airports. The flights from India lands at the former, which is new and splendidly equipped.

AeroExpress serves the connection between airport and Belorussky Railway Terminal in the city centre that are half an hour apart. This is the cheapest and the easiest way to reach Moscow downtown. You can take taxi too but it is costly and will take much longer time amidst traffic snarls especially during peak hours.

Going around in Moscow is a breeze. The city boasts of one of the most efficient and widespread metro networks in the world. The lines are laid out in such a way that one can see the entire city without being away from the metro station anywhere. There are cards for multiple trips and transfers are free. Stations, as well as the city, have destinations and roads written in both Cyrillic as well as Roman scripts, and maps are readily available.

Muscovite are interesting people. While at the first look they might appear as reserved, the people are actually very forthcoming and any request for assistance of any kind is enthusiastically accepted. The younger lot is more expected to know English than the older people.

Moscow is a huge city and is widely spread with attractions dotted all over the map. Therefore sightseeing needs a bit of planning and commonsense. Unless you are stopping there for, say, at least a week, it is advisable to make a priority list of attractions so that you fully enjoy them by spending time which they demand. While there are many tour operators who have customized itinerary to help you out, the more daring ones can go independently relishing the city.

The first place to start is of course Red Square. Right in the heart of the city, Red Square is city's biggest and the most important city square. Known for stunning parades during (and after) Soviet Union days, the place attracts lots of tourists any time of the day. Apart from the square itself, the place also has the iconic St. Basil Cathedral at one of its corners towards the Moskva river.

Cathedral's stunning onion-shaped domes have become a sort of establishing shot for the city and one needs to spend some time to fully enjoy its architecture from both inside and outside.

Right in the middle of the square, overlooking the long brick walls of Kremlin is the mausoleum of Vladimir Lenin, where his body is preserved. A visit is a must for everyone enthusiasm in history or a lack of it notwithstanding. At the opposite end of the Cathedral is the State History Museum.  The museum has a treasure trove of centuries of artifacts that will steal your breath. You also has an option to have your photos clicked wearing a Czar or Cossack dress.

The Kremlin, the seat of Russian executive, is another must. Situated at a walking distance from the square, the place itself needs a full day to fully appreciate. Particularly interesting is the antique weapons and gems collection in the Armory. One also has an opportunity to visit several beautiful churches that dot the landscape. There are ballet shows to catch as well. One can also spend time by just sitting in one of its numerous gardens and witnessing the time fly by. Another place to spend some quality time is the nearby Old and New Arbat streets. There are numerous eateries and cafes where one can spend time.    
       
Moscow is the city of museums and galleries. While it is impossible to visit all of them, one can pick some of the most important ones such as Pushkin Museum and Park Pobedy. Pushkin Museum and its annexe is dedicated to western art and has arguably one of the world's best Impressionist and Post-Impressionist collections. Park Pobedy or Victory Park is dedicated to World War II and has impressive collection from the era. This museum also boasts of some of the world's best Diorama by some of the best masters in the craft.

If you want to relax and spend sometime with your loved ones, Gorky Park is Moscow's trendiest place to be. Dotted with cafes, open air theatres, cinema halls, theme rides and what not, the park is a must visit if you have children accompanying you. Bibliophiles on the other hand will give their right hand to visit Moscow State Library and take a look from inside. At the end, you wont be able to decide whether the impressive collection of books or the intimidating architecture that left you stunned.

Of the cathedrals, Christ the Savior Cathedral and Novodevichy Convent are the most important one. The former was detonated during the Communist era, but following the collapse of USSR, it was re-erected exactly on the old design. It is on the banks of Moskva river so one can see the panoramic view of Kremlin from here.

Novodevichy Convent on the other hand was tolerated even during Stalin years and hence survived. Taking a stroll inside the convent is heavily recommended, but even more recommended is the adjoining cemetery. Apart from the Kremlin necropolis, this is probably the most famous cemetery in the world if one considers the profile of those buried. From comedian Nikulin to author Gogol, from Chekhov to Ilyushin, from Nikita Khrushchev to Boris Yeltsin; the cemetery is full of people who were not only respected in Russia but all over the world.


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

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

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

Friday, February 08, 2013

We take a quantitative stock analysis!

While many international restaurant brands are already in India, a host of others are lining up to commence operations. But almost every CEO B&E met for this story lamented the over-policing by the government... We take a quantitative stock analysis! by Vareen Gadhoke Ray & Swati Sharma

The Economics of Food

Notwithstanding its increased prominence in recent years, the restaurant industry has a history of being fragmented & unorganised, and often suffers the consequence of being compared to the small sweet shops & roadside snack outlets spread across the country. In a market dominated by the unorganised players, the organised segment is estimated to be Rs.70-85 billion [as per "Indian Restaurant Industry 2010", a White Paper prepared by National Restaurant Association of India (NRAI) in association with Technopak Mindscape]. The organised segment of the restaurant industry forms 16-20% of the total restaurant market of Rs.430 billion.

In spite of the slowdown, the restaurant industry in India is still expected to be one of the fastest growing, with a growth of 5% plus until 2011. The organised segment is in fact expected to grow faster than the overall restaurant industry, at 20-25% per annum. And given the faster growth of the organised segment, its share of the pie is expected to increase to 45% (to a size of Rs.280 billion). The reasons for this growth are two fold. First, the growth of current and new organised players, and second some of the unorganised operators becoming organised.

As per a Technopak report, by 2015, the restaurant industry will become Rs.625 billion plus. While this is a fast paced growth, had the Indian restaurant industry occupied a similar share of GDP as the restaurant industry of the US occupies of the US GDP, its value would be Rs.1,800 billion, so the untapped potential is immense. Among the various formats, QSRs & cafes have had the maximum growth over the last few years. While most other countries in the Asia region witnessed single-digit growth, QSRs are expected to grow at 15-20% over the next five years. 


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, December 08, 2012

Some top global and Indian M&As...

Are companies strategising their inorganic growth any better amid global turmoil? B&E presents an in-depth analyses of some top global and Indian M&As...

pfizer: wyeth
Pfizer’s been lucky so far…
...but will it keep the flame burning with Wyeth is still a mystery

Combine the two and there you have your eyes opened, and wide! Perhaps Pfizer’s decision to acquire Wyeth for a whopping $68 billion could not have been more timely. But is there sound logic behind it?

No doubt, in the name of cost synergies, Pfizer hopes to save $4 billion annually in operational costs via streamlining of activities. But then that’s not the real reason for the merger! In fact, it’s all about finding a new source of revenue that can replace Pfizer’s blockbuster Lipitor (that contributed $6 billion in FY 2008), the patent for which is set to expire in November 2011. But then one shouldn’t forget that Wyeth, too, will lose its patent on two drugs, Effexor (anti-depressionary) and Protonix (for treating heartburn) in 2010 and 2011 respectively. “This acquisition doesn’t reduce the ‘overall’ exposure to patent expirations... what it needs is a couple of good new patents,” agrees David Lugg, Credit Analyst, S&P.

Even the vehicle that the company is using to finance the deal may prove expensive. The $22.5 billion short-term debt through which Pfizer plans to part finance the deal will surely have to be repaid. And in the current downturn, this actually doesn’t sound easy as Brian Tempest, Chairman, Hale & Tempest Co. states, “This funding is certainly surprising keeping the present financial environment in mind.” Even Moody’s Senior Vice President Michael Levesque argues that “Pfizer’s key credit ratios would initially erode from “Aaa” ranges to “Baa” ranges, and the combined Pfizer-Wyeth entity would still have relatively weak scores in patent exposures and late-stage pipeline quality.” Though Pfizer gets a well managed company in Wyeth with a sizeable sales base and tightened cost base; the restructuring and termination of 20,000 staff will definitely be another aspect that will be hard to manage.

No doubt, Pfizer has done some great work with previous big-ticket acquisitions like Warner Lambert and Pharmacia, but whether this will prove to be the third medal for it is still a mystery!

Read more......

Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri

For More IIPM Info, Visit below mentioned IIPM articles.

Thursday, December 06, 2012

You’d do ‘Neutron’ Jack proud!

Jobs cuts, during recession become a ‘necessary’ evil; and this is the only quick solution for companies...

The thrice-marrried, former GE CEO, Jack Welch could never find another reason to be happier. Excuse us here; we’re not talking about Jack becoming a father again (he has already celebrated 73 years glorious years on the planet for Chrissake!); but about others preaching the layoff culture at GE, many years after he quit GE (strict reference to his act of firing about 120,000 ‘bottom 10%’ employees). And it is his two ‘action-packed’ decades long terrific tenure at GE that on one hand deserves all the credit for a tub-thumping appreciation of 4,100% in GE’s market value (making it the most valuable company by 2001!) and on the other, seems to have created a model of leadership that fellow-American MNCs and those from the Eurozone & First World have begun to emulate. Yes, we’re talking about the lay-off announcements that were made in the past week; there was GM confirming 2,000 cuts, Caterpillar – 12,000; Pfizer – 19,500; Sprint-Nextel – 8,000; Intel– 6,000; Philips – 6,000; Corus – 5,500; Corning Inc. – 3,500; ING – 7,000; Texas Instruments – 3,500; Home Depot – 7,000; Microsoft – 5,500; Hitachi – 27,000; Ford – 1,200, UAL – 1,000… and the list continues.

Reacting to these announcements, an emotional US President, Barack Obama said, “These are not just numbers on a page... these are working men & women whose families have been disrupted and whose dreams have been put on hold…” Indeed, Obama puts his emotions in good light here, but are not these actions mere rampages sans rationale?

We need to question the very ‘fundamental necessity’ of job-cuts, especially with unemployment rates having grown meteorically from 4.7% in December 2007 to 7.2% in December (a 15-year high!) as per a January 2009 report by IHS Global Insight The report further suggests how during just the last four months, 2 million jobs were slashed – representing 80% of total cut during the current downturn. Worst, the report proves how, we are “just halfway to the total job loss anticipated during this cycle,” thereby forecasting the unemployment rate to rise above 9% by early-2010 (highest in 30 years). Surely, we are on the verge of making some ‘bitterly forgettable’ history! 
 
Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri

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Saturday, December 01, 2012

FAFA ISLAND RESORT

On a palm covered, uninhabited island, Fafa Island Resort is a pearl in the off-shore islands north of Nuku’alofa. The white sandy beaches, the turquoise lagoon surrounded by a coral reef and colourful fishes keep the natural beauty of this place alive. The stunning resort is a perfect blend of the natural environment and the modern requirements of it’s demanding clientele.

THE VIEW:
Spread on an 18-acre palm covered atoll, the Fafa Island Resort is setup on an uninhabited coral island in Tongatapu Lagoon. The resort gives its customers a spectacular view of the beach from their bungalows, and yes, if you’re bored then just step out of your bungalow and simply enjoy the soothing sound of the waves hitting the shore.

ARCHI TYPE: The resort is confined to 13 bungalows, each constructed with bamboo to give your bungalow a perfect beach house look. Also, your bedroom – which has been made just a step away from the beach – faces the sea for you to enjoy the beautiful scenery while you spend quality time with your loved one.

BON APPÉTIT: The resort is known for its unique contemporary Polynesian European Gourmet and especially for its seafood. And well, you needn't worry about the food menu. The menu, in fact, changes everyday and the food is prepared from the fresh products of the market giving you a delicious meal which is worth its price. Also, the perfect way to unwind is with some tropical cocktails which are served in the open-air bar just outside the resort.

AROUND THE CORNER: In-case you are looking for some souvenirs, especially the famous carvings and weaved products of Tonga, the shops outside the resort are a must visit as they not only give you the best of the products but also at prices hard to resist.


Source : IIPM Editorial, 2012.

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Friday, November 30, 2012

Around the world in 10 days...

Indian festivals celebrated globally may help repositioning brand ‘India’

It would be an understatement and in fact a sin of sorts to just say that Durga Puja, Dusshera, Eid and Diwali [Indian religious festivals] are festive occasions for India and the sub-continent. Clearly, though the magnificent cities of Kolkata, Delhi, Mumbai and similar others grandiosely celebrate any occasion worth its time, the bigger festivals are celebrated with just about the same pomp and grandeur by large pockets of Indians across the globe too.

Interestingly, a bunch of students in Chicago organised a notable event of Durga Puja in the downtown area. Though the even was attended by only around 300 people, the related media and publicity hype that it generated out-beat some of the strongest tourism drives of the Indian Ministry of Tourism in the Chicago state. How important can a state like Chicago be, huh? Chicago’s GDP tops $475 billion as per various estimates, almost half of India’s GDP! Similarly, the Houston Durga Bari saw around 3,000 devotees assembling for the function. At the same level, the Frankfurt Sarbojanin Adi Durgotsav has been a constant since 1981. Places like Perth and Sydney, Africa, Hong Kong, China, Dubai, Malaysia, Tokyo, Britain, Mauritius, Fiji [where Diwali is a public holiday], Singapore and Jakarta also have Indians doing their tremendous mite to not only add to the religious fervour, but also ensuring that ‘mystical India, a land of snakes and elephants’, attracts many more tourists than what the Indian government could achieve in a lifetime. There clearly is a huge amount of learning. Rather than investing millions of dollars in organising events through typical event-management firms, the Indian government should necessarily have alliances with foreign based organisations set up by NRIs and people of ‘desi’ origin to have a tremendously better impact.


Source : IIPM Editorial, 2012.

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Wednesday, November 28, 2012

Acid test for Yeddyurappa

Karnataka Chief Minister needs to quell Bajrangi hate mongers and ensure safety to minorities

Since leading the BJP to power for the first time in Karnataka, B. S. Yeddyurappa has faced a volley of accusations. Attack on churches is the latest in the list. The attack coincides with BJP’s 100 days celebration of power in Karnataka. It started in a church of Dakshina Kannada district and took little time to spread to neighbouring districts of Udupi & Chickamagalur. The attacks were triggered by Orissa incidents and the allegations of conversion. The peg for the attack was the alleged distribution of ‘Satya Darshini’, a write-up in which Hindu gods were shown in disrespect. Even Bangalore was not spared; two churches were attacked in India's IT capital; this, after Chief Minister, Yeddyurappa’s assurance of taking strict action to control the situation. In a span of a week, more than 22 churches were desecrated. According to the opposition party leaders Yeddyurappa has completely failed in his duties. Minorities in Karnataka continue to reel under threat.

The CM is under attack from opposition parties. R. V. Deshapande, KPCC President & a former Minister told B&E, “It was unfortunate that the BJP government failed in handling the situation. Bajrang Dal and VHP are trying to disturb the communal harmony in the peace loving state. Continuation of such a situation was sure to discourage prospective investors in the state.” Opposition leader Mallikarjuna Kharge too seconded Deshpande's views.


Source : IIPM Editorial, 2012.

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Friday, November 23, 2012

Democracies are peaceful

Democracies are peaceful, representative – and terrible at boosting an economy. Or at least that’s the conventional wisdom in Asia, where for years growth in India’s sprawling democracy has been humbled by China’s efficient, state-led boom.

The idea that there is a trade-off between economics & politics is ingrained in the minds of many policy-makers and business executives in Asia, as well as the West. But that idea has never been systematically proven. If India, with its noisy, chaotic, and lumbering political arrangements, can grow, then no other poor country must face a Faustian choice between growth & democracy. A deeper look at the two countries shows that they have succeeded and failed at different times for remarkably similar reasons. Their economies performed when their politics turned liberal; their performances faltered when their politics slid backward. Now, as many poor countries grapple with similar political & economic choices, we must understand this dynamic. It is high time to get the China-India story right.

India’s untold history

That story doesn’t begin in 2008. It’s a horse race that goes back decades, and one that tells us much about the relationship between democracy & growth, governance & prosperity. From an economic perspective, it is not the static state of a political system that matters, but how it has evolved. The growth India enjoys today sped up in the 1990s as the country privatised TV stations, introduced political decentralisation, and improved governance. Contrary to conventional wisdom, India stagnated historically not because it was a democracy, but because, in the 1970s & 1980s, it was less democratic than it appeared.

Many scholars blame India’s first PM, Jawaharlal Nehru, for adopting a development strategy that caused India to stagnate from 1950 to 1990. But this view is unfair to Nehru, and it shifts the blame from the real culprit – Indira Gandhi, PM during much of the period from 1966 to 1984. Nehru’s commanding-heights approach was the reigning ideology in many developing countries, some of which, like South Korea, were quite successful. The issue is not how harmful Nehru’s economic policies were, but why India intensified and persisted in this model when it was clearly not working. To answer this question we have to understand the lasting damage that Indira Gandhi inflicted on Indian democracy.


Source : IIPM Editorial, 2012.

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Thursday, November 22, 2012

Something refreshing

Looking to bust that stress or simply want to try out something refreshing, sign up for a Pilates routine, or take refuge in a spa and rejuvenate yourself with the experience

Soul SPA


After weekend getaways, shopping sprees and a drink at their favourite lounge, the upper middle class is increasingly catching up to spas. With the increase in disposable income and exposure to the western culture, spas are not only emerging as the fastest growing interests of the neo rich, but as a major lifestyle trend too. Traditionally, a rich-man’s interest is now no longer restricted to the privileged few. Many companies, like Amatrra and VLCC are cashing in on this trend and have opened up spas at strategic locations in various cities. In fact, these companies have not only come up with a new concept of day spas, but places like A+ MediSpa (from the house of Amatrra) is where Ayurvedic massage therapy, advanced medical skin care and aesthetic surgery are blended together seamlessly. Says Anita Kalsy Bhartiya, Brand Manager, A+MediSpa, “We combine modern medicine with ancient Ayurveda to give you clinical, meaningful results in an unhurried, peaceful spa environment.” With numerous spas sprouting in the country, people have many options to choose from. While some look for a trip to their nearby spa for rejuvenation and a nice oil massage, forgetting their hectic daily schedules for a few hours, there are others who not only come for rejuvenation but also for getting a good Ayurvedic treatment. VLCC and others are offering courses in different treatments, keeping in mind the growing spa culture. There’s also no dearth of couples signing up to make the most of a spa while enjoying each other’s company, free from the monotonous daily chores of life.


Source : IIPM Editorial, 2012.

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