Saturday, August 09, 2008

lucrative investment options

However, to advise clients on lucrative investment options in these tumultuous ‘inflationary’ times is a job that requires careful balancing and under Chopra’s leadership, the company has been doubling up as a wealth advisor, as also a distributor of financial products. However, he insists on being referred to as a wealth management firm as opposed to an Asset Management Company (AMC). “We could have been an AMC a long time ago, but it would have diluted our positioning,” he says, adding that unlike an AMC, understanding the need, taxation impact, and risk appetite of investors, are the key factors that Bajaj Capital focuses on before advising any of its one million clients in the country. And his advice for investing in these inflationary times? “Ad hoc investing is a complete no-no, instead focusing on long term investments with a clear roadmap: defined goals, time required for achieving them, take inflation into account, and then work backwards.”

An avid traveller and an ardent fan of music (from Sufi to Rock), for now, relaxation is not an option for Chopra, as Bajaj Capital is totally focused on ‘expanding and expanding fast’. From six branches and 60 employees (when Chopra joined in 1984) to more than 3,000 strong work force today, the company has already taken giant strides from its earlier laidback avatar. In fact, just over the last one year, the workforce has more than doubled. And as head of a closely held group, geographical expansion is now his topmost priority. “We’ve already moved to tier II and tier III cities and have 185 financial planning centres across 80 cities, including far-flung places like Bardwan and Asansol,” he says, adding that the priority now is to move to the next 100 cities on their wish list. “There is huge wealth in small town India, but a dearth of financial advice.” On the immediate radar are Jalandhar & Haridwar.

For Complete
IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
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domain-b.com : IIPM ranked ahead of IIMs

Friday, August 08, 2008

IT services market is expected to grow

At a time when the IT services market is expected to grow at over 7% a year, this acquisition makes sense, especially when it is a consolidation of enterprises which have been in the top 5 list in the IT services sector and cater to the same line of business. Mark Hurd, CEO, HP comments, “There’s tremendous leverage you get from scale… We’re spreading our cost structure across a much larger revenue base. We expect to bring that capability to EDS.” Supports David Mitchell, Senior VP, Ovum IT Research, London, “Scale is fundamentally important in the IT industry, and especially in IT services. It allows a supplier like IBM or HP, to take on the largest projects and invest in assets that can repeatedly be deployed in different customer settings. Acquisition of EDS immediately take HP closer to IBM in scale and adds a huge amount of IT services capability – at a stroke.” EDS’s core competence lies in infrastructure management services and custom application services. But the company is weak in providing services for packaged applications, which may be a stumbling block in the consulting space.

Besides, competitors won’t sit quietly. Accenture, for instance, has already agreed to acquire Brazilian ATAN, a privately held industrial IT and automation solutions provider, which will enhance its management consulting, systems integration and technology consulting. In a nutshell, despite its advantageous position, the HP-EDS combine should expect a tough fight ahead.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs

Wednesday, August 06, 2008

HP’s revenue growth

But the deal has also faced its share of criticism. While some analysts have prognosticated that the takeover is going to slow down HP’s revenue growth as EDS has seen an average growth of merely 2.8% since the year 2001, others alleged that it would have made more sense to buy business process outsourcing services rather than IT infrastructure outsourcing services, which EDS offers. Furthermore, there are even suggestions about the deal being overpriced.

But HP appears to have no qualms in taking the deal forward. The companies’ collective annual revenues from services business by the end of fiscal year 2007 were more than $38 billion as against rival IBM’s $54 billion. Moreover, if the growth rate of IBM and HP-EDS is compared, IBM is growing at 10%, while the HP-EDS duo will be close at 7%, way ahead of other major players like Accenture and Fujitsu. So the HP-EDS combine has just one target to overcome, IBM.

Apart from all this, there is one more fact that makes this deal even more lucrative for HP. Besides enabling cost control, HP would relish the opportunity to sell more of its hardware to EDS’s existing clients. Trimming of operating costs is going to result in cutting a large number of jobs, but then in the long term, the company expects market value, market share, revenue and profits to shoot up.

At a time when the IT services market is expected to grow at over 7% a year, this acquisition makes sense, especially when it is a consolidation of enterprises which have been in the top 5 list in the IT services sector and cater to the same line of business. Mark Hurd, CEO, HP comments, “There’s tremendous leverage you get from scale… We’re spreading our cost structure across a much larger revenue base. We expect to bring that capability to EDS.” Supports David Mitchell, Senior VP, Ovum IT Research, London, “Scale is fundamentally important in the IT industry, and especially in IT services. It allows a supplier like IBM or HP, to take on the largest projects and invest in assets that can repeatedly be deployed in different customer settings. Acquisition of EDS immediately take HP closer to IBM in scale and adds a huge amount of IT services capability – at a stroke.” EDS’s core competence lies in infrastructure management services and custom application services. But the company is weak in providing services for packaged applications, which may be a stumbling block in the consulting space.

Besides, competitors won’t sit quietly. Accenture, for instance, has already agreed to acquire Brazilian ATAN, a privately held industrial IT and automation solutions provider, which will enhance its management consulting, systems integration and technology consulting. In a nutshell, despite its advantageous position, the HP-EDS combine should expect a tough fight ahead.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs

Tuesday, August 05, 2008

Special game plan to power the agency ahead

We move to the next subject. Once he transitioned from National Creative Director to boss man & supremo, did he have any special game plan to power the agency ahead? Any specific (hitherto untapped) thrust areas to leverage in the task of moving ahead? Any unique vision? Joshi honestly confesses that there was no special blueprint because this was a very critical decision and demanded a total connect with the DNA of the organisation. Being an intrinsic part of the core team, he had some ideas about what best could (and should) define the agency’s persona, but this vision was in the process of being formulated. “I was, however, very clear about one thing: We must attempt to give every single client of ours a clear and distinctive voice that instantly defines their personality & what they stand for.” Today, with campaigns for Coca-Cola, NDTV, Radio Mirchi, Saffola, Parachute, MasterCard, Chyawanprash, et al, under McCann’s belt, there is an unmistakable stamp that spells out their persona, loud n’ clear. You see or hear ads and you identify the brand instantly! Boss yeh to NDTV ka ad hai! “In short to find the voice of the brand and present it in an engaging, entertaining, empowering way…”

How would Joshi describe his style of leadership…strategic leader, leading from the front calling the shots or a team person, one of the guys? He is off in a flash. “You have to get it right, first, if you want to create value. You have to deliver and be seen as someone who can deliver, to inspire followers to follow. The rest will happen.” When he left Ogilvy to join McCann, because of his relationship with his old agency, he didn’t pinch a single employee or account. Why? “I could not dream of doing it. It would tantamount to being unethical and a betrayal.” He wanted to start afresh and charge up the guys who comprised the team in McCann. That was the challenge. Could he do it? “My style is not aggressive & confrontational, either with team members or clients. I prefer to pull back, look at the big picture and understand the strength and weaknesses of the situation before making that first critical move. It’s human beings we are talking about here, remember? With time, we connected and together explored new and exciting avenues along the way.” He pauses, “I see myself essentially as a facilitator & hands-on leader. The roles play out themselves as the circumstance & situation demands.”

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Monday, August 04, 2008

New world of pharma predators

But, end of the week and all seem sorted out. Orchid finally announced a so called business alliance (or a silent upcoming merger!) with Malvinder Singh’s Ranbaxy, while the Burman family sold off its entire stake (around 65%) in Dabur Pharma to Fresenius Kabi. The German group further raised its holding to 73.3% and even made an open offer for an additional 20% in an attempt to engulf whole of it. Looks like the predator is not satisfied with just a pound of flesh, but wants the entire roast. So, is it that the long due consolidation in the Rs.320 billion Indian pharma industry has finally arrived? Or is it that the global & domestic predators are conditioning themselves before the final hunt, which they anyway have been doing since long?

Certainly, the Indian pharma players, who have been among the frontrunners moving in for a kill on the global arena, more so just after India entering the new product patent regime, once again seem standing at an influx of an acquisition drive, but this time at the domestic front. And according to industry experts, the recent slew of happenings could definitely provide a spring board to trigger this much needed and long due consolidation in the domestic market. “The Indian market, which is highly fragmented, is all ripe for consolidation. However, currently the valuations demanded by the companies are on the higher side and are a major deterrent to the same. But, going ahead in the next 1-2 years, the momentum could gather further pace, as these companies would look out to consolidate their presence in the Indian markets,” Sarabjit Kour Nangra, VP Research, Angel Broking tells 4Ps B&M. Even Ranjit Shahani, Vice Chairman & MD, Novartis India holds the same view when it comes to M&As. “We can already see some consolidation happening in this space with many organisations wanting to scale up their operations, which will enable them to meet increasingly diverse challenges,” he shares with us.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Friday, August 01, 2008

A trip of their own

It’s time for Round 2 between the online and the offline travel agents. And the winner’s not hard to guess...

With growth guaranteed for online travel agents, the offline players are in for a ruder shock. siddharth nahata explains how online giants are killing competitors with shrewdly designed organic growth plans

In round one, online travel portals like MakeMyTrip (MMT) and Yatra surpassed everyone’s expectations and knocked-off offline travel agents in a single blow. Like the Spartans who had put a million strong Persian army to the test in Hollywood flick 300, online players too did somewhat similar. What seemed a fight against destiny, travel portals proved every critic – from industry pundits to offline travel agents – wrong. Now, it’s the start of round two and the champions of round one are rolling up their sleeves to put up another immaculate performance. We’ll see how...

As they say, destiny favors the brave, the online players by all means stand in a sea of opportunities. The ‘small’ big boys are dreaming big and quite fittingly so. The industry turnover is growing at an unbelievable 50% y-o-y and is expected to touch a piping hot $2 billion by 2008. Estimations for 2010 put it at an even more astounding $6 billion from the current $1.3 billion! Currently, online travel bookings account for 11% of the travel market and this pie too is set to increase to 25% by 2010.

Deep Kalra, CEO & Founder, MMT reveals mega-plans to 4Ps B&M as he says, “We intend to become India’s largest travel company by 2009. Our strategies are well in line with our goals. We plan to drive growth through Holidays – both domestic and international.” The turnover for MMT for the year ending March 2008 was $250 million, up 80% from last year. This year too, the champion has set a hard line target of accomplishing a growth rate of over 80%. On the other hand, a relatively late entrant Yatra.com has managed quite superbly to capitalise on the ‘late mover advantage’.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Thursday, July 31, 2008

Investee: Vatika Group

Investor: Wachovia Bank, Baer Capital & GS

Investment Value: $250 mn

Sharad Jhingan, CFO, Vatika Group told 4Ps B&M, “The major rationale for this deal for Vatika Group was indeed the capital. Apart from that there are many advantages that any company can have by tying up with good partners for their business and accepting funding by an international or multinational investors and the same accrue to Vatika as well. For any company like Vatika, you get a lot of global practices migrating into the corporate governance and after some time one can build a robust Corporate governance model. The set of investors that one get are not passive investor but active investors, which play a role in the decision making process. Everything that you do is scrutinised and you need to justify your action. This leads to a whole lot of transparency creeping into the organisation. If you plan to get listed, then the big metamorphosis is taking place rapidly. Your equity increases, your valuation improves, the worth of company is now established as you have foreign investors. All this helps you to leverage more and borrow more and grow more. From an old company, which was seen as very small you become very large and people accept you as very large. We see this relationship as a win-win situation for all the parties as we are partners in progression.”

Vatika Group has witnessed three big institutional investors, which have poured in funds to the tune of $250 million. The net worth of the Vatika Group’s real estate business was estimated at Rs.8,000 crores when this deal was struck. According to the company, these funds would help the company in its existing projects and also assist in consolidation of land banks that would help in acquiring new projects. Vatika is also evaluating plans to enter the stock market through an IPO but they are awaiting the right time.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Wednesday, July 30, 2008

Indian odyssey quite aggressively

As for Haier and TCL, both kick-started their Indian odyssey quite aggressively, but with each passing day, the pace slowed down. When the Chinese giants entered India (in 2004), pundits believed that they will storm the marketplace. However, the present state is a shallow reflection of the promise. A Consumer Electronics and Appliances Manufacturers’ Association (CEAMA) spokesperson told 4Ps B&M, “Market share of Chinese majors (Haier & TCL) is only in single digit. They are yet to make any significant dent on the share of the market leaders (read: Koreans).”

So what exactly is coming in their way? First, they are quite small as compared to their peers. Their distribution and dealer strength is way too short considering the kind of army others boast of. Sample this: Haier only has a pitiable 1,600 dealers, woefully short compared to Samsung’s army of 9,000 dealers. Secondly, Chinese brands are yet to launch anything close to a technological marvel and thirdly, the tag “low cost-cheap quality” continues to haunt their success story. Shushmul Maheshwari, CEO, RNCOS told 4Ps B&M, “The basic problem faced by Chinese companies is the image myopia – ‘Made in China.’ But this is not the case for LG & Samsung. Albeit they also manufacture their products in China, even then, they have a substantial market share in India. So Chinese players need to focus on brand-building in India to penetrate the market and increase their market share. Chinese companies lack the media exposure and have a low mind share among Indian consumers.”

But it seems that Haier’s branding initiatives in India are gradually beginning to pay off. A Delhi based multi-brand consumer electronics retailer claims, “Compared to two years back, Haier enjoys better brand presence today and is being accepted by Indian consumers more openly. However, the same doesn’t hold true for TCL.” Pranay Dhabhai, Wholetime Director and COO, Haier Appliances India told 4Ps B&M, “We have been witnessing a year-on-year growth ever since our entry into the Indian market. The consumer response to Haier products like refrigerators, air conditioners and washing machines has been good.”

The company says that till now, it was bidding time in the Indian market so that a critical mass in the distribution network could be established. Having done that, Haier is all set to shift to top gear. Dhabhai explains, “We entered the Indian market at a time when other players were firmly established. Hence, we had to first analyse the market thoroughly, understand the gaps and opportunities and lay a strong foundation in terms of the distribution network. It’s now time for us to get more aggressive in India.” The company, which clocked revenues of Rs.350 crores in 2007, has set a hard-line target of Rs.500 crores for 2008, on the back of glitzy product launches lined up during the year. That apart, Haier’s new Pune facility is also in place and the management is hopeful for a turnaround.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Tuesday, July 29, 2008

Vacillating Bollywood Sun

Even as contemporaries like Aamir Khan, Saif Ali Khan and Sunil Shetty are content with floating production houses or launching restaurant chains, as potential retirement plans; SRK has readied himself with a battery of business interests, to launch himself in style alongside the who’s who of India Inc. And his timing is just perfect. Sources opine that the King will continue to proudly flaunt the Bollywood crown for maximum two to four years and Shah Rukh is leaving no stone unturned to make the most of his precious place under the vacillating Bollywood Sun.

Lalit Modi, the suave Chairman of IPL is a sure-shot convert to the growing fan-list of SRK’s business prowess. “In my view, Shah Rukh is the world’s biggest and best marketer,” he exclaims, recounting a recent incident that re-affirmed his faith in SRK’s business acumen. “I met Shah Rukh within a week of his purchasing the Kolkata franchise of IPL. You won’t believe it, but he had already prepared nearly 20 power point presentations that covered the entire gamut – from possible mascots, to team uniforms, to marketing presentations, possible sponsors. He was like a man possessed,” avers Modi. According to Modi, soon after buying the Kolkata team, Shah Rukh had locked himself in at Mannat (his home in Mumbai) for a week to study the game of cricket and to chart out his team’s future direction.


Soumitra Karnik, VP & Executive Creative Director, JWT is also bowled over. “Shah Rukh’s vision for the team is fantastic. The kind of presentations that he had prepared on IPL, were far better than any MBA student could ever have made,” he points out, confident that in years to come, SRK would completely re-define entertainment and sports in India. And Soumitra should know. Having directed SRK in a series of Pepsi commercials, the creative brain has had a fair share of interactions with Shah Rukh the showman turned marketer and business visionary.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Monday, July 28, 2008

The entertainment industry is growing phenomenally and is estimated to become a $2.4 billion industry by 2010 – one reason why it is attracting some big names, especially in the DVD rental industry, including biggies like SeventyMM, Madhouse and the latest one, Reliance’s Big Entertainment, which plans to open 500 DVD rental stores by the end of 2009. So can an organised DVD rental industry reduce piracy? “Far from it!” exclaims Shubhoshekhar Bhattacharjee, CEO, Planman Motion Pictures, “No doubt, the delay in DVD release dates is surely an issue. But going further, unless DVD rentals of popular movies are reduced to match the cost of pirated movie DVDs, organising the DVD industry is not going to reap any effective results.” For example, the Jab We Met DVD (manufactured by Moser Baer) costs only Rs.49 – a similar price as that of pirated DVDs – what to talk about the rental! Adds Shubhoshekhar, “More importantly, the Indian government has to hit down on piracy with visible, harsh and speedy convictions of ‘pirates’ and in fact even common users, if the Indian public has to learn that viewing pirated CDs/DVDs is illegal.”

Interestingly, a technological wave to have hit the Indian cinema industry is e-cinema, also known as digital cinema. In a digital cinema, the film is projected through a digital video system. The movie is digitally encrypted and stored in a file format from where it is uploaded to a satellite. The distributors can then directly download the movie from the satellite through a pass-code provided by the production house. This also ensures instant release of the film in smaller towns, thus curbing piracy. Like various experts, Taneja of FICCI stamps his approval, “Digital cinema almost eliminates manual handling of the film, thereby minimising piracy.” Adlabs, UFO, PVR Cinemas are the pioneers in digitising cinema screens in India. As per a movie industry report of Hughes Network Systems LLC, out of 12,000 cinema screens in India, almost 1,000 will be digitised by the end of 2008.

If digitisation works, one could well see piracy being controlled dramatically! But the critical word is, ‘if’! As for now, dear gentlemen and miladies, we will always remember this as the day that we almost caught Captain Jack Sparrow... Pirates goddammit, we tell ye!!!

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Saturday, July 26, 2008

Diversified market

Compared to other players in the market, how are you placed?

I think there are various success elements in managing the edible oil business in a diversified market like India. Like originating the raw material, managing risks around the price of that raw material; then there’s supply chain too. While other players have strengths in some particular segments only, we have been able to add value in this entire segment and have linked up all these to efficiently manage across the country.

Your future plans?

Obviously, we will have more products and will localise more depending upon the tastes of the state we operate in. We will be venturing into newer segments too; and for that, we are open to invest any amount required. We will also have greater brand promotion exercises. But remember, edible oil as a commodity is very price sensitive and our focus would always be on that.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Tuesday, July 22, 2008

Proliferation

Zee Network has aggressively pursued business expansions keeping in mind the consumers’ and business needs and has also proliferated into areas like digitisation of content

Proliferation is the only way forward. We live in a country with a very insignificant cable penetration in comparison to the population. On the other hand, we are in the same country that has surpassed world standards in mobile penetration with over four million subscribers being added every month. There is a new market emerging, of people who would like to watch content on hand-held devices where the future of TV lies. Proliferation across verticals and largely across the entire spectrum of businesses has been the underlying essence of Zee Network. In the times that we are in and for the sake of times to come, synergistic proliferation is what will ensure market leadership. The times to come will be that of customer acquisition and not just aggregating content and for this to happen one has to be in all verticals that a customer will need. Today, Zee Network is the largest integrated Indian network in the world, reaching out to 350 million viewers and 128 countries.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Friday, July 18, 2008

Of bombs and ‘bull’ets

Benazir’s death may have a crippling effect on Pakistan’s economy

The death of former Pakistani Prime Minister Benazir Bhutto saw stocks markets’ globally take the worst hit since December 11, 2007. Here’s the list of casualties... Dow Jones plunged 1.4%; Hang Seng was down by 1.1%; KOSPI (South Korea) shed 0.6%; the Sanghai Composite lost 0.89%; S&P ASX (Australia) tanked 0.2%. Markets in Pakistan resumed trading after a three day halt and hastily lost massive 4.7% (as on Dec 31, 2007). Well, if markets are anything to go by then such a huge correction in Karachi, which has been one of the best performing markets in the region with 40% plus appreciation in the last 12 months, confirms some rude implications for the country’s markets and its economy.

However, the death of a former prime minister of a Third World country, in itself, is not as catastrophic an event that would cause any major disruptions to global stocks. It was instead the expected deterioration of law and order, potential of a civil war kind of situation that might arise in a nuclear weapons-armed Pakistan, coupled with the weakening of institutions in the country that actually sparked off the fears among global investors. “The big takeaway from this horrible event is that Pakistan could slide into a civil war of sorts,” reveals Win Thin, senior currency strategist, Brown Brothers Harriman. And if the horrible incident leads to a kind of a disconnect between Pakistan and the US, it may spell more trouble for Pakistan’s economy, which is still dependent on America in terms of foreign aid and trade. So, if the combination happens, the stupendous performance of the Pakistan economy would come to a screeching halt. As a result of economic reforms initiated by General Pervez Musharraf, Pakistan has attracted foreign capital. Any further economic turbulence would ward off these inflows.

S&P’s Ratings Services said that Pakistan’s credit rating could be lowered, if the assassination of Benazir Bhutto precipitates heightened levels of violence and political turmoil. “The prevailing negative outlook on the ratings of Pakistan encapsulates to a large extent the possible risks to the political process, including attempts on the life of political leaders after a number of such past incidents. However, a further weakening of Pakistan’s institutions, in conjunction with rising levels of violence and disorder, and the postponement of the January 8 elections would lead to a rating downgrade,” said Agost Benard, Primary Credit Analyst, S&P.

Many would see this event as only the death of democracy, but it would easily turn out to be the death of one of the most promising markets also.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Thursday, July 17, 2008

An adventurer’s journey

The yatra was not easy, but here’s how Yatra.com made it possible

Who says the last mover faces a crippling entry barrier erected by the early birds that have cornered most of the market? If you decide to barge into a ‘sunrise’ sector where the sky is the limit, even late entrants can make a killing if they have the right strategy and the right dollops of chutzpah.

Yatra.com is a classic example of this contrarian wisdom. Well before the three brash young promoters Dhruv Shringi, Manish Amin and Sabina Chopra decided to chuck their jobs at ebookers (A leading European online travel portal), Makemytrip.com and Travelguru.com, they were already comfortably perched as leaders in the space. And yet, starting with a gung-ho gang of 10 colleagues in 2005, Yatra.com now clocks annual revenues of $120 million and has 600 gung-ho gang members – we mean employees. That’s not a mean feat for a fledgling outfit where dozens, even scores of travel and holiday related portals, companies and advisories are proliferating across India.

But then, smart thinking right at the beginning is like well begun and half the job done. The key was to zero in on the right brand name that will immediately connect with potential customers in India. After hours of coffee (and other stuff) and brainstorming, Shringi, Chopra and Amin decided that Yatra was their ticket to glory. “The name is understood by a South Indian and at the same time by a North Indian also. So even people from non-metros also started connecting with us and to reach the internet savvy customers, we adopted lots of programmes,” explains Shringi.

Yet, despite all the positives like a great brand, an exploding market and relentlessly rising middle class ‘holiday’ budgets, the intrepid promoters didn’t find the going easy at the outset. They were not even naive to expect a smooth launch and take off, and took the early knocks on their chins. “We didn’t even have a proper place to set up our office and we started only with one room and 10 persons. But we were very choosy about the name as it got to be different from the other players,” says Shringi who now flaunts the fancy designation of Executive Director.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Saturday, July 12, 2008

Bajaj... and four-wheelers?

Is Rajiv Bajaj’s latest craze...(ahem) cars?
Think of it... Maruti 800 brewed a storm in the Indian auto mart. And many other names followed its tyre trails into the Indian urban jungle... Then just as we thought that manufacturers were sitting pretty with just B-segment vehicles (all thanks to the boost given by financing schemes), Ratan Tata proposed a Rs.1 lakh four-wheeled promise! And not surprisingly, found followers too!

Yes, showing admiration for Tata, other manufacturers are trying hard to pitch-in their own avatars of the ultra-low cost car. First came Renault-Nissan’s CEO, Carlos Ghosn with his annoucement to develop such a model in a tie-up with Mahindra & Mahindra. And now, there’s ... (who else but) Bajaj Auto, only proving why moving ‘up’ the ladder is possible for a manufacturer too! Bajaj Auto is reportedly in talk with an international player to develop a version of its small car. When asked, Rajiv Bajaj, MD, Bajaj Auto exclusively revealed to 4Ps B&M, “We have invested heavily for the long term. We would now like to focus on four wheeler and upgradation and will offer the consumer a superior product. In the future we would like to separate our branding for two wheeler and four wheeler businesses.”

Sure enough, the player’s two-wheeled experience on Indian roads has been one worth telling... for decades. Of late, it also made a big impact by pioneering the DTSi technology for its premium motorcycles. True enough, this could give lavish returns with the initital targets definitely being the upper strata of the two wheeler market. And already we can hear someone saying, “I feel like God!” Can you?

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Videocon... and telecom?!

Well, that’s the latest from its stable...
“Ours is a company, which specialises from E to E – energy and electronics!” is what Pradeepkumar N. Dhoot, President, Videocon, phonetically exclaims to 4Ps B&M. But then, don’t we already know how their diversification into the oil, contract manufacturing and branded electronics is all a matter of realising that ‘big’ dream of being everywhere?! Dont we?

Sure enough, with revenues from oil business getting bigger and with Videocon planning an oil block acquisition by 2011 as Pradeepkumar reveals, “It can happen before also, if we happen get successful acquisitions. But on our own we can do it by 2011,” this conglomerate is all set to grow in size and variety by the day. However, isn’t diversification a threat considering that competition is hittting its walls hard even in its core area of consumer durables? Expressing her fears to 4Ps B&M, Shushmul Maheshwari, CEO, RNCOS asserted, “Although the group has been strong in this segment, it has been struggling with branding & marketing issues. Its share in consumer durable segments in India as compared to companies like Samsung or LG is getting smaller. – that’s dangerous to it!”

Danger surely, but none deny that its diversification strategy alone has made it a potent force; with the latest being its application for telecom licences in 22 circles... And surely, even Dhoot knows that risk and return go hand-in-hand! Right?

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Friday, July 11, 2008

‘Mind’ing its own business

PRITHVI: V Satish Kumar

‘Mind’ing its own business

“Adept, nimble and innovative,” that is how Vuppalapati Satish Kumar, Managing Director of the Hyderabad based Prithvi Information Solutions Ltd. (PI), defines his company and its USPs to this magazine. Quiz him about the most important management practice in his organisation, and pat comes the reply, “A policy of transparency, open culture & empowerment.” With attributes like these, and that too in the dynamic and fast-paced world of IT services, small surprise that Prithvi Information Solutions has become one of the leading technology solution providers in just nine years of its existance.

With more than 2,000 IT professionals who strive continuously to minimize development costs and time-to-market, Prithvis’ state-of-the-art research and development headquarter has clients in almost every continent of the world.

This company over the years had successfully made its mark as a technology outsourcing and business intelligence firm, which forms the core of their business model. They have lately also diversified into the telecom and KPO segments. Moreover, Prithvi’s Global Delivery Model lets clients benefit as it allows project components to be executed at various geographic locations, yielding maximum value. This model not only cuts down costs, but also assists in achieving higher quality and productivity.

What’s more, the company’s strategic policy of recruiting employees from their own payroll for their projects has earned it the reputation of earning maximum revenue per employee in the Indian IT sector. Almost 70% of Prithvi’s employees are based on onsite projects and of this, only 200 are in its own payroll and if needed the rest are hired through third parties. Kumar adds another reason for this reputation. “We decided that our approach to our client must be that we add value to them. Since then all our activities are focused on how to add perceivable value to our clients. As a result we are able to bill them at higher rates. In fact, our clients stay with us for longer periods & today over 85% of our business is repeat business. We also ensure high utilization at individual levels,” he adds.

This dual-faced strategy of employee retention and cost cutting, clubbed with an innovative business model will surely allow ‘Prithvi’ to deepen its mark on this ‘earth’. What say folks?
For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Thursday, July 10, 2008

For Dell, it’s time to go in‘direct’!

After the exceptional success of its direct model, Dell now plans to alter its selling strategies

Give us a brief lowdown on Dell’s operations in India.


In the year 1996, Dell was incorporated as Dell Computer India Private Ltd. and opened sales and marketing office in Bangalore. In August 2000, we launched the Direct Business Model in India. Today, Dell’s most comprehensive presence in the world outside the United States is in India. This includes a local manufacturing unit at Sriperumbudur near Chennai.

How does Dell view the Indian market vis-à-vis other emerging economies?


India is the fastest growing major market for Dell worldwide. Dell has been among the fastest growing technology companies in India. The Indian PC market is experiencing tremendous growth across all form factors in the IT industry. The growth is fuelled by robust demand from the large enterprise, SMB and government. At Dell, we believe there is strong growth potential and opportunity, especially as India has one of the lowest PC penetration rates in the world. We hear that Dell is getting ready to sell through retailers. Is it because the direct selling model isn’t delivering the way you had anticipated?

Dell’s direct model has served it exceptionally well, facilitating its leadership position in the business segment. Dell’s evolving business strategy combines its revolutionary direct customer model with new distribution channels to reach additional customers and small businesses through retail partners and value-added re-sellers. This “Direct Plus” approach is to bring more technology to more people around the world via alternative sales channels while we grow our traditional, direct relationships with commercial customers. Some of these approaches are already underway in various parts of the world – such as our retail relationships with Wal-Mart in the United States, Carphone Warehouse in the United Kingdom and Bic in Japan. However, Dell is simultaneously looking to expand and diversify its channel strategy to provide customers with more choices, flexibility and of course, benefits of Dell India’s direct model.

Your USP is ‘direct contact’ with customers. How big are your back-end operations in India?

We have four customer contact centres in India. These centres are located in Bangalore, Hyderabad, Mohali and Gurgaon. Our customer contact centres in India service and support our customers from all over the world.

Our state-of-the-art global R&D Centre in Bangalore undertakes cutting-edge research and development on Dell’s next generations of network servers, data storage systems and software products. Over the years we have made cumulative investments of more than $150 million in our India research capabilities.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)

Wednesday, July 09, 2008

An ‘Idea’ that clicked!

Pradeep Srivastava, Chief Marketing Officer, Idea Cellular is gung-ho. And why not? After all, 2007 came as a watershed year for the telecom brand, with a near tripling in its subscriber base, taking the count up to 20 million subscribers

The year 2007 has been particularly eventful for Idea Cellular. Comment?


Yes! Ever since the group came solely under Aditya Birla, we have been amongst the fastest growing telecom companies in India. Then came the historic Idea Cellular IPO, followed by our fast network expansion across the country. These were the key building blocks on which the Idea brand grew over the past year. At the beginning of March 2007, we had 7 million subscribers and till the end of November, our subscriber base has zoomed to 20 million. Our growth has been far better than our competitors in the Idea footprint circles.

What would you attribute this growth to?

The reasons for growth are far beyond conventional advertising – it can be attributed to significant roll-outs in new towns – wider audience; affordable tariff and most importantly, innovation in the category. We have managed to do successful segmentation in the category via our various campaigns, including My Gang campaign and Women card.

Your ad (Abhishek Bachchan as sarpanch) has scored big time.

Idea Cellular is all about celebrating ideas and this was our big idea of a society with no differences. The plan is not to sit tight with the present idea of caste, but to extend it to even religion and gender in times to come. This is just the first campaign and the rural setting has been used to target the rural audience. We are following it up with a host of below-the-line activities to connect with the consumer at the ground level across villages. What was the thought behind the communication?

The intent was to establish an emotional connect with a much larger audience, across age, class and gender. Plus, telecom as a sector has become highly commoditised in India, where most players have chosen to harp on their better network. The reality is that everyone mostly has the same network – so that’s a relatively comparable product attribute. Ditto for tariff or other value-added services. This ad was basically devised to break the clutter in telecom advertising. What’s 2008 looking like?

We are going through an exciting phase. Today, every competition we have is worthy. The next year will present us with greater opportunity in terms of more market segmentation and expansion in semi-urban and rural areas.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)


Tuesday, July 08, 2008

There is no illusion here


Brash, supremely confident and disdainfully unmindful of the mainstream media, this Dalit Queen literally made pundits eat their words by storming into historic victory during the assembly elections in Uttar Pradesh with her party getting a simple majority; something that had not happened in the state since 1991. Having conquered Uttar Pradesh, Mayawati is now eyeing the big crown in Delhi and makes no bones about her ambition of becoming the Prime Minister. She just might.

Some bull in the tall taleSure the afterburners are going at full blast, foreign investors are stampeding into the arena and the bull has had a hey day. But wait, when it comes to the ordinary investor, there was a bit of a bull in the bull run too. The markets kept rising and falling like buildings after a Tsunami. And virtually all the gains were cornered by FIIs and the large institutional investors. There wasn’t much joy for the unsmart retail investor who got carried away by the rapidity of the frenzied bull run.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)

No bull in a China shop

As the benchmark Sensex kept climbing stratospheric heights and zoomed past even the once unimaginable 20,000 mark, investors who had joined the party early, literally started laughing all the way to the bank. FIIs fell passionately in love with Dalal Street and wooed it with more than $20 billion of smackeroos. With the India story getting brighter and brighter, the Rakesh Jhunjhunwala forecast of 25,000 is not too far away.

How to count the chickens!Suddenly, India started spewing forth dollar billionaires like a fountain unleashing water. The latest Forbes list has 34 Indians in the top billionaires list – much more than any other country, except America. In fact, for a brief while, when madness was ruling Dalal Street, Mukesh Ambani became the richest man in the world. Names that weren’t too well known like K. P. Singh, Ramesh Chandra and Tulsi Tanti too have joined the list of billionaires. And many more will join soon!

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)

Monday, July 07, 2008

Maternity Benefits

They were the first ones to think of Maternity Benefits and got it enforced as a law in 1946. In 2004, they spent Rs.45 crores on social service. Small surprise that India’s most loved and respected corporate house is Tata. Today, a lot many corporates are understanding the positives of being socially active. Bajaj believes in the teachings of the world’s greatest leader – Gandhi. They have instituated the Jamnalal Bajaj Awards which are given every year to people following the Mahatma’s principles. Not just this, Bajaj Electricals has developed special lighting equipment keeping in mind the people at the bottom of the pyramid. At the World Economic Forum in Davos, myriad corporates stressed that these initiatives were today becoming mandatory for survival, giving them a cutting edge over other brands in the market.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)