Showing posts with label IIPM BEST MBA INSTITUTE. Show all posts
Showing posts with label IIPM BEST MBA INSTITUTE. Show all posts

Wednesday, June 05, 2013

After Modi, who?

If the Gujarat Chief Minister moves to Delhi after 2014, there are a number of contenders for his job in the state but for the moment, they are quiet. Arnold Christie draws up a list

In the throes of his victorious Long March more than six decades ago, China’s great helmsman Mao Tse Dung was richly aphoristic “a great revolution requires a great party and many first rate cadres to guide it… we must purposefully train lakhs of cadres and hundreds of first rate mass leaders…….,” he said.

What he said about revolutionary principles applies to political parties in a parliamentary democracy – a well organised cadre is a sine qua non for a party seeking to broaden its base and stay afloat.

But trust Narendra Modi to turn things on their head. Such has been his dominance in Gujarat in the course of his decade-long rule there that there has been virtually no need for an organised cadre or second-in-command. No leader can claim proximity to the BJP strongman, who is tipped as one of the strong contenders for being Prime Minister when the country goes to elections in 2014. The main question on every Gujarati lip is this: who will succeed Modi in the state in the eventuality of his elevation to Delhi? While there are several claimants to his legacy, no one is willing to hedge their bets – as yet – as most of them are too fragile to get into Modi’s bad books.

Political analysts say that in 2001, when Modi took over the reins of Gujarat BJP, his overall attempt was to cut down to size any opposition from the BJP ranks. Slowly, but steadily, powerful Gujarat BJP leaders were defanged: Keshubhai Patel and Suresh Mehta were left rudderless, Haren Pandya was mysteriously murdered while powerful backward leader Kashiram Rana passed away, leaving the field open for Modi. Today, former chief ministers Keshubhai Patel and Suresh Mehta are not even part of BJP. After demolishing the first line of BJP leadership, there is only the second line of BJP cadres left in the state who are quite willing to do Modi's bidding.
While there are a youthful bunch of BJP leaders in the fray like Nitin Patel, Amit Shah, Purushottam Rupala, R C Faldu and Saurabh Patel, they lack Narendra Modi’s charisma and gumption.

While there is a lot of gossip on who could succeed Modi, the Gujarat Chief Minister has everyone, including members of his kitchen cabinet, guessing. None of the leaders mentioned wants a mass base of his or hers own - they would rather be close to Modi.

Such a situation suits the Gujarat Chief Minister who has deliberately created this confusion so that his iron grip on the state remains even if the NDA loses. In three consecutive assembly elections, he has proved that without him the Gujarat BJP cannot win the state. The deliberate posturing of being a one-man army has proved beneficial; it is not the BJP but Modi who is a box-office hit. So far, all speculation has centred on Anandiben Patel, said to be the unofficial second-in-command of Gujarat BJP and also Modi’s successor if he moves to the centre. Insiders in the state BJP say that Modi has been grooming Anandiben to take over from him.


An indication of that has come in the way she has conducted meetings and even presided over portfolios which are not under her jurisdiction. For instance, unofficially, Anandiben has guided the destinies of the party over the significant poll issue of the Narmada Dam project in a drought-stricken Gujarat.

But health may not be on side of 71-year-old Anandiben. In which case, Modi favourite Saurabh Patel – a MBA from US - can consider himself in the run. Saurabh’s ministerial responsibilities of energy, finance, industries, petrochemicals and minerals and civil aviation give him a direct line to the country’s biggest corporate houses.

With both Patels as his closest lieutenants, Modi has in a sense, secured both his past and the future. With key aide Amit Shah entangled in encounter cases,  Modi has been keen to promote 54-year-old Saurabh Patel. He was reportedly instrumental in getting Saurabh a `safe’ seat during the 2012 assembly elections.

Another possible contender is former Finance Minister Vajubhai Vala, the man who holds the record of presenting the state budget 14 times and his successor Nitin Patel. Nitin, a Patel leader from Mehsana, is also in Modi’s good books and holds important portfolios like health, medical education, family welfare and transport. These days, he is the unofficial representative of the Gujarat government on places where Modi cannot make it.

Member of Parliament Purushottam Rupala too is said to be in the race but recent developments in BJP’s internal politics indicate that Rupala is out because of differences with Modi on allotting seats during the assembly elections. They say that Rupala’s non-inclusion in the new Team Rajnath in Delhi is a sign of this changing equation.


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

Saturday, June 01, 2013

Highest suicides till date

Increasing suicides in US forces raise sticky questions

Recently, a 32 year old Iraqi war veteran of US army Jason Glover was shot dead by on-duty sheriffs when they responded to reports of home violence. Jason apparently pointed his gun at the sheriffs and refused to back down, before being shot dead. Some also commented that Jason could have been suffering from post-traumatic stress disorder (also having been severely injured on duty in Iraq) and may not have received requisite assistance to cope with that. While that may or may not be true, the Jason case exemplifies an issue that is increasingly worrying the US defence forces.

Today, globally, the number of military deaths in a non-battlefield setting is increasing across the world. Since World War II, the pattern of non-combat deaths has taken a paradigm shift. Today, an increasing number of soldiers are dying because of psychological issues.

According to the US Department of Veterans Affairs, on an average, 600 off-duty army personnel deaths take place every month while 30 deaths take place for on-duty soldiers! Look into the overall figure and the issue becomes clearer. A report by the US Department of Defence states that “For 2012, there have been 177 potential active-duty suicides." The same figure for 2011 was 165. More interestingly, there were "126 potential not on active-duty suicides (84 Army National Guard and 42 Army Reserve) for 2012 and 118 (82 Army National Guard and 36 Army Reserve) for 2011.” The US Army confirmed last month that the actual 2012 figure of suicides amongst army personal (active and non-active) was 325. "Our highest on record," said Lt. Gen. Howard Bromberg, Dy Chief of Staff of the US Army to media. Just six years ago, the situation was much different. According to reports from Pentagon, only around 100 American soldiers “died in non-combat incidents, including suicide and illness, in the year ending June 30, 2007.”

In particular, most of these suicides took place either in war zones or amongst those returning from such zones! Pentagon's Medical Surveillance Monthly Report mentioned last year that "...In 2010 and 2011, suicides accounted for more deaths of service members than transportation accidents.” It's not that Obama is blind to the issue, but till date, instead of directly addressing suicides, the Obama administration had assumed that the post service unemployability of the veterans was the main reason for suicides – and therefore all their plans for veterans were focused on either increasing employment or providing better financing facilities.


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

Friday, May 31, 2013

Movie Review: Silver Linings Playbook

Raucous Romantic Romp

An intelligent film, with intelligent actors and an intelligent script is bound to do be good and Silver Linings Playbook turns out to be just that.

Tiffany and Pat played by Jennifer Lawrence and Bradley Cooper keep the film gritty and grounded while a no-time-for-niceties director David O Russell steers it with outstanding ability.

Pain is the undertone in almost every single scene in the film. However, the pain will be mixed with a lot of laughter as Russell keeps every scene filled with humour and sharp wit. This mix of sadness and happiness without going the black comedy route is highly entertaining and will keep you interested till the very end.

Bradley Cooper whose claim to fame is Hangover and People magazine’s Sexiest Man Alive award, seizes the juiciest role of his career and meets every comic and dramatic challenge. Jennifer Lawrence on the other end is an absolute wonder to watch. She can be raunchy, dirty, sexy, foul mouthed and pleasant, even in the same scene sometimes.

The greatest achievement of the film at the end of the day is the fact that it is a comedy which never gets stale and circumvents predictability at every turn.

The entire genre of rom-com needed a strong contender to bring back its credibility by infusing it with grit, and emotions stemming from reality rather than amped up social montages or people walking on the beach. Go watch it, for you would love it.


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 29, 2013

Between Contenders and Pretenders

The big boys are here. Australia is back in India to try and reclaim lost ground and glory. From the look of things, they are well on their way. And, what of India? 

The former mace holders of the number one spot in Test cricket have had their once proud noses rubbed in the green in England, smashed in on the sun baked acres Down Under and finally chopped and buried in the dust bowls of the subcontinent. Will this series help Dhoni’s boys grow a new proboscis this spring? Will India win back the Border-Gavaskar trophy and a bit of pride? The point is, it might. But that should be small consolation for a team and a nation aspiring to win back the crown.

The Proteas are the ones wearing it today, and wearing it well, one would say. They are dismembering the resurgent Pakistanis in their backyard with punch and panache that would have done the champion teams of old proud. And I don’t see this team wresting a series from them on current form, at home or away.

The English are next in line and they have already told us what I was meaning to say. Basically, fat chance! Australia is coming in without two of their best who have ridden off into the sunset, and without that precocious new talent who threatens to blow batsmen away soon as he can get his back to hold him up – the sensational Pat Cummins. And yet, I feel they will have the upper hand in the series against India unless… And more on that shortly. For now, back to the list.

Pakistan is getting comfortable up there with the big guns at number four. And they have the nucleus of a side that could emerge as a serious threat to the current podium finishers. They almost gave India a drubbing in the ODIs with their razor edged bowling attack and left the ‘Men in Blue’ bleeding. In the relatively more encouraging environs of a Test match, it doesn’t take much to imagine how wafer thin the current Indian line-up would look against the swing and bounce of Umar Gul, Junaid Khan and the beanpole from Burewala, Mohammed Irfan.  

 So is the current Indian team going to shake up the ICC rankings in a hurry? If you ask me, it looks highly unlikely. Ok, though I wouldn’t be able to say if the Aussie pacemen would be able to run through the Indian batting on Indian wickets often enough because they are rather new to the conditions, I will go out on a limb here and say that India does not have the fire power to dismiss the Australians twice over more than once in the four match series unless… and here is the unless I was speaking of earlier… unless, Bhuvaneshwar Kumar and maybe Shami Ahmed  emerge as new and potent forces at this level or, and this is even more unlikely, Ishant Sharma rediscovers his pace and aggression. As for the rest of the attack, it is useful at best.

Cricketing greatness, especially at the Test match level, is possible only if a lot of things fall in place. And greatness isn’t about holding on to a ranking for a few months or even a year or so. Greatness, in Test cricket, is about creating and leaving behind a legacy for generations all over the world to aspire to. It is about dominating the game for a decade or more.

Only truly great teams can do that. Remember Don Bradman’s invincibility in the 1930s-40s, Peter May’s Englishmen in the 1950s, the Sir Frank Worrell and Richie Benaud led West Indies and Australia and their monumental rivalry in the 60s, and then came Ian Chappell’s near dirty dozen who hustled and muscled their way through most of the 70s and in waylaying him and his team, inspired a bruised and battered Clive Lloyd and a bunch of extremely athletic and talented entertainers to become the demonic force that dominated world cricket from the late 1970s right up to the mid 1990s. Then the mantle passed on to the Australians till about 2010. And now the scepter is adrift again, flirting with a few suitors but yet to fall in love again.

South Africa though seem the strongest and the boldest of those at the dance. And India for now, results against Australia notwithstanding, would be lucky to get a second look. And here’s why…

Great Test teams need a few essentials. A solid, if not great, opening pair; at least two top or middle order batsmen, who would rank in the history of the game as all-time greats; it would be nice if the team had an all rounder who had the respect of the opposition; a match winning spinner would be wonderful but what a team cannot even pretend to be great without is a pair of fast bowlers who are all-time greats.

All the above mentioned teams had these combinations in some measure or the other. You could say that Clive Lloyd’s and Ian Chappell’s teams did not have a spinner worth remembering (sorry Ashley Mallet, those fingers tweak words better than Kookaburras), but like I said, spinners in the great teams of the past and the future, are wonderful, but not a necessity. That is simply because a spinner’s ability to force the issue is a little limited simply because he depends far more than the fast bowler on conditions, to ply his trade effectively. Secondly, a spinner’s effectiveness, and I mean that in his role as strike bowler and not stock bowler on flat belters, wanes as batsmen around the world become more familiar with his craft.

Ajantha Mendis, and why even Harbhajan Singh, would be cases in point. Bishen Singh Bedi and Shane Warne would be amongst the exceptions to that rule because while one was magical with flight, the other gave it a rip like none other in the history of the game.

So when you look at South Africa, here’s what you get. A soon to be all-time great batsman in Hashim Amla, a solid opening batsman in Graeme Smith, an exceptional all round cricketer in AB de Villiers and perhaps the greatest cricketer of our times – Jacques Kallis.


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, May 02, 2013

Letters to the Editor

New genre magazine
Every issue of Business & Economy magazine is a great compilation of thoughtful and analytical stories. Pick up any of the issues in the recent past, and one can clearly find out that the magazine is informative and helps the readers in forming a refined perspective about various sectors. Fortunately, I got a chance to go through the latest issue on “China Unplugged” as well. In terms of quality, a gamut of issues were covered with an interesting presentation style. The magazine seems to be strongly focussed on quick supply of knowledge and an ease in understanding complex business situations. I have gone through various issues in the past and would say that its a new genre magazine growing by the hour. It nicely encapsulates current issues and brings out the true essence of the story. I wish that your journey touches new heights with every issue. Best of luck!

Vijay Jindal
Chairman & MD, SVP Group

Knowledge pool
Once you start flipping through the magazine, one may find that its a pool of knowledge. My favourite is the policy section where it’s a trend to critically analyse the situation spanning across different sectors in India. Stories on slum development, MGNREGS, illegal mining and Draft Water Policy 2012 are just a few that I would like to name from the lot that make you think out of the box. I also like the Scrutiny section as it also follows a somewhat similar trend. The magazine is captivating with some books reviews and columns from international leaders making it an even more interesting read. The sector story on ports also deserves a mention in this letter for the insider on the situation of Indian ports. I habitually go through many magazines, but Business & Economy is a class apart. Well done team.

Sanjay Ghoshal
Director, Avenir Business Solutions


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

Saturday, April 27, 2013

B&E Indicators

Agriculture needs serious consideration

Considering the falling contribution of agriculture sector to the country’s GDP, the government initiated measures to push formal lending to marginal and small farmers (who would have otherwise depended on microfinance), starting 2008. While these measures did cause agricultural lending to rise in the initial three years, in 2011 it fell. Over the past three years it is the private sector that has shown higher growth in lending as compared to public sector banks.

Risk factor plays a crucial role in agri-lending

During the past three years, asset quality under agriculture lending has deteriorated at a faster pace than overall asset quality. Apart from various other factors, agriculture credit waiver schemes have contributed in a big way to the rise of NPAs. Experts believe that the waivers are motivating farmers not to clear their debt. Hence, a need to develop a robust credit culture in the sector is felt strongly.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

For More IIPM Info, Visit below mentioned IIPM articles
 

Wednesday, April 24, 2013

“Returns from innovation take a very long time”

Dr. Abhijit Barve, President – R&D, Biocon Ltd. shares how collaborations within the ecosystem can be leveraged to deliver better results

B&E: Could you cite some innovation ecosystem challenges which Biocon particularly faced during various drug discovery processes?
Dr. Abhijit Barve (AB):
Biocon has a state of the art R&D centre, but yet we have faced challenges of not having every sophisticated instrument available that may be required for certain research experiments. In such cases, we have drawn from the external ecosystem and gone ahead with our quest for innovation & were able to tap into resources that were available in the Bangalore area. We have some world-class institutions in the city and we leveraged their services or partnered with them. For Indian companies like us, leveraging what is available in the country and developing competencies internally would be best. And Kiran has been very serious about forging partnerships with a variety of scientific leaders and institutions in the biotech field to place India on the global biotech map.

B&E: How can the stakeholders work towards building an ecosystem for biotech in India?
AB:
It’s important to understand that the returns from innovation take a very long time. Even for biosimilars or novel molecules, the gestation period from the time you actually conceive an idea to commercial introduction is a long development cycle. It is a high risk and reward proposition requiring the right mindset supported by large investments. So, unless you have a huge risk appetite, you wouldn’t want to play in this area.

In the Indian biopharma and pharma industry, VCs and PEs don’t want to invest much because of many reasons. First, they perhaps don’t understand the field too well. Second, because they prefer investing in industries that offer secured returns with relatively low risks. Thirdly, there are limited investment opportunities in these sectors, so their basket of investments cannot be diversified and derisked across multiple technologies. Some VCs have invested in our domain. When there are a couple of success stories in terms of ROI, others will follow.


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

Decoding India’s innovation DNA

Companies hail the importance of the Indian market, and there is a pleasing buzz around the concept of reverse innovation from the country. But unless the ecosystem as a whole becomes more enabling for innovation, the country will continue to seriously undermine its potential

The most unique aspect of the UIDAI (Unique Identification Authority of India) project is its scale. It’s all about innovatively applying existing technologies to a grand social goal whose value for its intended audience can hardly be questioned. With a target of over 600 million people by 2014, this is slated to be the largest biometric database of individuals on earth. The total estimated cost is pegged at around Rs.180 billion, but is linked to some Rs.3 trillion in welfare payments in India, at least half of which are estimated to be lost due to leakages and graft.

However, the project has faced considerable challenges, & a major proportion of them have little to do with the technology itself. They include lack of machines at centres, inadequate and unskilled staff, awareness issues, data collection issues, difficulty in finding competent vendors and lack of sufficient cooperation at the state level. Off late, the problems have become more complicated, as the home ministry led by P. Chidambaram feels that the UID is a security risk as it really does not demarcate citizens and residents, and that the National Popular Register (NPR) scheme is much better. On the other hand, the Standing Committee on Finance led by Yashwant Sinha has rejected the National Identification Authority of India 2010 bill in its present form citing a number of issues including the question on whether the bill itself was introduced with any clarity of purpose, since it was supposedly destined for BPL families and has now been extended to all residents of India. The Left, on the other hand, is joined by a number of activists in calling it a breach of individual privacy.

Now let us discuss one landmark innovation that came from the Indian automotive sector and was hailed as a symbol of what Indian innovation could promise the world – the Tata Nano – a unique and valuable proposition for the middle class in theory, but a terrible road to market in practice. It all began when they ran afoul of farmers who owned the land where the Singur plant was set up. They assumed that the support of the West Bengal government would be enough to ensure that all was well. Once it spiraled into a political issue, the company was compelled to pull out of its $292 million factory and relocate to Sanand, Gujarat. This created serious supply issues besides enormous relocation costs, as some suppliers reportedly complained of inadequate compensation. Moreover, the promise of the Rs.1 lakh car became unsustainable very soon as input prices started rising; and the car was eventually caught in a devastating positioning trap, with the perception of a cheap car conflicting with the new price points. The burning Nano incidents made it worse and brought quality issues with suppliers to the fore. Rightfully so, Ratan Tata called it a “wasted opportunity” recently, and the company is looking at removing the ‘poor man’s car’ tag.

What these two isolated examples highlight in particular is that when organisations are looking at innovation, especially path-breaking innovation, and even if they are convinced about the potential of that particular innovation in the market, their due diligence is far from over. They have to look at the entire innovation chain from their suppliers to all the partners and to even a wider gamut of stakeholders who may or may not have a direct stake in the value proposition of the innovation in question.
 

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

Thursday, March 28, 2013

How IP can help or Hurt The Indian IT and Pharma Sector

Safir Anand, Senior Partner, Anand & Anand

Do the tools of Intellectual property (IP) like trade secretes, patent law, trade marks hurt or help the technical and industrial innovations in Indian IT and Pharma sector?

To understand the impact it is necessary to know what exactly IP is. Intellectual property right grants the owners exclusive rights to variety of assets.

IP is unequivocally important for the Pharma and IT sectors. For Pharmaceutical companies, Intellectual Property (IP) laws are critical for both defensive and aggressive purposes. On an aggressive front, IP aids in protecting the brand names and ensures a safe distance from identical and deceptively similar names that can mislead consumers. Similarly, patents allow the ability to look and protect the processes so that their R&D activities are duly rewarded. It is unfair utilise the labour and of others for personal benefits. To implement the law successfully, the intellectual right focused on product packaging.

Product packaging falls within the ambit of trade dress and allows pharmaceutical companies the ability to monitor identical or look-alike packaging. This occasionally also involves the law of copyright including color combination, layout and arrangement of features as may be original. Legal actions will be taken to the companies who copy the packaging style of the products of other companies. The provisions of recordal of IP before the Custom Authorities can be useful for tackling counterfeiting drugs from entering the country through the import route.

However, companies are not very comfortable with the government’s initiative of making it mandatory to register a trademark for the product before putting it to use in the pharma sector. Protection of IP is also significant for companies when they look at future commercial transactions. For example, Wockhardt was recently subjected to heavy due diligence on account of issues relating to inter alia ownership of IP. An IP portfolio that is well protected and enforced not only has a higher value for the company itself but also a higher transactable commercial value.

In case of IT, IP involves documentation relating to trade secrets and confidential information. Hardware is effectively protected under the law of patents including when it is embedded with software. However, business methods are currently not protected directly under the Statute but can be protected through a combination of contracts, essentially focusing on trade secrets, non-disclosures and indemnity provisions. Of course, brands can be protected as trademarks but greater focus is on patents and copyright. Copyright plays an important role in the look and feel of the product.

Domain names which are critical of IT operations also falls within the combination of copyright law and in some cases, involve protection through contractual law. There are some specific names such as Infosys that also spill over to company’s law in order to prevent mis-appropriation.

Case studies reveal that the highest value ascribed to software companies has been attributed to intangibles comprised in IP, both protected and secured.


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

Monday, March 18, 2013

Is it too Little... and Too Late?

Reforms in Coal Sector, on which India’s Power Generation is heavily Dependent, have seen a faint light on The Distant horizon courtesy Reform Proposals in This Budget. B&E’s Anchal Gupta argues that The Steps may be too small considering The Delay and a lot more needs to be done, Quickly

“Not a penny off the pay, not a second on the day.” This blunt reply by the Miners’ Federation of Great Britain (MFGB), the national union of mine workers to coal mine owners was a spark that ignited the chain reaction culminating in the famous 1926 General Strike in the United Kingdom. Mine owners, under the veil of a soaring pound, hurting exports and low productivity of mines decided on wage cuts to normalise profits. Despite massive subsidies to the coal mine owners, the wage cuts were implemented. The strike began on May 3, 1926, and lasted for 10 days. In the aftermath, coal mining was forever transformed in UK with the extra labour being sucked out and productivity rocketing from below 100 tonne per miner per annum to over 300 tonne by the World War II.

Swivel back to the present and India’s coal mining output still hovers at less than 200 tonne for some of its mines while the average productivity is less than one tenth of mining giants in US and Australia. And despite a new glimmer of hope in the form of proposals to reform the sector in this years’ budget, the pertinent question remains: Is it too little... too late? But for all the hype surrounding renewable energy and efficient usage, India stands tall among the planet’s most inefficient energy users (read massive wasters). And till date, more than 53% of our electricity is generated in power plants fuelled by the black treasure hidden deep below our rocky terrains. Estimates suggest that by 2012, India will stare at more than 100 million metric tonnes (MMT) of coal shortage and around 250 MMT by 2025. Ironically, we have the world’s largest coal miner Coal India Ltd. (CIL), a Navratna PSU. The repercussions are perilous.

According to Girish Solanki, Energy Analyst, Religare, “The coal mined in India has not been enough to meet the demand. The shortage has resulted in loss of electricity generation in power plants. The power companies in India imported coal in FY2009 to keep the plants running. Coal India, for the first time in history, resorted to import of coal in FY2009. Further the calorific value of coal mined in India is at 4,000-5,000 kcal/kg substantially lower than the coal mined in countries like Indonesia which have calorific value in excess of 6,500 kcal/kg.” The impending entry of mining giant, Trimex, to strike long term coal supply contracts with Indian power producers is just the beginning of the dark tunnel. Courtesy archaic laws and divided authority over every link of the value chain, much of the coal remains buried and much of India remains dark.


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

CARRIER INDIA: GOING GREEN

Though Carrier was one of the early entrants into the residential AC segment in the country, it somehow got overshadowed when rivals arrived. However, it’s clawed its way back into the sweepstakes by sheer market tactics. B&E does a walkthrough across Carrier’s strategic plants and plans
We point out, and creditably, Pandya accepts that the industry has far more potential. But he says Carrier has a killer app, as they say, “If you look at the size of the market in India, it’s huge. But the key difference between other markets and India is that what we term ‘green activity’, Westerners call sustainability. This change in India is being bought about at a very fast rate, which offers us a much bigger opportunity in the future.” Carrier is basing its complete strategic focus on the bet that India would move the environmental route faster than competitors would expect. And to that extent, Carrier has been preparing the battleground rules much in advance. Not many know that for the past two years (2008 and 2009), Carrier was awarded the top rank in the nation in the National Energy Conservation Awards. That’s the reason Carrier India has been working closely with Bureau of Energy Efficiency. The 5-star AC segment is expected to account for over 25% of AC sales in the coming years. In fact, Carrier’s products like variable speed chillers, which have the capability to cut operational AC expenditure by almost 40%, are lynchpins in this key leadership competitive warfare that Pandya is planning.

But Carrier is up against tough consumer buying behaviour. While all the other manufacturers are planning to drop down their prices further to ensure market spamming, Carrier’s ACs are in general priced at 10-15% above competitors’ products. “We don’t want to sell the cheapest product. Our target segment is pretty much evolved and is not particularly the first time buyers. Instead, we cater to customers who are looking for a repeat purchase,” explains Pandya. That leaves a paradoxical question unanswered, as Pandya himself accepts that the market penetration of ACs in China is ten times more than that in the Indian market, which still stands at a minuscule 3%. This leaves an immense scope for the company to expand its market share, both in residential as well as commercial segments.

But somehow, Carrier is addressing the issue. Though the company currently manufactures its full range of residential products in India, 50-60% of its commercial range is still imported from its factories in US, China and other parts of the world, one reason for the upper marked pricing. The company is now planning to localise its offerings in India to control costs. They already have a sustainable design centre in India and are planning to take it forward to a higher level, particularly with respect to localised products. But Carrier will still need to work a way to fight the sheer behemothic dealership size and investment might of competitors like LG, which not only has 2,200 dealers and 22,000 sub-dealers across the country selling its various products, but also is investing close to Rs.450 crores directly and through its business partners to increase production. And LG itself has brilliant environmental friendly 5 star ACs selling like hot pancakes. How do you compete with such a competitor?

A long time ago, the invention of air conditioners by Carrier was the reason cinema halls in the US started showing movies during summers too. Pandya believes he can recreate history... For now, we believe him...


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

Saturday, February 09, 2013

2008=#20 2010=#3 2012=#_?

Two years back, Micromax was a name heard by few and seen by fewer. Exhibiting a rare example of brilliant innovation combined with common sense, today it rules the world of advertising and has climbed to the number 3 spot in the domestic handset market. What next? by Surbhi Chawla

Of late, the Indian handset market has been flooded with a plethora of indigenous handset brands, which bear the stamp of companies that would have dumbfounded most acclaimed au faits as recently as a year ago. But these so criticised infantile firms have taught the masters of the mobile handset game (read: Nokia, Samsung, Motorola) how to ride the stalking-horse in the face of hell-raising competition. They have been successful in bringing to life the dormant aspirational values of many in the country, offering them “value for money” look-alikes of the best of handsets that the Indian Daddy Warbucks could afford. Their secret — they understand the psyche of the Indian consumer and deliver by “keeping it real fake”.

But as it occurs in many a fairy tale, there are the suitors, but there is just one real prince who walks away with all the glory and honour... and most importantly, wins the hand of the princess! In this race too, there appears to be one real prince for the moment – Micromax. And it is loud about not being a follower of the "keeping it real fake" cult. At present, Micromax offers 34 handsets in the Indian market. According to reports by tech-watchers at IDC, it is the third-largest handset vendor behind Nokia and Samsung. Some rise for a brand in the ghastly cluttered Indian handset market. So far so good. But will this north-bound express train gather greater momentum in the times to come? Some would debate, but considering the pace at which the industry has progressed in the recent past, Micromax may well be on its way to finding its name amongst the top two vendors in the country. According to IDC India, the number of handsets sold in the country touched 100.9 million units during the 12-month period ended June 30, 2009, registering a yoy growth of 6.7%. As the per capita income rises by the day, and as educational reforms make the common Indian more privileged, aspiration levels will rise, thus it will rise the demand for more handsets. In short – Micromax is in for a great ride along with other newbies.


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

For More IIPM Info, Visit below mentioned IIPM articles.

Wednesday, February 06, 2013

SMALL BUSINESSES: EQUITY ACCESS

The lack of capital is a serious blot on India’s entrepreneurial growth story. Small and medium enterprises have a very faint idea about organised sources of finance, leave banks. It’s time for the establishment to look into this in an extremely urgent manner

The primary reason is the fear of getting exposed to currency fluctuation issues and accounting issues related to overseas transactions. Most small companies would prefer looking to institutions set up by the government (like SIDBI) than an outside source. Many analysts like C. G. Srividya, Partner, Special Advisory Services, Grant Thornton, support such a hypothesis in their discussions with B&E.

One figure that supports this theory is that the credit offtake by the government to SMEs has increased phenomenally from Rs.860 billion in 2004 to Rs.2.46 trillion in 2008. But it has hardly been adequate, as at least 95% of SMEs still don’t have access to any institutional credit mechanism. In the US around 60% of priority sector lending goes to small businesses; so there is a strong case for increasing the proportion in India. One man in the midst of this issue is Rajeev Karwal, Founder Director and CEO, Milagrow, who argues that at least 20% of priority sector lending should be diverted to SMEs, just like agriculture. Another line of thought portends that as the lending rate uses the PLR as a benchmark, that should be changed – as in, lowered for the benefit of the SMEs. One does accept that the government and the RBI have created a special window of Rs.70 billion for augmenting credit flow to SMEs. But two key issues that still need to be addressed is the promotion of these schemes (as many small business owners aren’t even aware) and procedural delays, which can discourage most companies. Private banks, in turn, have been particularly conservative about lending. Paritosh Kashyap, Executive VP-Equity, Kotak Mahindra Bank, commented to B&E, “As far as capital raising is concerend one needs to understand that capital raising is an issue of risk. The credit quality of the borrower is of utmost importance while lending; which one needs to verify.”

A strong case can ergo be made for raising the equity component and making it available for more and more SMEs in particular. If you consider the domestic equity trend in 2009, 17 IPOs were brought up in 2009. In dollar terms, $3.34 billion was raised compared to $4.51 billion in 2008, led by NHPC’s IPO of $1.34 billion. And 66% of that money was raised via power and energy. Jagannadham Thunuguntla, Equity Head, SMC Capital Ltd, tells B&E, “The interesting trend is that the subscription levels at the time of IPOs are heavily skewed towards QIBs (Qualified Institutional Buyers).


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.



Friday, January 18, 2013

All Hail India’s Great Banana Democracy!

 Some recent developments have now led me to wonder about the state of Indian democracy. A school student is taught that a functional and successful democracy rests on four pillars – executive, legislature, judiciary and the fourth estate (media). Each one of the pillars now seems to be infested with termites, threatening their very foundations. Just consider the following:

• The Income Tax Department and the Enforcement Directorate insist that former Jharkhand Chief Minister Madhu Koda and his associates have squirrelled away close to Rs.4,000 crores.

• The CBI insists that the Minister of Telecommunications A. Raja could be involved in defrauding the exchequer to the tune of thousands of crores by doling out telecom licenses in gross violation of all norms. Telecom is one sector that has been bedevilled by corruption and scams ever since mobile phone licenses were first auctioned in 1995.

• A couple of mine owners of Karnataka shepherd dozens of MLAs like ‘cattle’ and declare war on the elected Chief Minister of Karnataka who seems to be trying hard to curb brazen corruption and patronage politics. The central leadership of the BJP caves in cravenly to this blackmail and forces ‘their own Chief Minister’ to weep in front of TV cameras.

• The electorate gives a mandate to the Congress-NCP alliance to rule Maharashtra by almost giving it a majority. It takes the MLAs and leaders of Congress and the NCP two full weeks to squabble and haggle over ministerial berths before a government can be sworn in. R. R. Patil, the man who was Home Minister of the state during 26/11 is back as the Home Minister.

• MLAs of the Raj Thackeray party Maharashtra Navnirman Sena heckle, abuse, jostle and assault another MLA Abu Azmi because he wants to take an oath in Hindi instead of Marathi. The MNS MLAS are far from remorseful; they have declared the assault as a kind of V-Day and have threatened worse.

• A Collegium approves the appointment of Justice P. D. Dinakaran as a Supreme Court judge. There are protests everywhere and accusations that Justice Dinakaran has misused his judicial authority. Things come to such a pass that lawyers in Karnataka paralyse the functioning of the High Court there; even locking up two judges who refused to heed their boycott call.


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.

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