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Wednesday, April 24, 2013

20 years of change after Rajiv Gandhi

Known as one of the brightest stars in Indian politics, Rajiv Gandhi’s assassination shook up the foundation of the Congress party. A documentation of how his death reversed fortunes of the party, and dramatically altered the Indian political scenario...

Twenty one years ago on May 21, 1991, a bomb explosion killed Rajiv Gandhi, while he was campaigning for the Congress party in Sriperumbudur, about 40 km from Chennai, on the second day of the 10th Lok Sabha elections. [Rajiv who had served as the PM of India between 1984-89 (at the age of 40 – he was the youngest ever PM of India) is till this day regarded as perhaps the most charismatic figure that ever took the stage of Indian politics.] The sudden, premature demise of Rajiv not only shocked the world, it also marked an end of an era that saw India being led by the Nehru-Gandhi dynasty for all but five years since independence.

Though nobody took immediate responsibility, the attack was blamed on Rajiv’s arch enemies, the LTTE, that was fighting for a separate homeland for the Tamils in Lanka. Rajiv could not contain the political problems afflicting India, and found refuge in international entanglements and commitments. He committed the so-called Indian Peace Keeping Force (IPKF) to Lanka in July 1987 in an endeavour to help the government there to eradicate militants agitating for a separate Tamil homeland. [The IPKF had to be withdrawn in 32 months.] His period in office was marred by scandals and allegations of corruption on so huge a scale that he undoubtedly lost the election of 1989 partly on account of public perception. The Congress suffered an electoral defeat. His successor, V. P. Singh, could not hold office for long, and Rajiv started campaigning in earnest in 1991. But then, his assassination put an end to his half-finished political career.

Most people remember Rajiv as a visionary who encouraged foreign investment, a freer economy and rejuvenated his own party. “People had sympathy for Rajiv. He was not aware of the problems of the people at the grassroots level. However, he was a very dynamic person,” recalls Mohan Dharia, a former Union Minister who had served in the Indira Gandhi cabinet, but resigned on his differences with her ideologies. He remembers Rajiv as someone who wanted to modernise India.

When US denied to give India the technology of supercomputing, it was Rajiv who encouraged the creation of the indigenous Param Super Computers. Agrees Dr. M. P. Narayanan, former Chairman of Coal India (1988-91), who says that with the demise of Rajiv, India not only lost a visionary, but a receptive and encouraging human being. “His leadership style was such that would even allow mid-level officers to walk up to him and he would listen to their ideas. I wonder if subsequent PMs have ever found time for that,” he says.

Rajiv’s vision for India was that of a modern nation that takes full advantage of technology. We’re living his vision today. Says political observer Suvrokamal Dutta, “Many people believe that it was Narasimha Rao that initiated the globalisation process. However, it was Rajiv who created the ground for that process. He was also working on various missile treaties with Western countries.” Rajiv’s other revolutionary move was to lower the voting age to 18 from 21 years in India. Having said thus, it is important to note that Rajiv’s political career also became mired with allegations and scandals. The Bofors scandal is an unsettled blot on his otherwise glorious career. It cost him three-quarters of his MPs.

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Source : IIPM Editorial, 2013.
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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Saturday, April 20, 2013

“We will exit any business that we cannot be a leader in”

In this exclusive interaction with B&E, Adani Group Chairman Gautam Adani deliberates on the group’s strategy to grow as an integrated infrastructure company and also take its business global, and also on how the group is tackling the current challenges that it faces from environmental groups and regulators

Ahmedabad-based Gautam Adani, Chairman of the $6 billion conglomerate Adani Group, is on a growth path to rapidly expand presence in the global and domestic market with its focussed business interests on sectors such as power, ports, coal; which have less competition. The group’s three listed companies have grown at a brisk pace, which places it among the top10 private business houses in India. By taking the total generation capacity of the Adani Group to a massive 4,000 MW in line with its vision of achieving 20,000 MW by the year 2020, Adani Power has become India’s largest private sector power generation company. However, the group, which is exiting its real estate business, is also facing significant hurdles in terms of regulatory and environmental challenges. Adani talks to B&E’s mona mehta on the group’s domestic & global plans. Some edited excerpts:

B&E: Amidst economic upheavals, how do you see the opportunities emerging in the global market and what is your strategy to grow your business presence in the infrastructure sector within and beyond India?
Gautam Adani (GA): On the business front, Adani Group is strongly thinking and acting global and planning to invest over $6 billion in global expansion. The group has successfully commenced its mining exploration programme in the Galilee Basin in Queensland through Adani Mining Pty, the Australian arm of the Adani Group. This marks the culmination of the first phase of its foray into Australia. The Adani Group is the single largest Indian investor in Australia in coal mining, creation of dedicated railway infrastructure to transport the coal to ports and dedicated coal terminals such as Adani Abbott Point Coal Terminal. Besides, we have synchronised another super critical unit of 660 MW at our state-of-the-art power plant in Mundra in the Kutch district of Gujarat, thus taking the generation capacity of the Adani Power to 3,960 MW.

These achievements will mark the beginning of another illustrious chapter for the Adani Group in the days and years ahead. Additionally, Adani Enterprises has also commissioned India’s largest 40 MW solar power plant in the state of Gujarat, thus taking the total generation capacity of the group to a massive 4,000 MW. In line with its long term vision of achieving a capacity of 20,000 MW by the year 2020, Adani Power has now become India’s largest private sector power generation company.

B&E: You are currently involved in a bid for Gujarat Gas. How confident are you of your prospects?
GA: Adani group is keenly interested in bidding for British Gas’ (BG) stake in city gas distribution company, Gujarat Gas. Currently, the due diligence process of BG’s stake in Gujarat Gas is going on. Adani Group is interested in evaluation and the process of evaluating it is on. We will be able to divulge more details at the right time. Actually, British Gas has decided to exit from the business in which it has 65% stake. If the acquisition comes through, it will have synergies with its own gas distribution business. The company will have to fight off many suitors who are known to have shown interest in the business like a consortium of public sector oil companies, Gaz de France-Suez, German power company E.ON, and a few private equity players.

B&E: Where do you see Adani Group in the next 10 years and which businesses will contribute the maximum to the group’s revenues?
GA: Power, ports and mining business are expected to contribute the maximum to Adani Group’s revenues and profits to the tune of 80% of the Group’s profits.

B&E: How are your expansion plans in the power sector progressing? What hurdles do you see in your path towards achieving 20000 MW capacity?
GA: Currently, in the overall power sector, which is facing hurdles of fuel supply blocks, Adani Power is also facing issues with regards to its power purchase agreements signed with two states – both Maharashtra and Gujarat. As for the Tiroda power project, Adani Group has signed a power purchase agreement based on the Lohara mines, which was cancelled by the environment ministry, as it is close to tiger reserves. However, Adani is not seeking to terminate the power purchase agreement with Maharashtra. In fact, we have recently approached the government and asked them to re-adjust the terms since the mine is not available.

Read more......

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

Tuesday, April 16, 2013

“We are a boringly consistent company”

Saugata Gupta, CEO, Marico, Consumer Products Group

B&E: Recently there was a profit warning from your side to the investors. What were the reasons?
Saugata Gupta (SG): First let me clarify that it was not a profit warning but a guidance. We believed that with inputs costs having doubled, our earnings growth will not be in line with the expectations on the stock from analysts and the market and therefore we gave out a guidance. And we continue to stand by it. We are saying that over the immediate time horizon, given the kind of cost structure and input costs, and the fact that we have chosen to grow consumer franchises and get more consumers on board, along with volume growth, perhaps, the earnings growth will be a little muted in the immediate and near term.

B&E: Are you contemplating any price hike on any of your products given the inflationary pressure?
SG: We haven’t taken any price hike in the past 6-7 months. But as I said, if the need arises, we will go for it, but it will be very marginal in nature. We don’t foresee that in the immediate term, unless there’s more inflationary push, so no major price hikes.

B&E: Are you looking at any tweaks in the production chain to manage costs, due to the price pressures?
SG: We are obviously concerned about cost management, but at the same time, we’re not sacrificing in terms of investments, innovation and talent. Like any other company we will continue to explore opportunities for cost management.

B&E: You have gone ahead to explore new business opportunities in the personal care and food space, so any new product launches we can expect?
SG: We just recently diversified into the skincare category with Parachute Advanced, so its too early to talk about the category. We also have men’s grooming products in most of our international markets. It’s a category that is growing. We have launched a couple of new categories this year, so we are focusing on investing and growing these categories. In the food space too, we have got into the Oats space with Saffola (we are already the number three player), and are also test marketing a savoury oat. So as I said, we have enough on our plate, we believe in focus, investing in one or two products/ categories, and focus on growing them rather than going into multiple categories. At the end of the day if you have to create a strong franchise you have to focus on investing in fewer ones, rather than entering every space. Health foods is one category where we see a lot of growth opportunity. Our Oats product is available mostly in modern trade nationally and retails in the southern markets. And we are still in the process of further scaling it up.

B&E: You have forayed into international markets quite aggressively, how is the business doing for you? Any plans to enter more markets globally?
SG: Our internal business is currently contributing 23% of our top line and we will continue to focus on emerging markets, where there is long-term potential for growth and significant population with low penetration of categories. That will be our international business strategy. When it comes to acquiring more companies, our strategy is that as we grow (nationally and internationally), our growth will be a mixture of organic and inorganic and, as and when opportunities come, we will explore. In India, opportunities for acquisitions are much lower, and also the price earning multiples of earning is on the higher side compared to international markets, where more opportunities can be found. Also, in most international markets, we don’t have a presence and inorganic gives you a mass and a foothold to start.

Read more....

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

Thursday, March 28, 2013

Thumbs down to The free ride!

The Indian Government’s Initiatives towards free trade have not been met as Enthusiastically as Expected by The Industry. What is The way forward?

During an informal dinner conversation with a top government official and some people from the industry, we were discussing the big idea that could come up ahead in the 12th Five Year Plan, which could take India ahead in the next decade. Infrastructure was almost unanimously the choice of most people in the group. Suddenly, I decided to play the Devil’s Advocate and brought up the topic of exports. I asked him why exports cannot be that key thrust area, since it has lifted so many economies like Japan, South Korea and China and taken them strongly on the path of development. His answer baffled me. He said that it wouldn’t work, since over 50% of Indian companies are not really interested in exporting, and are rather perfectly happy serving the domestic market.

The domestic market is obviously considered one of the greatest advantages of being an Indian company. India Inc. has been in a typically self congratulatory mode since our companies were relatively less impacted by the economic recession due to staying local. But the cushion of having a strong domestic market is also one of the greatest drawbacks. Companies in nations like South Korea and Japan had such a small domestic market that exports were the most viable option. That encouraged them to move out, and that is why, their companies have been all over the globe. China, on the other hand, had the cushion but choose to ignore it, and we know the other part of that story. When you look at 2009 figures from WTO, India had a 1.3% share of global merchandise exports of $12.18 trillion, while China accounted for a whopping 9.9%. Indeed, there is an urgent need for the government to change that mind set. Kwang Ro Kim, Vice Chairman, Onicra, tells B&E, “The point on having a huge domestic market is a myth. Moreover, it is the best way to create jobs for 70% of India, since everyone is not intellectual enough to work in IT companies.”

Of course, there are a number of initiatives that the government takes from time to time to boost exports, but we are going to discuss a particular one here – the rising number of Free Trade Agreements (FTAs). India has been signing a number of them in the past few years (like ASEAN, South Korea & Japan); and has also consciously followed a ‘Look East’ policy. When asked about the key benefits of such FTAs, Minister of Commerce Anand Sharma tells B&E, “We have been seeing significant shifts in development from Asia and developing countries like India. We need to focus on different FTAs to boost growth.”

When it comes to Asia, in particular, FTAs are becoming a very critical policy tool. Failure of the Doha round of WTO means that FTAs would be a valuable tool to leverage on trade opportunities and also deepen regional networks and linkages. Even Indian firms have relied on Western markets to a disproportionate extent in the past. Looking at figures for the period from April-September 2010, India’s top destination for exports has been UAE with exports of Rs.657.11 billion (growth of 21.48% yoy) followed by US with exports of Rs.539.42 billion (growth of 23.43% yoy) and China with exports of Rs.256.13 billion (growth of 28.73% yoy).

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Tuesday, March 26, 2013

Will they be Good at Crossing ‘Tablets’?

A number of low cost Giants are Preparing to launch tablets in India, Motivated by the way The Mobile Phone landscape changed in The Country. Is an Encore as Certain as expected

First there were desktops. Then there were laptops. Then there came mobiles. Indeed these devices made life simpler. But then, as smart phones, netbooks, media PCs, smartbooks, mobile internet devices and now tablets have come into the picture, life is not necessarily easier, neither for companies nor customers. For innovator companies like Apple, which rejuvenated the tablet segment in the first place, the challenge is to be able to milk innovation fast enough before competitors bring in substitutes and disrupt their pricing structure. Within a short span of launch of the iPad, competitors like HP, Blackberry, Dell, Samsung, HTC and Asus came into the fray.

Simultaneously, there are a host of Asian players who are looking to grab the opportunities in this new gold mine, and India will be very firm on their radar. After all, a precedent was set for them when Nokia suffered deep cuts in its market share from 60% in 2008 to around 31.5% by the quarter ending September 2010, thanks to players like Micromax, Lava & G’Five, who enhanced the value proposition by many times.

Now these players are set to enter the emerging tablet PC market in India with a price tag less than Rs.15,000. Delhi-based Lava Mobiles is on the verge of introducing its affordable tablet PC by September this year, which will be priced between Rs.15,000 and Rs.20,000. Micromax has plans to launch a tablet somewhere in July. Though initially these tablets might sound a bit expensive, prices will most likely fall. According to report released by the Boston Consulting Group titled ‘Swimming against the tide’, competition will drive down prices of affordable tablet PCs to Rs.9,000 by 2013. This is reaffirmed by S. N. Rai, Director and Co-founder, Lava Mobiles, as he exclaims, “Once our range of Tablet PCs is launched, we will keep working on the innovation side and therefore expect that the price will come down further to sub Rs.10,000 levels.” Zen, Olive, G’Five, Acer and Fly are expected to make their launches soon. But will customers, who pay for sub-Rs.5000 mobiles, show the same response to sub-Rs.15,000 tablets from these companies? According to Arshit Pathak, MD, G’Five, “Tablets from Apple and BlackBerry will be an add on for people who already own a laptop and/or a smartphone, but our product will be an independent device and will target people who don’t have any computing system.” They will look at students, SMEs & young professionals who wish to remain connected, have a better multimedia experience and don’t wish to spend on a notebook or a smart phone.

When the phenomenon called the Apple iPad took over the computing world last year in March, the immediate result was a fall in netbook shipments. In the nine months ending December 31, 2010, Apple sold 15 million iPads globally. Gartner estimates worldwide media tablet sales to touch 54.8 million units in 2011, up 181% from 2010, and surpass 208 million units in 2014. In fact, a recent study conducted by Accenture titled ‘Finding growth: Emergence of a new Consumer Technology Paradigm’ states that “while the growth rate of computers is expected to decline, the growth rate of tablet PCs is expected to be up by 160% in 2011”.

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Monday, March 11, 2013

AXIS BANK: NEW AVENUES

The Indian Banking Sector is going through a Massive Transformation post Economic Crisis. While some have cut down on Expenses, Some have Halted Expansion. However, Axis Bank is the one which has Hardly Changed its Course as it Apparently kept its basics right. But can this ‘Basics’ Strategy work out for the long run as well?

Banking experts, who were previously reticent to own up to the continuing benchmark performance of Axis Bank, are now slowly but surely coming around to the Axis camp. Some like Chandan Taparia, Banking Analyst at Anand Rathi Securities are more forthcoming, telling B&E, “Building on the well-accepted UTI brand name, Axis Bank has built a very strong retail franchise apart from its existing strength in corporate business. The bank was one of the first in the private space to expand rapidly in Tier 2 and Tier 3 cities and has managed to build a strong (and fast-growing) customer base that has given it substantial low-cost deposits as well as retail fee-based income.” In fact, fee income contribution (across a spectrum of services) to Axis Bank’s total revenues has been a meaningful 1.9% of assets (almost twice the level in PSBs) over FY 2008-10. Further, with corporate loan growth picking up and capital markets reviving, fee income growth is expected to gain momentum (at 30% CAGR over FY 2010-12), taking the contribution to 2% of assets by FY 2012.

All this has been possible because Axis Bank did a commendable job in transforming itself into a strong private bank over the last decade, a bank with a growing market share in both corporate and retail banking. During the last decade, the bank has rapidly expanded its network (Axis Bank today has 1,095 branches and 4,846 ATMs) and gained traction in segments such as transaction banking, wealth management, et al.

But the credit for the transformation of the bank can be traced back to some years in the past, to the leadership of Supriya Gupta, the first MD & CEO of the erstwhile UTI Bank. Within a few years of operations, the bank went public in September 1998 with a Rs.710 million public issue, which was eventually oversubscribed by 1.2 times. Then, in January 2000, came Dr. P. J. Nayak, the miracle man who intensively focused on ensuring a robust IT infrastructure, better risk management and employee empowerment. By then the bank had had its basics right. Even before Nayak could settle in his new post and set new strategies, there was a virtual war going on in the banking sector. While Axis Bank’s counterparts were completing successful mergers (for instance, acquisition of Times Bank by HDFC Bank in 2000 and ICICI Bank’s takeover of Bank of Madura in 2001), Nayak was always of the belief that the bank should not grow market share just for the sake of it. In fact, on his appointment for the second term in December 22, 2004 he said that as the bank had been growing at the rate of 35-40% between 2000 and 2004, therefore there was no need for them to look at inorganic growth. If one were to analyse this critically, a decision to ensure that the bank only focused on its core operations and didn’t even attempt to diversify much like the others did, was radical and open to much criticism during those times of dynamic industry change.

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Thursday, March 07, 2013

Respect to his understanding of the Indian customer

Karl Slym, President & MD, GM India has spent close to three years in the Indian market. The times have changed him considerably, more with respect to his understanding of the Indian customer. Slym shares with B&E the decisions taken in the hard times and the strategy forward with GM’s Chinese JV Partner.

B&E: You have a good experience of working in the JV environment in the past as well but as far as the Indian market is concerned, we have seen many JVs not working in the past. What makes you so sure of the fact that the partnership with SAIC will go a long way?
Slym: I think that JVs are something that you have to embrace. Where there are no synergies and both are not seeing any potential benefits together, there is a problem. But if the planning upfront is right where both parties are seeking their own set of benefits and are able to make something better, which was not possible individually; you have a strong foundation on your side to start with. It is not a single point focus, but if it is done carefully, one may look at the benefits, which are huge in magnitude. Moreover, as we have already seen a lot of success with the partner in China, we are trying to ensure that we are able to replicate that success in the Indian market as well.

B&E: But you have had a bitter experience on the same with your partnership with Reva. What about your plans for the electric car market?
Slym: After the deal with Reva didn’t go through, we decided to go ahead alone in the electric car segment. We will show you an electric car in the first half of next year, which will be a small car.

B&E: You mentioned in our last interaction about your plans for the LCV market for end 2012. What is the latest update on the same?
Slym: We are now planning to roll out the LCVs much before that. It will still be in 2012, but it will be done at the 11th Auto Expo. We will roll out close to six products in total with 15 fuel variants in the next 24 months. We have a design centre here but at the moment, they don’t have a proper architecture, which is a vision for them to grow to. The way we work therefore is that we have global products wherein, let’s say, we pick up a Cruze from Germany and then we put it through our Indian R&D Centre. The centre makes sure that the ground clearance, suspension, horn and similar things are adjusted according to Indian conditions. We will follow a similar process for the vehicles from China. Needless to mention, we are aiming for a very high level of localisation that will be close to a level of 90%. Therefore, we are now signing up with new suppliers for the plans for the LCV market.

B&E: As you have decided to brand it under the Chevrolet umbrella, what makes you come to a conclusion that you will require a new infrastructure to sell commercial vehicles in India?
Slym: As everybody knows Chevrolet today, more and more people are accepting it as one of the most promising brands as well. A lot of energy and effort has gone into establishing the Chevrolet brand after we started with GM moving on to Opel and then finally landing right with Chevrolet. Moreover, when you know you are going to compete against a brand as strong as Tata, you don’t really want to take any chances with a brand which is completely new to the Indian consumer. By the time we launch, we could have reached new heights in terms of consumer confidence and there will be close to half a million Chevrolet cars on the Indian roads. For the different infrastructure, there are two entirely different sets of consumers that we are trying to address here with passenger cars and LCVs. And as both environments are very different from each other, it makes a lot of sense for us to have a separate infrastructure for them too. We have a possibility of sharing a back office for that but the final point of sale will be different from passenger cars.

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Wednesday, March 06, 2013

“Russia must accept we are an independent country!”

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

B&E: Czech Republic is one of the most recent countries to establish itself on the world map. What is your vision for the nation?
Miloslav Stasek (MS): We separated from the Slovak Republic on January 01, 1993. But we were an independent country from as early as October 28, 1918 and were known as Czechoslovakia. We are a young democracy and our vision for the nation is in line with democratic values and principles. We passed through the socialism era and at the same time became the member of NATO and EU. Our economy is mainly exports based and we aim to strengthen the auto industry by ramping up production. With a population of 10.2 million, we produce 1.5 million cars which shows our economic progress and stability.

B&E: What is the status of your relations with Slovakia?
MS: I must say that our separation with Slovakia was not an overnight affair. We are still very close. And it is not only due to our history but also due to common language. Our relation is a good example because after the separation, we divided this huge compound into two pieces. We still have a common house called the House of Czech and Slovak Republics.

B&E: Czech Republic and Slovakia together have 2000 soldiers in Iraq. Do you find the US war in Afghanistan and Iraq justified?
MS: We have decreased the number of soldiers in Iraq. Now we are in Afghanistan and the Balkan region. Those missions were under the umbrella of NATO. As a member of NATO, it was our duty to support the mission and provide necessary logistics. In Afghanistan, it is not only about military operations. We are also involved in civil programmes, NGOs and building infrastructure. The restoration process is peaceful in Iraq. Most of the areas are now under control.

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Monday, March 04, 2013

“We are collectively working towards facilitating more financial inclusion”

Nipun Kaushal, Head – Marketing, ICICI Prudential AMC talks about the need to educate investors

After high-flying challenging careers at Future Group, Hero Honda, Maruti Udyog, Citifinancial, Nipun Kaushal feels religiously responsible at ICICI Prudential AMC in doling out his role of generating marketing strategies, customer acquisition and retention. In a candid conversation with B&E’s Mona Mehta, Kaushal discusses the past, present and the road ahead for MF industry in India.

How has the Indian mutual fund industry evolved over the last few years?
Today, as we see our country poised for taking a quantum leap towards progress, we realise that MF as a category can serve as a catalyst to trigger an individual’s progress. MFs are now seen as a way of bridging the need gap between the dominant desire to progress and how to make it a reality. The industry too is collectively working towards facilitating more financial inclusion with the support from channel partners and regulators alike. The category today has the most competitive and cost efficient structure in place, which we believe is extremely favourable for the final investor. MFs have been extremely transparent with high disclosure standards which help investors in their process of due diligence. This industry has thus become an intrinsic and essential part of financial inclusion which facilitates wealth creation and progress.

How is ICICI Prudential AMC planning to gain a competitive edge?
All AMCs are working collectively towards providing investors with the knowledge of the category and how long term investments in MFs will benefit them. Healthy competition because of increasing number of players will mean increased awareness of category and innovative product offerings for investors, all of which will help make India a more mature and progressive financial solution-providing destination. However, at the same time, I would also like to emphasise that only AMCs that are willing to commit long-term infrastructure, focus on investor interest and provide resource bandwidth will witness growth. As far as our competitive edge is concerned, it lies in our endeavour to introduce products that fulfill an existing need gap. We offer the investor a bouquet of funds to choose from. Depending on his specific need, the investor can take his pick from the array of products on offer.

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Friday, January 25, 2013

Heavy weight champ

Telang’s background in operations and his experience with the successful Commercial Vehicles business will be an asset

As Jack Welch once said, “If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it you almost don’t have to manage them.” Ratan Tata has done exactly the same in Tata Motors, which is one of the key reasons why the company is the market leader in the Commercial Vehicles segment and more importantly, produces almost half of the Commercial Vehicles sold in the country. Well, P. M. Telang, Executive Director (Commercial Vehicles), Tata Motors would have a lot to do with that, for he is the man standing behind this success.

A Mechanical Engineer and an MBA from IIM-Ahemdabad, Telang has over three decades of experience in the automotive industry as he has been with Tata Motors since 1972. In his previous role as President (Light & Small Commercial Vehicles), Telang played a major role in ensuring a turnaround in the company through cost cutting and e-procurement. He is also serving as Senior VP (Operations), Pune currently. Overshadowing the success that the company achieved under Ravi Kant’s leadership will certainly not be a cake walk for anyone succeeding him. However, if we talk about the Commercial Vehicle segment of Tata Motors, Telang has been able to take its growth story forward very efficiently. And industry insiders believe that if Telang takes charge; it will surely set the stage for the next phase of growth for Tata Motors. And as auto expert Murad Ali Baig asserts, “The person taking charge of Tata Motors after Ravi Kant leaves should have an in-depth knowledge of the automotive industry apart from the basics of management and finance.”

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Tuesday, January 22, 2013

Smaller States can be Bigger problems

I was waiting for a flight the other day at Mumbai airport and watching a news channel. There was a Russian woman with her face covered who was on screen, plaintively saying how she was raped by an influential politician of Goa and how the cops there were doing everything possible to hush up the case. Then I recalled frequent stories of how Goa has now been completely hijacked by criminals, mafia and politicians who think committing a crime and getting away with it is their birthright. That story was followed by a report on widespread agitations in Andhra Pradesh for a separate state called Telengana. And then I thought about the long standing demand for smaller states in many regions. I thought of Gorkhaland to be carved out of West Bengal, of Harit Pradesh in Western U.P., of Vidharbha in Maharashtra, of Koshal in Orissa and many more.

In each case, citizens demanding a separate state have a seemingly fool proof logic: their needs and concerns are not addressed by existing state governments and only a ‘state’ of their own can lead to better development and delivery of developmental benefits. The logic is that there wouldn’t be so many farmer suicides in Vidharbha if it becomes a separate state; or that sugar cane farmers in Harit Pradesh would get a better deal than what they are currently getting from Lucknow. On the face of it, the logic appears impeccable. But will this work in reality? Will smaller states genuinely lead to better welfare outcomes for citizens; for better governance and stronger democracy?

I look at the examples of Jharkhand and Goa and shudder at what might happen in reality. You and I already know about how Goa is rapidly descending towards hell; it became a state back in 1986. Then, in 2000, three states called Chattisgarh, Uttarakhand and Jharkhand were created. Almost 10 years down the road, can anyone say with even an iota of confidence that freeing Jharkhand from the clutches of Bihar has led to more prosperity for citizens? In fact, exactly the opposite seems to have happened. Chronic political instability and relentless Maoist violence have become the signature themes of the state. It is a unique state where an independent MLA became Chief Minister.

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Thursday, January 17, 2013

Here are the real Nobel Prize winners

You would think that the Nobel Prize has been given to Osama instead of Obama; such has been the ballyhoo and brouhaha generated over the act of edifying the first Black President of a country that historically treated blacks as slaves and chattel to be traded in the American version of Mandis. But then, surely Obama deserves it more than the now deceased former Prime Minister of Israel Menachem Begin who was once designated a “terrorist” by the British! And much more than another deceased soul (may his soul rest in peace) named Cordell Hull who – as American Secretary of State – refused exile to God knows how many Jews who wanted to escape from Nazi Germany. All of them subsequently died in concentration camps.

But for whatever it is worth, here is the Business & Economy list of Nobel Prize nominations for next year across categories:

peace: This was a very, very close contest. In one corner stood two brothers who have completely redefined the concept of brotherly love. In the other corner stood a ‘brother’ who has completely redefined the very concept of ‘neighbourly’ love. In one corner stood Mukesh & Anil Ambani and in the other corner stood the Chief of Lashkar-e-Taiba Hafiz Saeed. Ultimately, it was clinched by Saeed for his actual demonstration of ‘peace’ and ‘love’ during 26/11

economic sciences: Yes, the prize is not for ‘economics’ but ‘economic sciences’ since virtually all economists across the world have been mesmerised by the delusion that the study of quirky human behaviour is an exact science. There were many contestants for this prized prize – most belonging to the political and corporate class who understand ‘money’ like no one else. After much deliberation, debate, wrangling and mud slinging, the nomination was conferred upon the honourable Sharad Pawar for taking economics even beyond the frontiers of science. How else can you explain an inflation rate of zero percent and less when the prices of sugar, oil and vegetables have soared by more than 100%?

literature: If you believe that great literature transcends wretched reality in a sublime manner that borders on fantasy, then this one is a no brainer. The unanimous verdict was The Draft Direct Tax Code that has been circulated for debate and discussion. This masterpiece contains a sparkling gem that says that the market value of the plum houses that bureaucrats occupy in VIP Delhi will be added to their taxable income. Now if that does not border on fantasy, I don’t know what will.

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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.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Wednesday, January 16, 2013

The Blue Bull goes on the rampage in the fields of Uttar Pradesh

As the Blue Bull goes on the rampage in the fields of Uttar Pradesh, the state government wants a return to the days of bounty hunting

The current law on hunting in India states that anyone can kill a Nilgai if – a) He or she has a valid licensed gun b) Has the requisite permission from the government, and c) Hands over the carcass to the forest department. However, indiscriminate hunting of the as-of-now healthy numbers of Nilgai seems like a bad idea. In the absence of a proper machinery to monitor their numbers, such a move is likely to drastically bring their numbers.

A similar story is unfolding 13,554 kms away in the US state of Idaho. The mostly mountainous state is home to the Gray Wolf, where hunting the animal is set to begin. Hunters are bracing for a field day with loaded guns to go after the once-endangered animal and it is believed that the move could leave the state with as many as 220 wolves dead. Ironically, Idaho’s state motto is Esto Perpetua, which in Latin translates as “Let it be forever”.

Coming back to the Nilgai ‘menace’, Belinda Wright, a well known conservationist says, “Sympathy towards the farmers is understandable, for the loss of crops is a loss to their livelihood. If hunting of one species is allowed, it could open up the possibility of hunting other species in the future. It’s best not to touch hunting laws at this point. Instead, other options should be considered to address the issues of the farmers.

Perhaps it is one of those situations where it is difficult to make a choice in favour of either man or beast, but certainly there is need, now more than ever, to look for a more meaningful alternative like the one being worked out where castrating the male bull could at least curtail the problem… for in allowing hunting we are only curing the symptoms and not the disease...

Read more.....

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.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)