Thursday, May 30, 2013

Book Review: Calcutta: Two Years in the City

El Dorado in the mist 

The name of the city in the title of this delectable book is as significant as it is deliberate. Author Amit Chaudhuri insists that he calls Calcutta by its old name when the language is English. It automatically becomes Kolkata when he speaks in Bengali. That is actually the way it has historically been. The official renaming of the city (in 2001), he believes, is probably one of the factors that has hastened its decline.

Chaudhuri, novelist, classical musician and academician, writes that “out of the remnants” of the great city and “through a single act of renaming, eventually arose a new one – without pedigree or history; large but provincial; inhabited but largely unknown – called ‘Kolkata’.”

Death and rebirth; decay and the hope of regeneration; and multiple departures and returns – those are the broad themes that the author tackles in this part memoir, part social analysis centred on a city that exercises an almost difficult-to-define hold on the mind and heart of the writer.

An elegiac air hangs over the mesmerisingly episodic book, which reveals various facets of Calcutta and presents a deeply observant and sympathetic portrait that does not flinch from identifying the snapping points that led to the marginalisation of what was, a little over a hundred years ago, the “second city” of the Empire.

The lamentation is loud and clear, but it never becomes baleful – it is elegant, shot through with genuine emotion, and bewitchingly lyrical. Chaudhuri tempers his hard-nosed look at the many distortions that have crept into the city’s soul in the last 30 years with an unflinching sense of belonging that facilitates total candour.
 
Chaudhuri grew up in Bombay and was educated in England. The eastern metropolis was only a city of vacations for him until, in the late 1990s, he decided to gravitate towards Calcutta.

Why did he move to the city? The answer: “Because I’d been rehearsing that journey for years: as a child, in trips from Bombay in the summer and the winter; and later – in my continual search for a certain kind of city – in my reading. And Calcutta would make its way back to me, unexpectedly, through Irish literature and Mansfield and Eudora Welty and the writing of the American South.”

But while Chaudhuri continues to live intermittently in the city and draw sustenance from it, he feels that, like “the career of poetry in the globalised world”, Calcutta is near extinction. “I could still tap the magic of its neighbourhoods when I wrote my third novel, Freedom Song, in the mid-nineties; but, after that, I felt I couldn’t do so any longer – just as a teenager might outgrow a ‘phase’ of writing poems…”

But in this book, the idea of which he resisted for three years, he brings “the drama of the place” alive through varied vignettes of life on Park Street, bustle of humanity outside the Sealdah station, and in the more rarefied homes and clubs of the ‘ingabanga’ (Anglicised Bengalis who still revel in the mores of the colonial past), besides a host of other settings.
Rarely has a book about a city been so personal in nature yet so expansive in scope. Chaudhuri guides the reader into and through parts of the city that he particularly likes – Park Street is high on that list. “Park Street,” he writes, “is neither Oxford Street nor the Champs-Elysee, but here, in the stretch between Chowringhee and the junction of Free School Street and Middleton Row, it has an energy comparable to no other downtown district that I know.”

He also describes, with not a little horror, the inability of the city to protect the historic colonial and “genteel bourgeois” structures that define its character. He holds up Berlin as a contrast. “When I was last in Berlin three years ago, the memorialisation of the past was relentless, but the attempt, by Berliners, to embrace and re-inhabit the city’s troubled post-War history was striking too. Calcutta has still not recovered from history: people mourn the past, and abhor it deeply.”

He infers: “If Calcutta suffers in comparison, it’s not really to other cities, but principally to itself and what it used to be. Anyone who has an idea of what Calcutta once was will find that vanished Calcutta the single most insurmountable obstacle to understanding, or sympathising with, the city today.”

He clearly does not love the Calcutta of today, a city that is “neither moored to its past nor part of a definite future”. The book obviously dwells at length on contemporary politics in Calcutta and Bengal but, since it covers only two years (2009-2011), it stops just short of the ouster of the Left Front government.


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

Wednesday, May 29, 2013

Should we give up already?

On February 12, 2013, US President Obama passed two executive orders for setting up cybersecurity standards for various industries. These executive orders exemplify the intent shown in the United States to fight cyber crime and the immediate concern of the administration that without executive orders, it is almost next to impossible to encourage a coordinated response against cyber crime – which seems to be the only way to control the growing global menace.

Unfortunately, Indian authorities – despite passing some cleverly drafted internet laws – have either no idea on how to tackle cyber crime, and have no intention to generate a coordinated response. And that is an extremely fearful situation. One doesn't wish to sound like a doomsday soothsayer, but what if one fine day you woke up to find the nation's banking system crippled because one smart alec in Nigeria broke into our interconnected banking systems and transferred all the money to untraceable accounts?

It's a no-brainer that the Internet is one of the key pillars on which the future economies will grow. There have been several reports that underscore how Internet offers a much-needed boost to a nation’s productivity levels. In the context of India, Internet’s contribution to the nation’s GDP is set to grow exponentially from $30 billion in 2011 to a whopping $100 billion in 2015, according to a Mckinsey report. Private and public companies in the country are swiftly integrating Internet-based services into their business models. The aim is to take advantage of New age offerings in order to cut down on the ever increasing costs.

Global consulting firms predict that India will overtake the United States by 2015 to become the second-biggest Internet user in the world after China. Naturally, the corporate world and the Indian government are going gaga over the prospects and how it would help lift all boats. On its part, the Indian government has already announced plans of up to Rs.200 billion for broadband expansion across the country where more than 10% of the population (150 million to be precise) is on web now.

But as always, there is a flip side to the coin as well. As businesses and societies in general increasingly rely on computers and Internet-based networking, cyber crime and digital attack have increased around the world. These attacks include financial scams, computer hacking, downloading pornographic images from the Internet, virus attacks, e-mail stalking and creating websites that promote racial hatred. According to the Norton Cyber Crime Report of 2012, 1.5 million people are impacted every day across the world – close to 18 people per second – falling prey to cyber crime, including attacks, malware and phishing. Globally, the financial loss as a result of cyber crimes has been to the tune of $110 billion in 2011.

More than 42 million people in India were victimized by cyber criminals last year, with approximately $8 billion in direct financial losses, the report said. According to the report, 66% of adults in India have been victims of cyber crime in their lifetime. In 2011, 56% of adults online in India experienced cyber crime, translating to more than 115,000 victims of cyber crime every day or 80 victims a minute and more than one a second. One in three adults online (32%) has been a victim of either social or mobile cyber crime in the last 12 months, and 51% of social network users have been victims of social cyber crime. Specifically, 22% of social network users reported to have been a victim of identity theft.

Even government websites were not spared. There have been incidents of defacement of top government agencies like CBI (December 2010), Bharat Sanchar Nigam Limited in December 2012, Oil and Natural Gas Commission in November 2008 and other ministries and departments (which aggregated 294 till October 2012). Indian websites catering to diversified industries have been defaced at regular intervals. While 9,180 websites were hacked in 2009, the figure shot up by 57% to 14,392 cases during the first 10 months in 2012.

Clearly, the growth in cyber crime has started assuming disconcerting proportions. But surprisingly, the Indian Penal Code has not figured a way to define “Cyber Crime” precisely. It’s only after the latest amendements to the the I.T. Act, passed in 2008, that a large number of cyber crimes have been brought under the ambit of the law. Currently, there are stringent provisions related to cyber security under sections 66C, 66D and 67(1), under which any conspiracy for cyber terrorism is punishable, and the sentence may extend to life imprisonment.

However, laws alone cannot curb cyber crime, which is often conducted in jurisdictions where timely extradition, trial and punishment in a cost-effective manner are difficult and, hence, ineffective as a deterrent. To its credit, the Indian government has of late started taking steps to build up awareness and preparedness to take on the challenge of fighting cyber crime. In July 2010, the government proposed establishing a unit of specialized hackers to counterattack international hacking activities. In January 2011, the proposal was formally announced under which the government aims to train five lakh cyber crime warriors under a public-private partnership with an estimated cost of Rs.1 billion. It has also been pushing for summary arrests of cyber criminals with the help of cyber crime police stations. In 2011, the National Crimes Record Bureau registered 1,184 arrests for cyber crime under the IT Act, a hike of 67% from 799 arrests in 2010 (a mind boggling 768% up from 154 cases half a decade back).

But the big question remains whether these steps will suffice to check the rising meance of cyber crime? According to McAfee’s report for the third quarter of 2012, the volume of SPAM in India’s Internet territory touched the 40-million mark. Though the figures have been slashed by 60% y-o-y (100 million in September ’11), there still remain areas where one needs to look into at the earliest. Also, cyber attacks are becming more sophisticated and harder to detect.


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

Monday, May 27, 2013

Power to the weak

TSI had, on December 23, 2012, done a story Enabling sensitivity on the lack of a dignified life for the physically challenged people in the country. The story highlighted how despite the growing awareness, India still lacked genuine sensitivity towards such people and how they face routine embarrassment and discrimination despite a plethora of laws. Though the country already has laws that ensure rights and rehabilitation of people with disabilities, their condition has not improved much over the years. The story specially focused on a new rule in the state of UP as per which only people with a 100 per cent disability would be given free passes in the government run buses. The new law was not only inhumane, it was also in sharp contrast to the old law as per which people with even 40 per cent or more disability could avail of the facility. 


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

Saturday, May 25, 2013

Rise of the Raconteur

Sujoy Ghosh loves his stories. You can make that out from his movies as much as you can tell from the way he converses. The maker of Kahaani and Jhankaar Beats shares why he finds a good story irresistible with Pratishtha Malhotra

After getting a degree in engineering and MBA, you entered into films. How different would life be if films had not happened to you?
More stable I would guess. A job always comes with certain assurances like a salary, pension etc which is taken as granted. Now I have to make sure those happen. Unstable, but life is lot more exciting.

You do not come from a background of films. How difficult or easy was it to come into an industry which was alien to you?
It was tough, but I personally feel it’s as tough as any other field. Even after my degrees, I had to work quite hard to get a decent job. So, I guess, getting into films is a little bit harder, but it presents the same challenges.

What prompted you to leave your job and make films?
The fact that I could not do two things at the same time! I realised that if I really wanted to make films then I would have to give it my 100 per cent. I could not latch onto the security of a job and still try to make films. One must be focussed and dedicated to whatever vocation he or she chooses to pursue. No risk no gain...

How did your family and friends react to your decision?
I think it was too unexpected a decision for my family or friends. It’s not the kind of decision they expected from me so they did not know how to react. I think, deep inside, they must have thought it to be a passing infatuation. And being totally alien to the film world, they just could not fathom how I would even start. So they did not think it was serious enough to deserve a reaction.

From Jhankar Beats to Kahaani, how has the journey been?
Tough, very tough. But what I really enjoyed was that the tough situations were created by me because of my films not doing well. So that was cool. I could not blame anyone for that. In this field or any other, you can only let your work speak. Now it’s better. So now it’s cool and I'm happy.


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

Friday, May 24, 2013

The Raging bulls

It’s a throwback to the 1970s with added dollops of swagger and attitude. Saibal Chatterjee looks at how the new age bollywood blockbusters have ditched their candy floss fixation.
Salman Khan Anger is all the rage again. With the heat soaring on the big screen, ‘being Dabangg’ pays at the turnstiles. No wonder kickass cop Chulbul Pandey, the nemesis of all crooks and cretins that are hiding in small-town crevices, is on the prowl a second time. His mean streak isn’t just intact; it has been significantly enhanced.

Rs 100-crore box office grossers are passé. Salman has already topped the Rs 200-crore mark with Ek That Tiger, the tale of an unstoppable secret agent who scours the world in search of enemies of the nation. The industry is now talking in terms of Rs 300 crores for Dabangg 2. Breathing fire is big business today.

It isn’t just the wisecracking, swaggering Pandey who is hitting the high notes of fury with his duniya jaaye bhaad mein (to hell with the world) brand of dialogues. He has the likes of Bajirao Singham (Ajay Devgan in Singham), ACP Vikram Rathore (Akshay Kumar in Rowdy Rathore), bodyguard Lovely Singh (Salman Khan in Bodyguard) and Sanjay Singhania (Aamir Khan in Ghajini), to name only a few, for company.

It certainly isn’t lonely out there, and these motor-mouth men, flaunting six-pack abs and using their guns with as much felicity as their wits, are outdoing each other in the scramble to grab a piece of the action pie. And no one is complaining. When Bajirao Singham growls Aata majhi satakli (Enough is enough, I’ve blown my fuse) every time he squares off against an adversary, the applause from the audience is instantaneous.
He is an upright police officer who brooks no opposition, be it netas, goons or fellow cops. They are all fair game as he gives explosive vent to his spleen. A rotten system calls for rough and ready methods in order to be cleaned up.

Reminiscent of the heady heydays of Amitabh Bachchan’s legendary angry young man persona, the rage that is thundering in the hearts of Hindi movie protagonists of Singham’s ilk is, pretty much like it was way back in Deewar and Trishul in the 1970s, a reflection of the dark and vengeful mood prevalent in the streets of the nation.

The scenario is set: the common man is a hopelessly harried creature, at the receiving end of the machinations of corrupt politicians, venal criminals and unctuous policemen. Enter the Enforcer. From the lanky Big B with bloodshot eyes to the hunky Hrithik Roshan with his my-way-or-the-highway method of dispensing justice, Vijay Dinanath Chauhan has come full circle.
In the 1990s – those were the years that immediately followed India’s economic liberalization and the consequent process of globalization and heightened consumerism – glitzy NRI romances and big fat Punjabi wedding flicks held sway over the masses. Love was in the air and it manifested itself in songs sung blue on the streets of New York and London or in the picturesque vales of the Swiss Alps.

It was a colour-spangled, languorous dreamscape in which anger and violence had no place. Minor setbacks in matters of the heart did. But no problem was ever big enough to push the hero over the precipice. He strummed the guitar, hummed a ditty, and serenaded his girl with all the charm at his disposal and all was well again!

Shahrukh Khan, despite early box office successes as an anti- hero in films like Baazigar and Darr, switched tracks to emerge as the soft-at-heart romantic. He was Rahul or Raj, a lover boy who launched many feminine fantasies. Dilwale Dulhaniya Le Jayenge and Kuch Kuch Hota Hai defined the era.

What’s more, even Salman Khan thrived in this new ambience of collective well being, appearing in romances like Hum Aapke Hain Koun and Hum Dil De Chuke Sanam, films in which everybody sang and danced till the cows came home. Cut to the 2010s. The music may not have gone out of the lives of the Dabanggs and Singhams, but the guns are out and the fists are flying like never before.


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

Saturday, May 11, 2013

Can the land of rising sun rise again?

The newly-elected government in Japan has come up with a blueprint for growth that might just be enough to put an end to decades of economic stagnation and falling prices and usher a new era of growth. And there are reasons to be hopeful

The Japanese economy has begun 2013 with a great deal of uncertainty. The economy is fragile and perhaps in recession, and a new prime minister, Shinzo Abe, is at the helm. Yet for the first time in 20 years critics across the globe are somewhat optimistic about the economy’s future. The reason is simple. Abe has some fresh ideas that might just be enough to lift the economy after two decades of underperformance.

Since his party’s (Liberal Democratic Party) comprehensive win in December 2012 election, Abe has been vocal on national security and on a radical economic plan (his election agenda too) that will form the focal point of his administration. And there are reasons to be hopeful. The incoming government has already provided a blueprint for growth that if successful could bring the Japanese economy back to life.

Abe’s new plan stands on three pillars. The first is redefining the Bank of Japan’s (BoJ) “price stability target” to consumer price index growth of 2% y-o-y over the medium to long term, from the previous 1%. The second measure is that the current quantitative easing (QE) programme, which is set to expire on December 31, 2013, would be extended indefinitely, mirroring the US Federal Reserve’s current programme, called QE infinity among other things. The third and the final component is a commitment by the BoJ to increase monthly asset purchases from the current rate of about 3 trillion yen per month to 13 trillion yen per month starting January 1, 2014. No doubt a sharp shift in policymaking under Abe was keenly anticipated, but these moves are not as dramatic as they appear from the top, particularly the third constituent.

The total value of BoJ’s assets under current QE programme stands at 40 trillion yen (as on December 31, 2012) and is perhaps the best single gauge of the extent of the BoJ’s QE programme. For uninitiated, three things determine the size of a central bank’s balance sheet – new asset purchases (or sales), depreciation or appreciation in the value of existing assets, and the rolling over of government bonds as they mature. The BoJ’s 3 trillion yen in monthly purchases between now and the end of 2013, alongside some short-dated government debt paper reaching maturity, gets the BoJ to its target of 76 trillion yen, the proposed final target of the current asset repurchase programme.


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

Thursday, May 09, 2013

INTERNATIONAL POLICY: RUSSIA’S PRESIDENTIAL ELECTIONS

Although Russian economic growth came in at 5% y-o-y in Q4 2011 and registered 4.3% growth for all of 2011, it is still way below the 7% average clocked by the economy from 2000-2008 and is much lower than growth rates seen in China and India. Further, the economic growth was bolstered by a jump in oil exports in the last quarter of 2011 (see chart). The good news for Russia is that oil prices have only moved north since the economic crisis (on March 1, 2012, Russia’s benchmark Urals crude exceeded $125 a barrel, the highest since July 2008). The bad news is that the nation that has proven oil reserves of 79 billion barrels representing 6% of the world total and 45% of non-OPEC reserves is critically overexposed to oil prices, where even a slight disturbance in global oil prices could destabilize the nation beyond control.

One shouldn’t forget that such a scenario has occurred twice before. First in 1998, when the devastating Ruble Crisis hit its shores on August 17, 1998. Second, more recently in 2008, when the price of Russia’s benchmark Urals crude fell 77%, which not only caused an 11% peak-to-tough decline in Russian GDP, but also saw the economy witnessing a capital exodus.

The stark difference between the Russian economy ‘with oil’ and the one ‘without oil’ drives the nail much deeper. While the overall federal budget posted a surplus of 0.8% of GDP in 2011, the non-oil deficit was 9.6% of GDP.

On the other hand, growth in Russia is likely to stay dynamic through the rest of the first half of 2012 as household consumption (which accounts for about 50% of Russia’s GDP by expenditure and accelerated to 6.4% y-o-y in 2011 from 5.1% in 2010) will get additional support from increased military salaries and pensions and making a cut in the social security tax.

Moody’s Analytics expects the Russian economy to lose some steam as the year progresses, and predicts a GDP growth of about 3.6% in 2012.

But then, the more Putin promises in government spending, the higher the oil price needs to be to balance the budget. Along with that comes a political issue too. Scott Anderson, the New York based Sr. Economist at Wells Fargo Securities tells B&E, “Higher oil prices will not give Putin much incentive to follow through [with reforms], while vested interests will make the path to reform difficult.” In fact, since Putin announced $260 billion of spending programmes during the election, plus a defense programme totaling $763 billion, the oil price needed for balancing 2012’s budget is likely to be around $140 a barrel (rising continually thereafter) – a really big number to achieve. But if the US bombs Iran, oil prices will only go upwards.

But there’s another issue that’s strangely not yet caught global media, and that is dangerously increasing levels of capital outflows from the nation. Capital outflows from Russia totaled $84.2 billion in 2011, the second-highest figure since 1994 and a big jump from the $33.6 billion that exited Russia in 2010. In fact, the trend continues in 2012 – capital outflow from Russia amounted to about $17 billion in January 2012 alone. Although Russia is running an external surplus and retains a large stock of forex reserves ($505.40 billion as on March 22, 2012), it can only accommodate a moderate level of capital flight. Add to this the fact that Moody’s Analytics expects the fixed investment growth in Russia to fall from 5.2% in 2011 to 2.9% in 2012, and you may just have the start of some disastrous implications. Add all that up, and you have a significant probability of real per capita income falling in 2012-13.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Wednesday, May 08, 2013

“Affordable housing should be made compulsory for end-use”

In an exclusive interaction with B&E, Nikhil Bhatia, Head of Western Region for CBRE South Asia, talks about rising real estate prices, the role of fund managers and affordable housing

B&E:
The Indian real estate sector is currently experiencing a phase of rising prices and low volumes leading to a massive dent in sales and home absorption rates across the country. Does it bother you?

Nikhil Bhatia (NB): There are three key components which drive real estate market growth. They are: strong counter parties, location, and pricing. Since top builders, say for instance the Tatas, the Godrejs, the Mahindras are partnering with counter parties that are bankable and inter-related, their projects get completed on time. This is especially applicable in a high interest rate scenario. Home buying sentiments fall because most banks refrain from providing funds for infrastructure development as a result of which the project gets delayed. If the counter party is strong, then the buyers confidence gets a boost.

B&E: Why are real estate prices rising in India, especially in Mumbai and the National Capital Region (NCR)? Do you think that private equity (PE) deals make real estate projects costlier and unaffordable?

NB: Nowadays, private equity players are entering into structured debt financed transactions with developers where the latter are given about 13% to 14% regular coupons by the former. The builders in return retain a balance in redemption as premium so that in case of a default, they can use the collateral as a safety net. Thus, a $14 coupon is serviced every quarter in transactions. If both a builder and a PE player are using land together at par, then they both agree to a 12% to 15% minimum hurdle negotiation. Probably PE deals are making projects costlier, but at the same time builders are left with no choice. They have to raise money and PE funding is the most accessible in times when banks stop lending. It’s another story altogether, of course, if the builder is cash rich enough to raise enough funds from internal accruals.

B&E:
But this arrangement only works for builders and trading investors. Don’t you think this is the right time to do away with PE deals in the real estate sector?

NB: I don’t think so. In fact, if implemented wisely, PE deals benefit both, the investors and and the fund managers. A fund manager can buy land with PE funding. Builders see opportunities and buy that land making it a lucrative transaction. The higher the level of maturity the higher returns it generates for fund managers.

B&E: Are investments back in realty? How have revival strategies worked for top builders and services firm including CBRE?

NB: Yes, investments are really back. Undoubtedly there is enough capital available for the real estate industry even now. Fund managers are looking at the key takeaways while entering into deals with PE players. They can see their investments maturing in the next few years. In fact, companies such as Blackstone, Ascendas, New Vernon, and IDFC have shown interest in buying core assets.


Tuesday, May 07, 2013

“The FDI policy is still not ideal on several counts”

In an interview with B&E, Arvind Mediratta, COO, Bharti Walmart, talks about how the company is trying to improve supply-side dynamics for bringing about a farm-to-fork connect

B&E: Now that FDI is alowed in retail. will it help resolve some of the pressing issues in the food supply chain?

Arvind Mediratta (AM): The solution, we believe, is a partnership between the local and foreign players, suppliers, retailers and the government. We, at Bharti Walmart, have an initiative called the Direct Farm initiative, through which we’re reaching out and working with 7,000 farmers across seven different clusters in India. We are educating these farmers on modern agricultural practices, soil nutrient testing, pesticide usage, crop rotation and harvesting practices. Farmers are consequently getting better prices and timely payments. We have also set up model farms in each of these clusters and the yield has improved dramatically. Due to the limited storage infrastructure currently, a lot of things go waste. There is an opportunity for us and other players to set up state of the art distribution facilities, especially temperature- controlled rooms for fresh products – farm produce, non-vegetarian items, dairy, frozen bakery products – to minimise wastage and, of course. to ensure food safety.

B&E: What are the key challenges you are facing in terms acquiring solid growth and working towards an expansion strategy in the Indian market?

AM: As we open up stores in different states, there is a lot of complexity coming in. One issue is the APMC Act, wherein you require a licence for every municipality you operate in. For instance, when you operate five stores in Punjab, you require five different licences. If I buy something from Maharashtra – say grains from Nashik and oranges from Nagpur – I have to pay the APMC fee separately. Also, food habits are very different. The specs for daal, for instance, are different for different states and at times even within the same state. The acceptance for frozen chicken is still very low. We sell frozen mutton, but they want freshly slaughtered mutton. Second, the cold chain infrastructure in the country is woefully inadequate. Look at the power constraints. I may have a diesel genset back-up, but the small stores that sell these products may not have any power supply. So products go waste. 


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

Monday, May 06, 2013

When dreams touched the sky...

About 37 years ago, ISRO launched its first experimental satellite – Aryabhata. Although all signals from the satellite were lost after just five days in orbit, Aryabhata’s successful launch was indeed the beginning of a glorious chapter for India and a long and efficacious odyssey for ISRO ... and it continues till date

September 9, 2012 wasn’t a typical day for the scientists at the Indian Space Research Organisation (ISRO). ISRO’s workhorse Polar Satellite Launch Vehicle (PSLV) was about to make yet another journey into outer space, and as such all eyes were on the Satish Dhawan Space Centre at Sriharikota in Andhra Pradesh. And when the PSLV C-21 rocket, standing 44 metres tall and weighing about 230 tonne, on its 22nd flight, soared into a clouded sky at 9.53 am carrying two foreign satellites – the 720 kg French satellite SPOT-6 and the 15 kg Japanese micro satellite Proiteres – ISRO had created history. It was agency’s 100th successful satellite launch mission into space. It’s no mean feat for ISRO as SPOT-6 is the heaviest satellite to be launched by the agency for a foreign client so far since India forayed into the money-spinning commercial satellite launch services after 350 kg Agile (of Italy) was put into orbit in 2007 by PSLV C8. With these two satellites ISRO’s total tally of launching foreign satellites now reaches 29. Impressive number. But, for ISRO, it all started just 37 years ago when it launched India’s first experimental satellite – Aryabhata.

The launch of Aryabhata was a landmark in the history of India’s space mission. Launched by the Soviet Union on April 19, 1975 from Kapustin Yar using a Cosmos-3M launch vehicle, Aryabhata was built to conduct experiments in X-ray astronomy, aeronomics, and solar physics. 1.4 meter in diameter, the 26-sided polygon rocket’s 96.3 minute orbit had an apogee of 619 km and a perigee of 563 km, at an inclination of 50.7 degrees. All faces (except the top and bottom) were covered with solar cells. Although all signals from the satellite were lost after just five days in orbit (due to a power failure), Aryabhata’s successful launch was indeed the beginning of a glorious chapter for India and a long and efficacious odyssey for ISRO.

“It was a wonderful experience. All that I can say is today’s science is yesterday’s fiction and tomorrow’s technology. We have to have a long term view of these things and develop the whole spirit of science,” Prof. Udupi Ramachandra Rao tells B&E, recalling the drama and events that unfolded before the launch of India’s first satellite. A renowned space scientist and the former Chairman of ISRO, Rao led the team of 250 scientists and engineers that scripted this historic event. Agrees Anant Patki, who joined ISRO as a design engineer in 1967 and was stationed in Kapustin Yar Cosmodrome for the launch, as he tells B&E, “I was in Russia at the time of the launch. Prof. Satish Dhawan, then Chairman ISRO, along with Indian ambassador was also present at Kapustin Yar Cosmodrome. I still remember the team was simply ecstatic to see the rocket zooming the satellite into orbit. Thrilled, we all knew that a glorious chapter had begun.”


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
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Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

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Saturday, May 04, 2013

"13% is too ambitious"

B&E: Your guidance is much lower than NASSCOM’s industry guidance. What is your view?
V. Balakrishnan (VB):
The NASSCOM growth rate is ambitious. It’s not going to happen. If you look at the IT-BPO model in India, around $70 billion is exports. Around 30-35% of it is captives and captives are not growing. Secondly, two large companies – both Infosys and Wipro – have said that growth will be muted at around 5%. So, I don’t see how the industry will grow at 13%. It’s too ambitious.

B&E: Why is it getting difficult to predict client budgets?
VB:
Before the financial crisis in 2008, whenever there was any change in the environment, it took at least 2-3 quarters for it to get reflected in client spending. But after the crisis, which was a wake up call for most corporates across the world, the change is very quick. When they see the environment moving in this manner, they immediately go and cut down all expenses. So the reaction time has come down. Also there is a lot of time taken for signing a contract.

B&E: You predicted the Bear Stearns debacle. Do you see any other major corporate crises coming up?
VB:
Now creditworthiness is not a problem, because most of the problem has moved to the government. Now the creditworthiness of governments is being questioned, not the companies. I don’t think you will see any blow ups in the corporates. You will see blow ups in the government! Breaking up of Europe is a reality, the question is when.


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

Friday, May 03, 2013

“Reverse innovation cannot happen by accident”

Hargopal M., Head, Finacle, proclaims that Finacle achieved success in global markets because it was developed with that vision in mind at the outset

B&E: When Finacle was developed by Infosys, was it meant to be a reverse innovation opportunity?
Hargopal M. (HM):
Well when we developed Finacle, it was not going to be targeted at any particular market. First of all, Infosys’ ambitions in the product space itself came about in the banking space, because the banking space is a lot more standardised. So, an enterprise class of a product makes sense where there is a general commonality of the business rules. We always had global aspirations for Finacle, and within the banking, the core and other things, you cannot really position for a small niche. For example, a small bank started with our offering at that time. Today it’s around Rs.150 billion in assets. So it means that technology can be a game changer. It doesn’t have to be a certain size – small or medium or large. We also felt that apart from global aspirations, Finacle should be able to service customers across segments.

B&E: So why did India become so important initially?
HM:
In a way, if you really look at the growth path, although we had aspirations to make it large, the difference it created was for emerging markets to begin with. These markets did not have any legacy and they had huge diversity in customer segments, et al. The adoption was much higher in these emerging markets. We started with India to begin with, and were able to demonstrate significant compelling value. Between 2000 to 2010, the GDP of India grew by 135%. Deposits grew by around 525%. The lending book increased by 375% for banks as a whole. But if you look at new employees, they grew by only around 5%. This means they managed this growth by bringing in efficiencies with the technology. From the consumer point, they have made a significant difference. Also by using the technology, they have been able to multiply client acquisitions significantly without significant increase in the business cost. The business infrastructure hasn’t grown with the clients they have brought in. If you look at the entire core transformation wave, it started with A-Pac, got adopted in Europe. Now it is going to Western Europe and other advanced markets. The demonstration of the value and the impact of the innovation was that by bringing in the common platform, you are not only able to bring the common business practices, but also able to bring in time to market, time to compliance and a differentiated customer experience. That way, it is very significant. Around 43% of Finacle’s customers now come from the Global 1000 banks.


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