Friday, February 26, 2010

Shall we change?

The first symptom of a not-so-great nation is its ungratefulness

For once, it was incredible to see the Indian media playing a stupendous role in reliving the memories of the Kargil War; a pyrrhic war that India should not have had in the very first place. And once again, it was vindicated as to why the Indian Army is one of the finest institutions of the country. So while the debates of the worst kind over the commemoration of the Kargil War continued – from which party’s victory it was to which party’s loss – for a change, it was great to see that for two consecutive days, i.e. July 25-26, 2009, many significant channels in the television media didn’t bother too much about other issues and allocated a reasonable amount of their energy and prime time for the martyr soldiers and their families.

Sadly for the family members of the martyrs, the Supreme Commander of the Indian Armed Forces (read: The President of India) failed to keep her date with India’s national heroes of Kargil War. Although we do believe the same was due to unavoidable circumstances, one also has to realise that the occasion means something that is significantly historic; and absence in the same is surely expected to raise hackles of critics and supporters alike. So while Pratibha Patil remained conspicuous by her absence in Drass where the commemoration was being held, the media took it to the people at large all across the nation.

Amongst all the ceremonies, what has been conveniently forgotten in between – or should we say, relegated to the bottom cabinets – is the loss of numerous lives in the summer of ’99. Those lives were not just valuable, it is a fact that many of those who died were also young officers and jawans freshly out of military academies who willingly gave up their lives for a nation and for the reason that without that victory, the strategic paradigm of India and perhaps even the map of India could have changed forever.

Certainly, the Pakistani intrusion was not an impulsive one and it was clearly aimed at cutting off NH-1 and thus Siachen. A prolonged war instead of a quick victory would have spread the war beyond Kargil to other fronts in Rajasthan and Punjab. The situation then could have gone completely out of control and with the threat of a nuclear war looming large, India would have been forced by international community to negotiate with a recalcitrant and cunning Pakistan. The quick and decisive victory was thus critical and came at a price.

But the Indian Army didn’t forget to honour the sacrifice of those young and brave men who were not fighting for any political formation, not for the government but for the country. It was inspiring to see the candlelit hills of Drass. But the real question is, why should we have a grandeur of a celebration only once in ten years? Why cannot we have a similar service every year for every victory of India? And why should it not be commemorated in every significant institution of India?

In countries like Israel, every student is taught about the dark days of the Holocaust and they are made to realise the sacrifice of Jews from the time of the Holocaust till date. It is important for India to tell its progeny about the likes of Vikram Batra, Vijayant Thapar and Sandeep Unnikrishnan and make them be able to distinguish between the real and selfless heroes from the surreal and fake ones, more so because India’s progeny is growing up watching ridiculous and meaningless reality shows where answering questions on one’s private life has become the definition of courage unlimited.

Indian media has been akin to the brother-in-arms with the armed forces to take the valour of young men to the nation. The act of the army and media vindicated why the spirit of India and its future is bright against all odds. Yet, one should not forget that each passing day, when the jawans of CRPF, BSF, CISF, ITBP and even men from the Indian Army give up their lives fighting terrorists of all shades, their sacrifice and valour is no less than those who died in Kargil.

But one still wonders, why is it so difficult for a trillion dollar economy to spend a few millions to provide our brave young men with bullet proof jackets? Vikram Batra and many of his brothers would have perhaps been alive then to narrate their stories. The storyline we have attempted to promote is the fact that patriotism is a leading reason for the members of our defence forces to feel unbelievably committed towards the nation and its people. At the same time, a forgetful nation – or one that does not pay enough back in emotion – faces the danger of having one’s own superheroes question themselves on whether they are really needed or not. And that, with true friends like Pakistan, is the last thing we need.

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Source :
IIPM Editorial, 2009

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

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The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!


Outlook Magazine money editor quits
Don't trust the Indian Media!

Wednesday, February 24, 2010

“Marketing was critical...”

UDAY BALDOTA, VP - INVESTOR RELATIONS, SUN PHARMA

B&E: The pharma industry was hit badly during the slowdown. Sun seemed to have escaped. What was prescribed strategically?

Uday Baldota (UB): We created sustainable revenues streams, with greater differentiation and speed to market. We also focused on cost leadership through vertical integration. There was also a focus on optimising operational costs and making acquisitions which yielded high ROI… Marketing was critical too!

B&E: But recession always hits profit margins...

UB: Surprisingly, our margins have actually gone up from 70% in 2005-06 to 80% in 2008-09. So even during recession, our margins have not been affected. This simply means that focus on costs has remained a top priority for us even in good times.

B&E: Still, there is turmoil in the sector at present, especially if we look at the ever-deteriorating condition of many major players...

UB: Not really! I don’t agree because the sales growth of the top 12 Indian pharma companies averaged above 20% in the year ended recently. Moreover, as far as Sun is concerned, there is no manpower cut on account of issues in the economy. In fact, our recruitment continues apace. Yes, there was one rare instance though at Caraco, our US subsidiary, where we had to reduce headcount, but that was only because it had problems.

B&E: $200 billion to be earned by generic players by 2014 from patent expiries. What’s your game plan in this regard?

UB: In our view, generic drugs is a significant, growing and profitable opportunity, worldwide. We are working towards getting a meaningful presence in the worldwide generic industry over the longer term...

B&E: And what about the ‘failed’ Taro deal?

UB: The deal is still on, with some court decisions awaited...


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Source :
IIPM Editorial, 2009


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

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Monday, February 22, 2010

‘Steel’ing the forward march!

NMDC has often borne the double edged sword of ore prices. forward integration could be the desired solution, say virat bahri and deepak ranjan patra

Iron ore prices are a truly sensitive issue, when it comes to the steel industry. Readers would have got an interesting perspective on that from news of the recent developments between Rio Tinto and China. China arrested 4 Rio Tinto employees in July (accusing them of stealing state secrets); and in August, it accused the iron ore major of overcharging it for iron ore by a whopping $102.5 billion over a period of six years! The dragon is vehemently protesting against the manner in which iron ore prices are set (the world’s largest steel players and iron ore players set prices through mutual negotiation). Considering that the plaintiff is China, this controversy may not die down soon.

Indeed, the company that has access to iron ore reserves has tremendous power in the steel industry. And when it comes to India, NMDC is the behemoth to look out for. It is one of the precious few Indian companies that have what global steel giants like Arcelor Mittal and Posco and numerous Indian steel companies like Essar, RINL, JSW and Ispat Industries have been lusting for – access – to the mineral wealth of India. Investors would relish such a safe, long term bet.

No wonder then, that the government has retained a titanic hold on this company with a huge 98.38% so far. Now it has decided to sell off some of its family silver and divest 8.38% of stake through an IPO and then follow it up with another public offer later on. This is expected to make the Indian government richer by a phenomenal Rs.120 billion!

However, financial year 2008-09 was not a great year in terms of demand. Both production (marginally) and sales (by 6% to 26.47 mt) fell for the company, as demand slowdown in the steel sector meant that steel majors like Essar, JSW, et al, reduced their purchasing in the third quarter. Despite that, NMDC did show an impressive increase in profits by 34.49% to Rs.43.72 billion and sales revenue of Rs.75.64 billion.

Iron ore prices played a major role in affecting this anomaly. Last October, the company revised the prices of iron ore fines upwards by 10.5% for domestic steel players and 40% for iron ore. In an exclusive to B&E, Rana Som, CMD, NMDC, reiterated, “International benchmarking of iron ore prices has always been done by the major players of sea borne trade.” There was widespread protest by steel players, but NMDC’s near monopoly position gives it the leeway. As price corrections happened in the international market, the company also cut back on prices by 25% in December. It also managed to grab a massive 102% price hike for South Korean and Japanese steel mills last year.

his got the Commerce ministry into action; which stated that this kind of price hike could be detrimental to bilateral trade relations. The company has again cut back on the rates for export to these companies in July, 2009; 32.95% down for iron ore fines and 44.47% down on iron ore lumps. NMDC saw a drop in profits for quarter ending June 2009 by 21.15% to Rs.7.74 billion due to ore prices coming down. An upcoming challenge is the 10% royalty that the government is planning to charge iron ore players. Ashutosh Tiwari, Analyst, KR Choksey Securities, argues, “This won’t affect NMDC much as it sells around 85% of its iron ore in the domestic market. It’ll affect Sesa Goa, which relies heavily on exports.” NMDC can pass the price hike to customers. Sesa Goa will find that hard to do.

The company plans a capex of over Rs.200 billion by 2014 in its various expansions, mostly through internal accruals & partly through debt. Going forward is in fact the new mantra for NMDC, which is on the verge of fuelling its forward integration initiative into steel production. Would this create synergy problems? As per Som, “The key synergy is extension of our role in the value chain.” With their huge cash flows, NMDC would find it relatively easy to diversify, according to Ashutosh of KR Choksey Securities. Acquiring knowledge & expertise isn’t difficult, and the value addition is significant. Also, this would reduce their exposure to ore prices, so it makes sense sooner rather than later.
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Source :
IIPM Editorial, 2009


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

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Wednesday, February 17, 2010

1000 kilometers & 20 hours to live a second of Nehru’s pride!

This Industrial setup of National Thermal Power Corporation (NTPC) is the largest power station in India; but that’s not its only claim to fame. Pawan Chabra in his 70-hour long stay lives what Nehru had dreamt of!

After an overnight journey of 14 hours from the capital, I arrived at a place called Mirzapur. Another five hours by a “safe” state-owned transport bus and the last one hour by a three-wheeler, and the final destination was finally here – Vindhyanagar in Madhya Pradesh, where the National Thermal Power Corporation has its prosperous and well-maintained Vindyachal township. Of course, for lack of choice of a guest house in the township, my retreat for two nights and three days was called Yamuna Bhawan (one of the only two guest houses at the township; the other one was meant solely for VIPs), which stood about 500 metre from the main entrance gate of the township. After a brief rest of a few hours, I decided to walk around the colony, which covered about 50 square-km of ground.

On my initial interactions with a few residents, I learnt that just the previous two days (December 5-6, 2009), the Vindyachal Township had celebrated its annual fair called ‘Sharad Mela’ in The Lake Park for the 1600-odd families of the employees of NTPC who are currently residing in the township. Talking about his experience at the fair, U. P. Pani, who joined the company way back in 1978 and is today working as an Executive Director at the NTPC plant, explains, “There are popular rides like the Columbus and My Fair Lady. Then there are cultural programmes and eating joints that are organised. This fair provides the desired change and fun in the lives of families living in the NTPC Township and nearby areas...”

When it comes to infrastructure, NTPC’s Vindyachal hamlet earns some points too. Besides the aforementioned two guest houses, it has four schools, three recreational clubs and a flower nursery. Located in Madhya Pradesh’s Shakti Nagar district, the Vindyachal facility is one of the oldest plants of NTPC. Unlike many residents of PSU-townships across the country, those living in these parts seem to have little grudge for the manner in which this settlement has been maintained so far. “I have seen the township grow since I ever saw this place. It has only prospered since then... In fact, the condition of roads here is much better then those compared to the area around this township,” says a smiling Naresh Pandey, an auto-rickshaw driver who has been in the business for the past 15 years, driving in and around the township. Naresh helps me get around during the latter part of my journey.
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Source :
IIPM Editorial, 2009


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

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Tuesday, February 16, 2010

Free market fundamentalists love to deride and denigrate the ‘state’ & the public sector in india

Keynes was no Marxist or socialist; but he did point out how the ‘State’ sometimes had to step in with massive public spending to save economies and people from recessions and depressions. (Since October 2008, when the global economy looked as if it could plunge into another Great Depression, governments across the world have wasted no time in debates and the ‘State’ has decisively stepped in with stimulus and bailout packages. Incidentally, the ultimate ‘Capitalist’ economy in history, the United States has been the most aggressive in State intervention). Nehru and his team of advisors borrowed a bit of Keynes and a bit of Stalin and launched Five Year plans. The defining moment came in 1956, when a new ‘Industrial Policy’ was launched, decreeing that the ‘commanding heights’ of the Indian economy would be occupied by the public sector, while the private sector would play second fiddle. Ironically, J.R.D. Tata, the private entrepreneur who supported the ‘State’ intervention, realised what it could mean when his brainchild, his baby and his passion, Air India was nationalised and transformed into a public sector company.

So much for history. Till the late 1970s, there was not much debate in the country – barring a few lonely dissenters – about the wisdom in giving a monopoly over the commanding heights of the economy to the public sector. But by 1970s, inefficiency, chronic shortages and egregious cases of crony socialism started blossoming across India. By 1980s, when a youthful Rajiv Gandhi was promising an alternative; a newly ‘modern’ vision of India, the public sector was clearly becoming disreputable. And after 1991, when the-then Finance Minister Manmohan Singh launched liberal economic policies that unshackled the entrepreneurial energies of India, it became fashionable to deride and condemn the public sector in India as a relic of the past, a white elephant that India could no longer afford to feed; a drain on the Indian economy and a playground for unscrupulous politicians and bureaucrats to mint money and dole out favours and patronage. Today, what was fashionable in the early 1990s, is becoming almost received wisdom and dogma. The post modern view is that Nehru’s vision of Public Sector was a disaster.
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IIPM Editorial, 2009


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

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Monday, February 15, 2010

Elusive justice

Policemen and lawyers were involved in a clash in the Madras high court premises on February 19 last year. In the wake of a controversial CBI chargesheet, the advocates are up in arms and the case drags on, reports N. Asokan

K. Angayarkanni, a woman advocate of Madras high court, is livid. Her name figures in the chargesheet filed by the CBI investigating the infamous clash between policemen and lawyers on the Madras high court premises on February 19 last year. “I was grievously injured in the police action and had to be hospitalised. It is unfortunate that CBI has included my name while it has refused to name the senior police officers involved in the incident,” she says.

Angayarkanni is not alone. Many Chennai advocates were aghast when CBI, entrusted with the task of probing the incident, filed its chargesheet on January 12.In the incident in question, scores of advocates were brutally attacked by policemen. A police station inside the high court complex was set on fire. Even judges were not spared. AP Adityan, a sitting high court judge, was injured in the clash. Government property was damaged. All this happened in the full glare of TV cameras. In fact, some journalists were also attacked by the police. It all started when lawyers hurled eggs at Janata Party president Subramanian Swamy inside the court complex in the presence of judges. He was targetted for his anti-Tamil stand on the Sri Lanka issue. Two days later, when the police entered the court to arrest the advocates, an altercation ensued. It quickly snowballed into a full-fledged clash. The pitched battle lasted several hours.

A three-member division bench, headed by the then acting Chief Justice SJ Mukhopadhyay, ordered a CBI probe into the incident. Even ailing chief minister Karunanidhi offered personal apologies to those affected. Advocates filed scores of petitions in the high court.

On October 29, a special bench, comprising justice FM Ibrahim Kallifulla and justice R Bhanumathi, passed an order holding the then city police commissioner K Radhakrishnan, then ACP (Law and Order) AK Viswanathan, then joint commissioner of police (North) Ramasubramani and then DCP, Flower Bazaar police station, Prem Anand Sinha, responsible for the violence. The bench suggested suspension of the four officers. But the Tamil Nadu government challenged the order in the Supreme Court. The SLP (special leave petition) is still pending.

Meanwhile, CBI, which constituted a Special Investigative Team (SIT) to probe the incident, has filed six chargesheets in the court of additional chief metropolitan magistrate, Chennai. Chargesheets were filed on 31 advocates, one law college student and 27 police personnel. But the advocates' demand for action against the four top cops was not fulfilled.

CBI did not comment on the matter because it was still pending in the Supreme Court. So agitated advocates filed petitions in the court asking it to reject the chargesheets as they did not include the names of the four senior police officers. But the magistrate accepted the chargesheets and asked the CBI to probe the issue further. Not satisfied with this order, the advocates’ associations called for a single-day token strike which went peacefully.
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Source :
IIPM Editorial, 2009


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

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Friday, February 12, 2010

New plan for an old dilemma

Obama's dilemma to bring back troops alive from Afghanistan

The foreboding of bloody civil war is looming large between America backed warlords and Taliban- as soon as the US withdraws troops from Afghanistan! Barack Obama is finding it difficult to sell this proposition to the already incredulous population back home as Hamid Karzai- whose balance of power clearly rests with United States’ decision on it's military presence in Afghanistan. Cynical electorates of the superpower are already making their voice felt on Obama’s dilemma- as is envisaged in a survey conducted by CNN Opinion Research Corporation showing 50 per cent supports US sending about 34,000 or more troops to Afghanistan. Another poll by The Washington Post and ABC News Survey indicates that 46 per cent polled want a bigger troop strength to be deployed to fight Al Qaeda and Taliban.

More importantly to what Obama wants and Karzai fancies- are the wishes of Afghan people, who are traditionally opposed to foreign military presence in their homeland. In the aftermath of the coerced and rigged elections- and in spite of jingoism for democracy and progress, Afghans are seeing the entire saga as an insidious game plan by the west with the help of local puppet regime! In southern Afghanistan - where most of the additional troops will be deployed– Taliban controls not only by outright intimidation but also enjoys local support, as an outcome of their distrust towards central government and hatred towards Americans and their allies. The euphoria with which Afghans welcomed US troops in 2001 (which completely turned the political landscape) has been replaced by distrust of decade long misrule and non-performance of the Afghan government. Their pessimism for the future can only increase on an exit strategy by US! Taliban was poised to take over Helmand (in southern Afghanistan) only a few months away. It was prevented by 4000 strong US marines, normalising life in two districts- Gamsir and Nawa. There are 14 districts in Helmand alone, and at this rate Obama’s entire military surge will literally be swallowed up in Helmand itself. Then who will protect the neighbouring Kandahar and rickety North!

It is not really true that young men join Taliban to spread terror- but to overcome impending poverty- where Taliban pays three times than what is paid by local police. It is also not surprising that Taliban are regarded in high esteem as opposed to local police who are loathed for their venality and ineptness. The support for Taliban is further strengthened because of corruption and repression by the Kabul government. Afghanistan is 179th out of 180 countries on its 2009 Corruption Perception Index. According to New York Times, Karzai’s own brother is implicated to drug dealings.

In spite of this melangine, Karzai cannot rule for a day without the US might and money, and the US cannot let them fall- because in that case, it will be death spell for this war torn country. With no clear way out either for Obama or for Karzai, formers’ military surge will cement their bond for better or for worse
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Source :
IIPM Editorial, 2009


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

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Thursday, February 11, 2010

Pachauri's network

From 1999 to 2003

Served as a member of the board of directors of Indian Oil, the country’s largest commercial enterprise

Till this year was as the director of the National Thermal Power Generating Corporation, largest electricity producer

Director of Pegasus Capital Advisors, Japan

president of Asian Energy Institute

Was on the Board of GAIL

Member of Climate Change Advisory Board, Deutsche Bank

TERI-NA- Associated with lobbying firm, mobilised the support of the Indian Diaspora for developmental investments/grants in India by providing them with a reliable channel for funneling/managing such finances towards identified activities.

Continue to sensitise, through policy analysis and targeted outreach, the decision makers and global influencers in North America.

Member of the Board of Siderian Ventures

Member of Chicago Climate Exchange Inc.

Member of Rockefeller Foundation

Member of Credit Suisse Group

Board member of Nordie Glitnir Bank

Advisor to Toyota Motors

Advisor to a France-based railway company

Member of China Council

Working as an advisor to GloriOil which specialises in extracting fossil fuels for profit

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Source :
IIPM Editorial, 2009

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

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Wednesday, February 10, 2010

The mundane morgans

TSI Five-O: if you’ve heard about the morgans, you are better off watching them on tv!

“Did You Hear About The Morgans?” is a mediocre attempt at a romantic-comedy lacking in both the romance and the comedy. It seems as if Marc Lawrence has a pact with Hugh Grant, directing and writing his third with Grant in the lead yet again. But he seems to have run out of ideas. After “Music and Lyrics”, this short flick fails to impress its audience on account of quality of creativity and freshness.

This formula has been reused a zillion times in most films of this genre. The story begins with busy bee real-estate broker Meryl Morgan (Sarah Jessica Parker) and her successful advocate hubby Paul Morgan (Hugh Grant) shown separated due Paul’s infidelity. Paul makes efforts to woo her but Meryl isn’t ready to reconcile things. And then, the Morgans happen to witness a murder and are sent to Wyoming in order safeguard their lives as witnesses. As could be easily guessed, the Morgans rediscover love for each other in their mobile free life at the local sheriff Clay Wheeler’s (Sam Elliott) and Emma Wheeler’s (Mary Steenburgen) place. The redundant story has a few funny sequences, negligible surprises and a sweet but thoroughly mundane feel to it.

Grant and Parker deliver well individually, but together they are a mess. The rugged looking Sheriff is impressive with his rifle frenzied wife Emma but that’s about all the film has got.

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Source :
IIPM Editorial, 2009


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

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Friday, February 05, 2010

Welcome to the jungle

Often chained, sometimes tortured, elephants to be evicted from zoos and circuses for a ‘better’ life in ‘protected’ areas...

The next time around you’re at the Delhi zoo, don’t be surprised if Rajlakshmi is nowhere in sight, for her and her likes – elephants across zoos in the country – are headed for greener pastures… The pride of the Delhi zoo, along with her other two companions, one of which is an African male elephant, having wowed scores of visitors for many years, will all be gone...

In fact, elephants in zoos (and circuses) throughout the country, will soon be a thing of the past, thanks to a notice to the effect issued recently by the Central Zoo Authority (CZA). That would mean that circuses will have to let go of their trademark crowd-puller, ‘Jumbo Shows,’ where the animal is made to do tricks from balancing on two legs and sitting on a small stool to playing a game of cricket and even football, all in the name of entertainment and attracting the crowds.

In its order, the CZA has observed that, “Elephants require a lot of space to move around and being large herbivores, zoos do not provide ideal conditions for their survival.” A March 2009 estimate pegs the total number of such elephants, including those at circuses, at 140.

The decision, it is said, has been taken after evaluating the conditions at various zoos and circuses. Without attempting to question the noble intentions behind such a move, a few pertinent questions do crop up. What about other animals in zoos? Are they any less deserving of the same compassion? Are their living conditions ideal? Or is it the typical case of ‘size does matter’? While these questions need some pondering, the decision has brought many cheers to the lobby that has been fighting for better conditions for the animal. However, some would also argue that authorities have taken the easy way out as constraints with respect to size of enclosures, in zoos especially, could have been dealt with easily owing to large spaces that lie wasted due to bad planning and poor design. Some also maintain that the upkeep of a large animal like an elephant is no mean task and there are reports of reluctance on the part of some forest departments to accept the animals.

Perplexing as it may sound, the diktat is not binding on hundreds of elephants that are either used for work or those kept in temples. It would also be interesting to see how the well-intended move is received by circus owners who have already been made to part with their tigers and lions in the past. All said and done, the move would mean that a family’s day out at the zoo will soon give way to a weekend holiday to Corbett National Park or Ranthambore Tiger Reserve, for a jungle safari would be the only other option for parents of kids who will settle for nothing less than the real thing. In all this, let’s just hope the elephant gets a better life… for the heart of a wild animal knows little joy in anything else but the freedom that comes from instinct, the freedom to roam free...
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IIPM Editorial, 2009


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

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Tuesday, February 02, 2010

Do CEOs really believe their B-schools added value?

They are ruling India Inc. but how many believe their B-School learning & faculty contributed to their current work? and how many wish to contribute back to those very b-schools? angshuman paul writes

“I was only seventeen when I enrolled at the Massachusetts Institute of Technology (MIT) and was confused and sceptical about what its management course could teach me. But I was wrong; and today, I don’t regret going to a business-school as it helped me a lot in modernizing our family business,” announces Adi Godrej, Chairman of the Rs.75 billion Godrej Group, when asked by B&E. What worked to his benefit was his openness to learning from the B-school professors. Being a son of a teacher, he was always attracted by the role of a teacher; and wherever possible, Adi says he has tried to play this role. For example, the birth anniversary of his mother, late Jaiben Godrej, is commemorated as English Day in Udayachal High School (where she used to teach). During this day, he religiously meets up with students and talks to them about the benefits of learning and mastering the English language. But Adi accepts he has never thought about teaching at a B-school.

In general, an MBA qualification is something which is not common in MDs and CEOs of India Inc (only 46% CEOs on the 2009 B&E Power 100 list are MBAs). But the question here is, how much of their B-school learning is actually implemented in their corporate journey? Do their B-school lessons actually help them in drafting strategies inside the board room? And are today’s white collar angels willing to manage time to act as business gurus? B&E’s interactions with 15 such CEOs/MDs from various sectors revealed that most of them believe that their B-school has laid the keystone for their corporate journey. This is similar to a finding conducted by FICCI in 2008, which showed that 60% of today’s CEOs and MDs believe that their B-school lessons have helped them in the practical world.

“Definitely, my B-school has contributed to my personal and professional growth in every way,” confirms Govind Shrikhande, President and CEO, Shopper’s Stop Limited – one reason perhaps why a majority of these CEOs like Shrikhande are moving towards taking classes in B-school. They believe that such a move back into teaching (or mentoring, as companies like Infosys call it) not only allows current students to understand management on a contemporary real time basis, but also allows the CEOs to put forward the relevance (and irrelevance) of various facets of classroom teaching to the students.

Of course, an added benefit for the CEOs is that they too get a first hand feedback of dynamic ideas and views from the youthful students. “I want to deliver lessons in such a way that even difficult subjects become easy to understand and interesting – these are the keys to be a successful teacher,” feels Shrikhande. He misses a lot of his faculties from his B-school, who, through their excellent business knowledge, made his lessons very interesting. Even Indra Nooyi, the Chairperson of PepsiCo, tells B&E how she was mesmerized by her faculties from the Yale School of Management, who through their theoretical knowledge, connected her to the practical world.

In general, CEOs of India Inc. tell B&E how Indian B-schools are more or less working well towards delivering long term learning. Says Subrata Dutta, Chief Operating Officer of Samsonite South Asian Pvt Ltd, “Indian B-schools do give the right balance of theory and practical knowledge. I remember and will always remember Professor G K Valecha at IIM Bangalore, who used to teach us Organisational Behaviour. I remember his lectures on ‘empathy’ very distinctly. He would get us completely involved in the subject while teaching us.” And even Dutta wants to teach – and has done it in the past – as teaching business students, he believes, is a good way for a person to get fresh ideas.

Dutta’s idea is prevalent within India’s CEO pool. For instance, the marketing honchos of brands like Adidas, Reebok, Nike always make sure they visit business schools to get fresh launch ideas from the students. Subhinder Singh Prem, MD, Reebok India, and an alumnus of IMT Ghaziabad, uses the teaching platform for another wonderful purpose, “The students of the MBA colleges come from many spheres of life and have ideas to contribute. Push yourself as a faculty, and you can even get your new team from within the classes.” Prem believes that interactions within classes are a better method of selecting your future employee than stereotype interviews.
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Source :
IIPM Editorial, 2009


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

Read these article :-

Monday, February 01, 2010

Who will be the also ran? - IIPM News

The fight for the third spot in the Indian two wheeler market is heating up between TVS and HMSI. HMSI’s consistent growth is giving TVS a run for its money, says ratan lal bhagat.

Being a number three is no big deal, right? But the case takes a screeching U-turn when it comes to the lucrative Indian two-wheelers market, where there is cut throat competition for every unit sold. But the fight for the top slot in the Indian two wheeler market has surely lost its charm as it no longer pumps the adrenaline. With Hero Honda undisputedly grabbing the crown and Bajaj happy being the second best and forced to lick its never ending and attention-seeking wounds, the contest is a dead rubber. It’s the third spot, where the things are heating up and the real action is taking place. No doubt TVS Motors is currently sitting comfortably as the third largest two-wheeler manufacturer and seller in the country; but with Honda Motorcycles and Scooters India (HMSI) a 100% subsidiary of Honda Motor Company, Japan, covering quick ground, it would definitely give TVS a run for its money and of course for its current market standing, rather sooner than later.

Well the current #3, TVS is definitely aware of the thunderous advancement made by its Japanese rival and is not readily giving away its ground to the rising threat. Its existing product line – from Apache RTR to Scooty Streak to mopeds like TVS XL Super, et al, continue to sell like hot cakes. The fact that TVS registered over $1 billion turnover in the last fiscal 08-09 stands testimony. “We expect to grow at 12-14% this year with the new product launches adding to our market share and growth figures. With this, we aim to remain a competent player in the two-wheeler markets in India and abroad,” explains the spokesperson of TVS. But with the constantly shrinking margin of difference in the total number of production and sales between the two giants, HMSI has got too close for comfort. According to the data provided by SIAM, the domestic sales for August 2009 of HMSI stood at 90,288 in comparison to TVS’s 115,095. “TVS will have to counter intensive competitive pressures. Further, it has also lost its domestic market share since the last two years in the Motorcycle and Scooter Segments,” explains Vaishali Jajoo, Auto Analyst, Angel Broking Ltd. And it comes as no surprise with HMSI already turning the tables on Bajaj Auto (with more than 50% market share in scooters).

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Source :
IIPM Editorial, 2009


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