Showing posts with label Management Guru. Show all posts
Showing posts with label Management Guru. Show all posts

Monday, May 03, 2010

Tipplers left high and dry

Breweries work overtime to meet soaring demand

Beer is in short supply in Kerala. Many outlets of the Kerala State Beverages Corporation (BEVCO) are hanging hoardings: ‘Beer out of stock.’ It is a hard time for beer drinkers in the state. However, some 337 BEVCO outlets are working 24 × 7 to meet the demand of the customers.

Kerala banned arrack, the locally-made liquor in 1989. The current Union Defence Minister A.K. Antony, who played an important role in the ban of arrack, was the then chief minister of the state. From then onwards the state took the responsibility of providing safe alcohol through a regulated system. But now, the black marketing of alcohol thrives even as the state provides plenty of liquor through BEVCO. Official statistics show that more than 80,000 people visit BEVCO outlets every day. There are 600 bars in addition to 5,000 toddy (palm wine) shops across the state. The total income through liquor is around 40 per cent of the state revenue. That is why officials are fretting over the shortage of beer.

What is the real cause for this unprecedented crisis? Is it an artificially created problem? These and other questions are being discussed by beer lovers. While presenting the budget, the government announced that beer would cost less. Sources say the profit of margin is between Rs 5 and 10. Most of the experts don’t know the main reason behind the sudden shortage of beer in the state. But BEVCO managing director N.Sankar Reddy has the answer. He told TSI that the sharp increase in consumption has led to the shortage of beer. “Last year, the consumption of beer was eight lakh bottles per day during this time. But now it rose to 13 lakh bottles. Kerala, having a production capacity of about 10 to 12 lakh bottles a day, is working overtime for maximum production,” he said. He doesn’t agree with those people who say that the shortage started only after beer supply from Karnataka was stopped. The state receives only a small quantity of beer from other states, he said. Two new Hyderabad companies are willing to supply beer.

Of late, anti-liquor movements and religious bodies have criticised the state government for its liquor policy. Officials say they are implementing prohibition stage by stage. Sociologists say it would be an arduous task that too in a state where consumption of liquor is the highest in India. There has been a 100 per cent hike in consumption in the last four years. And most of the beer lovers are youths.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


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

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Wednesday, April 28, 2010

Darkness at noon

Dependants of jawans killed by Maoists struggle to stay afloat. A report from Orissa by TSI’s Dhrutikam Mohanty

Two years of anguish have gone by since Mase Madkami’s husband, an SGO jawan, lost his life in a landmine blast triggered by Maoists. But life hasn’t returned to normal for the 25-year-old woman. She lives in the southern Orissa village of Udupa, 25 km from the Malkangari district headquarters. Her hut, located in a distant corner of this tribal hamlet, has four rooms. Her husband, Ganga Madkami, was the family’s sole breadwinner. Today, the responsibility of their eight-year-old son and Ganga’s ageing parents is on Mase’s frail shoulders.

We reach her house at dusk. Her son, Sunadhar, is studying in the front room. Mase is busy cleaning a lantern. Udupa does not have electricity. In a while, the lantern will be the only source of light in this benighted home. “I never imagined I’d ever have to see such dark days,” Mase begins to narrate her tale of woes. “Five days after the incident, the chief minister handed out cheques to the families of the martyrs. He also promised each affected family a job, a plot of land and other government benefits. He had tears in his eyes. We had reason to believe that we’d be taken care of by the government.”

But Mase’s hopes were dashed. “For six months I ran from one office to another to get my dues. I finally received Rs 4 lakh as compensation and Rs 10 lakh for his life insurance. But I am still waiting for the promised job and land,” she says.

Her problems have increased manifold with the passage of time. She has to travel to Bhubaneswar every month to collect the family pension. Being a single lady, she is usually accompanied by somebody from the village, which entails additional expenses. At times she has to travel to the state capital more than once for the same purpose. Sometimes the officers concerned are not available. At other times, the processing of her payment is deferred. “We are illiterate poor villagers and don’t know much about government procedures. But running around like this for what was promised to me is actually hurting me more than my husband’s death,” says Mase, tears welling up in her eyes.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


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

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Monday, April 12, 2010

Winners ideate

What nanotechnology can do!

Finally, nanotechnology is all set to revolutionise the age of modern technology. For the uninitiated, nanotechnology is old age manufacturing with new age atoms. The Centre for Responsible Nanotechnology observes that this technology will help in making new nanofactories that will produce any product rapidly, cheaply, and cleanly. Technically, it is a revolutionary, transformative, powerful technology. But more importantly, it can be potentially either very dangerous or extremely beneficial.

Going by statistics, investment in nanotechnology has increased exponentially in the recent years. According to a nanotechnology development blog, investment in nanotechnology research was over $8.6 billion globally in 2004, which increased to $12.4 billion in 2006; the area accounted for $50 billion of global sales in 2006. Countries investing heavily in nanotechnology are the US, Germany, Japan and South Korea. But China is rapidly emerging too. Nanotechnology is of particular interest to China to maintain itself as the manufacturing hub of the world. While the US is the leading investor in nanotechnology with 28% global share, others include Japan with 24%, Western European countries with 25%, and the remaining being accounted by other regions, including Asia, Canada and Australia. In 2010, the National Nanotechnology Initiative of the US government gave a nanotechnology funding request in 13 federal departments and agencies for $1.64 billion. In 2001, this figure was $494 million. The UK government, during the middle of this decade, prepared a report berating their slow response in nanotechnology.

What cannot be denied is that although the field has huge promise, it also poses the danger of misuse (for example, to create untraceable weapons of mass destruction). The emergence of this technology field is inevitable. Imperative is the need for global regulations controlling research and funding, and intelligent use.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


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

Read these article :-

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

Thursday, April 08, 2010

The buddhist circuit exudes religious fervour and architectural beauty in equal measure

Sarnath Museum: The museum boasts several paintings and busts related to Buddhist culture. The famous Ashoka Pillar with four lions is also kept here. Similarly, there are several stone tableaux that are filled with Buddha’s messages.

Kaushambi: It was the capital city of King Udayan’s Vatsa Janapad from 6th to 9th century AD. This historical city was visited by Buddha and was the site for one of his sermons. The place has several fingerprints of Buddha that have been preserved in various forms. One can also see the currency that was prevalent at that time. These have been shifted to Allahabad Museum for preservation. The place also has an Ashoka Pillar and an old fort.

Sravasti: The place is also linked to Buddha. Situated in north-eastern UP, it was part of the Kosala kingdom from 6th century BC to 6th century AD. This was a huge trading centre. It still has an old Stupa in a village situated on the border of Sravasti and Balrampur. The place hosts a huge fair in the month of Kartik. Another huge fair takes place during Buddha Purnima.

Kushinagar: It is one of the most important places in the Buddhist tour circuit because this is where Buddha attained nirvana. Archaeologists stumbled upon this place in 1861. The place has an old Nirvana temple and Stupas. The place also has several mathas. The Nirvana Stupa was excavated in 1876. Its height is 2.74 meters. There are inscriptions written in Brahmi and it has been erected at the same place where Buddha attained nirvana. It also has a 6th century, six-meter sandstone statue of Buddha. Nearby is Mathakur that has a Buddha statue in black. This is the site where he delivered his last sermon. Nearby is Chaumukhi Stupa that is 49 feet tall. Temples constructed by the Chinese and Japanese stand nearby.

Sankisa: Located in Farrukhabad district, this place has a statue of Buddha built by Emperor Ashoka. It also has a Ashoka Pillar and a statue of an elephant. The place has been extensively excavated and a 500 square yards of remains have been unearthed. Famous Chinese traveler Hiuen Tsang visited this place and mentions it in his travel diary.

Kapilvastu or Piprahwa: A 122-km drive from Gorakhpur is Lumbini, the birthplace of Buddha. Only private vehicles are available for the last 26 kilometers of the journey. This is where he renounced his royal life and became a hermit. He returned to this place after he attained enlightenment.

Buddhists are centred in East and South East Asia. The government has plans to consolidate this circuit. It will be linked with the circuit in Bihar and Nepal. Avnish Awasthi, director-general of UP tourism department, says, “The state has a plan in place. To attract domestic and foreign tourists, it is essential for us to build world-class infrastructure. In the last few years, we have built several hotels, tourist bungalows and airstrips.”

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


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

Read these article :-

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

Monday, April 05, 2010

Expecting too much?

Appointing an expat CEO, for traditional Indian companies, has always been a high stakes game, especially as their being ‘culture unfriendly’ is a huge disadvantage! Then why do Indian companies still take expat CEOs? Any valuable lessons yet?

As the troubled General Motors was busy finalising its restructuring process and doing some heavy duty pondering over hard decisions of retaining and shedding various brands under its vast portfolio post the bankruptcy filing under Chapter 11, home-grown Tata Motors was keeping a close eye on the developments. Around the same period, Carl-Peter Forster, President of GM’s European operations, had a decision to make of his own; one, a bigger job at General Motors – perhaps even the global head – and, two, becoming Group CEO of Tata Motors. Having worked at companies like GM, BMW and McKinsey, the Tatas knew that if Forster could be convinced, he would bring a lot of valuable experience on the table. For the London-born Forster (raised in Bonn and Athens, worked across the globe), India could promise to be an enlightening experience. But Forster also knew that if he were to join the Tatas, however hard he tries, he would – by rote nomenclature – be known as an ‘Expat CEO’ (short for expatriate CEO). Along with the bouquets that accompany this garnishing, Forster would have had the benefit of being brandished with the standard ignominious accusations reserved with honour for expat CEOs. But really, why do typically Indian companies take expat CEOs in the first place? Are there any lessons?

To be fair, this is not the first case of an Indian company headhunting for an expat CEO; and it definitely won’t be the last. In fact, the Tata group itself has believed heavily in global talent for top positions; which is logical since a huge 65% of the group’s revenues come from overseas markets. Raymond Bickson, MD, Indian Hotels (of the Tata Group), contributed heavily to the company’s global expansion through innovative acquisitions and tie ups with luxury hotel chains and cruise lines. But taking in Daryl Green as MD of Tata Teleservices wasn’t as rewarding as Green quit in two years, citing personal reasons and amid rumours attributing his resignation to his inability to mingle with the culture of the Tata Group.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


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

Read these article :-

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

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.
For Complete IIPM Article, Click on IIPM Article

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.
For Complete IIPM Article, Click on IIPM Article

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

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009

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

Read these article :-

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.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


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

Read these article :-

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.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


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

Read these article :-

Monday, January 25, 2010

Does money grow on trees?

It does. Definitely for those who hold specific agriculture stocks. vikas kumar finds why and how…

What would be your reaction if somebody advises you to buy agriculture stock? You will, at best, term him eccentric. Stay for a while and recheck your facts and figures. Had you bought some of the agriculture stocks by Diwali last year and held it for a year- it would have doubled or trebled your portfolio. Sounds incredible! But believe it or not it is true.

Stock price of a company is directly reflected with the future cash generation ability. Many of the agriculture stock prices rose astronomically due to rising commodity prices amidst expectations of lower crop production due to bad monsoon. Imbalance in the global demand and supply situation has also helped them to boost revenues. Due to increasing sugar prices many companies such as Shri Renuka Sugars, Bajaj Hindustan and Bannari Amman have delivered high returns in the last six months.

This is a fact that agriculture sector growth in India has hovered between 2%-4% over several decades so the chances of making money by buying all agriculture related companies is quite low as compared to sectors like Services which have been growing at 8%-10%. This is because ultimately the companies operating in a space will mirror the performance of the specific segment in which they operate. Then pertinent question is how a range of agriculture stocks managed to perform well?

This brings us to the question of how agro commodities do so well after a few years. Now most agri- commodities such as sugar follow the classic cycle but if anyone is to believe in the India- China theme of around 2.5 billion consumers being added to the demand side then all agri-commodities would go through the big super cycle. “With the increasing per capita income and rise of middle class, food consumption pattern has drastically changed and this is bound to be reflected in the share prices of companies.” says RameshArora, Managing Director, Kumar Share Brokers Limited.

Basant Maheshwari, CEO, theequitydesk .com, explains the paradox nicely to B&E, “The year the rains are good, the produce is bountiful and the prices drop and the year rains are bad, the produce drops but the prices go up.”

Many analysts believe that it may be quite premature to conclude that the rally in agri-specific stocks will be sustainable in the near future. Moreover, prospects of various sub-sectors within agriculture vary dramatically. In Fertilizers, prices are government controlled so there is obviously a limit to the return on capital employed. In seeds, the best bet still remains Monsanto. But the company is unwilling to launch its block buster variants in India unless our patent laws become more transparent. Food-processing is a big potential area but there are few options available in this space. “Marico at 18 times FY’11 earnings is a good long term bet. Nestle is expensive. But at 16 times FY’10 and around $100 million market cap the dark horse is Agrotech Foods Ltd, the subsidiary of the US based ConAgra. ATFL could become big if ConAgra decides to launch its International Food brands in India but for the moment it just remains a promising story” says Maheshwari.

However, this is where the true opportunity lies. Once number of companies will increase to 50-100 in the sector attractiveness of the shares will vanish. This is akin to the situation in 90’s when technology revolution in the country was taking shape and companies like Infosys and WIPRO gave tremendous return to shareholders. However, as the industry matured ability of the shares to deliver high profits diminished. Agriculture sector might be sluggish but those who believe that certain companies will certainly do better will reap benefits.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


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

Read these article :-

Friday, January 08, 2010

21st December 2012 End of the world?

Will 21st December 2012 be a defining date in time? Are three years all we have or are we falling for another doomsday hoax? In the following pages Anu Gulmohar brings you the convictions of the scholars, scientists and seers…

Dr Synthia Andrews gets us up-to-date with the Mayan Calendar…

You may have heard that the world is going to end on December 21, 2012. Who decided this and where did the idea come from? The answer lies 2,000 years ago in the jungles of the Yucatan where the culture of the Maya flourished. Living in highly developed communities amongst pyramids and palaces, the Maya were some of the most advanced astronomers of the ancient world. Without telescopes or modern equipment they observed the movement of planets, the Milky Way and other galaxies, and understood advanced astronomical concepts. They calculated the true length of the year (365.2425 days), the precession of the equinox (25,630 years), and the eccentricity cycle of the earth’s orbit (100,000 years), to name a few of their accomplishments. They were extraordinary mathematicians, architects and timekeepers. According to the Mayan calendar, time is running out. The calendar of the current period ends on December 21, 2012.

The debate as to what this means rages. To the Maya, the end of one calendar marks the end of a particular cycle and the beginning of the next. What makes the end of this calendar cycle different is that more than one cycle and more than one calendar are coming to an end. The Maya maintained a series of calendars tracking different astronomical cycles and on December 21, 2012, several events coincide. First, the 5,126 year Long Count calendar ends, marking the completion of a Great Cycle. Five Great Cycles equals a Grand Cycle of 25,630 years, marking a full progression through the precession of the equinox. A Grand Cycle was known to the Maya as an “Age” or “World.” In 2012, both a Great Cycle and a Grand Cycle come to close marking the end of a Mayan “World.” Hence, the mistaken belief that the world is ending. Second, approximately every 26,000 years the solar system crosses the equatorial plane of the galaxy, aligning us with the centre of the Milky Way. According to John Major Jenkins our solar system is currently crossing the plane of the Milky Way, a process that takes about 36 years. On Dec 21, 2012, as the Great Cycle ends, we will be in alignment with the centre of the galaxy. Third, an amazing alignment occurs in the sky on this date between Mars, the Sun, Mercury, Venus, and Saturn under the constellation of the Winged Horse. One has to wonder how the Maya knew of these events when they created their calendar.

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IIPM Editorial, 2009


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

Thursday, December 24, 2009

Has the aura faded?

Four years on, Bihar CM Nitish Kumar may have suffered a setback in the recent by-elections, but he appears to be well on course for a second term in office, reports Onkareshwar Pandey

Last month’s Bihar bypoll results were a huge setback for chief minister Nitish Kumar. The political combine of Lalu Prasad Yadav’s RJD and Ram Vilas Paswan’s LJP wrested nine of the 18 seats contested, leaving only five for the ruling JD(U)-BJP alliance. The Congress won two seats. Most of these 18 seats were previously with the ruling NDA alliance.

So is Nitish Kumar’s magic waning? On the face of it, if these results are an indication, the CM would be hard-pressed to retain power when Bihar goes to the polls next year. But political equations in the state are complex and with the Opposition likely to remain splintered, Nitish might just sail through.

The question that is being asked is: what went wrong in the bypolls? Earlier this year, the NDA alliance had won 32 of the 40 Lok Sabha seats in Bihar. RJD-LJP managed only four. Do the bypoll reverses mean the electorate is losing faith in Nitish four years after he stormed to power, ending 15 years of the RJD regime?

Political observers aren't ready to read too much into the results although they accept that several aspects of Nitish’s rule have led to disenchantment.

When Nitish pulled off a resounding victory in the November 2005 Assembly elections, the people’s expectations were very high indeed. They wanted to see an end to the misrule that marked the the Lalu-Rabri tenure.

On many counts, Nitish lived up to the expectations. He put his best foot forward on the law and order front. Criminals and musclemen were quickly brought to book. Perpetrators of the massacres that occurred in the past were punished irrespective of caste and political considerations. Bihar saw 6,839 convictions in 2006, 9653 in 2007, 12,007 in 2008 and 10,125 in 2009 (as of September).

In a 60-page progress report on his government’s performance, Nitish claims: "On the law and order front, the task was to build confidence among people and in the law enforcing machinery. We succeeded to a great extent in taking out the fear factor from the minds of people, both from inside and outside the state... Women can be seen moving around in cities and towns till late in the evening. A number of national and international events are taking place here, which is a clear indication that we have been able to instill confidence among people".

The Khagaria massacre, which claimed 16 lives in the first week of October this year, was the biggest blot on Nitish Kumar’s relatively ‘peaceful’ four-year track record in a caste-conscious state. But In this case, too, Nitish acted with alacrity and suspended the Khagaria SP and DSP for dereliction of duty. The police have already arrested the alleged mastermind and are claiming to have cracked the case on the basis of the interrogation.

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IIPM Editorial, 2009

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

Monday, December 14, 2009

About 28 farmers commit suicide over the past four months

Turmoil in orissa house

The Opposition Congress members created a ruckus in the Orissa Assembly over the issues of alleged suicides by farmers and the mining scam last week. With pandemonium continuing, the House was adjourned thrice for ten minutes each.

These two major issues are being used by the Opposition to corner the Naveen Patnaik government that has been ruling the state for the last twelve years. Incidentally, the Bharatiya Janata Party (BJP) — the alliance partner of the Biju Janata Dal (BJD) in the initial two elections only to snap ties in the 2009 local polls — has also joined in.

Their leaders leave no chance to highlight the ruling government’s failure in addressing farmers’ problems.

The party known for ignoring Opposition seems to be upset with the latest development in the state. Till date, at least 28 farmers have committed suicide in the state over the past four months of which more than 15 were from the western part of the Orissa — considered the ‘rice bowl’ of the state.

Besides, the government is also in the dock for its role in the Rs 14,000 crore mining scam. The Congress is seeking a CBI probe into the whole episode.

Cornered, the government has rolled out a number of schemes for the farmers whose rabi crop was destroyed by poor rainfall. However, the Congress is not willing to take the government-run rescue mission at face value. They say that the government has not come out with any concrete rescue package for the debt-ridden farmers who are distressed due to crop losses. And they are in such a sad position that they can’t even pay back their debts taken from the local agents.

“The government has no right to remain in power, as it has failed to rescue the farmers of the state. Forget about compensating the debt-ridden farmers, the government should have at least consoled the deceased family members”, BJP state president Suresh Pujari said.

Farmers’ issues has tarnished the clean image of Naveen Patnaik. “Farmers of the state are upset with the chief minister, as he has done little to address their real problems. The government has not added a single inch of irrigated land during its regime. It has neglected the agricultural sector and the farmers are suffering,” Central minister and senior Congress leader Srikant Jena told TSI.

The usual response from the government has been that it would look into the matter.

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IIPM Editorial, 2009

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


Tuesday, December 01, 2009

IIPM Press - Austerity, who cares

Austerity, who cares
Cong govt drinks tea worth Rs 40 lakh

The austerity drive initiated by the Congress-led UPA government at the Centre has failed to have much of an influence on the party's government in Puducherry.

A query under RTI has revealed that Puducherry chief minister V. Vaithilingam and his five cabinet colleagues have spent more than Rs 36 lakh on tea, snacks and beverages while hosting visitors in their respective offices in the Assembly in the eight months between September 2008 and April 2009.

Welfare minister M. Kandasamy topped the list among the spenders. He spent Rs 10.48 lakh on tea, snacks, beverages and other food items. His visitors included officials and elected members.

The chief minister’ office was not far behind Kandasamy. It forked out Rs 9.86 lakh. The chief minister’s office ordered food items worth Rs 1.06 lakh from a local hotel on a single day in September 2008. This was not an one-off incident.

Home minister E. Valsaraj’s office bought sweets worth Rs 60,000 on December 5, 2008. All of them showed a marked preference for certain hotels and restaurants.

The RTI query was filed by P. Ragupathy, secretary of the Rajiv Gandhi Human Rights Awareness Organisation.Satisfied with the shocking findings of the RTI application, he told TSI:

“Even last year, I had filed an RTI petition to find out personal expenses of different welfare boards and corporation chairmen in Puducherry. Expenses of only 12 out of 20 were revealed which ranged between Rs 10 lakh and Rs 25 lakh. All these appointments are political ones and a court case about the matter is currently on.” The findings have shocked local activists, but not the chief minister. “The expenses incurred by the previous council of ministers stood at Rs 1.1 crore for a year. We reduced the expenses by half this year,” he said. A senior official said politicians were setting a wrong example by spending so much money on tea, and other things. Puducherry is witnessing a financial crunch and its government is lobbying for statehood. Perhaps, cabinets in other states of India will spend more than what has been spent in Puduchery. But what makes this amount shocking is the tiny size of the cabinet. But the politicians are not the only ones to blame, even officials are spending exorbitant amounts of money. Such is the bad publicity they have received after this revelation, may be ministers will stop serving tea to their guests, quiped a senior scribe.

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IIPM Editorial, 2009


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



Monday, November 30, 2009

IIPM Press - Dalpatram Audhavdas Nimawat

General secretary, 1857 Azad Hind Party

Dalpatram, 62, is the general secretary of 1857 Azad Hind Party. Sitting in his tarpaulin home, he asks for jobs, compensation and houses for the victims of Gujarat earthquake. His 20-year-old son Sanjay, a tea vendor, is the lone breadwinner in the family. Daughter Sheetal, 15, assists her father in his struggle and is his heir apparent. Trouble for the ex-office bearer of the Republican Party of India started when his house collapsed in the 2001 earthquake. He was denied his compensation by corrupt officials. The state snatched whatever meagre belongings he had. He was shooed away from Rajkot in 2003 where he was protesting under the statue of Baba Saheb Ambedkar. Jantar Mantar was the logical progression from there.

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IIPM Editorial, 2009


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



Tuesday, November 03, 2009

Extremely irresponsible manner

"How can we keep quite over this humiliating episode? The Karnataka police have behaved in an extremely irresponsible manner. We will seek an unconditional apology from them for this unwise act,” JKCA secretary general, Muhammad Saleem Khan, told TSI.

He added: “I personally know the boys of our team; they are all professionals, it is impossible for them to indulge in any unlawful activity as they don’t have time to concentrate on such things. How can one accept the police claim as true? Our players underwent security frisking at four airports before reaching Bangalore. Why did no alarm go off anywhere else?”

Mr Khan is baffled at the national media hype that erupted over the incident. “If they had any information about our boys, the police should have handled the issue discreetly. It seems they were trying to defame Kashmiri cricketers by making an unnecessarily hue and cry,” he said.

He said Union Minister Dr. Farooq Abdullah, who is the patron of JKCS, was very quick to react over the detention of Kashmiri players in Bangalore. However Abdullah said that the Bangalore police alone could not be blamed as “they were fed with wrong information by some people from here.”

While asking the Director-General of J&K Police to investigate, Dr Abdullah said that he suspected the “hand of those who could not find a place in the team”.

The Bangalore episode has deeply irritated cricket lovers in Kashmir. As soon as word spread, violent protests and clashes erupted in several areas of Srinagar city. Groups of youth came on to the streets and staged demonstrations against the Bangalore police, demanding the safe return of the Valley players.

Both mainstream and separatist politicians, too, have voiced their annoyance. Chief Minister Omar Abdullah has alleged that Kashmiri cricketers were being made “scapegoats.”

"It is not that we are kepping silent on this. We have been on the job since the moment we received the news about the detention of the two boys. The episode has rubbed salt into the wounds of the people in the Valley,” Omar told the media in Srinagar.

The chief Muslim cleric of Kashmir and chairman of a faction of the Hurriyat Conference, Mirwaiz Umar Farooq, while terming the incident unfortunate said it is regrettable that Kashimi youth are being victimised outside the Valley. “If the dialogue process goes on we will raise this issue and will press New Delhi to stop such things,” Mirwaiz said.

People's Democratic Party (PDP) President Mehbooba Mufti told TSI: “It’s an emotional, psychological and physical alienation, and these things rub salt into our wounds. Our cricketers are our stars, if they are not safe in the rest of country, then who else is?”

The unfortunate Bangalore incident could have been avoided with a bit of tact. The ruckus may not have really been about politics alone, but what happened to the two budding Kashmiri cricketers at the Chinnaswamy Stadium certainly wasn’t cricket. It was probably symptomatic of a deep-rooted prejudice against boys from the Valley. It is quite clear that the challenges that Kashmir’s young cricketers face are not confined to the field of play alone. They go well beyond the sporting arena.

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IIPM Editorial, 2009


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



Saturday, October 31, 2009

Leading from the front

Amidst the deepening crisis China's economic strides point to its inherent strong foundation, and more so the Zarnowitz rule…

during the financial crisis of 1997-98 and the dotcom bust in 2001, pundits were quick to predict a lengthy recovery period on the floor for Asian countries. The stress and turbulence that began to develop in world financial markets in early 2007, and which finally collapsed, plunged the world economy into recession in the final quarter of 2008. That again provided the pundits a perfect platform to come up with the stereotype predictions. Unaware of the resilience of the Asian economies (led by China and India, which are indeed leading the way out of recession) they put forth the argument that export dependent economies could not revive unless customers in the rich world did. Nevertheless, the rebound that the world is witnessing today has largely been ‘Made in China.’

There were some like Shujie Yao, Professor of Economics, University of Nottingham’s School of Contemporary Chinese Studies, who had predicted, “China will emerge from the global recession stronger and more quickly than any other economy.” It is in this context that it is important to analyse how China coped with the recessionary phase and finally bounced back. According to Michael Mussa, senior fellow, Peterson Institute for International Economics, “The slowdown in China’s growth late last year probably owes more to the earlier tightening of Chinese policies and the wind-down from the Beijing Olympics than to global financial turmoil…” However, looking ahead to the fallout of the crisis, the response of the Chinese policy makers was indeed praiseworthy. The measures in terms of fiscal expansion as well as substantial easing of credit conditions helped the economy to bounce back. In the second quarter of the current fiscal, the annual rate of growth surged to 7.9% (the first ever acceleration ever since the financial stress deepened) as compared to 6.1% in the corresponding period last fiscal. Thanks to the government stimulus conditions are definitely improving; the 4 trillion Yuan ($ 585 billion) stimulus plan being implemented by the Chinese government comprises infrastructure spending, tax cuts and various other incentives to induce consumers to buy cars and electronic goods. Along with this the government tackled other industries efficiently to boost employment levels in the rural areas too. This spurt in consumerism and the investment momentum in turn will lead to a virtuous cycle of economic activity.

To make the stimulus plan all the more effective, the government on the other side also exerted pressure on the banking institutions to lend more. The results of the measure (albeit a forced one) has been clearly electrifying; in the last six months the fixed investment spending has increased to 34% ( the fastest rate of growth witnessed in the last five years) while over the same time period the annual rate of money supply has doubled to 28%. What is worth mentioning here is the fact that the Chinese banking and finance system does not have the risky financial instrument, the derivative and asset backed securities (the same innovative financial products which led to the crisis). Furthermore the strong belief of the citizens that their national banks are well capitalised reflected that the foundations of the corporate structure remained strong. In times, when the western economies were wilting, China successfully freed itself of its dependence on exports and developed a more efficient market based domestic economy (much to the surprise of the same pundits who vehemently argued that the export dependent economy could not revive unless the customers in the rich world did). What is evident is that it is the strong foundation, the government aid, economic stability that are the driving forces behind the Chinese success story.

The strength of the economic recovery is what is to be pondered upon. Nonetheless, considering that the economy has been able to heal internal factors, it can be indisputably argued that China has a more solid base to lean on.

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IIPM Editorial, 2009

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