Tuesday, March 02, 2010

Border post stratagem

In Poonch, Indian troops Thwart infiltrators with a three-tier bulwark, reports Mayank Singh, Photos by Ranjan Basu

The landscape is stunning. Houses on the hill-slopes overlook the gushing waters of the Poonch river. But nature’s beauty isn’t on the minds of the people here. An uneasy calm hangs over Salotri village of Poonch district, the scene of frequent crossfire between Indian troops and terrorists.

In the past few weeks, this sensitive area, which faces the POK village of Taintre Nat across the LIne of Control (LoC), has witnessed several heavy exchanges of fire between Indian security forces and Pakistan-trained militants.

Since the beginning of 2010, militants have made many futile attempts to cross the LoC. The high barbed-wire fence, the watch towers and the floodlights tell a story. In Rajouri and Poonch districts, the Indian forces are on high alert and for good reason.

Thwarted repeatedly and pushed to the backfoot, the militants from across the border have stepped up their infiltration attempts. Jaish-e-Mohammed chief Dawood Khan was killed on January 17 by the troops of the 39 Rashtriya Rifles. Only a fortnight later, the terrorist who replaced Dawood as kingpin at the helm was also quickly eliminated.

Villagers on both sides of the LoC are, in most cases, part of extended families. The people of these districts, especially the Muslim population, are linguistically, ethnically and culturally similar to those residing across the LoC in PoK. This is in contrast to the Muslims of Kashmir Valley, who, besides their religion, have little in common with PoK inhabitants.

Before Independence, people of these villages would freely visit each other. Even after the LoC came into being, these crossings continued. Militants exploited the porous scenario to infiltrate into the Indian side of the LoC. Not anymore.

A senior Indian Army officer tells us that the terror outfits are at their tether’s end. They are losing their hold in the area. He says: “It is their increasing frustration that has made them desperate. In January, there were six abortive attempts at infiltration. In 2009, there were a total of five attempts in the entire year.”
Poonch and Rajouri have always been the traditional routes of infiltration into J&K. These routes have been bottled up due to a three-tier security arrangement made by the Indian forces to cut off the three sides of the LoC – north, west and south – that skirts around the district.

Even as India and Pakistan prepare to hold foreign secretary-level talks, senior officers of the Indian armed forces assert that the terrorist infrastructure is still intact across the border. One officer told TSI on condition of anonymity that there are around 40 active terror camps where about 900 militants are in readiness to be launched into India.

An anti-infiltration obstacle system, consisting of a wire fence and sensors, has been put up in Salotri village. But the terrain is difficult. In parts of this area snowfall is sometimes so heavy that it piles up to 18 feet. The sensors, which are designed to set off a warning when touched, are in danger of being deactivated in such conditions.

With the militants having stepped up their activities on the border, the Indian troops here have their hands full. Officers point out that Pakistan is propping up these terrorists because it plans to use them as a support system in the case of a full-fledged military incursion in the future. It is easy to see why the Indian Army is taking no chances with these infiltrators.
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Source :
IIPM Editorial, 2009


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

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

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.

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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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.
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

Read these article :-