Showing posts with label IIPM Management Institute. Show all posts
Showing posts with label IIPM Management Institute. Show all posts

Tuesday, June 04, 2013

The Enduring Shame of Khaki

Why Indian cops are the most brutal and brutalised lot in this so called feudal democracy.

Most of us have our favourite cop stories, ranging from the gruesome to the bizarre. Here goes my favourite cop story: back in the 1990s, my parents were staying in a town in one of the BIMARU states. They went back home after a few weeks of holidaying in Delhi and found the house ransacked by thieves. Virtually everything that could be carted away was taken, including the LPG cylinder and the stove. They went hesitantly to the local police station where the cop in charge was actually very polite with them but made it clear that my parents should forget about the whole thing. Typical of many Indians, they decided to fall back upon `connections'. They called up one of my cousin uncles who is a very senior cop. In less than 24 hours, the station house officer (SHO) paid a visit to our house and promised action in double quick time. He also sheepishly suggested that if my parents had disclosed their ‘connections’, he would have been spared a dressing down from his boss. In another 12 hours, the thieves were arrested and virtually all stolen items, including cassette tapes, recovered. My parents were astonished at the speed and efficiency with which the cops acted.

That tale just about sums up the state of Indian police and the nature of cops in this country. In many ways, they are a perverted version of Dr Jekyll and Mr Hyde. Which face you get to see depends on ‘who’ you are. If you are an unknown girl in Punjab who goes to the cops to complains about harassment and lewd remarks, and if you don't ‘know’ anyone, chances are that the cops will beat you up instead of taking action against offenders. If you are the poor mother of a six -year-old girl in Aligarh who has been raped and killed, you will be thrashed brutally and in full public view if you have the effrontery of demanding justice. If your five-year-old daughter in a poor locality of Delhi goes missing, the cops will refuse to register an FIR despite the new anti rape law. Worse, after the girl has been discovered raped and brutalized, the cops will offer you Rs 2,000 to keep your mouth shut. And of course, if you are a member of the ruling class, you don't even have to pay a visit to the police station. The cops will come to you and pull out all stops and use the entire might of the state machinery to help you. No amount of breast beating and debating the desperate need for police reforms (see related story) will hide this ugly reality of Indian cops. Kiran Bedi can go on and on in television studios about the need to sensitize the men in uniform. And yet, an ACP rank officer of Delhi Police named Ahlawat nonchalantly slaps a 17 -year-old girl activist in full glare of TV cameras as if he is cuddling her.

What are the adjectives that instantly come to mind when you think about Indian cops? Overbearing, brutal, callous, insensitive, rude, corrupt and inhuman are just some of the more common adjectives that spring to mind when we think of cops. Sociologists and  pop psychologists will have us believe that the Indian cops come from within the society and that their often bestial behaviour reflects poorly on our society and the values that we project as a whole. The logic is: what can you expect from a cop who has been brought up as a child believing that Muslims are terrorists? Similarly, if caste discrimination is deep rooted and widespread across all sections of society, how can you expect a cop to treat a poor Dalit in a more humane manner? As sociology and psychology goes, that is all very fine. But justifying the absolutely rotten behaviour of the cops by blaming social ills will spell the death knell of Indian democracy. No nation can survive without the rule of law. And it may sound pedagogical and trite, but if those given the responsibility to uphold and protect the role of law brazenly flout it, we will breed anarchy at all levels. And it is systems and institutions that make the crucial difference. There are many friends from villages (see related story) who grow up and move along different career paths. One joins the army while the other, from an identical social and economic background becomes a cop. Just see the difference in the behaviour and nature of the two and just see how society treats the two in completely different ways. The army guy gets our respect while his friend the cop commands fear and contempt.

The tragedy is: there are thousands of cops who are brave and honest and who do a superb job of policing. Just look at the police constable Omble who sacrificed his life so that Ajbal Kasab could be caught alive during 26/11. There are numerous such unsung heroes and heroines in Indian police who perform their duties to the best of their abilities. But so rotten is the system that the media and the society gets a dozen examples of inhuman police behaviour for every one example of exemplary devotion to duty.

Once again: it may sound trite. But the only solution to this is accountability and absence of political interference. If Dr Manmohan Singh is indeed serious about the whole issue, the least he can do is intimate steps that will result in the summary sacking of ACP Ahlawat and the arrest of policemen who first refused to file an FIR and then tried to bribe the family members of the 5-year-old rape victim.


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

Saturday, June 01, 2013

The curious case of Vijender Singh

India's boxing poster boy, in trouble over drug connections, is no stranger to controversy. Aditya Raj Kaul investigates
Olympic bronze medalist winning boxer Vijender Singh is not just another sportsperson. Since 2008 when he did the country proud at Beijing, life has been in the constant fast lane. Despite a bad outing at the London Olympics in 2012, he has been in the news; issuing positive statements here, inaugurating a shop there, a top draw at modeling events in the company of actresses, and generally, the man about town.

Vijendra's success at the highest level in international sport has invited comparisons with Sylvester Stallone, not just for the dashing looks but also the Sly's hook and uppercut. The 27-year-old Jat strongman from little known Sirsa in Haryana had well and truly arrived.

But this arrivers' genial facade was shorn to bits this week he was questioned by the Punjab Police in Chandigarh for links with a drug peddler following a major haul in Zirakpur, close to Chandigarh. The story was sensational: the police first swooped on Anoop Singh Kahlon, an NRI businessman, an alleged international drug peddler, and recovered from him 26 kgs of heroin estimated at Rs 130 crores. An SUV registered in the name of Archana Singh, Vijender’s wife, was found outside Kahlon’s residence. The NRI told the police that Vijendra and his sparring partner Ram Singh were his `clients.'

Vijendra has denied any connection to Kahlon but has also refused so far, to share a sample of his blood and hair for forensic examination.

Insiders say Vijendra is no stranger to controversy and had raised eyebrows in 2006 when his best friend and boxer Sonu Chahal died under mysterious circumstances. The 20-year-old was found hanging to a ceiling fan at the Sports Authority of India (SAI) hostel in Bhiwani on March 12, 2006, a place where he also trained. Barely hours before, Sonu had been happily grooving to Hindi songs at a friend's wedding. A potential winner had been nipped in the bud.

While the police had registered a case of suicide, the forensic report claimed “foul play”. The report, a copy of which is available with TSI, clearly states that “based on the type of knots around the fan and the neck and the position of the body, foul play cannot be ruled out.”

Four years later in 2010, the Punjab and Haryana High Court took cognizance of the fact that there was more to Sonu’s death than an open and shut case of suicide. Under pressure from Sonu's family over charges of botched investigations, the case was transferred to the CBI.

Sonu's family had barely started to heave a sigh of relief when the CBI closed investigations in the case calling it a suicide. Said the closure report of the CBI filed in August 2011,“The investigation has disclosed that Sonu Chahal was in love with Seema, also a boxer, and wanted to marry her. But his parents were not in favour of their marriage as they belonged to different castes. Moreover, when Seema developed an intimacy with another youth, Sonu went into depression and committed suicide out of frustration”.

The CBI report cleared the four main accused as well. ``During the course of investigations, it was found that the four accused Narender Sangwan, Pawan Rathi (both boxers), coach Jagdish Singh and Balwan Singh, watchman of the Sports Authority of India (SAI) hostel, named in the FIR were found innocent”.

When asked, Vijendra Singh told this magazine, “Sonu was my best friend for almost seven years. I was emotionally disturbed when I heard the news. If I was in Bhiwani, this death would not have happened.” He, however, refused to speculate whether it could have been murder. ``The police would have a better picture on this,'' he replied.

In 2010, the victim's father Charan Singh Chahal had told TSI that Sonu was murdered. ``I knew from day one that he was murdered. The injury marks on his necks cannot be of someone who commits suicide.” The father is convinced to this day that the coach was behind the killing.

“Sonu became aware of a fake certificate racket being run by certain higher ups and was therefore silenced. I have appealed to the CBI to take over the case as it concerns the death of someone who played for the country both at the national and international level”, said the distraught father, who is sadly and unsurprisingly, left fending for himself.

Sources in the Haryana police, on conditions of anonymity, say that the influential background of those in question have compelled the police to go against the forensic findings that hint at “foul play”.

Charan Singh Chahal says that while the police report did not detect any marks of internal injury, the postmortem report said there were “horizontal marks on his neck, which clearly refers to murder”. He says he has ample proof and will continue his quest for justice, despite the fact that he has only got assurances but very little else.


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

ExecutiveMBA

Friday, May 31, 2013

Stanley Kubrick to Anthony Burgess

In 1968, shortly after finishing 2001: A Space Odyssey, Stanley Kubrick began work on what he would later predict to be "the best movie ever made" — a meticulously researched, large-scale biopic of Napoleon Bonaparte. A few years later, after adapting Anthony Burgess's A Clockwork Orange for the big screen, Kubrick brought Burgess on-board to write a Beethoven-inspired Napoleon novel on which his epic could be based. In June of 1972, Burgess supplied the filmmaker with the first half of his manuscript; Kubrick rejected it by way of the following letter, thus ending the collaboration. Burgess was undeterred, and Napoleon Symphony was published as a novel in 1974. Kubrick's movie, however, failed to materialise.

15 June, 1972

Dear Anthony,

TI shall start off by saying I don't really know how to write this letter, and that it is a task which is as awful for me to perform for me as it may be for you to read.

You are far too brilliant and successful a writer, and I am far too much of an admirer of yours to patronize you with a listing of what is so obviously excellent about 'Napoleon Symphony'. At the same time, I earnestly hope that our all too brief friendship will survive me telling you that the MS is not a work that can help me make a film about the life of Napoleon.

Despite its considerable accomplishments, it does not, in my view, help solve either of the two major problems: that of considerably editing the events (and possibly restructuring the time sequence) so as to make a good story, without trivializing history or character, nor does it provide much realistic dialogue, unburdened with easily noticeable exposition or historical fact.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Saturday, May 25, 2013

Bridging the gap

Irregularities in teachers' appointment would decay the system

A couple of weeks back, INLD leader Ajay Chautala along with 51 other people were convicted for illegal recruitment of teachers by CBI special court. The state High Court passed on the case to the centre and asked for CBI intervention as it saw involvement of many elite politicians and dignitaries in the same. Ajay and his group deployed more than 3,000 JBT teachers in various schools of Gurgaon by creating forged papers and through back-door entry. But then, this case comes as no surprise to me, but what is interesting to note is the way schools recruit teachers and above all, the amount of money these teachers are ready to pay to get into a reputed school.

As per Government Primary Teachers Federation, this back-door entry also halted the promotion of old teachers (whose promotion were due) as the entire fleet of staff are now under suspicion and scrutiny. The entire process had cost these individuals not less than Rs. 4 lakhs, in any case, which interestingly would be more than their average annual salary in all probability. But then, this is not only one of its kind scam. Almost two years ago, a number of politicians were charged for irregularities in teachers' recruitment process in Meghalaya. In this case too, teachers were recruited for lower primary schools of the state. In an another case, teachers were found paying hefty amount (ranging from Rs 50,000 to Rs 1,00,000) for getting themselves transferred to the location of their choice.

On hindsight, this may seem a simple case of back-door entry but when seen from a wider perspective, the real issue would become quite vivid. These cases of irregular teachers’ appointment echo the very gap between demand and supply of teaching staff. In simple word, shortage of teachers at primary school level is massive. For instance, there are over 26,000 vacancies of school teachers at different levels in Haryana. Moreover, the Uttar Pradesh Basic Education Board has invited online applications for filling up of 72,825 posts for primary teacher in 75 districts of the state and West Bengal Board of Primary Education has issued notification for 34,559 assistant primary teacher vacancies recently but the positions remains to be vacant, still. So much so, the last date of application and examination dates for the same has been postponed many times. Such dearth of staff also has deteriorated the quality of education across the nation. The Annual Status of Education Report (ASER 2012) for rural India, released a few days ago by PRATHAM, speaks volumes about the sorry state of primary education of our country. As per the report, in 2008, “only about 50 per cent of Standard 3 students could read a Standard 1 text, but by 2012, it declined to 30 per cent. About 50 percent of the Standard 3 kids cannot even correctly recognize digits up to 100, where as they are supposed to learn two digit subtraction.”


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

ExecutiveMBA

Saturday, May 11, 2013

The unputdownable!

Subrata Roy Sahara should come out winning on all fronts in the current face-off with SEBI! And why the erroneous Supreme Court judgment against Sahara goes beyond Parliamentary Acts and is being misused by SEBI to its own benefit!

There are a few things about Subrata Roy Sahara that even his harshest critics accept. That the man is a visionary – his mammoth investments in media, housing, hotel, sports and other industries being compelling evidence. That his open assertions of being a patriot have their weight in the various behemoth social initiatives undertaken by his group – with no apologies to the slanted English media in India which, I feel, hypocritically slanders anyone who represents the ‘other’ India (lest you should forget, it was this very media that shamelessly reported gossip a few years ago about him being ‘critically ill’ and on his deathbed; no surprises then that the same English media chose to ignore reporting how sprightly he was while meeting UK Prime Minister David Cameron a few weeks back in a closed door meeting discussing educational and research initiatives). And yes, that the man religiously knows his numbers and has a financial acumen that is better than the combined intellect of all Indian regulators in the various industries where he operates.

There are a few things about India that even its damnedest supporters don’t deny. That the License Raj era spewed out a few handfuls of family businesses that shamelessly chewed away the very idea of India, criminally sucking it hollow by monopolising industries, encouraged by corruption soaked politicians – and encouraging them in return. That this venomous combination over the decades led to a jaundiced India that today has hundreds of millions of illiterate people below the poverty line; that has no global brands to speak of, but many billionaires borne out of the excesses of the License Raj era (I call most of them ‘blood billionaires’, given that they’ve made the money on the blood of Indians). That the same group of blood billionaires, in cahoots with a similar group of corrupt bureaucrats (regulators included) and politicians, have fought and will fight tooth and nail, criminally and illegally, to ensure that there is no new honest and ethical claimant to their industry space, especially if such an entrepreneur were from the proletariat.

That Subrata Roy Sahara titles himself as the Managing Worker of his group only adds to the ire of India’s caustic bourgeoisie, which, hand in hand with the English media, would be loath to have such an unabashed community representative of workers amongst their well ‘oiled’ and ‘greased’ group. So every time Subrata Roy Sahara and his likes attempt to tread the path of diligent and astute effort – assuming the same equated to returns – they’re pulled down acerbically and vindictively by the group representing the old, feudal India. You see, this group believes that only they know how India should be run and by whom. Look around and you’ll see many examples strewn across India of how honest upstarts have been trampled upon by the powers that be before they could gain ground – wherever there has been anyone attempting to improve the condition of India, they’ve had a horde of regulatory, tax, police and judicial bodies running up their door to initiate the so-called enquiries and ‘search’. The current face-off that Subrata Roy Sahara has with SEBI actually exemplifies all this too well. A group that has issued OFCDs (Optionally Fully Convertible Debentures) since the year 2001 with all relevant government permissions, and which has regularly submitted all details as required by the concerned government authorities, suddenly gets a prohibitory order from SEBI in November 2010 against the OFCDs issued by two unlisted group companies (Sahara Housing Investment Corporation Ltd. and Sahara India Real Estate Corporation Ltd.) – and this despite the fact that just seven months before that, SEBI had, through its own communication to Ministry of Corporate Affairs, commented that as these were unlisted companies and had not filed a draft red herring prospectus with SEBI, any complaint with respect to these two companies should be handled by the Ministry of Corporate Affairs.


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

Monday, May 06, 2013

M&As: A Phenomenon of the Market

M&As have always been an area of debate for business experts. However, new research explains who acquires whom, whether payment is made in cash or stock, what valuation consequences arise from mergers, and why there are merger waves

In the late 1990s, the United States and world economies experienced a large wave of mergers and acquisitions, culminating in the bursting of the Internet bubble and the subsequent stock market fallout.

Until now, there have generally been two ways to understand mergers and acquisitions. One explanation relies upon the notion of synergy, i.e. the greater profit potential that results from combining two companies. The second explanation suggests that mergers and acquisitions are the product of bad management being kicked out by better management.

Previous research has addressed the separate merger waves of the past 40 years, offering a different explanation for the waves of the 1960s, ‘80s, and ‘90s. A new study, Stock Market Driven Acquisitions, undertaken by me and Andrei Shleifer of Harvard University, offers a more unified framework for understanding the different characteristics of acquisitions and how they vary over time.

We suggest that mergers and acquisitions are a financial phenomenon created by stock market misvaluations of the combining firms, and are related to the level of the market as a whole. Markets are inefficient, while managers of firms are rational, taking advantage of stock market inefficiencies through well-timed merger decisions. The objective was to come up with a simpler theory recognising that valuations differ from true fundamental values temporarily because of market sentiment. In part, companies make acquisitions or become targets of acquisitions to benefit from stock prices that are temporarily out of whack.

The Spiraling Effect of Misvaluation

A company’s valuation may be heavily influenced by investor psychology, since expectations for growth are built into the price investors are willing to pay. For example, to justify paying a price-earnings multiple of 150 ($150 per current dollar of earnings), you would have to believe that the company’s earnings will grow dramatically over the next five to seven years.

We find that in the 1990s, the valuations for the market were pushed up for some companies much more so than others, creating the “haves” and the “have nots.” Misvaluation in this context refers to the “haves,” such as America Online (AOL), Cisco, and Intel, being deemed worthy of excessively high valuations based on unrealistic growth expectations. These companies knew their share price would fall when the market learned of its overconfidence. The star companies therefore had a short-run opportunity to cash in by using their stock as currency to buy other companies-hard assets that were more sanely valued.

Our model says there was some sanity prevailing among the CEOs of high-flying companies. They knew that the valuations were unreasonable, so by acquiring all these earnings producing assets in exchange for their shares, they cushioned themselves from the full impact of the bust.

Why would a company agree to be sold in exchange for overpriced stock? The answer can be found in the different “horizons” of corporate managers. Horizons refer to how long a manager wants to hold onto a company. Managers with short horizons might wish to retire or exit, or simply have options or equity they are anxious to sell. Managers with long horizons might want to keep on working, be locked into their equity, be overconfident about the future, or just love their business.


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

Thursday, April 04, 2013

B&E This Fortnight

INTERNATIONAL
BUSINESS, ECONOMY & FINANCE
Us debt deal done

After months of political wrangling and partisan posturing by both Republicans and Democrats in the Republican-led House of Representatives, President Barack Obama and his team were finally able to cut a deal that allows the US to trim its bulging deficit and raise the $14.3 trillion debt ceiling by more than $2 trillion in extra borrowing power, which will last till 2013. The agreement reached paves the way for $2.1 trillion in spending cuts spread over 10 years and creates a congressional committee to recommend a deficit-reduction package by late November. But the deal does not include any tax increases that Obama had pressed hard to include. Had this last-minute deal not come about, it would have led to a historic US default on payments to investors in Treasury bonds, recipients of social security pension checks, those relying on military veterans benefits and businesses that work for the government. Now that an agreement has been sealed, though after much fractious debate, the US and the world can breathe easy. It will help preserve America’s top notch credit rating, reassure investors in financial markets across the globe and possibly reverse the losses that spread across Wall Street in recent days as the threat of a default grew. However rating agencies may still downgrade America’s current AAA debt rating on concerns about the struggling US economy.

Sprint-lightsquared
The US’s first integrated 4G-LTE wireless broadband and satellite network, LightSquared, has announced a $9-billion network hosting deal with Sprint Nextel. The deal covers spectrum hosting and network services, 4G wholesale, and 3G roaming. LightSquared will pay the deal amount in cash within 11 years even though the time frame for the deal spans 15 years. Moreover, this agreement brings home the opportunity for Sprint to purchase 50% of LightSquared’s expected L-Band 4G capacity. On the other hand, the deal is beneficial for LightSquared for it expects to save $13 billion on network capital & operating expenses. The deal is expected to be a win-win for both, and will enable setting up a separate platform for Sprint Nextel’s hosting opportunities.

ExxonMobil profits
Riding on the high prices of oil and gasoline, the largest oil company in the US - ExxonMobil reported a 53% increase in its fourth quarter profits. ExxonMobil earned $10.7 billion for the quarter, up from $7.56 billion in the same quarter a year earlier. In the second quarter of the current year, ExxonMobil had increased its production by 10% leading to a 41% increase in its quarterly earnings. Earnings were $2.18 per diluted common share, falling short of analysts’ consensus forecast of $2.33, but still much better than last year. ExxonMobil in 2009 had bought natural gas explorer c for $25 billion and has recently purchased two companies in the gas rich Marcellus Shale area across Pennsylvania. The acquisition has boosted its production to an equivalent of 4.9 million barrels of oil a day.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles

Monday, March 18, 2013

“We Need a Real Estate Regulator”

Kamal Khetan, CMD, Sunteck, has taken Sunteck to Unimaginable Levels Within a decade. He talks to Mona Mehta about The Present and The Future
Sunteck Realty started their business in 2000 from Mumbai and have gone on to become Mumbai’s second largest real estate player with a plethora of premium offerings in the residential and commercial segments. Kamal Khetan, the founder promoter and present Chairman and Managing Director of the Sunteck Group, reveal the success model of the story and the fast changing real estate landscape in the country in an exclusive interview:


B&E: How do you rate Sunteck Realty’s performance on the financial front and what have been the kind of targets achieved till now and also set by you?
Kamal Khetan (KK):
Our financial performance this year has been extremely good. The cumulative sales are Rs.1.43 billion (bn) and customer advances stand at Rs.4.35 bn in September 2010. We continue to achieve higher volumes and higher sales realization across our projects. This is a growth of about 40% over the corresponding period last financial year on revenue. We are confident of achieving our target of FY11 and have targeted cumulative sales of Rs.20 bn by year end out of which, we have already achieved more than Rs.1.6 bn till date. On all projects, we are achieving a minimum premium of 25% to 30% in each market.

B&E: What has the major focus of the top management in terms of managing cash flows especially when home equity is increasing with regards to loans? What has been your overall growth strategy so far?
(KK):
The company remains focused on acquisitions it also believes in utilizing each rupee generated from internal accruals for further acquisitions. Our cash flow remains strong and our volumes and price points are only growing. We don’t believe that the increase in home equity (required for home loans) is impacting the volumes or price point of our products.

B&E: How do you believe that the real estate industry has evolved over the years in India and what are the major policy or institutional changes required in the near future?
(KK):
The real estate industry will continue to be a high growth sector, with a significant potential not only to provide homes and business locations but also sustainable employment. In the medium to long term, we expect the industry to benefit from newer construction technology, design and building automation, as well as green technology. We expect to form larger partnerships with government and local bodies to develop comprehensive high density developments with requisite infrastructure and public amenities for all. We believe that the country requires a real estate regulator. This will help in making the sector more organized and customers and stakeholders to gain confidence in the industry.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

Wednesday, March 06, 2013

Taliban was not only willing to hand over Bin Laden to the US

Documents suggest that in the years leading to 9/11, Taliban was not only willing to hand over Bin Laden to the US but also warned the latter of an impending terrorist attack

For example, an ISI official told visiting US Congressmen that “Pakistan will always support the Taliban”. This “policy cannot change”, he continued, because “it would prompt rebellion across the Northwest Frontier Provinces, the Federally Administered Tribal Areas, and indeed on both sides of the Pashtun-dominated Pak-Afghan border.”

It is now common knowledge that the US had been asking the Taliban to hand over Laden since 1999. These discussions stopped only a week before the 9/11 attack. However, the US was so adamant on its stand that Laden be tried by the Department of Justice— and not in a third country as Taliban suggested— that Taliban refused to hand him over. Officials described it as a missed opportunity. The former CIA station chief Milt Bearden said, “We never heard what they were trying to say. We had no common language. Ours was, ‘Give up bin Laden.’ They were saying, ‘Do something to help us give him up’.” Bearden added, “I have no doubts Taliban wanted to get rid of him. He was a pain in the neck but this never clickedwith us”. The US thought it was “unreasonable” on Taliban’s part to ask for evidence indicting Laden. Taliban, on its part, even cautioned the US that Laden was planning a big attack on American soil. In fact, former Taliban foreign minister Wakil Ahmad Muttawakil maintained that his repeated warnings, delivered because of apprehensions that the US would respond by waging war against Afghanistan, had been dismissed. US officials admitted to this fact but said that warnings were dismissed because they were “hearing a lot of that kind of stuff”.

Declining the Taliban’s offer to have Laden handed over shows that the US rather followed the policy of regime change well before the 9/11 happened. India was considered to have joined Russia, the USA and Iran in a conjunct front against Taliban, which enclosed aid for Northern Alliance, including “information and logistic support” from Washington. Former Pakistani Foreign Secretary Niaz Naik claimed that he had been informed by senior US officials as early as in July 2001 that military action would be taken against the Taliban by the middle of October. Readies had already been coordinated with Tajikistan, Uzbekistan, and Russia. Naik also said that “it was doubtful that Washington would drop its plan even if Bin Laden were to be surrendered immediately by the Taliban.”


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles


Saturday, February 09, 2013

“Funding is the major roadblock!”

He sold his well set up business in 2007, that made him once the market leader and decided to venture into a sector that was only talked about and not explored. Today with Indosolar, he is the largest manufacturer of solar photovoltaic cells in India, ahead of firms like Moserbaer and Tata BP Solar. Set to hit the market with his maiden public issue, Hulas Rahul Gupta, MD, Indosolar, discusses his future plans to B&E’s Deepak Ranjan Patra

B&E: You were the market leader in the compact fluorescent lamps and halogen lamps category when you decided to make an exit from the particular business. Why did you take such a decision?
HRG:
By the end of 2006, there were a lot of activities going on in the PE arena, especially in the automotive segment in the Asia-Pacific region. Most of the offers were for growth capital and we were not in the growth capital space. So, it was all a matter of valuation. We analysed it very professionally and the valuation was really good. The share price was around Rs. 85 and the selling was Rs 200 a share. We also believed that the sharehoders were getting a good amount and it was a win-win situation. So we decided to move out from the sphere.

B&E: Just two years back, you entered the photovoltaic cell-making business and now you are the leader with controlling 40% of the country’s annual cell-making capacity. How has been the journey so far and what was the strategy that worked for you so well?
HRG:
After Phoenix, one of the areas where we started looking business opportunities, was global warming and climate change. In thge mean time, we came across solar technology. The more we looked at it more we liked it. It was seriously a capital intensive business. But at the same time, we decided that we must bring in concurrent technology to India, so that it has a higher domestic demand in future. From that point of view, we entered into solar technology. From the beginning itself, we wanted to go for scale. So, at a time when 10 MW unit was considered big, we opted for a plant with 200 MW capacity.

B&E: You are planning to launch a public issue shortly. Does it aim at scaling up your capacity alone?
HRG:
After looking at the governments’ incentive policy, which allows a capital subsidy of 25% on capex of Rs. 1,000 crore, we thought we must apply for the same. Thus, we decided to increase our footprint to 360 MW at a total cost of Rs. 1,545 crore. With this IPO, we are planning to accomplish the second phase of our expansion by adding 100 MW capacity.

B&E: Efficiency of the cells is a major factor when it comes to judging quality of the cells. Do you also value efficiency while moving ahead with scale?
HRG:
A lot! The efficiency level that we maintain is one of the best. Certainly, the efficiency curve has moved dramatically in the recent times. Before two or three years, it was around 12% to 14%. But in the past 18 months or so, the average efficiency level has moved up to 15-17%. We have bought a line, which was contracted guranteed 15.9%, now we are averaging 16.2% and have a roadmap for 16.5%.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Monday, February 04, 2013

‘SEC’luded from power

Transferring SEC’s power will not solve the problem in the US

T he aftermath of the current financial turmoil in the US can be gauged from the very fact that the institution formed to protect investors’ interests after the Great Depression, the Securities and Exchange Commission (SEC) is now itself searching for protection! A legislation introduced earlier this year now aims at diminishing the power of the SEC by taking away its control of the entire gamut of financial products. As expected, the move, even before it was announced, has already spurred a high-voltage controversy between the various regulators. Mary Schapiro, Chairperson, SEC has announced that SEC would ‘profoundly’ question any move to strip it off its power. But the million dollar question remains, has SEC actually justified the powers bestowed on it?

Well, certainly not. Be it the decade old story of Enron or the latest of the lot, Madoff; SEC has failed to prove its pro-activeness. It was visible in the case of Enron and now one can hear the same for Madoff as well. SEC turned a blind eye to the entire issue of Bernard Madoff’s $65 billion Ponzi scheme despite repeated red signals being given from various agencies. Mary Schapiro asserts, “Different regulators have different perspectives and the best solutions come from the clash of varying viewpoints.” Well, aren’t things bad enough when the regulators are not getting in each other’s way?

Now the second critical question is who’s going to get those powers? Although nothing has been confirmed officially, it’s expected that the ball will land in the US Federal Reserve’s court. But, aren’t the Fed’s administrative abilities already in question ever since they allowed the banking ‘giants’ to jeopardise investor’s money by infusing them in sub-prime mortgage backed securities, which created the entire turmoil in the first place? Also, don’t you think that excessive concentration of power with the Fed may give rise to bigger troubles later, if it fails to handle the situation? So, what’s the solution then?


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Tuesday, January 22, 2013

Skeletons in every cupboard

Rather than blaming auditors, the entire regulatory system must be cleaned from top to bottom

Is regulation in India working? It’s a lot like asking whether the democracy is working in Pakistan! A lot has been said and written on the Satyam fiasco and from investors to independent directors to auditors, everybody seems to have got their share of the blame. But this is not for the first time that such a thing has happened in India. However, Raju’s misdemeanours have taken this ruckus to a new league and garnered the attention of the corporate world. We have been through this episode with Sterlite, which was alleged to have adopted fraudulent practices to bag a tender floated by GAIL last year. Then we have the case of Global Trust Bank, where the auditors were again PricewaterhouseCoopers and so on... In fact, Naresh Gupta, MD, Adobe India, in an conversation with B&E, doesn’t deny the possibility that many more Indian companies have bloated books (mostly in the real estate & infrastructure sectors) because of their proximity with politicians and bureaucrats. “So it’s better if we clean up the system now than to feel sorry later,” he adds.

But then isn’t it the auditor’s responsibility to be the whistle-blower to the company’s wrongdoings? However, some say that book of accounts is the primary responsibility of the management and auditors merely audit the documents provided to them by the management and give their opinion based on accounts. If so, then why on earth does someone need an independent, external auditor?


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Saturday, January 19, 2013

It takes ‘3’ to make a ‘Com’eback!

The 3Com acquisition is a definite plus to HP’s suite of data centre offerings (triple play of server, storage and networking), but integration problems could be quite daunting

Move over Microsoft & Google. Move over Intel & AMD (especially after the truce they just announced). The rivalry that could beat them all to the record books when it comes to the technology industry could well be the rivalry between two technology giants who are well known in their respective industries as companies who made all competition bite the dust. They have been partners for long when it comes to providing a comprehensive suite of solutions to their clients; and have won business together. However, their win-win relationship now seems to be a thing of the past.

Yes, we are talking about HP and Cisco, iconic companies led by iconic leaders Mark Hurd and John Chambers respectively. As the world, and the IT industry move towards a shaky recovery, these two leaders seem to be intent on redrawing the battle lines with regard to what they stand for and can deliver. And thanks to this latest posturing, they are finding it increasingly difficult to stand each other.

It all started when Cisco made a major play into the server market when it mooted the idea of marketing its own servers, therefore providing its clients with the benefit of one unified data center from one vendor – with server, storage and networking as a combination offering. The transition was mainly aimed at taking it beyond the status of a mere box mover, which would enable it to extract more value out of its clients. Earlier this month, Cisco has gone a step further as it entered into an alliance with network storage major EMC to enhance its power position in the high stakes cloud computing arena; where data centers are going to be a major winning proposition.

And now the stakes have got even higher with HP’s acquisition of 3Com, a move that aims at making HP a stronger player in the networking space and competing with Cisco. With this acquisition, HP seeks to leverage from 3Com’s expertise in networking as well as its Chinese market. People tend to miss the point that 3Com was the company that pioneered networking, and was founded by Bob Metcalfe (father of the internet networking protocol).


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Friday, January 18, 2013

Is Suzlon going to make it through?

Debts, forced recalls and Tanti’s inorganic dreams. Is Suzlon going to make it through? Asks Ratan Lal Bhagat

“Suzlon had a disastrous second quarter in the current fiscal, with a loss of Rs.3.4 billion in comparison to a profit of Rs. 2.6 billion during the same period last year. This was led by uneconomical operations resulting from dwindling backlogs, a 61% y-o-y fall in wind turbine generator sales volume and a rise in interest cost,” states Bharat Parekh, Research Analyst, DSP Merrill Lynch (India), highlighting the depleting financial condition and the reasons behind fall of the wind turbine giant.

Of course, the company has drawn various debt-clearing blueprints like the $400 million fund raising plan through the issuance of either ADRs or GDRs, but there is time before optimism flows into the alternative energy field considering that the world is still waking up to the slowdown phenomenon. On the face of it, the lack of availability of project financing has made living difficult for Suzlon, as Parekh agreeingly states, “With no recovery in sight, Suzlon is trying to fix its debt repayment obligation by refinancing $2.4 billion (68%) of its debt with a two-year moratorium.”

The investors on the other hand are bearing the brunt of the moment, with share price of Suzlon having dropped by 45% in just the past five months, to touch Rs.67.70 as on November 11, 2009. According to market experts, Suzlon’s stock has lost most of its long-term investors who sold-off their stock holdings months back. Worse, it is also losing the trust of its short-term investors. It is but natural that an investor will play the waiting game for evidence of a solid before he/she decides to invest in the stock again. But going by how events are unfolding, its financials are not likely to improve any time soon, and therefore, the demand for the stocks will remain slim, which therefore means no revival for the stock prices soon! Tribulations for Suzlon don’t end here. The player has been forced to recall 1,251 blades which belonged to its ‘top-of-the-line’ product category, after 179 of them developed cracks (about 6 meters from the root of the blade).


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Thursday, January 17, 2013

Trade the union

The good and bad of trade unions

Anything that evolved in history happened out of need. And when it diverted from the main cause for which it came into existence, it slowly extinguishes. The same is true with trade unions. The history of trade unions reveals how workers unionised out of the need to stand against oppression, tyranny and suppression of greedy capitalists. But, with time, the popularity of trade unions has faded gradually because of many reasons.

Firstly, hatred against trade unions increased especially with the emergence of free-market economy. Over the years, capitalist entrepreneurs and trade unions usually worked towards opposing goals – one for shareholder’s wealth, the other for collective bargaining – with a strike being a potent negotiating weapon of unions to achieve their employee benefit goals. Secondly, innumerable researches came out against trade unions revealing how existence of trade unions increased wage rate, even inefficiency and lowered productivity to a large extent. Economists like Milton Friedman criticized trade unions severely, terming the concept the biggest blow to capitalism. Cases like General Motors in US (where the trade union almost bled the company dry with strikes) and Dunlop in India (which closed down once and for all due to a long standing strike) have only added to this proposition.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)