Showing posts with label iipm-international. Show all posts
Showing posts with label iipm-international. Show all posts

Wednesday, May 29, 2013

'Abdullahs are hypocrites, they can't fool people for long'

In a chat with Aditya Raj Kaul after the hanging of Parliament attack accused Afzal Guru, Prof. SAR Gilani, under house arrest, talks about the duplicity of politicians and repercussions of their actions in the Valley

What was your reaction when you heard about Afzal Guru’s hanging?
When I first heard they are going to hang him, I was shocked. It was around 6.30 in the morning. I thought of immediately confirming with the family. When I called his wife, it woke her up from sleep. I asked if she had any news about Afzal. I told her about the rumours doing the rounds. She was shocked that nobody had informed her. As I came to know about the curfew in the Valley, I got a firm indication.

Do you think the government has actually mishandled it?
I have been talking about the legalities of the case, about Afzal not getting a fair trial. The manner in which it has been done doesn’t only violate the law of the land but also democratic principles. Very basic human values were trampled upon.  There is no doubt that it was nothing but a politically motivated decision.

Political commentators have been speaking about similarities between the hanging of Maqbool Bhat in 1984 with the present case. Do you think there will be repercussions in the Valley like we saw in 1989-90 onwards?
I was right now talking to my friends about the very same issue. I pity the leadership in this country. The leadership that is supposed to run a huge country, the largest democracy on earth, their vision is so narrow that they cannot see beyond the 2014 elections. It will definitely have very serious repercussions. I can see the situation developing right now, especially among the youth. I think this is going to be a disaster. I wish it (Afzal’s hanging) never happened. The way they have handled it, they have given a message to the people of Kashmir, that you’ll never get justice. Nothing happened immediately after Maqbool Bhat’s hanging. Similarly, at present, it may not happen immediately, but it will have far-reaching consequences. Secondly, we were kids during Bhat’s hanging and our generation, as I see it, wasn’t very politically aware. The generation now is highly aware. We live in an era of information. In Afzal’s case, everyone knows how systematically justice has been denied to him. Everyone knows how this decision was politically motivated.

You were charged in the case in the beginning, but the Supreme Court acquitted you. Later, there was an attempt on your life by unidentified people. Looking at the developments since Afzal’s hanging, do you fear for your life today?
The attempt on my life and the two years I served on death row were orchestrated by the system. There is no doubt about it. And when you stand against the system, they target you. I know that I am in danger. They even tried to gag me for the last three days. I know this case in and out and know how injustice has been done. As a human being, if you can’t open your mouth when you know a wrong is being done, then I don’t think you have any right to call yourself a human being. By doing this, I may be putting myself in danger but I cannot stop myself. My conscience won’t allow me to do that.

J&K chief minister Omar Abdullah said that those Kashmiris who didn’t identify with Maqbool Bhat will today identify with Afzal Guru. How do you look at the statement?
Omar Abdullah is trying to wash his hands off. He is equally responsible. It (Afzal’s hanging) wasn’t done without his consent. I will take you a bit back when Ajmal Kasab was hanged amidst secrecy. That day Omar Abdullah had tweeted that similar kind of secrecies can be maintained in other cases related to national security. He was actually linking to this particular case, suggesting that the execution could take place just as the way it was done in Ajmal Kasab’s case. It’s not that Omar was earlier not aware of this whole thing. If you remember, in 2006, when death sentence was given to Afzal, Farooq Abdullah made such a hue and cry stating that Kashmir will burn. After Afzal’s hanging, he changed his stand completely. Abdullahs are hypocrites. They can’t fool people for long.

JKLF chief Yasin Malik shared the stage in Pakistan with Hafiz Saeed. Do you think it was right?
As I know about Yasin’s visit to Pakistan, he has basically gone there to see his family. He has a young daughter, who he had not seen for a very long time. She did not have travel documents and there is a policy back in Pakistan that they don’t allow travel documents unless the father comes. After Afzal’s hanging, he sat on a protest hungerstrike outside Islamabad Press Club. This was not something in hiding. It was an open meeting. If there are people coming and going and during the protest this man (Hafiz Saeed) also comes, that doesn’t mean that Yasin Malik had invited him. I think the way the Indian media is taking it up isn’t the right thing to do.

There has been a virtual curfew across the Valley for days, even the newspapers haven’t been allowed to publish. Doesn’t this make things worse?
As I told you, I actually pity the politicians of this country. You deprive people of their basic right – their right to protest. There was no violence. You are gagging people. Just last month, there was a hue and cry in Kashmir over freedom of expression. I want to ask where are those champions of freedom of expression now when the whole of Kashmir is being gagged. It’s not just in Kashmir, even Kashmiris outside Kashmir are being gagged. The way I was put under house arrest. Syed Ali Shah Geelani is here and was put under house arrest and is not being allowed to move out of his house. For the first two days, they (police) were sitting inside his room and not even allowing him to move. That was the kind of situation. Even Mirwaiz has been put under house arrest.


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

ExecutiveMBA

Wednesday, February 06, 2013

Building new ties with sukuks

The Indian economy needs to understand its hidden potential and use it for getting Islamic Funds says Vikas Kumar

Take a situation where a person, who wants to start a small business, has to take a loan from bank. He agreed to pay an interest of 10%. After a year, he earns a profit of Rs.70,000, which alone is not enough to pay back his loan. The person now has two options in front of him, either to close down his shop or get caught in a vicious circle of interest payment. While the first case would put him into a situation where he has to throw out his people, in the second he would never be able to get rid of his debts.

But, had the person gone for Islamic Banks, he would neither have to close down nor would he ever need to take loans in order to be able to pay back his interest. While the former case is the conventional form of banking, the later is the latest trend in the banking arena called Islamic Finance. The conventional banking adds to the economy by giving loans, earning profits through interest and then infusing the same money back into the economy. In the Islamic Banking System, a person is given loan based on his capability and is not charged with any kind of interest. For a country like India such a form can prove to be a blessing. Because of the current recessionary phase and as the effect of it, the rich Arabs are failing to invest in high paying options across other nations. And now, since the US and the European markets are failing to revive themselves as soon as expected, the Indian markets are proving out to be a better option for them.

Says Assocham President, Swati Piramal, “The government is planning to spend more than $345 billion in the coming years, to build a new and fundamental structure. But it does not have that kind of money with it. So, it is trying to fill the gap with PPP model. In this case, Islamic Funds can change the whole scenario by investing in ports, roads and airports.”

In line with her thoughts and describing the nature of Islamic Financing are the views of Qatar-based Islamic Finance consultant, Monzer Kahf. He says “Islamic Finance is just like any other business. It does not discriminate on the basis of cast, creed or colour. It is not only for the Muslims but is for all.”


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

For More IIPM Info, Visit below mentioned IIPM articles.

Friday, February 01, 2013

How the western recession is the real beginning of great news for India!

Arindam chaudhuri, editor-in-chief, Business & economy

Yes! Indeed the western recession is really the beginning of good news for India! But to understand that, I’ve to take you away from the topic of western recession for a while... to the Japanese recession! For years, I’ve admired the Japanese style of management as a management teacher and given its examples in scores of my workshops. However, over the last one decade or so, I’ve been continuously facing one key question from my workshop participants – mostly CEOs from top corporations of India Incorporated. Their question to me invariably has been, ‘If the Japanese management style is as wonderful as described, then why has Japan been in a recession for the last decade and more?’ This question is what I guess one needs to understand first, if one has to really understand the beauty of the current western recession. My answer to this question has always been very simple. I believe culture plays a very important part in shaping up economies. What succeeds in one culture fails somewhere else. Kenichi Ohmae, a famous strategy guru, wrote in his bestseller, The Mind Of The Strategist, that if you want to sell a new kitchen appliance to a Japanese housewife, you have to first enter a Japanese small-sized kitchen. And then, from the stacked kitchen appliances on the kitchen shelves, you have to tell her which one of them is to be thrown away to make way for the new appliance. Well, they are all excellent in quality. Long lasting. And tough to throw! And that’s why the Japanese economy has been in a recession for a decade now.

Because culturally, these Buddha lovers are basically non-materialistic. And however much rich they become, unlike Americans, they cannot just keep throwing and buying endlessly. And once they have almost everything they need, there is a saturation point. After this point, there are primarily three kinds of demand. Replacement demand, new product demand and FMCG demand. And that can’t keep giving an economy a double digit growth rate! Add to that Japan’s rapidly aging population and negative population growth rate (the Japanese Ministry of Health forecasts that even till 2050, they won’t have a positive population growth rate). That’s exactly what happened with Japan.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay 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)

Turn a short-term problem into a long-term issue

Cutting marketing investments can often turn a short-term problem into a long-term issue

Use a “sniper” approach to cost cutting. Once companies understand exactly how the recession is affecting their core customers, they are in the position to identify with precision the kinds of marketing investment that generate value and should be protected, and those that may be dispensed with. Indiscriminate cuts across the board can destroy value in the long term and should be avoided. To understand what marketing activities may be scaled down and which ones should be strengthened, it may be necessary to focus on the two or three things that truly matter to customers (for instance product features, service, availability, price, et al).

Promotion and low pricing strategies should be employed wisely. Sales promotions and price cuts can be useful in a downturn to stimulate demand. However, they should be used only if they are consistent with the positioning of the brand. Short-terms sales volume and revenue should be balanced wisely against long-term brand strength. In the end, the best strategy for a strong brand might be to continue to reinforce the attributes that make it appealing and unique in the eyes of the consumers. A strong emotional bond between the customer and the brand, for example, can still provide the most effective defence from market forces.

Deal with the short-term challenges, but also manage for the long term. Reducing marketing spending aggressively, or ignoring the role of marketing in building long-term shareholder value is clearly not the way forward. Unfortunately, cutting marketing investments indiscriminately can often turn what may be a short-term problem into a long-term issue. Advertising for brand-building, for example, can take a long time to bear any fruit. The immediate benefits of a cut in marketing spend may hide the more insidious long-term effects if support is withdrawn from the brand. In the end, evidence suggests that the strongest brands are those that receive sustained support over time, even in times of crisis.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay 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)

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 IIPMMalay 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 IIPMMalay 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)

Wednesday, January 16, 2013

The silk route still remains jagged

India’s Foreign Trade Policy (FTP) 2009-14 is a half step undone by more omissions than commissions, say anchal gupta and niharika patra, who argue all is not lost...

The term was originally coined by the German geographer Ferdinand Von Richthofen in 1877. It has been considered as the first ever link between the east and the west in recorded history. Its role in being one of the pillars on which the great ancient civilizations of India, China, Greece and Egypt stood is undisputed. It was the panacea to large trading communities who survived because of it. Unfortunately, the silk routes that can lead India back to brighter shores are still blocked. With demand for India’s exports still remaining low than its 2007-08 levels in the biggest markets of US and Europe, the dark skies for India’s trade might take some more time to clear up. However, with certain developments sending a whiff of fresh air in the suffocated dungeons that is India’s exports, the picture gets complicated.

There is no denying the fact that India’s over dependence on USA and the EU for its cheap and labour intensive exports (same is true for services also) has hurt India in the short term as there have been huge job losses in some of the biggest export sectors. According to latest figures released by the Labour Bureau, the job losses amounted to 1.72 lakhs in the April – June quarter mainly in the textiles and gems and jewellery sector with export oriented units accounting for 1.67 lakhs of the same. It must be remembered that the government itself declared that the total job losses amounted to 5 lakh in the October to December quarter last year owing to the meltdown. With varied statistics putting the job losses at different levels, the in total job losses owing to depression can be put in the range of 1-1.2 million including indirect losses.

However, with the first signs of recovery beginning to pour in the last 2 months, it is widely hoped that the trade train of India can be back at full throttle soon. But, the trade picture can be more complicated than Einstein’s field equations at times. With the drop in demand in biggest economies like USA, Japan, EU and slowing down of China, the oil prices went down to nearly US $40 a barrel from its peak of $145 in the middle of 2008.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay 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 03, 2013

Then Crimefest is where you should head to!

Care to learn and discuss crime fiction writing? Then Crimefest is where you should head to!

Held in the month of May, the fest unleashes a universe of excitement for avid enthusiasts of this genre. A planned set of programmes continue from morning till evening for four days, which include discussion forums on topics like criminal psychology, religion and superstition, crime and humour etc. and also include interactions with popular crime authors to help those interested in crime writing hone their skills. The fest also invites participation in the Crime Writing Workshop where participants are tutored on writing crime fiction and are also assessed on their submitted work. “The crime-writing workshops are for those readers who would like to become crime writers and the response to these workshops has been enthusiastic,” Peter says gladly.

The Crimefest doesn’t confine itself to the various programmes. It also arranges visits to tourist spots like Stonehenge, Avebury, Lacock (where bits of Harry Potter were filmed) and a walking tour of the city of Bath. The Gala Dinner is most looked forward to, since it includes after-dinner speeches by guest authors and an award ceremony – The Last Laugh Award (for the best humourous crime novel) and Sounds of Crime Award (for crime audio books). Although it has been just two years since the inception of the event, the response has been overwhelming, which brings us to the question – would this event be organised in India in the future? Peter assures, “There is talk of putting Crimefest onto a cruise liner, so who knows where it will end up!” Well, all aspiring crime writers start preparing yourselves, and all crime fiction fans, brace yourselves as your favourite authors might soon tour India too! 


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

Thursday, December 06, 2012

B. K. MODI: SATYAM BID

Satyam is an attractive buy, but Modi has to be careful about how he values his latest acquisition target

Spice Corp. is not the only one in the fray. Given the low valuations for Satyam, there have been many suitors. The most aggressive has been Larsen & Toubro (L&T), which has already increased its stake in the company to 12% from 4%. However, an analyst on conditions on anonymity cautions, “The cost of acquiring and restructuring Satyam in this time of liquidity crunch would be more than the worth of the business.” Ditto for other suitors like Tech Mahindra, iGate and Hinduja group. Not for Modi, who proudly proclaims, “We have some Rs.20 billion in the bank!” So Satyam needs Spice but is the reverse also true? Definitely, even a much subdued Satyam would be worth much, considering current valuations (a person investing Rs.100 in the company 1 year ago would see his investment drop in value to Rs.12.45 on February 3, 2009!).

However, Spice Innovations would have a lot of work to do. The latest controversy has already cost Satyam four major clients – Citigroup, Merrill Lynch, Novartis and GlaxoSmithKline, a loss of some $200 million in topline. Fortunately, there are a few like GE still in Satyam’s kitty. Another obstacle would be that there is no top rung of management in the organisation at the moment and employees are facing a crisis of confidence. Modi counters, “We have a good leadership team and are confident that we would be able to steer the new company in the right direction.” Well, considering how his previous big ticket venture Spice Communications went into losses, one wonders if Modi’s cadres can really manage to rescue Satyam from crisis to conquest. Moreover, this is an acquisition where a critical element – that of brand goodwill – is virtually non-existent! Although Modi has the cash, he needs to be careful with regard to how he (over)values Satyam


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri

For More IIPM Info, Visit below mentioned IIPM articles.


Tuesday, December 04, 2012

Wealth Creation or Crony Capitalism?

from nano to sezs; from aviation to telecom, india inc. is a tale of state patronage

Some time during 1998, the media went into a tizzy. For the unthinkable had happened. First, the Delhi Police raided the office and residence of the Group President of Reliance Industries Ltd. V. Balasubramaniam. There were allegations that Balasubramaniam (or Baalu as the legendary lobbyist of the late Dhirubhai Ambani was famously known) had ‘violated’ the Official Secrets Act. Then again, officials of CBI raided the office of Reliance at Nariman Point in Bombay and even the fabled residence of the Ambanis called Sea Wind. All sorts of rumours flew thick and fast at that time. There were dark whispers that Baalu was in trouble because someone finally had the guts to nail him for getting access to the Union Budget even before it was presented to the Parliament. Most business journalists presumed that to be true; even though the allegations have never been proven. More than the raids, it was the political context of the time that had raised eyebrows across all and sundry. A government led by the BJP with Atal Bihari Vajpayee as Prime Minister was ruling India. Hacks, lobbyists and pundits were writing and talking extensively about how the rise and rise of the BJP and the decline and fall of the Congress had dealt a crippling blow to the ‘connections’ that Dhirubhai Ambani could boast of in New Delhi. Many had thought that the salad days of Reliance Industries, when it comes to getting ‘favourable’ back door benefits from the government at the centre were over.

They were conclusively proven wrong. It was under a BJP-led government in 2001 when Reliance made a classic back door entry into the mobile telephony sector of India – without a valid license! Mobile phone service providers like Bharti cried foul and loudly complained against this unfair treatment and asked for a level playing field. The matter went to the Supreme Court and Reliance was effectively given a back dated license after it agreed to pay a license fee. Then again in 2008, rivals cried foul when Reliance Communications, now led by Anil Ambani, was given licenses for launching GSM services across India. This time under the UPA government, but as we said, that debate is no longer relevant. 

Read more.....

Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri

For More IIPM Info, Visit below mentioned IIPM articles.

Friday, November 30, 2012

From CM to PM in one jump?

Mayawati is now eyeing to become the Prime Minister. Her records show that it would be difficult to stop her

Uttar Pradesh Chief Minister, Mayawati was never known for her courteous or suave behaviour. She always had a reputation of being an arrogant and ruthlessly ambitious politician. She recently added another chapter to her reputation by refusing to lend land for construction of a Rail Coach Factory (RCF) in Rae Bareli – the parliamentary constituency of UPA Chairperson, Sonia Gandhi – barely two days before Sonia Gandhi was supposed to lay its foundation stone. Though she returned the land to railways five days later – primarily because of a new legislation that authorises Railways to acquire any land for development purpose – she once again demonstrated she cared two hoots if she needed to prove a point. In fact, she baffled political observers in 2003, when after falling out with coalition partner, BJP, within a year of taking over as CM, she decided to dissolve the State Assembly. The BJP then propped up her bête noire, Mulayam Singh Yadav as CM. An unfazed Mayawati, bereft of trappings of an official post – campaigned hard for three years and secured a clear majority on her own in 2006. People might wonder about sagacity of her political decisions, but she is never in doubt about what she was doing and the consequences.

Her fourth innings as CM was bound to be stormy and more ruthless than ever since this is the first time her government didn’t need BJP’s crutches. She started off by ordering inquiries into decisions taken by Mulayam Singh. But that was just the beginning. As Left Front withdrew support from the UPA government at the Centre and Mulayam’s party extended support to the UPA, Mayawati seized the “opportunity of her life.” In the run up to the Vote of Confidence at the Centre, she found a host of leaders – from Left stalwarts Prakash Karat & AB Bardhan to TDP’s Chandra Babu Naidu and from Janata Dal (S) Chief, HD Deve Gowda to Rashtriya Lok Dal Chief, Ajit Singh, queuing up at her doorstep.


Source : IIPM Editorial, 2012.

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Tuesday, November 27, 2012

Divinities we could do without

RBI's moves with respect to bonds for oil companies are only a temporary solution to the problem

To err is human, to persist in error is divine. When the government should be bringing in a dose of realism to oil prices vis-à-vis international trends and moving towards mass transportation, it chooses to continue to perpetrate the lopsided trend of protecting both consumers and oil companies through the self destructive policy of issuing bonds. What a divine state of affairs indeed! So divine, that even our apex bank can't keep out of it now! In an unprecedented move, the Reserve Bank of India (RBI) had opened a window to buy oil bonds in order to compensate for the cash requirement of the cash-starved, loss making Indian oil companies. Oil companies could sell the oil bonds issued to them and buy foreign exchange from the RBI, which was much lower than the existing market price of the dollar. The government had promised to issue bonds worth Rs.245 billion by June 2008 to help the companies who needed around $300 million daily to fulfill their daily requirement of oil. In fact the RBI also bought bonds from IOCL, BPCL and HPCL and gave them cash of $4.5 billion.

But now, the window has been closed and the oil companies are forced to buy foreign exchange (mainly dollars) from the open market. By squeezing the flow of dollars in the market, they are creating a situation where the demand for dollars is continuously rising and the value of rupee is falling.

Such a situation is particularly critical for the Indian capital market since it is already facing capital outflows and a falling rupee. In the first place, the issuance of oil bonds is nothing more than a stop gap solution. For companies, which are making losses to the tune of Rs.6.5 billion on a daily basis, such bonds were nothing more than a false reprieve.


Source : IIPM Editorial, 2012.

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Monday, November 26, 2012

But will the two wheeler giants give up easy?!

The middle-class customer never had it so good when it comes to four-wheeled toys... But will the two wheeler giants give up easy?!

Hero Honda for instance, expanded 18% between April-July 2008-09 and sold 1,149,753 two-wheelers and is confident of the two-wheeler segment. “Interesting developments, but there is no competition from small cars.

This is because the cost of ownership of bikes is less than that of a car, which includes fuel cost, insurance cost, maintenance cost etc.,” explains Anil Dua, SVP, Hero Honda to B&E. TVS on the other hand is betting big on its progressive two-wheeler product range. “Our focus remains on two-wheelers even if Bajaj and the others are launching low-cost cars,” opines Venu Srinivasan, Chairman, TVS Motor on questions concerning threat from small cars. Like them, there are a number of players in the market for whom two wheels remain the mainstay despite the hoopla.

It is interesting to note that while many new patrons have been added to the car segment, many more are making their way into the motorbike segment! Last year, the two-wheeler segment alone recorded a growth of 38% with at least 700,000 two-wheelers being sold every year. According to Yezdi Nagporewalla, of KPMG, “In volumes the motorbike segment is 7 million units strong and the competition from Tata’s Nano and others will at best be around 1 million units.” Interestingly, even though both the sides (two-wheelers & ultra-cheap cars) have their own take on the possible outcome of the battle, neither has the consumer figured-out for sure. Maybe that’s why they say, ‘Consumer is King’!


Source : IIPM Editorial, 2012.

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Friday, November 09, 2012

The top-secret

The IIPM Think Tank proposes that the Indian budget should not only be a societal budget, but also be a platform wherein the contribution of aam admi should be allowed

R. P. Chidambaram in his last budget, quoted Tamil saint, Tiruvalluvar, and said that if ploughmen keep their hands folded, even sages claiming renunciation cannot find salvation. But he seems to be half prepared and seems to overlook those millions of farmers who are forced to keep their hands folded perennially, even for the most basic rights & necessities.

According to International Budget Project (IBP), participatory Budgeting provides a citizen a platform wherein they deliberate and negotiate over the allocation of public resources. Conventionally, civil organisation and social sector experts have been excluded from the budget preparation process in India. The budget seems to just represent the ruling party(ies). Even the Opposition doesn’t take initiative to have a pre-budget consultation or to put forward their memorandum or people’s voice before the FM. According to Open Budget Index, a recent study by the IBP, India provides citizens with “some information” on the Central government’s budget, while some countries, such as France, the US, South Africa, New Zealand, the UK and Slovenia, provide “extensive information” to their citizens.

UPA Government restarted the dis-investment process by permitting sell-off of power sector PSUs, through IPOs, in order to raise Rs.1,500 crores. However, this policy decision never got any mention in the budget speech but was mentioned in the credit column of budget balance sheet. In the last budget, FM announced the 22.5% increase in gross budgetary support for Central plan, but didn’t even mention anything about the state plans (wherein the increase in gross budgetary support for the state plans is just 8.2%), which further reveals the horrifying part of the story that 14.3% of Central gross budgetary support increase will actually be funded by the state resources.

The analysis and report by IBP depicts that India’s budget provides only limited information to the public and even to the Parliament. India does not even have the tradition of disclosing the pre-budget statement The study clearly shows that there is enough room for further improvement towards sharing budget information with the stake holders to ensure an informed participation.


Source : IIPM Editorial, 2012.

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