NOT THE TIME TO ROCK & ROLL YET...

WITH RISING INPUT COSTS, SMALL COMPANIES WILL HAVE TO EXPLORE OPTIONS
A whopping Rs.14.895 trillion is what India needs to pump in the infrastructure for the next five years, says CII in a recent report. The private sector, too, will have to contribute an enormous Rs.600 billion every year, further adds the report. According to RBI’s August bulletin, capital expenditure by the private sector has shown a remarkable growth in FY06, but is expected to increase at a decreasing rate in the current fiscal year, courtesy rising input cost. The aggregate capex of the services industry catapulted from a mere Rs.42 billion in 2004-05 to Rs.196.69 billion in 2005-06, taking the total capex to a record Rs.824.50 billion (an 8% increase over last year). Also, there has been a substantial increase in the project cost & average cost, which primarily hints at two things.

For Complete IIPM – Editorial , Please Click on IIPM-Editorial Link

Source:- IIPM-B&E , 2006

An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative

DRESSED TEXTILES DELIGHT

AND SO THE TEMERITY OF TEXTILE IS ON TO CASH THE SIZZLING HOT MARKET
It’s festival time again and the bigwigs of the Indian textile industry are weaving up massive game plans to cash in on the sizzling hot opportunities. And why not? It’s that time of the year when people can be motivated through special offers to upgrade their wardrobes, which they are otherwise used to putting off till later. As per KSA Technopak’s ‘PAN India Survey’, the textile sector generates a whopping 60% of its annual sales in September & October alone. Notwithstanding the Rs.5 billion losses due to the recent floods in Surat which might have taken a bit of the sheen away from this sector, the apparel behemoths with latest global trends and smartest deals are ramping up their act to pamper the consumers. So, starting from textile titans to the new kids on the block and dashing designers – all are sprucing up their act to roll on this festival carnival.


For Complete IIPM – Editorial , Please Click on IIPM-Editorial Link

Source:- IIPM-B&E , 2006

An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative

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IIPM Students Life > Campus Placement

IIPM-Press Release:- DANGEROUS OB ‘SEZ’SIONS PART II

IIPM-4Ps and B&E Editorials

Almost everyday, a Special Economic Zone comes up. Policy makers are evidently happy and are encouraging more such zones. However, the equally crucial infrastructural and administrative bottlenecks persist.

Consequently,there’s a touch of the obsessive about the SEZs. Touted as the magic potion, can they deliver? Will they overcome the pitfalls that kayoed earlier projects?


Union Minister for Commerce and Industry Kamal Nath must be a happy man. And why not! His hopes of attracting investments to the tune of $100 billion for the setting up of Special Economic Zones (SEZs) appear to be making that crucial move from dream to reality. The decision by the Ennore Port Ltd. (ELT), a public sector company, to jointly set up a huge 2,500-acre SEZ in northern Chennai, with Tidco and Sipcot, is a shot in the arm for Nath. It marks an important milestone for the United Progressive Alliance government which has made all efforts to obsessively pursue what the previous six-year-old government of the National Democratic Alliance began.

Yet, despite this sudden rush of real estate developers, who seem to be racing to grab every possible chunk of land to turn it into SEZs, we need to look closely at how much difference the SEZs will really make to the Indian economy, especially the export sector. And much because the current trend seems more like a bumper harvest for real estate developers and enterprises eyeing lucrative tax holidays, rather than a genuine matter of enthusiasm for exporters. The SEZ Act, 2005, was brought forward by the government to replicate the Chinese success story in India. But the Act, which was to boost investments, has many shortcomings in its current form. For example, the government has allowed just 3.9 square miles and 0.039 square miles for multi-product zones and IT, gems & biotechnology zones, respectively.

Contrast this with the findings of a Morgan Stanley report in June 2006, which states that the minimum size of a SEZ should be somewhat between 40-50 square miles. The difference becomes obvious when one compares these SEZs with Chinese counterparts like Hainan (which is as big as Kerala). “SEZs were set up in order to give facilities that were not there in the other parts of the country. But we have seen that exports are doing well even without SEZs. So, we need to have an open mind and it would be wrong to assume that SEZs are the only option to improve our exports,” says Anjan Roy, Economic Advisor, Federation of Indian Chambers of Commerce and Industry. Other than that, it is also difficult to understand the logic behind setting up numerous SEZs in the interiors of the country.

Unlike China, where SEZs were set up in late 1970s to attract investments,India went ahead with its SEZ policy to improve its exports and not to attract investors. But, considering that the level of infrastructure (especially road transport) is still pathetic in India, one wonders as to how any of the SEZs could be of real help. Further, with exports estimated to grow at a rate of 20% and more in the coming years, ports are under severe pressure. Currently, 12 major ports in the country handle 75% of the total trade traffic, while the remaining 25% is covered by more than 187 small and medium-sized ports.

While no major change in any of the technologies or the setup has been brought about, ports are getting overburdened, affecting their traffic flow. Something can be done, but with the prevalent attitude, lack of speed has become a concerning factor. Only recently, the National Maritime Development Programme stressed that in order to boost India’s port infrastructure, the country needs to invest a whopping Rs.607.50 billion in major ports over the next seven years. And without these investments, the Shipping Ministry’s desire to double the current cargo handling capacity of ports over the next five years will remain a dream. But the inefficiency of Indian ports is not the only concern for exporters. It is the lack of coherence in government policy regarding exports that seems to be keeping exporters from showing enthusiasm for SEZs.


For Complete IIPM-Article, Click on IIPM-Editorial Link

Source:- IIPM-Business and Economy, 2006

An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative

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http://pankajspider.joeuser.com/

IIPM-Publications:- SIDHU WILL SHOW VISA THE WAY

A jaunt on the road to success sure gets more convenient with a Visa Card or two in tow. That is why cricket’s ubiquitous celebrity – the baadshah of boisterous – Navjot Singh Sidhu has been caught clean by Visa International to spread the good word about the company’s sponsorship of the imminent ICC cricket tournament. And words are what Sidhu can rattle off at the drop of a hat; not just that, switch on any channel – sports or news – chances are that his rumbustious Sidhuisms are doing the rounds. His quotes and his penchant for witticism (bordering on the corny and the eccentric at times, but nonetheless hilarious!) exemplify his friendly and flamboyant nature. Which is probably why Visa ‘got him’.

The ‘Visa Clean Bol’ contest kick started from the first of August in order to promote holiday packages for the ICC Champions Trophy 2006. Winners who devise the best ‘Sidhuisms’ will get to be at the ICC. All you have to do is shop till you drop and foot the bill with your Visa card, and you’re entitled to take part in the contest. Visa is looking at leveraging Sidhu’s wackiness for added impetus – all this to draw in the crowds. The swashbuckling wordsmith is bound to shore up responses to the company’s initiatives, outdoing Visa’s earlier tie with Sachin. In the meantime, here’s a potential Sidhuism winner for the contest: “Fields and the competitive arena were never meant to be churches!” Howzzat! 4Ps

For Complete IIPM - Article, Click on IIPM-Editorial Link

Source:- IIPM-Business and Economy, 2006

An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative

10 MOST POWERFUL ADS IN 2006!

6IF YOU CAN’T TAKE THE HINT, YOU’RE PROBABLY NOT IN THE LOOP, OR WORSE, EVEN DUMB...

FCB-Ulka is a master of the art of stumping viewers with its uniquely crafted commercials, and the Tata Indica V2 Xeta campaign proved to be yet another milestone for the advertising agency. “The Indica Xeta was planned by Tata Motors as a car that will take on the strong petrol offerings of Maruti (Alto) and Hyundai (Santro),” explains M. G. Parameswaran, FCB Ulka Executive Director and CEO, Mumbai, adding that the agency was briefed to work on a communication plan that launched the new brand with an impact. The brand name Xeta was derived from the engine of the car that provides extra efficiency torque advantage. Boasting a powerful fuel-efficient engine, ample space, great looks and an unbeatable price, the Xeta was truly a luring proposition targeted at the younger first-time car buyer, say the agency guys. And in sync with the attributes of the brand, the creative brief was evolved to say that a car buyer must have a hole in his head if he did not purchase, or at least consider the Xeta!

“From there was born the ad film, which said that not considering a Xeta is equivalent to saying no to four lovely women who are inviting you for a day out at the beach,” simplifies Parameswaran. “While we have used humour in the past, like the ‘Liar, Liar’ commercial last year, we have more often used a very rational selling message,” says Parameswaran, going on to mention that “for the Xeta we decided to use humour, a more emotional overtone to cloak a very rational offering.” The commercial begins with a group of four attractive girls driving their Indica Xeta on a sprightly number. They are hot, chirpy and going to have a good time. Midway, they spot a good-looking guy standing on the road and stop the car. As they sing to him: ‘We want a sizzling hottie, who would like to get naughty. Do you know any man, who’ll help us rub suntan?’ The ‘hottie’ thinks for a while and blankly points out, mumbling, “Maybe you should try the beach café.”

The disgusted girls leave the bloke behind, who’s quite foxed as they speed their vehicle away collectively exclaiming, “Dumb!” The voiceover in the next shot goes, “Fortunately, life gives you a second chance. So, here’s the new Indica Xeta...,” wittily concluding, “If you still miss it… you gotta be dumb!” The commercial carries a refreshing hue to it and was shot in Goa by the Director, Rajesh Saathi of Kerosene film, with the film scripted by Dharmesh Shah. Parameswaran grins, “I was told that the shooting was quite incidentfree, in spite of having some explosive- looking models.” He, however, reveals that the original model cast for the film backed out because he did not want to be labelled ‘dumb!”

But the bold statements in the ad, that too coming from a bunch of scantily clad, beautiful and liberated looking women, was found to be vulgur by many, which triggered the old debate about sex in advertising to start all over again. Nevertheless, Parameswaran is excited about the outcome of this commercial, beaming, “The film has won excellent reviews from ad experts; your magazine has featured it in its Top 10 rankings now for over three months. Another newspaper rated it as the ad of the week.” An ace attempt to create a new brand with a distinctive identity and a set of cool appealing to- the-youth values, the film has worked brilliantly, leaving thousands quite literally ‘dumb’ struck!

For Complete IIPM - Article, Click on IIPM-Editorial Link

Source:- IIPM-Business and Economy, 2006

An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative