Showing posts with label IIPM Ranking. Show all posts
Showing posts with label IIPM Ranking. 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

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

Saturday, May 04, 2013

An Alzheimer's cure?

Millions of dollars are being poured into fighting Alzheimer's, but the cure could be a step nearer

Alzheimer’s Disease (AD) is fast emerging as one of the most menacing threats to the human race in the coming years.

By 2050, people of 60 years or more will account for around 22% of the world’s population. As per Alzheimer’s Disease International (ADI), an international association to fight AD, around 35.6 million people are affected by the disease. Furthermore, some 7.7 million cases are added each year. At the current pace, the number will double every 20 years. Around 58% of AD patients are in the developing countries, and the ratio is expected to reach 71% by 2050. AD is the sixth leading cause of death in the US today and around 5.4 million Americans have AD. The total cost to fight AD in America is $200 billion to date, and the total cost to the world is $604 billion. The US FDA has approved six drugs to cure AD. But surprisingly, a drug called LMTX, by a Singapore based biotech firm, could be the best bet. The claim by the firm is that the drug can even reverse the effects of AD – by attacking tau and amyloid deposits, two proteins that cause brain plaques.

But all these medicines may well be reducing the smoke than putting out the fire. Professor Ruth Itzhaki from the University of Manchester in an exemplary medical research proved that the Herpes Simplex Virus – which causes normal skin rash in almost 90% of the population – was found located right within the protein plaques of 90% of AD patients.


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

Thursday, May 02, 2013

How Dr. Manmohan Singh Beats V.P. Singh Hands Down...

It was really a no contest till recently. The late V.P. Singh was the undisputed winner of this trophy. He also remains the classic example of a middle class hero who became a middle class villain. Till he became the Prime Minister, V.P. Singh was the anti-corruption crusader and messiah who rode on the infamy of the Bofors scam. Of course, Indians soon realised that pious crusaders do not always become good leaders. Mercifully, his tenure did not last long enough for V.P. Singh to inflict irreparable damage to India.

I used the words “till recently” because there was some lingering, forlorn hope that the current Prime Minister would at least do something that would enable V.P. Singh to retain the crown. But then, forlorn hopes always remain hopeless. I realised this when I read newspaper stories about how a Supreme Court Bench has yet again criticised the PMO. This time, the rap on the knuckles is because the Prime Minister has failed to convene a meeting of the Cauvery River Authority despite reminders. Allow me to use the words of the Bench: “What do you mean by this? It is shocking that you require the consent of all the states even for a date of a meeting? Is the PM to see his convenience or the convenience of the members? It is surprising that the PMO is asking the convenience of everybody before fixing the meeting.” Just imagine. The Prime Minister is the head of the Cauvery River Authority set up to tackle the often ugly dispute between Tamil Nadu and Karnataka over the sharing of Cauvery waters. What conclusion can you draw from the fact that he is not able to set up a meeting with some chief ministers? Either he is truly helpless and powerless, or he is indifferent and callous. Either ways, it bodes ill for India.

This incident and the rap on the knuckles by the Supreme Court is not front page news. Nor will it lead our television anchors to froth at the mouth. Yet, in a small but very significant way, it reflects the disappointment and disaster that Dr. Manmohan Singh has been. In 2009, he was a true blue middle class hero because the Congress won virtually all urban seats in the Lok Sabha elections, including seven out of seven in Delhi. Today, that halo has been torn to shreds. Of course, the middle class Indian is very fickle and unreliable. And later historians might have more charitable things to say about the tenure of Manmohan Singh. The more charitable may say that Indians expected too much from him and hence the disappointment and anger.


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

Saturday, April 27, 2013

Cicero's Challenge 2012: The nation’s grandest inter-school event

It was a fest to remember. On the sprawling lawns of The Indian Institute of Planning and Management (IIPM)’s international campus in New Delhi, on May 3, 2012, over 6,000 school children congregated to create what has become one of the biggest and most eagerly awaited events for the national student community. Cicero’s Challenge 2012, IIPM’s annual inter-school festival – which has the debate competition as the signature event and many other thrilling competitions – witnessed a display of excitement, energy and vigour that’s hard to put down in words.

The theme for the 2012 edition of the festival was ‘Get Real’. The two-day competition kicked off with its signature debate event, which saw students debating on the topic ‘Technology’ in the preliminary round, which was followed by the finals on the second day. The 27 finalists debated on the topic ‘The virtual world is where I can really be me’. Saksham Agarwal of Amity International School, Gurgaon bagged the first prize in the debate competition, which included a cash prize of Rs 1,00,000, a certificate and a trophy. Prof. Rajita Chaudhuri, Dean, Centre for Enterprise Management, IIPM and Prof. Arindam Chaudhuri, Honorary Director of IIPM Think Tank, were the judges for the debate finals. Prof. Arindam Chaudhuri said, “Every time I judge an event at Cicero’s, I discover new, budding schools that haven’t been heard of before; Montfort School, for instance.” In all, the event went beyond expectations to live up to its image of being the nation’s greatest inter-school event.


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

Tuesday, April 16, 2013

In need of a bailout

With several power utilities running up prohibitive losses and power tariffs remaining static for years on end, the much touted growth story for the power sector looks like tripping up.

The red flags are up for the power sector, which was once considered to be the next ‘big thing’ in India’s growth and investment story. But in the face of mounting losses by already debt-ridden state electricity distribution companies, existing and future loans to the power sector have become a cause of deep concern for banks and state lenders such as REC, PFC and others. Lenders such as Power Finance Corp (PFC), Rural Electrification Corp (REC) and several banks have together lent about Rs.4.8 trillion to the sector by March 2011 and total advances are expected to grow 23% over the next two years. Moreover, around Rs.560 billion of these lenders’ exposure is potentially at risk if there is no meaningful progress on power reforms in the next 18 months. And going by the way the power distribution sector is racking up losses, funding for the sector looks headed for real trouble.

Losses for state electricity distributors, which depend on state support and borrowings from financial institutions to meet revenue shortfalls, doubled in the two years since April 2008 to $12.9 billion, according to a Power Finance Corp report. The net losses of the power distribution firms, which have been widening over the past five years, was pegged at about Rs.400 billion in FY11. As a result, many distribution firms are financing the gap in their revenues and costs by debt funding. Nine states including Rajasthan, Bihar and Haryana account for 80% of the outstanding debt (see chart). But mounting losses at state electricity boards (SEBs) and delays in the execution of new power plants are making servicing of loans and interest payment difficult. SEBs are on a brink of bankruptcy as they are saddled with losses running into millions of rupees on account of power theft during transmission and distribution, billing inefficiencies, and, more importantly, because they have to buy expensive power to tide over short-term deficits. To add to the woes of distribution companies, power subsidy requirement by distribution utilities has increased both in absolute and percentage terms over the last few years, which means that the ratio of average revenue realisation (ARR) to average cost of supply (ACS) and the gap between ARR and ACS has deteriorated. From a credit perspective, timely disbursement of subsidy to distribution companies remains a critical factor, given that any significant delay in subsidy payments by the State governments can impact the cash flows of the state-owned power utilities.

Under the circumstances, it’s no surprise that some of the state electricity boards are already asking for loan restructuring by extending the repayment period. Loan advances to power sector constitute nearly 7.3% of total outstanding credit for banks. Of this, nearly 30-40% is accounted for by state electricity boards (SEBs) and face a much greater likelihood of being restructured if things get any worse. According to brokerage firm Macquarie, up to 40% of advances to the power sector could be restructured. Canara Bank has the highest exposure to power, with 13.3% of its assets exposed to the sector, while Kotak Mahindra Bank is the least troubled with almost negligible exposure to power. India’s top two lenders, State Bank of India and ICICI Bank, are among those having high exposure to the power sector, with more than 300 billion rupees of loans each. According to Chairman and Managing Director of Punjab National Bank K.R. Kamath, “Wherever we had issues on state electricity board short-term loans we have restructured and converted them into long-term loans repayable over a period of time.” In fact, PNB has restructured loans worth Rs 1.7 billion given to Tamil Nadu state electricity board in the second quarter. A similar predicament is being faced by Indian Overseas Bank, which has lent more than 91 billion rupees ($1.8 billion) to the power sector. “Some of the state electricity boards are asking for loan restructuring. We’re seeing how that can be worked out,” says Chairman and Managing Director M. Narendra. According to the Reserve Bank of India, bank loans outstanding to the power sector as on September 2011 was Rs 3,007 billion. Banks exposure to power sector at the end of August 2011 accounted for 7.9% of total bank credit. The maximum limit is 8.3%, which leaves almost no room for further funding.


Source : IIPM Editorial, 2012.
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
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

Monday, April 15, 2013

RTI needs more teeth

B&E: The PM, along with some of his colleagues, has been critical of some of the provisions of the RTI. What do you read from the PM’s remarks?

ND:
The impact of RTI has begun to show now. I think the RTI, not as a law, but as a system, gives it strength. The government has also been in trouble on many occasions due to RTI and their anger is unfortunate. This is one legislation that has been passed by this very government. What the PM has said is unfortunate. I would be happy if he had talked about strengthening its implementation instead of attempting to dilute it.

B&E: The PM’s call for a critical look into the RTI Act has emboldened voices seeking dilutions to RTI. Do you see it as a threat to RTI?

ND:
The threat from the political class to RTI has existed since the Act came into being. Barely six months into the formulation of the Act and the government was already on its toes to clip its wings. I remember we had a hard time keeping the RTI in its current form. However, with the kind of community support that the RTI has garnered in these 6 years, it will not be easy for any government to amend it.

B&E: What is your reaction to remarks that the RTI has inbuilt weaknesses?

ND:
I feel that there are weaknesses in the Act, but in the sense that it doesn’t have sufficient teeth. There is no provision for fixing responsibilities & imposing penalties.


Source : IIPM Editorial, 2012.
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
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

Friday, April 12, 2013

Sony’s (Intelligent?) bet on The Idiot Box

Sony India has been Focussing Big Time on its Television Business in India. And it seems to have paid it off well. But then, it will Certainly have to come with Some Innovative Strategies soon if it wants to continue rising up The Ranks.

“It’s a time of transition, which makes things even more difficult”. These words from Osamu Katayama’s book These are our future (which details Sony Corporation’s recent history) aptly describe the phase that this Japanese multinational is going through at the moment. First, a devastating earthquake in Japan. Then, a cyber-attack on its network. And finally, a colossal net loss of $3.1 billion for the financial year ending March 31, 2011 (Sony’s second worst financial performance ever). All this has not only made its share price tumble over 25% since the turn of the year, but has also put an enormous pressure on its chief executive Howard Stringer who is striving hard to win the battle against the odds, one after the other.

In fact, when Howard Stringer, Chairman, CEO & President, Sony Corporation, took over the reins of this Japanese conglomerate in June 2005, its three major businesses – gaming, mobile phones and television – were already losing momentum, globally. Thus, the task ahead for Stringer was not only to save these businesses from collapsing, but also identify functions and markets that could serve as alternative sources of revenue for Sony, at least till the time these businesses were back on track, live and kicking.

Although Sony had been in India since 1994, it was only then that the Indian consumers saw Sony recognising the real potential of this ‘Asian Tiger’. Thus, everything from more launches, slightly more affordable prices, to more stores, to even zero-interest finance schemes, to things which Sony had never done before, were all suddenly happening, and not just in India, but across the globe. Result: Sony’s CPD division, which sells televisions, digital imaging, audio and video products, semiconductors, components and business services, recorded a respectable profit of $35.4 million in FY2010-11, up 1.6% y-o-y, at a time when the core divisions were bleeding losses.

No doubt, the strategy paid it off well across countries, but then India seems to be special, so much so that the company is now looking at the country as a priority market and expects it to become the fourth largest market for its products in the world, contributing as much as 10% to the group’s sales in the next couple of years. In fact, Sony, which started off slow in the Indian market, is now rising up fast in a market dominated by chaebols like LG and Samsung.

Cut to the chase, the focus for the time being is on its television business, particularly the Flat Panel Display (FPD) TV market in India. In fact, as per the US-based market research firm DisplaySearch, Sony has already overtaken Samsung Electronics and LG Electronics for the top position, with 22.1% of flat panel TVs shipped in the Indian market in 2010. Even according to the GFK Nielsen Urban India Panel TV (LCD + Plasma TV) Report (for April-June 2010 period), Sony Bravia (Sony’s flagship FPD product) had become the market leader in Flat Panel Display segment in the first quarter of FY2010. It had grabbed a market share of 32% by value, and 29.5% by units sold. The company had sold more than 1,00,000 units during this quarter, more than the number of units sold by any other brand in the market. For the month of June alone, Sony had captured a significant market share, 33% by value and 29.5% by units. The company reported maximum sales in the states of Maharashtra, Delhi, Tamil Nadu & West Bengal during this quarter. For starters, under the FPD TV market, the 22-inch, 32-inch & 40-42 inch segment comprises of more than 75% of LCD units sold in the country. And interestingly, Bravia was the leader in all the three categories.
 

Source : IIPM Editorial, 2012.
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, April 01, 2013

“It’s all Good in Canada.” Really?!

During The Recent Election Campaign The Newly elected Prime Minister of Canada Stephen Harper touted Conservatives as The Best Economic Managers The Country has ever had. But can his so-called ‘Best Brigade’ Assure Canada of a growth that’s really sustainable in The Long run?

On May 30, 2011, when the 308-seat House of Commons of Canada next rises, it will be dominated by 167 Conservatives. Well, this certainly means a lot to Stephen Harper, who, despite winning two previous elections (Harper was first sworn in as Canada’s Prime Minister in 2006), has never before held a majority government. But then, does this really mean anything to the Canadian economy which, perhaps, is standing on the verge of a slowdown?

Interestingly, all this while, Harper has been repeatedly telling Canadians that the Conservatives are the “Best Economic Managers” that the country has ever had, and it’s because of them that Canada bounced back strongly from the global financial crisis. “But are they, really?” is the question that several have been asking on the streets of Ottawa & Toronto since March 25, 2011 when Canadian opposition parties had brought down Harper’s government by supporting a motion of no confidence that held Harper in contempt of Parliament for refusing to share financial details of decisions taken by him with the House.

No doubt, to some extent Harper seems right, as of the seven industrialised nations that comprise the G7, Canada clearly stands out when it comes to economic recovery from the recent recession. It not only expanded at an annual pace of 5.8%, but also recovered both the employment and real output losses that accrued over the troubled course, in just one year. But then, though Harper now has the clear mandate to deliver on his promises and the freedom to do so without much intervention from the opposition, there are many who still doubt his claims. And, there are good reasons for Canadians to be sceptical of Harper’s claims and even more reasons to be worried about what his promises (currently, the Harper administration projects a deficit of $29.5 billion for this fiscal year and a return to surpluses by 2014-2015) and policies would mean for Canada’s economic future.

After growing at a red hot annualised rate of 5.8% in Q1 2010, Canadian economic growth had come down to just 1.8% in Q3, 2010. Though the GDP growth has unexpectedly risen to 3.33% in Q4 2010, the celebration isn’t going to last long as domestic demand, which so far fuelled this growth, is all set to decrease in the near future. While a still healthy job market (employment growing at 2% y-o-y in Q1 2011) should continue to fuel domestic demand, there are several potential headwinds that need to be avoided. Further, with the benefits of the inventory swing (inventory rebuilding had accounted for over 33% of GDP growth in 2009) behind and the boost from government stimulus (over $60 billion in 2009 and 2010) fading, how is that Harper’s so called “Best Economic Managers” going to sustain Canada’s economic boom in the long run? In fact, they have yet to explain how they will find $1.6 billion in cuts already booked in the 2011 budget.


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

Thursday, March 28, 2013

Still very Stuck with a ‘P’rofound ‘E’xuberance

Though Sensex has been Correcting itself Since Last November, at Current PE, it looks Overvalued. And with Jittery Corporate profit growth Forecasts, it is surely due for Further Correction.

24.15 was the PE multiple (price to earnings) of Sensex when the BSE benchmark scaled its lifetime high of 21,005 for a day in November last year. At the same time, that was the value which made many analysts act like disciples of Yale professor Robert Shiller calling the market movements “irrational exuberance” (Author of Irrational Exuberance Shiller, using Cyclically Adjusted PE model, had claimed at the peak of dotcom bubble that markets are overvalued and soon it succumbed to the bubble burst bringing glory to the author). And as we know since then, the Sensex has rolled down 12.21% to close at 18,439 on March 14, 2011. But the million dollar question that still worries a common investor is that, with the Sensex PE reading 20.02 currently – against 10-year average (quarterly) of 18 – can we say that the index is operating at a sustainable value or is it just a breather before another major correction?

Before getting into the details one first needs to understand what does PE multiple of an index stand for? In simple words, Sensex PE at 20 means Sensex is now valued at 20 times the cumulative earning power of its 30 constituents. Even if it sounds arbitrarily high for a common investor, in true terms, it is nothing new for the Sensex, more so for that the index has sustained over this value for over 18 months between 2006 and 2008. So, what is the problem that we are talking about?

Well, it’s actually the change in conditions, both economic and market. The most critical fact about the PE multiple of Sensex is that it is based on the anticipated earning power of the companies and while the economic conditions were suitable in 2006-07 to achieve rapid growth, it’s bleak at present. Although the reviving demand, both in the domestic market and globally, will provide Indian companies a boost in sales, the real task is to maintain the kind of profit margin that they are used to. If a substantial rise in raw material prices in the last year was not enough to dampen the momentum, rising crude oil price (already gone past $100 per barrel) is ensuring that the corporate profit in the coming months falls below market expectations. And the trend is already setting in. Considering the quarter-on-quarter cumulative net profit of Sensex companies in 2010, the growth quotient has fallen from 15.41% in the March quarter to 8.45% in December, threatening the market confidence and of course, the future value of the index.

In fact, discounting for the negative sentiments, the Sensex, which offered a mind boggling 157% between March 2009 and November 2010, has already lost over 12% since then. Whereas, global indices like Dow Jones Industrial Average and S&P 500 have advanced 4.3% and 6.3% respectively during the same period. For that matter, despite being on the receiving end, other BRIC benchmark indices have confined their losses to 6 to 8%. In fact, the Russian RTS index has gained a mind-boggling 18.5% during the same period.


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, March 12, 2013

B&E’S POWER TALK SERIES

Head – Marketing, Dhanlaxmi Bank in Conversation With B&E’s Mona Mehta

B&E: How critical is marketing for the regional private banks? How is Dhanlaxmi Bank dealing with it?
SM:
For a bank, which is a new entrant it is imperative that the consumers know about the bank and what it has to offer. In a cluttered and non-differentiated market capturing a share of mind is difficult. And it is even more challenging to build an imagery of a modern and a contemporary bank (where people had a perception that it is a co-operative bank). Every initiative has been a combat to the perception that the market had about the bank. The colour (purple) that the brand sports, differentiates itself from the blue and red colour palette in the market place. Meanwhile, Dhanlaxmi Bank has recently launched its signature branch at Prabhadevi in Mumbai. The branch has a new bright contemporary design. The customer journey in the branch gives an experience of openness to the consumers. Every message in the branch talk to the consumer, listen to their story and give them a solution. In fact, now we have decided to use the same design, look and feel in all the new branches that will be added to the existing network.

B&E: Over the past year or so the bank has become really aggressive in increasing its customer base. What are your plans to support the cause?
SM:
In the past 18 months the effort has been to build the brand imagery. Various on-ground initiatives have been taken for the same. To take the bank from one region, where it is a household name to the other parts of the country, where it is almost unknown – the challenges are multiple and varied. On one hand the task is to re-assure the customers that while the brand has changed, the core remains unchanged; on the other hand the objective is to create awareness about the brand and get consumers to the bank. So, various micro-marketing initiatives have been rolled out for the 275 branches across 16 states. Every branch has been given a calendar of events to be implemented. The effort is to link the marketing initiative to generate leads and get a better return on every rupee spent. In its 83-year history, the bank has started implementing marketing initiatives only during the past 18 months. The marketing strategy for every region varies as per the business objective. On a larger scale there will be a national advertising campaign.

B&E: You are currently expanding in a jiffy. How are you ensuring your brand visibility in those parts of the country where the bank has just arrived?
SM:
We are investing aggressively for the on-ground activation programs in catchment area of our 275 branches and educate consumers on the new brand, products and services that the bank has to offer. The 100 plus new branches that we will launch in the next financial year will be as per the new look and feel. All the branches that we re-furbish will also be as per the new branch design.


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

Thursday, March 07, 2013

Vulcanos Erupt at 145 Decibel...

When Several AK-47 and Vulcanos Erupt at 145 Decibel...

A firecracker is a Class-7 explosive, and if it doesn’t meet the prescribed norms, it could be classified as an explosive. Another prime concern is that the manufacturers do not print the decibel output of a firecracker on the packet. This leads to further ambiguity pertaining to the noise impact of the cracker.

Otorhinolaryngologist Dr. Ajit Man Singh of Max Hospital, Saket seconds that the inflated noise emissions could be potentially harmful to the ear. “Children and senior citizens are most vulnerable,” he says. The thorny truth is that even noise-free zones like hospitals lie exposed. Max Hospital, for instance, is surrounded by residential colonies where joyous residents celebrate Diwali with synergetic passion. But therein lies another problem. While the SC had Okayed manufacturing 125dB output crackers, it subsequently imposed a noise restriction of 55 dB in residential areas. Thus further complicating things for the already inefficient enforcers.

Diwali in India is more than just a festival of Hindus. It’s a celebration that reflects communal harmony, to say the least. But as the beautiful sparks and rockets juxtapose and disappear into the night sky, the constant ‘explosion’ resonating in the background is anything but a symphony. Come to think of it, the unnecessary bass has been added to Diwali only after a certain evolution in technology. After all, the people of Ayodhya did celebrate Lord Ram’s victory over Raavan by lighting up the city, with no peculiar soundtrack in the background...


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