Tuesday, November 20, 2012

LIFESTYLE: INDIAN

Taste the West while being in East

For generations, Indians did their daily shopping at fresh-food markets and regarded packaged foods as ‘stale’. However, just like their Western counterparts, a new generation of busy urban Indians is starting to appreciate the convenience and choice offered by packaged foods.

Therefore the professional Indians are getting a lifestyle of the developed world even after being in India. This adds to the belongingness and cultural compatibility to the affluent lifestyle they already have and would like to have. The bonus is the legacy of ‘best of both worlds’ to the young and vibrant professionals and upwardly mobile Indians.


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
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Monday, November 19, 2012

INDIA'S BIGGEST LOSS MAKERS

The biggest five loss making companies of India
But the reasons are not far to find. A company like Moser Baer is facing huge pricing pressures in the global optical media market; and is also being hit by a Philips licensing issue (with suits being filed by Moser Baer previously against Philips being a bone of contention too). Add to this the fact that the sales volumes of Moser Baer have been more or less flat (Gross revenues for FY08 were Rs.19,654 million, compared to Rs.20,746 million last year). And to search for Deccan’s cup of woes, one just needs to see aviation fuel prices, which have risen over 30% in FY08, enough to kill any aviation company [India’s airline industry in total will see more than Rs.4,000 crores losses]. Critically, due to an attempt to get more revenue out of per seat, Deccan Aviation saw its flight occupancy dip disastrously from 87% to 72% by the end of FY08.

For Tata Teleservices (Mah) Ltd. the issue is direcly related to capital acquisition costs not paying over time. Critically, while Bharti has 62 million subscribers, Reliance is reaching 50 million, Vodafone itself is at 45 million, Tata Teleservices is still way back at 24 million, despite having been in the country for such a long time. It’s quite clear that if there’s such a close run relatively amongst the top three telecom providers, there’s a clearly strategically faulty marketing orientation that has resulted in Tata Teleservices’ subscriber base not coming up. The malaise has been hounding Tata Teleservices (Mah) for the past too many years (we went back only till 2002, and the company has suffered losses since then, year after year). And the biggest factor in cost has been cost of sales rather than depreciation. With an accumulated loss base of Rs.2,544.58 crores, Tata Teleservices (Mah) requires attention, and too fast from the Tata group. And while Wire and Wireless – a Zee group cable television company – filled up its black hole by lending money (almost Rs.63 crores) to partner distribution companies whose net worth stood eroded by the end of the year, Strides Acrolab, a Bangalore–based generic pharmaceuticals company, accounted its losses to huge setbacks in US operations and of course, a surging rupee!

Clearly, unless these companies question their strategic intent, processes and structures extremely critically, it’s simply not possible to come out of a rut in a quarter, a year, or even in a decade. Finally, it’s a matter of business; finally, it’s a matter of shareholders’ money; finally, it’s a matter of whether you reach for that Alprax or not; finally, it’s a matter of never saying die.......till you’re dead!


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
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Thursday, November 15, 2012

MAYBANK: BII ACQUISITION

23% premium sounds logical for BII

Some analysts, too, saw the deal as being over-valued, especially considering that BII performed under-par for the past 2 years, with profits falling by a whopping 36% during 2007, and another 13% during 2006 as Julian Chua, Analyst, Citigroup voices, “The price tag on BII is 50% higher than initially assumed for mediocre franchise...” However, Citigroup & FitchRatings are of an opinion that in the long-term, Indonesia has good prospects & Maybank has taken the right cue. As a matter of fact, Maybank says that it is targetting an increase in the loans of BII by over 20% in 2008.

Chris Oh, Analyst, JP Morgan Chase also supports this move as he divulges, “The BII was a ‘must-have’ strategic acquisition for Maybank. BII is projected to have minimum sustainable return of at least 20% beyond FY 2010 (sans factoring-in synergies).” Adding all this to Malaysia’s growing trade-ties with ASEAN trading partners, $2.7 billion suddenly appears ‘loose change’!


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
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Saturday, November 10, 2012

Media marauders

The newsmakers are the news

Frequent assaults on scribes covering the Sri Lanka-LTTE conflict have triggered outrage among both local and international media rights groups. On March 14 morning a miscreant, wielding an iron club, ambushed Anurasiri Hettige as he waited for a bus in a Colombo suburb. Hettige became the fifth employee of the state television corporation Rupavahini to be attacked or threatened in the last three months.

Media rights groups say the attacks are linked to the December 27 incident that saw government minister Mervyn Silva storming into Rupavahini and abusing senior staff. Silva, who was upset by a news programme, had then allegedly been assaulted and daubed in paint by angry Rupavahini employees.


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.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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