Showing posts with label IIPM New Delhi. Show all posts
Showing posts with label IIPM New Delhi. Show all posts

Friday, October 05, 2012

TOYOTA KIRLOSKAR: THE SMALL CAR CHALLENGE

Etios can prove to be a Fortune Changer for Toyota in the Indian Market. But there are Challenges Galore that are Hell-Bent on Proving why the Jap’s Slow-Coach Small-Car Strategy may work Against It.

Today, everyone from Nissan to even Volkswagen (and Skoda), has entered the compact car fray. Toyota may have spent too much time in finalising its entry, which already has 23 models on offer in India. However, Sandeep Singh, Deputy MD, Toyota Kirloskar Motors has a justification for the delay. “We took a long time because we had to take into account the needs of the Indian consumer while finalising every detail of the Etios,” says he, while speaking to B&E. Accepted, but being a careful late mover is one thing and being the last to take the plunge is another. Therefore, carving out a comfortable space for itself may now call for some serious effort on the part of the Japanese, and even the Rs.32 billion committed by the company towards setting-up a dedicated production unit at Bidadi (near Bangalore, with an annual capacity of 100,000 units) may prove to be just half-a-leap. Considering that Toyota plans to sell 70,000 units of Etios in the first year of launch alone, with a further target of 300,000 units by 2015 (after having sold just a total of 63,843 vehicles in the Indian market in FY2009-10), the carmaker will need a far more robust distribution framework to realise the goods. Not to forget, profitability in the A2 segment (where the margins are the lowest amongst all passenger car segments) is largely dependent on dealership network. While Maruti has 850+ dealers and Hyundai has 670, Toyota only has 114 – lesser than even GM (250) and Ford (172)!


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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Monday, September 10, 2012

P. R. Somasundaram, Managing Director and Chief Executive Officer, Lakshmi Vilas Bank (LVB)

In a tête-à-tête with B&E’s Mona Mehta, P. R. Somasundaram, Managing Director and Chief Executive Officer, Lakshmi Vilas Bank (LVB) speaks about the growing importance of retail banking in the Country and the bank’s expansion plans to exploit the opportunities coming its way.

B&E: What are the new marketing initiatives that you are focusing on to increase your customer base in the retail banking arena?
PRS: LVB is an 83 year-old private bank with 1.64 million satisfied customers. In order to increase the base further we are concentrating on wealth management by offering related products and services. We are looking at steady growth in the retail lending space through secured lending measures like mortgage lending. However, as a policy of the bank, we have temporarily restrained ourselves from the unsecured categories like credit cards and personal loans.

B&E: With the number of participants increasing, competition in the Indian banking sector has moved up to a different level altogether. Banks are now competing to reach out to the huge unbanked population. How is LVB planning to deal with the situation?
PRS: The new management’s focus is to reposition LVB as a new generation bank and make it a top performer in terms of customer service, efficiency, productivity and profitability in the next 3 years. And to achieve it we are planning to start a housing finance company, increase our national presence, and leverage on our expertise in the IT domain. We have also tied up with LIC and Bajaj for life and non-life insurance distribution. The insurance venture is taking off really well for us. Apart from the centralised plans, we are also looking at drafting a town-wise strategy soon, particularly for the semi urban areas where we currently have 105 branches.

B&E: You have only 180 ATMs of your own. Don’t you think this will be a big roadblock in your retail dreams?
PRS: It’s true that we have only 180 ATMs, but at the same time we are also linked to other banks. So our customers can actually use 54,000 other ATMs belonging to various banks. Nevertheless, we are adding more ATMs every month and expect that our own ATM network will cross the 300 mark in the next 2-3 years.

B&E: Apart from CASA, how is LVB planning to strengthen its portfolio in areas like housing loan, auto loan et al?
PRS: Talking about auto loans, we do not intend to enter the 4-wheeler or 2-wheeler segment any time soon as these have collection challenges that may not be ideal in our current set up. However, we do have a presence, though small, in the transport vehicles segment. And we have plans to take it further. So, we are currently piloting a project that is expected to create a mid size opportunity for us in the segment. In the housing segment, we already have sizable portfolio and intend to grow it significantly through alliances; preferably through a Housing Finance Company. Apart from these, our new management team is now focusing aggressively on growing all business verticals of the bank and retail banking products. We have also included loans to MSME sector among our focus areas.


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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Monday, September 03, 2012

CAN RONNIE SCREWVALA FINISH WHAT SUBHASH CHANDRA STARTED?

UTV IS NOW ONE OF THE LARGEST PRODUCTION HOUSES IN ASIA...BUT NOT THE BIGGEST YET! CAN RONNIE SCREWVALA AND HIS TEAM MAKE UTV THE FACE OF INDIA TO THE MEDIA WORLD? B&E’S SHEPHALI BHATT PROVIDES A DEEP INVESTIGATION FROM RIGHT INSIDE UTV WITH EXCLUSIVE INTERVIEWS FROM UTV’S TOP MANAGEMENT

It was a period that saw two little known entrepreneurs make what can be considered their first indelible impressions in the business arena; albeit in markedly different ways. The year was 1981 when a very young man called Ronnie Screwvala started a three-hour cable video channel for households in Maker Towers in Cuffe Parade, one of the suave areas of Mumbai. He charges subscribers `200 per month and realises that there is money in the making. He expands beyond the towers; and within no time, Network, his cable service, gets thousands of subscribers. Within five years, after having made the money he wants to, Ronnie sells off his business and in 1986, convinces a staid old monopoly government television channel to take his services in providing programming content. Doordarshan takes up his offer; and Ronnie even starts presenting shows himself. In 1990, having had enough of the government association, he jumps ship and forms UTV, a company focused on provided content to satellite and cable channels globally.

Interestingly, even Subhash Chandra’s story started more or less in 1981, when he set up Essel Packaging Company after visiting a packaging exhibition. While rigmarole business was pretty satisfactory, Chandra saw a latent opportunity in the television arena, where India had only one Doordarshan. In 1992, Chandra, realizing the potential of television and cable, takes a huge risk and launches Zee TV. With no past experience of content programming, Chandra starts looking out for outsourced suppliers of world-class content. He searches for people harbouring a similar vision to him; and purely on gut feel, hands over a mammoth 520 episode contract to a young, highly enthusiastic man whose only experience is starting a local cable network and working for Doordarshan. The twain between Chandra and Ronnie Screwala becomes indelibly inseparable.

Within 6-7 years, Zee TV becomes one of the most popular TV channels in India and expands its reach across continents. What CNN was to America then, Zee becomes for India. And then competition from South Asia enters, with Murdoch owned channels like Star TV trying to ride over the Indian satellite TV space hook, line and sinker. Zee TV takes up the challenge superbly and with its fantastic programming, becomes the ultimate epitome of Indian business aspirations and Indian enterprise in the media and entertainment industry in the home market at that time. But despite being in the same business, there was something that characteristically differentiated Ronnie Screwala from Subhash Chandra.


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Saturday, September 01, 2012

CONTROVERSY: INDIAN MAP

In Jan 2010, NatGeo was warned by the I&B ministry for deliberately exhibiting wrong maps of India and was threatened with stringent action if non-compliance was continued. Let off then, NatGeo continues its misrepresentation! What does the government plan to do now?

But to pick on National Geographic singularly would be wrong, as many other notable agencies mirror this behaviour – including, as mentioned before, CNN, BBC, Lonely Planet, Wikipedia, Google and the quite infamous Central Intelligence Agency. All of these agencies currently carry Indian maps on their websites that are rampant equivocations of reality, yet are freely available from within Indian boundaries.

While the very first result of Google’s image search (for a keyword search of “India map”) gives a wrong map of India, CIA’s World Factbook Report has shown northern Kashmir as being cut off from India and being a part of Pakistan and China. Even the US Department of State endorses a map quite similar to the CIA map on their official India advisory. In the advisory, the Department mentions flagrantly, “The US considers all of the former princely state of Kashmir to be disputed territory.” CNN endorses this viewpoint and has gone a step ahead to term the entire J&K as “disputed.”

One has to realise that these are leading agencies of the world (for example, National Geographic is the world’s largest read magazine published in 32 languages with a mammoth monthly readership of over fifty million; Lonely Planet is the world’s largest travel guide book; Wikipedia is the world’s most referred encyclopaedia; Google the most used search engine; CNN/BBC the largest global media channels) and continued misrepresentation of the Indian map in these forums can only lead to global perception changing negatively against India. The nation necessarily needs to take quick and extreme steps to arrest this situation.

A call for action has to now come directly from the Prime Minister’s office that raises the diplomatic ire to the highest levels possible to enforce immediate and instant change. If compliance is still absent from these agencies, then the Indian government should ban these media/information/government agencies and immediately block access to their channels, both on and off the web.

On the other hand, if the government believes that such a continued misrepresentation by global agencies – some like Google and NatGeo which have already been warned – is not of grave concern, then it should call a spade a spade, tell the Indian public that what is lost, is lost forever... and label itself the most unpatriotic government in the history of independent India!


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Friday, August 31, 2012

AGRI SECTOR: INVESTMENT INCREASE

It’s magnanimous and astounding, but agriculture of all the sectors has seen huge increases in private and public sector investment in the past five years. B&E does a quick news synopsis and update of the investment scenario in the agricultural sector and commentates on visible issues by Angshuman Paul

Another key change has been in the interest of PE firms and venture capitalists right at the start of the value chain. According to Venture Intelligence, from early 2009 to June 2010, purely the Indian cultivation sector attracted a PE support of $102.46 million. Clearly, farmers and institutions investing in cultivation are giving a reverse multiplier effect. Sanjeev Goyle, Senior VP Marketing (Farm equipment sector), Mahindra & Mahindra shared with B&E how M&M has now become the world’s largest manufacturer of tractors; a feat they achieved only in the previous financial year. Says Rana Kapoor, MD & CEO of Yes Bank, “Agriculture provides employment to over 60 per cent of the population in the country and this [current growth] is because many of these farmers are today connected to the global market.” And much of that due to PE investments. Examples like the Washington-based Small Enterprise Assistance Funds (SEAF, which is engaged in investing in experienced agri-companies and has invested an astonishing $75 million in Indian agriculture-related businesses) or Rabo Equity Advisors (which has recently invested $10 million in the Global Green Co, from the stable of Gautam Thapar’s Avantha Group) are now a dozen heavy.

What is clear is that the investments are focused specifically on the JV or partnership route. Says Hemendra Mathur, MD of SEAF India Investment Advisors, “It is important that in agri-business if you are adding some value you should be involved through the entire circle of cultivation; and for such involvement it requires to create a partnership or joint-venture model,”

In all, what is being seen in the Indian agricultural sector has possibly not ever been seen before. Till now, growth in agricultural produce was significantly a government proposition; with successive central and state budgets going towards various versions of green revolutions – most of them highly successful. Added to that was the fact that over time, the varied news reports of farmers committing suicides in various parts of the country along with many others slipping into a destitute status due to the vagaries of Indian monsoons led to the sector not being viewed as one that would be the destination for the billion-dollar classes.

But suddenly, there are entrepreneurs, business houses, foreign institutional investors and other funding agencies that are realizing the ever present potential of the agricultural sector and the powerful business sense within this sector. And with 17% of India’s GDP being contributed by the agricultural sector – the highest contribution ratio compared to the world’s top twenty nations according to nominal GDP – there’s only an explosively positive future that lies ahead in the upcoming decade.


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Thursday, August 30, 2012

STEEL & CEMENT: Q1 RESULTS ANALYSIS

Despite the obvious rationale going against it, steel and cement players in India have had a markedly subdued first quarter. Virat Bahri of B&E analyses the dynamics behind the numbers

The causes for oversupply are two-fold. Firstly, there has been a capacity addition of at least 60 mtpa since the past two years but demand isn’t growing at the same pace. Rakesh Singh, Joint President, Marketing Head, India Cements, comments to B&E: “Capacity has been increased by 12-13%, but demand has increased by only around 7% y-o-y.” Industry observers point out that these capacity additions were done with a 2-3 year time frame in mind. Prices in May were down by 3.8% (Mumbai) to 14.3% (Hyderabad) y-o-y in different regions (Angel Broking-CMA research). Markets of South and West India were particularly impacted by sluggish growth, lower offtake and shortage of wagons. The monsoon effect is visible here too, and is likely to last till September. But for companies relying on the southern market, oversupply may persist for at least two years. Raw material costs will also continue to pester players. In Q4 2010-11, raw material costs are expected to grow (y-o-y) by 34.11% for Ultratech, 4% for India Cements and 25.4% for J. K. Lakshmi Cement (Jaypee Capital).

Jinal Joshi, an analyst with Jaypee Capital, feels the prospect of cartelisation cannot be ruled out in such situations. It is possible that players create artificial scarcity to push up the prices. The Builder’s Association of India, however, has alleged that this has already happened in the April-June period, citing price increases in certain regions. But the Cement Manufacturer’s Association refutes the claim, saying that prices have actually been falling.

From a 2-3 year perspective, the tidings are pleasant for both steel and cement. India is reaching the close of the 11th Five Year Plan and infrastructure spending is expected to double in the 12th five year plan. At that time, players of both segments should see the pricing game move more convincingly in their favour.



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Wednesday, August 22, 2012

Deprival of the weakest

India’s water problem will continue to grow to mammoth and daunting proportions unless an integrated approach is taken. PPP is a great model, provided profiteering is curbed successively.

In a recent education tour to Singapore under IIPM GOTA program, we happened to visit an industrial plant of NEWater. NEWater is a joint venture of Singapore’s Public Utilities Board and Ministry of Environment and water resources. What is unique about NEWater is that it not only supplies pure drinking water to its people but also recycles water from the reservoirs of Singapore. This gave us an idea of how the state is committed to provide safe drinking water to its people and to ensure maximum replenishment of water supplies.

When we think of India, it presents a stark and unfortunate contrast. There is an ironic diversity when it comes to the availability of water, leave alone the safe and drinkable part. While hundreds of lives are in danger because of shortage of water in states like Rajasthan and Gujarat, which often experience drought and water scarcity, thousands others die in states like Bihar, Orissa or West Bengal, which are often inundated by flood.

Worldwide, an estimated 1.2 billion people drink unclean water, and about 2.5 billion lack proper toilets or sewerage systems. Over 5 million people die every year from water-born diseases such as cholera. In India too, about 70 million people in 20 states are in danger due to excess fluoride and around 10 million are at risk due to excess arsenic in ground water. In the gross sense (pun intended), about 10% of the population from both urban and rural areas does not have access to regular safe drinking water.

India is not very far from a water crisis, in a world that recognises that water will be just about as important by 2025 as oil is today. Over 85% of the rural population in Indian solely depends on ground water, which is depleting at a faster rate.


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Tuesday, August 21, 2012

Digest this!

It’s all about respect for Nicholas Cage. He has recently confessed that he eats only those animals whose sex lives he respects. Nicholas believes that birds and fish mate ‘respectably’ and thus he chooses to eat fowl and fish, but pigs on the other hand are spared from becoming his dinner as their sexual pursuits are not dignified enough! One mad hatter, that. We advise Nicholas Cage to keep further details on how he hogs to himself!


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Monday, August 13, 2012

Punit is now focussing on expanding the regional and sports channel portfolio

After fixing up the group’s GEC, Punit is now focussing on expanding the regional and sports channel portfolio

B&E: Coming back to your flagship channel Zee TV, it has been growing very consistently in terms of rating over the past 18 months. So, when do you see Zee holding the No.1 spot?
PG: I would put it this way: Are we here to change the No.1 ground? Zee is frankly does not believe in that business model. We are not in this business to raise money from third parties. In terms of profitability no one can match Zee. So that ways we are already No.1. Top rank, in rating terms, is of no use if you don’t monetise and make profit.

B&E: One thing you appreciate most about your father...
PG: His vision is something that I appreciate the most. You cannot imagine how he comes up with these ideas. He had told us about the slowdown in the first quarter of 2008. At that time things were exceptionally well and no one could have guessed what was coming, but he did. If it wouldn’t have been his prudence and vision we would not have achieved what we have in the past four years.

B&E: Any particular challenges that you think Zee needs to work on?
PG: The negative growth in the industry is the key challenge that Zee Group needs to work on and make sure that it turns around. Otherwise it’s like a whirlpool that will suck you one way or the other.

B&E: In India, cricket as a sports is given maximum importance by corporates, while other sports take a back seat. Do you see the trend changing?
PG: That has already started changing. If you see hockey, it has already got support from several corporate houses. In fact, I feel that other sports too will soon get the importance they deserve.


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Saturday, August 11, 2012

Meet the break-up agent!

If the romance is long over and you’re struggling to decide how to break-up, here’s someone who’ll do the dirty work for you!

Breaking up with your partner is hard, we know that. The thought of a break-up is not on one’s mind when getting into a relationship (at least not for most of us). Even the term ‘break-up’ can send a shiver down our spine. But what else can one do when one realises that the girl or guy they’re seeing is great, but you two just don’t click? Or worse, you realise the person you are dating is nothing but a loser and on second thoughts you wouldn’t even wish to see your enemy with him/her! How does one tell him that it is just not meant to be, without having to go through the pain of confrontation and the resultant drama and heartache! Well, the days of drama are behind us and now all one has to do is to pay a modest sum and the dirty work would be done by an expert!

Bernd Dressler, a businessman in Germany, started the project ‘Separation Agency’ in 2006 after he stumbled upon this idea on eBay. His job description is basically that if someone wants to break-up and doesn’t have the guts to do it themselves, then all they need to do is get in touch with a break-up artist who would end the relationship on your behalf. In short, it’s the work that actress Britney Brooks does in the film “The Break-Up Artist”.

“I have four packages for the service. The first service is ‘phone call’ in which they remain friends and it is very friendly. The second is a phone call again but it is more direct and that there will be no contact any more. The third is to write a letter, but this service is not booked very often. The fourth option is a personal visit. The normal phone call is around 29.95 Euros and the personal visit costs 65 Euros. The most common service is a phone call for ‘let’s just be friends,’” reveals Dressler.

Agreed, it is tough to break-up and confront your partner, but why involve a third party? “People have a problem because nobody knows what to do. We, as a separation agency, think that we only have a task of sending a message from one person to the other.


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