Showing posts with label Guru Economist. Show all posts
Showing posts with label Guru Economist. Show all posts

Tuesday, June 08, 2010

Half a nation's half a war

Even Rip Van Winkle would have felt embarrassed by India’s oddity

It is said that if something looks like a duck, flies and quacks like a duck, then it has to be a duck. But India is an exception. So, when 18 brave heart policemen were killed in Mumbai during 26/11, the whole nation galvanised into one and there was an evident cry of a battle to take revenge. Yet the issue was somehow marginalised to how the police and CRPF intelligence was to be blamed, if not Chidambaram. While that may be true, what has to be realised is that in all our confabulations, we should not forget that those are the Maoists primarily who are responsible for the killings. This may sound simplistic and naive; Home Ministry reports clearly state that in the last few years more uniformed personnel have been killed by the Maoists than by any terror group in J&K or Northeast. It is known that the Maoists have far greater firepower than any other banned terror organisation in India. They have mastered the use of IEDs and pressure bombs to the extent that the Indian security forces are still clueless about how to deal with them even as the mine protection vehicles are proving to be redundant. It is also known that Maoists are far more ruthless than any other subversive organisation and consider killing their adversaries with the worst kind of ferocity and ruthlessness to set examples for the rest. Their objective is not to develop the underdeveloped regions of India but keep them out of bound from prosperous India. Had their intention been to improve the state of people, they would have ideally given books instead of AK-47s in the hands of teenagers and not use them as fodder even while the progeny of the elite Maoist leaders continue to live in opulence. It’s no secret that their real objective is to replace India’s democracy with a ruthless communist regime. It is also known that in the Maoist strongholds, nothing can move without paying extortion money, the extent of which is around Rs.1500 crore a year. Yet when these reports come out, Indian intelligentsia easily scoff them off as government's propaganda and that Maoists are nothing better than poor peasants in destitute.

So what happens to India? Well the fight against Maoists is a litmus test of the very idea of India and would help in drawing the boundaries of liberty and laissez fairer that our democracy has been reduced to. Would someone ask the intellectuals as to who, whether the Maoists or the CRPF would come to India’s rescue if there’s another 26/11 type attack in India? Unfortunately, for Indian intellectuals, whose bravery is never put to test in front of a barrage of AK-47 bullets, its romantic reverie of an ideal revolution will not be broken unless the Maoist attacks, like the Jihadi attacks, would hit the heart of urban India hard. Then helicopters would be used with impunity as was used in 26/11. But till that time babus and netas sitting in Delhi would pretend that there’s no war going on and so Army’s involvement is not needed. Till that time, India would continue to have half a war in which it would fight and yet not fight to finish while the Army would continue to buy weapons for a conventional war, which perhaps would never happen in reality. If the Maoists are so right in their attitude that even the government is confused, then let’s not have any war at all and let them have their leeway if it helps India. But why reduce it to CRPF’s and Chidambaram’s war instead of the nation’s war? Yet, can you expect something better than half a war from half a nation? Not really because for a nation which behaves more often than not like 28 independent states, one can only expect half a war. And the poor CRPF jawan without any idea as to why his government has left him alone to die, would continue to pay with his half or full life while numerous talk shows on television would have burning issues to discuss and ponder for months to come. We call this democracy.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Thursday, March 25, 2010

Socialism is misconstrued

We still underutilise the allocation made for flagship programmes

The first Prime Minister, more known as the architect of modern India, Jawaharlal Nehru once said, “Socialism is... not only a way of life, but a certain scientific approach to social and economic problems.” How far the country justified imbibing socialism remains questionable but public expenditure became very popular with time, but without many successes though. India had poverty eradication, providing clean and safe drinking water and affordable housing facility as priorities in its first Five Year Plan, it is still fighting to achieve the same in its 13th Five Year Plan. Why so?

Well, the fact is that India has initiated innumerable flagship programmes. In fact, we have one of world’s biggest public expenditure programmes. The Central plan outlay for the year 2010-2011 is around Rs.415691 crore, good enough to face the current malaise for one year. But the problem is that a major portion of the allocations is underutilised. Data reveals a shocking reality. A total of Rs.12887 crore was allocated for the year 2009-10 for the most visionary Jawaharlal Nehru National Urban Renewal Mission while a mere Rs.3848 crore was actually spent which is merely 29.9 per cent of the total allocation when the country is still having urban housing shortage of over 25 million. Another Rs.8000 crore was allocated for the drinking water scheme, only Rs.3362 crore is spent, only 42 per cent of the allocated amount. Similarly, even in the case of one of the most imperative programmes, irrigation benefit programme, Rs.9700 crore was allocated but only Rs.3689 crore was actually invested, again 68 per cent of the fund remained underutilised. Even the Gramin VidyutiKaran Yojana is grossly underutilised by 42.8 per cent. More interestingly, the most hyped and popular programme, UPA led NREGA program which was intended to sort out the major problem of unemployment in rural India is 43 per cent underutilised. Surprisingly, a total of Rs.39100 crore was allocated for this scheme during the fiscal year 2009-10 where only Rs.22295 crore is actually spent. There is only one project where actual spending has crossed the allocation. The PM Gram Sadak Yojana, while Rs.12000 crore had been allocated for this, around Rs.13045 crore is spent, making 108.7 per cent of the allocation. About 40 per cent of funds allocated for flagship programmes, remain unused every year, which if used properly can bring a major infrastructural and social shift.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Friday, March 19, 2010

Club Mahindra

Though several critics hold to account the high expectations from the company as one of the major reasons for the loss in shareholder value, one could understand that those were these very bullish expectations that empowered the stock to outperform the BSE Auto Index over the past year – since January 2009, Mahindra’s share price has risen by 279%, much higher than the 187% rise in the BSE Auto Index. And keeping in mind the growth fuelled by the strategic diversifications over the past years (see timeline), the group – and Anand Mahindra especially – has gathered some scrupulous and strong supporters too in their wake (S. P. Shah, President, Federation of Automobile Dealers Association is one of them, refusing to buy a contrarian argument; he tells B&E, “Anand Mahindra is one of the finest strategists in the country. In fact, his clear understanding of the market and his focus on the bottom of the pyramid has made the Mahindra Group one of the strongest business conglomerates.”)

Giving credit where it’s due, when we compare the Mahindra Group with other diversified firms in the country today, it becomes all the more clearer that Anand Mahindra has fared much better at risk-taking. Be it Mukesh Ambani’s retail venture, Ratan Tata’s expensive JLR deal, Sunil Mittal’s cautious process of making inroads into sectors like retail & realty, K.M. Birla’s unsuccessful retail venture and his ill-fated acquisition of Spice Mobile or many such enthusiasts; all of the aforementioned business honchos have run into the rapids quite unexpectedly, while trying to make their mark in newer territories, organically or inorganically. Take the classic case of the JLR acquisition by Tata Motors for that matter. Tata bought Jaguar & Land Rover (the two most popular brands from Ford’s stable) for a whopping $2.3 billion in March 2008. To imagine that just nine months later, the market value of GM lay battered at under $1 billion on the NYSE is proof enough of the ill-timing of the purchase; Tata could have instead purchased a decent stake in GM itself! he’s leaving little to chance..

Here is another instance. As soon as K. M. Birla’s June 2008 acquisition of Spice Telecom was announced, several industry watchers expressed their discomfort with the deal. And their reactions were understandable, for Birla’s Idea Cellular had paid a huge Rs.27 billion for a 40.8% stake in a company that was operational in only two circles of Karnataka & Punjab, was experiencing a drop in subscriber base and had a much lower Average Revenue Per User (ARPUs) as compared to that of Idea. But the company went ahead with its decision and may still end up with a wise buy, albeit cutthroat competition, given India’s future telecom potential.

On the other end, we have Anand Mahindra, who has made clear in-roads into sectors like Travel & Tourism and IT, with his two cubs – Club Mahindra and Tech Mahindra. “We want that people should relate to holidays as Club Mahindra and thus, our focus is to grow in India,” points out Ramesh Ramanathan, MD, Mahindra Holidays & Resorts, to B&E. But all’s not well on this end too, and just like other diversified firms, Anand Mahindra seems to have his own share of troubles.

But there are cautious warning signs in some of Anand Mahindra’s SBUs. As far as his Tech Mahindra dream goes, experts still believe that he should become extra cautious about any further investment in this vehicle. According to a report by Prabhudas Liladhar, a leading brokerage house in the country: British Telecom’s trouble (BT Group owns 31% in Tech Mahindra and is also the largest customer, accounting for 46% of its revenue) and subdued IT spending in the telecom vertical could reduce earnings visibility in the near term, therefore giving Tech Mahindra’s stock a ‘reduce’ rating tag. The report further forecasts the company’s net profits during FY2010 to fall by 36.1% y-o-y, to touch Rs.6.9 billion. Even during Q3, 2010, the firm experienced a 22% drop in net profits due to interest costs on borrowings that it used to fund its acquisition of Satyam. After shelling out a precious $4.50 billion, the company still has a considerable amount of unpaid debt, which at the moment stands at Rs.17.44 billion as on January 1, 2010.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Saturday, March 13, 2010

Naxalism - Force is not the answer

We as a people need to look for political solutions instead of treating Naxalism as a menace

N. Manu Chakravarthy

Writer and rationalist thinker, Bengaluru


When we discuss Naxalism, one question instantly springs to mind. Should it be considered a social problem or a problem of law and order? To this my answer is very clear. Until we are unambiguous about the terms ‘law and order’, we cannot come to a proper and sensible conclusion. If we use the term ‘law and order’ it certainly carries a kind of self-definition. These words expose the location and position of the people who use the words ‘law and order’. So we may ask very fundamental questions, who is talking of law and order? This is actually the language of the court, the police, administrators, and to a certain extent, the middle class. In our society, more often, these terms are propelled by certain privileged group of people to safeguard their interests. When you keep raising such fundamental questions, you come to realise that terms like ‘law and order’ indicate a certain kind of hierarchy. Do we really exist in a situation where we can hope to convert the term ‘law and order’ into ‘justice and equality’? The moment we failed to translate the meaning of ‘law and order’ into ‘social equality and justice’ we also lost the moral right to pass the diktat, saying Naxalism is mere a problem of law and order.

To my knowledge, Naxalism is the colossal failure of constitutional execution, our political system and, more importantly, of the judiciary and the middle class. The rise of Naxalism should be seen as result of the of ineptitude of our system and its inability to fulfil the constitutional needs of our common, downtrodden people. Naxalism is often wrongly described as a ‘menace’. But I would like to characterise it as an anguished expression of people who have been completely betrayed by the common law of the land. They bank upon armed struggle more out of desperation and frustration. In other words, they are forcibly made to resort to violence by constant refutation of the basic rights which are supposed to be given by our Constitution. But I never believe or argue that Naxalism is inevitable to fight out the inequalities brewing in our society. What I am trying to say is that as a system we are creating social conditions in which such forms of extremism become unavoidable for certain groups of our society. We are literally compelling our own people to take to guns to express their dissent.

What else do we need to illustrate the failure of the conscience of our society and country? When a citizen is compelled to take up arms in order to express his disenchantment with the system, isn’t it the indifference of middle class that should be held responsible, at least partially, for such a turn of events? As this innate apathy continues, we will only end up prolonging the crisis.

Then, another question arises. Can anyone derive any real benefit from such acts of anger? Will this serve the purpose of those people who contemplate a state of ‘Utopian’ social equality? My answer is, again, NEVER. You can’t construct the society, no matter what Utopia that would be, on the premises of blood and death. Such extreme steps may only help to build up one more bloody state. The history of the human civilisation has already proved that one cycle of violence leads to another cycle of violence. Though we can’t deny the fact that Naxalism is created and reinforced by the inhumanness of the ruling state, we must also accept that we can’t expect anything productive out of it. The coldhearted and callous regime succeeds only in creating one more blood-mongering autocracy. What kinds of states have all the revolutions of the world delivered?

So unless we can eliminate the violence of the state, Naxalism will continue to exist and unleash other kinds of tyranny. And if you think responding to a ‘ruthless’ regime with its own coin can do anything worthy for the people or society, then you will end up nowhere for sure. The middle class appears to be cut off from the bitter reality. They are busy decrying Naxalism instead of trying to understand what really causes people to declare war on their own nation. Have these desperate men and women ever been given a chance to speak their minds? Or as a society, have we ever attempted to understand their plight? Are we really serious about political alternatives? Instead of seeking genuine solutions, we are lost in an ‘us versus them’ battle that has no end. Needless to say, the middle class is in complete consonance with the ruling class which protects the former’s interests to serve its own ends. Instead of pursuing political alternatives that could give the ‘forsaken’ sections of our country reason to trek back into the mainstream, we are stuck in useless polemics. You can dismiss the Naxalism as a cancer or a scourge. But how can you neglect the infected social conditions which create such festering tumours?
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Friday, March 05, 2010

Are the greenshoots for real?

Gyanendra Kumar Kashyap explains why rural India will be the next battleground for the insurance players and why will the growth come from there…
Year 2009 saw the Indian insurance industry face an extraordinary confluence of testing macroeconomic trends along with unique challenges & opportunities. As revenue growth went downhill, margins came under pressure and capital requirements surged, and with it increased the urgency for the insurers to reduce their costs, strengthen their risk management and stabilise capital positions. And if one goes by a latest report from Swiss Re (the second largest reinsurer globally), one sees that, “reduced demand, low interest rates and the need for many companies to recapitalise are some of the challenges that the industry will face in 2010.” Notwithstanding the challenges, the untapped potential of life insurance in India (whose penetration level still stands at a miniscule 4%) is certainly that one thing which can alone make the insurance industry prosper in the near future. Learning bitter lessons during the slowdown, players are now increasingly focusing on operating efficiencies and are looking at right sizing their frontline sales force and making them more efficient. As per the latest available numbers, while the annualised premium earnings (APE) for the private life insurance players has increased by a healthy 29.6%, the same was pegged at a whopping 45% for the state-owned LIC. The general insurance segment too witnessed a 16% (y-o-y) growth of the gross premium underwritten.

These numbers bear testimony to the fact that insurers are now evaluating economic returns before making any new investment. Aware of the shifting landscape, the insurance regulator IRDA too is in the process of framing guidelines for M&As in the sector. Not only this, the regulator also plans to come out with IPO guidelines for insurance companies by February-end which will allow them to raise funds from the capital markets (Reliance Life could be the first life insurance company in the country to come out with an IPO). These guidelines will further protect the policyholders’ interests and also ensure transparency and corporate governance.

Considering all this, one can say that the insurance industry in India is certainly ready for a fresh start. In fact, industry leaders like Deepak Sood, CEO of Future Generali India Life Insurance Co, believe that with rising optimism in the Indian stock markets, it’s time that customers reap the benefits of a market that has shown stability and resilience and is poised for a long-term positive run. Further, as private players take on public sector behemoths by having strategic tie ups with regional rural banks, rural India will be the much wanted battleground. Harpal Karlcut, CEO, Canara HSBC Oriental Bank of Commerce Life Insurance Co agrees with the recent development as he tells B&E, “Given that the market is inadequately insured, rural areas offer great potential. We are aided by our strong distribution model that will enable us to take life insurance to large sections of the society and help meet every Indian’s need for insurance.” With India’s poorest sections living in rural areas, it’ll be interesting to see how the insurance giants finally end up making money.

UP AND COMINING

Since the stock market lows last March, the life insurance stocks have recovered dramatically. In 2010, capital concerns will be largely behind the industry and investors will return their focus on the underlying business fundamentals of the sector. Though the fundamentals of the industry are expected to improve in 2010, the sector will still face some headwinds. In addition, while one can anticipate investment income to increase over the 2009 levels as insurers put more money to work in the debt markets, most insurers will continue to maintain defensive liquidity positions, which will act as a drag on earnings growth. It is also expected that the overall sales volumes, especially those of higher premium products, will remain depressed versus the levels seen in most of this decade. Although merger and acquisitions were virtually non-existent in 2009, the situation is all set to change in 2010.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Tuesday, March 02, 2010

Of budgets and off budgets

For the middle class families, rising food prices have proved to be killing and the steps by government are a big joke, say Vikas Kumar and Niharika Patra

Sadhana Singh gets perplexed, mystified, exasperated and even infuriated when she watches news on TV or reads the front pages of her newspaper these days. She is sick and tired of Baluchistan, the fight between Anil and Mukesh Ambani, the antics of participants in Rakhi Ka Swayamvar and the statues that UP Chief Minister Mayawati is erecting. She is terribly disappointed with the media; she never had any hopes from august members of Parliament anyway. “Rising costs of groceries have completely damaged our monthly budget. It is really difficult to maintain the same standard. Our monthly saving is now nil,” says this agitated bank employee, even as she struggles to identify one ‘cheap’ vegetable in the market.

There are literally millions of consumers, homemakers and families across India who share the rising desperation of Sadhna Singh. For them, all the stuff that comes out in newspapers about the rate of inflation falling below zero is a bad joke inflicted upon them in poor taste. School teacher Rajarshi couldn’t care less about the subtle differences between the wholesale and the consumer price index; it is ‘price’ that is killing her, day in and day out. But as former RBI Governor Bimal Jalan says, we should focus on the consumer price index rather than the wholesale one while talking about consumer inflation. And that index is galloping ahead at double digit rates.

Most of them still think that Prime Minister Manmohan Singh has the experience and the wisdom to stem the rot; but they can’t help wondering why Mr. Singh is not paying more attention to such ‘bread and butter’ issues. Reality for them is the relentless rise in prices of goods and services that account for the bulk of a middle-class family budget. And the price hikes in many cases are incredibly high. Fond of cauliflower and capsicum? Be prepared to shell out Rs.80 per kg. Think you can increase the ‘nutrition’ quotient in the diet of your child by adding more Arhar Dal? You need to be ready to shell out close to Rs.100 per kg. Have a sweet tooth? Well, sugar is touching Rs.30 per kg.

Those are not just the normal day to day food items that are wreaking havoc on middle-class family budgets. Thanks to the largesse doled out by the Sixth Pay Commission, the amount of money they have to pay as school fees for their children has virtually doubled – often with retrospective effect. And unlike their luckier ‘government employee’ counterparts, an overwhelming majority of those working in the private sector have not seen a pay hike for more than a year. Says Rajarshi, “I have two sons and their school fees have now doubled. I don’t know how will I pay all this.” Rajarshi and her husband really don’t know how to tackle this situation. So, middle-class Indians like Sadhna and Rajarshi who used to save about Rs.5,000 per month have now seen their savings dwindle to literally nothing.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-



Outlook Magazine money editor quits
Don't trust the Indian Media!

Wednesday, February 17, 2010

Reinvigorating the ‘port of good hope’

When Jawaharlal Nehru laid the foundation stone of the kandla port, the vision was truly a grandiose one. while one cannot deny the achievements of this port, Akram Hoque of B&E also warns of critical shortcomings

Gandhidham, a small city in Gujarat, bears tesimony to what ports can contribute. Around 350 km from Ahmedabad and 1101 km from New Delhi, it would have been just like any one of those hundreds of cities in India that you possibly wouldn’t hear about in a span of a lifetime. The reason why it isn’t, is quite evident from a near unnoticeable signboard I come across as I step into the city from the railway station. It says, “Kandla Port Trust welcomes you.” In Gandhidham, this is not merely a corporate branding initiative. It actually is an apt reminder of how much the Kandla port means to the city. Alhough the Kandla port was commissioned in the year 1930 by Maharao Khengarji III (the ruler of the then princely state of Kutch), it was the great visionary Sardar Patel who realized the need to explore the possibility of establishing a deep-sea port to cater to the vast hinterland. And Pandit Jawaharlal Nehru laid the foundation stone for the new port of Kandla in 1952 with a mission to make it a major logistics hub, which would render professional, cost effective and value added services to its customers. Some of its defined objectives were to provide efficient and economical port services, create facilities of international standards and facilitate quicker turnaround of vessels, besides pursuing a slew of social development and environment friendly initiatives.

As per official data, the cargo handling capacity went up by 11.29% in 2008-09 and reached 72.22 million tonnes per annum against 64.89 million tonnes in 2007-08; the highest-ever cargo throughput by any Indian port. The management aims to scale it up further to 100 mtpa by 2012. It also handled the highest amount of crude oil at 35 mt in 2008-09, as compared to 20.27 mt in 2007-08.

The Kandla port also has some major strategic advantages. Firstly, a vast hinterland of 1 million sq. km. can be easily accessed from Kandla. Secondly, it has the highest Liquid Storage capacity in the country. Thirdly, tropical and dry climate conditions with scanty rainfall enable relatively uninterrupted operation around the year. And most importantly, it is the nearest to Middle East and Europe. Omprakash Dadlani, PRO of Kandla Port Trust, tells me, “All these strategic advantages have made us one of the best and highly demanded ports in India. We have recently been honoured with the ‘Best major port of the year’ award for 2008-09 by the Ministry of Commerce.”
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Friday, January 23, 2009

3 ghosts of the future?!

US giants need a bailout package of $75 billion. Now!

The newly elected US President Barack Obama recently met the current president George Bush and spoke about a series of issues, including bailout packages for the US auto majors. The situation of the US auto sector is even worse than that of India, as the auto majors are begging for bailouts, with all urgency! The accused in this case are the three Detroit giants – Ford, GM and Chrysler, whose financials are getting worse, every passing month! The three automakers have asked for a $50 billion package from the US government, which will help them combat the current crisis. Interestingly, this figure doesn’t include the additional $25 billion which the government has agreed to grant to the automakers to produce energy efficient vehicles.

Well, in a situation where almost five million jobs rely on the auto sector, falling apart of the sector surely means a state of urgency! It is a situation where the stock prices of these auto giants is tumbling by the trading hour and their operating cost shows no signs of falling. Surely, for now, it’s about breathing hard, underwater for the giants. Strange though, it was the same trio that once ruled the world of automakers. Today, they have been reduced to brands that might just becomes ghosts for the American future. Obama, you there? Bailout is the word!
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
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Tuesday, January 20, 2009

Ratan Tata to sing in C'h'orus!

The problem for Ratan Tata keeps on mounting. His international acquisitions and investments are being hammered by the global slowdown and financial crunch. To overcome one such problem, Tata Steel, has finally laid down plans to merge its Britain based unit Corus by next year. The merger would make the group the second largest steel producer, next only to the Luxembourg based ArcelorMittal. The move has been taken to cut down on input costs and to save up to 350 million pounds. The merger puts thousands of jobs at risk as issuance of pinks slips seems inevitable. Nevertheless, given the current economic situation and feasible synergies of the alliance with Tata Steel’s construction-related assets which are likely to gain from Corus in the UK and Tata steel contributing through supply of raw materials, it does make sense for Ratan Tata to go ahead in the best interest of the company.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
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The Indian Institute of Planning and Management (IIPM)
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Top Articles on IIPM:-
'This is one of Big B's best performances'
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Friday, October 31, 2008

...while Vohra picks...

Clubbing: The best car for clubbing has to be a Lamborghini as right now it is the most exotic car available in India.
Rush Hour: An Automatic Santro fits the bill as it is a small car and is easy to drive. Being an automatic, it will be very convenient during rush hour.

Date: A Porsche 911 would be an ideal car for a date because it is classy and is perfect for impressing that someone special. Picnic: It has to be an SUV… probably a Toyota Innova as it is a family car, and has a lot of space. Therefore it should be perfect for a picnic.
Off-roading: A Land Rover is the best off-roader available in India.
Best value for money:
In segment A it’s Alto,
In segment B it has to be Swift
In segment C it’s Skoda Octavia
In segment D nothing comes close to beating a Honda Accord.

Automatic Santro fits the bill as it is a small car and is easy to drive. Being an automatic, it will be very convenient during rush hour.

Arush Vohra Owner of Autof Psyche

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
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The Hindu : Education Plus : Honour for IIPM
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Thursday, October 23, 2008

Beginning of a powerful bull market

There are several reasons to seriously doubt that we are at the beginning of a powerful bull market such as we were in 1982. For one, in 1982, the US stock market was no higher than it had been in 1964 and it was down in real terms by more than 75% from its 1966 high. In fact, in 1982, measured in gold terms (in “real” real terms – not in real terms using the doctored CPI) the Dow Jones was lower than it had been in 1932 following the 90% bear market 1929-1932.

So, whereas in 1966, one Dow Jones Industrial Average bought 28 ounces of gold, in 1982 it bought less than two ounces of gold (in 1980, one Dow Jones only bought one ounce of gold). At present the Dow still buys 12 ounces of gold and although this is down from its purchasing power of 44 ounces in 2000 (yes, the Dow has lost in gold terms or in “real” real terms 72% since 2000!), it is far from where stocks usually bottom out after major secular up-trends end. Simply put, in 1982, stocks were dirt cheap (P/E 7, dividend yield 7%) whereas now stocks are still pricey. Moreover, aside from so many other conditions, which were far more favourable in 1982 (debt-to-GDP only 130% compared to current debt-to-GDP of 350% ex unfunded liabilities, saving rate of 12% versus current saving rate of zero, MF cash positions of almost 15% compared to 4% now, et al) commodity prices and interest rates - the latter were then at over 15% on long- term Treasuries compared to around 4% now - were about to enter long term down-trends that would lift the valuation of equities, boost corporate profit margins and lift corporate earnings. However, these conditions no longer exist today! Interest rates will only decline further if there is a deflationary bust – not exactly a positive for equities. Also, whereas commodities could decline quite sharply in the near term should global demand collapse (major economic slump) the long term trend would seem to be on the up, courtesy of money printer Ben & stock manipulator Hank. Lastly, whereas in 1982 corporate profit margins were at depressed levels, today they still seem to be – from a historical perspective – close to record levels. So, all in all, I very much doubt that the current stock market strength is the beginning of a long-term uptrend. I would, therefore, use market rebounds around the world as a selling opportunity.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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Tuesday, October 21, 2008

Between eternity and time

Hurdles are plenty in way of implementing 3G policy. Any delay will make it costly for the telecom companies
If 3G doesn’t make sense to you, don’t worry. For the telecom companies, you make sense to 3G. In other words, your presence is what makes them believe in 3G. Service providers are now gearing up to apply for the Third Generation (3G) spectrum. 3G systems support increased data communications and wireless broadband Internet access. The 3G networks have markedly greater capacity and spectrum efficiency and 3G services facilitate higher speeds and data throughputs, which enable the delivery of a wide range of multi-media services. In an ideal 3G scenario, users would get abundance of value added services developed by independent service providers with plethora of business combinations and technical implementations.

According to Nirperder Mishra, Chairman TRAI said to B&E, “Broadband connectivity is critical for moving the country towards a knowledge-based society. The deployment of 3G will facilitate the penetration of broadband in the country and also help in achieving the target set by the government for broadband connections”. All in all 3G would give greater access to consumers to value-added services. However, even before the companies could start operating with 3G, dark clouds have started to hover around the entire issue.

Differences between the Finance Ministry and the Department of Telecom (DoT) is the latest controversy to have gripped the whole issue. The Finance Ministry has accused DoT of violating due process and undermining the explicit Cabinet decisions on inter-departmental approvals for policies that have a revenue impact. It has even accused DoT of coming up with a policy which has half-baked guidelines.

According to the 3G policy that was announced by the Ministry, foreign players will have to dole out at least Rs.40 billion for acquiring spectrum where as the existing players will have to pay a minimum of only Rs.20.20 billion. Besides the auction guidelines also makes it difficult for global telecom operators, like AT&T, Verizon, NTT DoCoMo and Deutsche Telecom to bid for 3G spectrum. Firstly the auction is only for 3G and not 2G so these companies would have to join hands with the existing players for having a fully functional operational and the existing M&A norms would be a major hurdle for them to gain an entry. Along with this, there is also uncertainty regarding the 3G spectrum beyond the alloted range of 5 MHz.

All this combined together makes it only possible for the existing players to bid for spectrum. There is also criticism from the GSM operators that the guidelines so set by the ministry is skewed towards the CDMA operators. All this summed up would further delay the introduction of 3G policy. What makes the matter worse for the telecom players is that TRAI has recommended that calls from personal computers-to-phones be allowed in the country. It would help Internet service providers (ISPs) open new revenue streams as they would be able to provide cheaper international calls and even free local calls to the consumers. Most importantly the ISPs would get the benefit without incurring any cost.

Untapped rural market would also open up for the Internet providers. “This could drive the growth of broadband in the country. Also, rural markets, where long distance tariffs still remain unaffordable, could benefit greatly,” said ISPAI president Rajesh Chharia. Telecom operators on the other hand have to wait till the 3G policy is implemented. While on one hand they have to pay huge amount to win spectrum, on the other the opportunity lost to Internet providers would be huge. It makes no sense to have a policy which is not able to provide benefits to the very companies who are part of it.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
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The Hindu : Education Plus : Honour for IIPM
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Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...domain-b.com : IIPM ranked ahead of IIMs

Monday, October 20, 2008

Let’s tell you about the Gang of 10

Obama encourages the formation of this team to debate US oil drilling
In spite of the fact that Republicans led by John McCain are robustly favouring the lifting of the moratorium on drilling in the US and trying to garner public support on the issue, the fact that Democrats are against such a lifting of restrictions, has created a new loggerjam of a debate between the two parties and their representatives.

Even if the energy policy has led to an impasse in the Senate between the two parties in the past, the latest encouraging remarks by Obama, where he has found righteousness in offshore drilling, is a major shift in the otherwise rigid stand of the Democrats. The formation of a bipartisan team, called ‘Gang of 10’, is being encouraged by Obama himself to look into the matter, and with a common broad based viewpoint (it consists of 5 Democrats and 5 Republicans).

By government’s own admission, 18 billion barrels of crude remain untapped in America’s restricted hinterland. Yes, the Democrats claim they do not want to be stooges of oil behemoths, about which they often blame the Republicans. But beyond this, is the fact that there is little chance of cutting down on oil prices even if such drilling were allowed. Firstly, the actual output will take more than a decade to flow, and the cost is colossus. Secondly, America in all has only 3% of world’s oil reserves, whereas annaully it consumes 20% – another reason why, as the Dems argue, drilling might not influence the price of oil. On the other hand, Republican’s have a meaty issue for their flagging electoral cause. The gasoline price rise is hurting the US middle class, and this issue has got an immediate media attention, with Democrats on the defensive. Notwithstanding reality, studies now reveal that nearly half of the electorate believes in the fact that oil prices will subside if crude is drilled in their own country. Didn’t we tell you Obama is the bright spot in Dem county?

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
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IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...domain-b.com : IIPM ranked ahead of IIMs

Saturday, October 18, 2008

Where, Mrs. Robinson, lies the problem?

If you thought oil would run out, take a walk (no pun!). Oil isn’t running out, but your money would, given the fact that despite current oil price falls (!!!), rising demand would ensure future oil price rise! And worse, alternative fuel also sucks! virat bahri of B&E confounds [us too!]...

“We are very sorry, Sir, no more is left, not a single drop :(”
“C’mon, mate, you must be joking; this can’t be happening.”
“Believe us Sir, the world has seen the last of black gold! It’s the end of ‘automobil’ity...”

Uhh, alright, it sounded more childish than I should have wanted; but how does one put across the fact that oil may one day run out when, er, it perhaps would never! OPEC’s latest report estimates that between the years 1995-2003, new discoveries improved recoveries by 138 billion barrels. Production has already increased by 26% as compared to the 1960s. By 2020, oil production is likely to cross 1600 billion barrels annually. If such is the case, as Dustin Hoffman asks lovely Mrs. Robinson, where lies the problem? Demand honey, demand. Demand for oil would [should?] far outstrip supply in the coming years. Oil has become a necessary evil for us; it is guzzling down our, and my, bank balances like nobody’s business, yet you can’t imagine life without it. Goddammit, I can’t! And there lies the need to cut across to alternative or quasi-alternative fuel. This dire need to make black gold less ‘necessary’ so that it can become a much subdued ‘evil’ has given rise to numerous technological breakthroughs in alternative fuel technology, giving cars that can run on electricity, hydrogen, E 85 (85% ethanol and 15% gasoline), nuclear, solar, et al. Hybrids have shown some promise too. India has seen its first hybrid in the form of Hero Honda Civic. But considering that these alternatives are yet to convert into truly marketable solutions, aren’t we moving a bit too slow? Moreover we seem to have many technologies posing as possible solutions, but do we have ‘the’ solution in sight?

Let’s take the instance of hybrids firstly (combination of electricity and gasoline). They have seen the greatest success in developed world markets in particular due to the fact that they require no disruption of the existing oil infrastructure. In the US, some 347,102 hybrids were sold in 2007 (source: Green Car Congress), dominated by Toyota, with over 70% share of the market. Quite interestingly though, hybrids account for around 2.15% of the total new vehicle sales in the US that year. But considering the first hybrid to enter India, the Honda Civic, costs a whopping Rs.18-22 lakhs, one can’t see it moving into the common man’s realm very soon. Honda has in fact contemplated developing a hybrid hatchback, which will be smaller and cheaper than the Civic hybrid. Dick Colliver, Executive VP, Honda US, did admit to international media, “Our goal for this new hybrid model (is) to make it affordable to a new generation of car buyers.” Toyota has reportedly set up a stiff target for bringing in hybrid versions into all its models, and that target is... hold your breath... 2020!

Competitor GM’s hybrid plans have often been a subject of speculation. When I catch up with Larry Burns, in an exclusive to B&E, this Vice President of GM’s R&D and Strategic Initiatives, reveals, “By the end of the year, we will have eight hybrids on the market, and we will more than double that number by the end of 2011. Along with increased efficiency, hybrid systems give us additional engineering, manufacturing, and market experience with electric motors, power electronics, and advanced batteries – which are all critically important components in our future electric vehicles.” As per his viewpoint, electrically driven vehicles present the most compelling case as future alternative.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs