IIPM Editorial: 08/01/2010

Friday, August 27, 2010

IIPM Latest Updates - HR Seminar - Conducted by IIPM & Strategic Management Group (SMG)

IIPM in association with its Strategic Management Group (SMG) conducted a seminar for HR aspirants, at NCUI auditorium on 13th August 2010. The note of the seminar was on -“Strategies to Re-focus, Re-engage and Re-energize employees for company’s quick recovery from the Recession.”

The list of delegate speakers included corporate dignitaries like Mr. Anuj Taneja (HR Head, HDFC Bank), Mr Anand Pillai (Sr Vice President & Global Head- Quality and Talent Transformation at HCL technologies.), Mr Deepak Bahl (HR Head, Eros), Mr Rajesh Verma (HR Head, Max Health Care), Ms Neha Sharma ( HR Manager, Lloyd Ventures), Mr Kamal Kumar ( Sr. GM, Recruitment & Training, dhanuka Agritech Ltd.), Mr Arindam Nath (Head Consulting Partner, Planman HR).

The seminar had all the speakers enlightening the students by sharing anecdotes. Through their speeches they emphasized on the importance of retaining talent – which is one of the major challenges the HR industry faces today. They addressed various nuances of HR. From looking into balance sheets to ‘breaking all rules’, the seminar was a roller coaster ride.

The seminar was one of the initiatives under the Corporate Interface Program (2010-11). Under the aegis of this program IIPM has partnered with organizations like Pepsico, Colgate & Palmolive, Google INC, Berger Paints, Deloitte Consulting, Ernst & Young, HSBC Bank, Oracle Corporation, Bharti Telecom, ADAG, HDFC Bank, ICICI, UB Group, Zee Enterprises, E Value Serve, Copal Partners, Standard Chartered, Mahindra, Hewlett Packard, DLF, Yamaha, Suzuki and many for Guest lectures and Seminars.

It was attended by about 200 students specializing in Human Resource.

Thursday, August 26, 2010

IIPM 4Ps Business & Marketing - Nutrivita PRESENTS 100 MARKETING BRAINS THAT MOVE AND SHAKE INDIA

Summet Vohra

Head Marketing, P&G

Sumeet Vohra, a management graduate from IIM-A and has been working with P&G for the last 18 years. Looking at P&G’s growth story, Vohra is undoubtedly one of the key men behind the company’s success and in its drive to remain contemporary. But perhaps the biggest contribution he has made would be in the Gillette campaign – ‘To shave or not’ – which even won the Cannes Gold as well as the Silver Lion. After this campaign, sales increased by 38%. Awareness doubled! Trials increased by 400%! And market share increased by 35%. All in all, P&G has remained at the top slot in the shaving products category by a far margin and Vohra has had a major contribution in the same.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
“We will change your outlook” - The Sunday Indian on B-SCHOOL RANKING SCAMSTERS EXPOSED! A must read...
The Sunday Indian:-
B-SCHOOL RANKING SCAMSTERS EXPOSED!
For Exclusive Footage by Sunday Indian Click Here

Outlook Magazine's B School Ranking Scam Exposed
Business Standard Exposes the Outlook Magazine Money Editor
Don't trust the Indian Media!

IIPM enters into media education
IIPM makes record 10,000 placements in five years
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM: An intriguing story of growth and envy
Prof Arindam Chaudhuri of IIPM on MF HUSAIN‎

Wednesday, August 25, 2010

IIPM 4Ps Business & Marketing-Nutrivita PRESENTS 100 MARKETING BRAINS THAT MOVE AND SHAKE INDIA

Hidehiko Tanaka

MD, Nikon India

I have experienced many situations which demanded smart and effective marketing decision to pull up a successful result but I would consider the following strategies that we have adopted for the Indian market in the recent past as some defining moments: Change in our Distribution Network from National to Regional, wherein, Nikon appointed 27 local distributors across India; establishments of 30 Nikon Touch & feel zones all over the country (with a target to take this number to 80 by 2011); training of in-shop demonstrators as per Nikon’s standard; our plan to move beyond just print & BTL activities to TV commercials in India in 2010-11. All these initiatives were truly an outcome of a combined team effort.

Tuesday, August 24, 2010

Nutrivita PRESENTS 100 MARKETING BRAINS THAT MOVE AND SHAKE INDIA

Shanta Roy

Head - Marketing, Haier Appliances India

The most noteworthy campaign for me has to be the launch of “Jhukna mat” campaign, that we launched for our bottom-mounted refrigerators. The campaign not only conveyed a message of not just to bend physically but in life, at any stage. We were thrilled when we received great responses to the campaign, as it was extremely well decoded by our consumers. We subsequently made campaigns based on the same theme and all of them received equally great responses.

Monday, August 23, 2010

Nutrivita PRESENTS 100 MARKETING BRAINS THAT MOVE AND SHAKE INDIA

Besides being hailed as the father of marketing as we know it today, Philip Kotler does have an incredible knack for saying a lot in a few words. He aptly illustrated this when he once said, “Marketing takes days to learn. Unfortunately, it takes a lifetime to master.” As 4Ps Business & Marketing celebrates its blockbuster 100th issue, we decided to pay an ode to the people who represent outstanding success and spectacular achievement in the marketing arena. In this rare collector’s issue, some of India’s best marketers reveal the spectacular highs in their careers and companies that they will cherish forever...

Vipin Tuteja

Executive Director, Marketing, Business Support & International Business, Xerox India

Till some years ago, many streets in India carried a billboard ‘Xerox here’, making Xerox synonymous for photocopying. Since then, Xerox has evolved and transitioned many revolutions. A key milestone was the brand and image repositioning we undertook two years ago where we unveiled a new brand identity to a brand more relevant for businesses, less formal but a lot more lively. Integral to the solutions approach was to understand customer needs better and use every communication to bring out the enterprise management solutions. We launched multiple products and solutions portfolio in India and made inroads in large enterprises and various industry verticals. Even though the journey continues, the toughest part of this journey has been achieved and will be a moment to cherish in my marketing career.

Saturday, August 21, 2010

BHARAT KI BULAND TASWEER

PR practice is as old as the history of civilisation itself. King Kroesus of Asia Minor had his face put on the first gold coins. During the World War II, RAF bombers dropped tonnes of propaganda leaflets over Germany. What’s up in India?

A failure to appreciate the role of PR stems from a genuine lack of understanding about what it can and is supposed to accomplish. There permeates an overall attitude of not parting with any information; this myopic approach prevents any dissemination of information, including that for the government’s own good. This lack of transparency acts as a breeding ground for mutual distrust between the rulers and the ruled.

The ill-famed securities scandal of nineties assumed crisis proportions, at one time threatening to engulf the entire financial services industry. Ideally, the government should have admitted mea culpa, not necessarily because it was involved but because it was guilty of negligence. The then finance minister advanced platitudes that failed to convince anyone. A systematic plan to achieve a specific communication goal was lacking.

Such stopgap efforts, aimed at best towards belated damage control, are hallmarks of activism of most of the government’s propaganda machine. Michael Naumann of Der Spiegel thus commented wryly, “Public relation’s main task is to detract people from serious problem and focus their attention elsewhere, or… take your choice … the good looks of the president’s wife, the sexual mores of the opposition leader…”

So if a government sends Sri Sri Ravishankar to Kashmir on a peace mission, even the Economist magazine says that he sounds less like a spiritual leader and more like a politician! So dim the patriotic pitch and replace the spiritual sadhu with a communication guru. That should be the right approach.

Else, the propaganda programmes are likely to invite the comments that those RAF veterans had made sardonically, “The only thing achieved (out of the propaganda exercise by the British Government) was to supply the Continent’s requirement for toilet paper.” PR sure evokes mixed feelings. It is for the practitioner to make it work to the advantage of the organisation. While two scientists from University of California have devised a formula to determine the attractiveness of a female face and those at the University of Manchester have worked out another for a perfect hourglass figure like that of Kate Winslet unfortunately, no luck here. Till such time as the perfect recipe for success in PR is developed the only guideline shall remain: plan, execute and monitor intelligently!

A cocktail with the right blend should do the trick. But do you have the ideal mix? I don’t. Happy hunting!

K. K. SRIVASTAVA, Advisor,IIPM Business Press

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles
“We will change your outlook” - The Sunday Indian on B-SCHOOL RANKING SCAMSTERS EXPOSED! A must read...
The Sunday Indian:-
B-SCHOOL RANKING SCAMSTERS EXPOSED!
For Exclusive Footage by Sunday Indian Click Here

Outlook Magazine's B School Ranking Scam Exposed
Business Standard Exposes the Outlook Magazine Money Editor
Don't trust the Indian Media!

IIPM enters into media education
IIPM makes record 10,000 placements in five years
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM: An intriguing story of growth and envy
Prof Arindam Chaudhuri of IIPM on MF HUSAIN‎

Friday, August 20, 2010

Will India really be Incredible this year?

With three blockbuster events unfolding in 2010, the Indian hospitality & tourism sector is the catchphrase for the world for this year. Marketers have to ensure that they milk this opportunity to unleash fast paced, sustainable growth

East India Hotels has earmarked a capital expenditure of Rs.350 crore till 2011; out of which, the company has already spent Rs.100 crore. Meanwhile, Marriott International Inc. is launching seven more hotels this year across India in the luxury, boutique and moderate segments. Similarly, Carlson Hotels has entered an agreement with a real estate developer to augment its luxury Regent Hotels and Resorts brand through the franchisee model. Not far behind are the international players, which are quite bullish, especially after the gradual recovery from the slowdown. Amari Hotels and Resorts, (a Thailand-based hospitality group) is pumping investments worth $44.1 million this year as part of its Indian expansion strategy. Peter Henley, President & CEO, Anari group exclaims, “The Indian travel market today is placed amongst Amari’s top ten business generating markets, presenting a positive increase of around 10% in terms of the overall sales growth.” In a similar vein, Singapore-based Alila group is busy these days scouting for local partners to add four more properties by the end of 2011. For that matter Ramee group, a UAE-based group has five properties underway for development this year along with a 2,50,000 sq. feet mall at Chennai. Even the government-owned India Tourism Development Corporation recently rolled out an ‘Ashok Alliance’ scheme, under which it will make private hotel companies and real estate players its franchisee partners under a three-year contract.

As the market for online travel bookings is projected to climb to $6 billion by 2010, these Online Travel Agents will corner close to 23% share of the total travel market. And the key driver for growth in this segment will be from bundled and accommodation products along with an increased involvement from retail channels. “This year we are logically injecting our funds and signing up more tie-ups to enable us to provide more value-added services,” says Madhavan Menon, MD, Thomas Cook (India) Ltd. But then, opportunities beget challenges also and those in the industry are well aware. “Year 2010 is definitely a very important year as there are three important events happening in this country and we have rolled out special packages for the same. But we think that in the travel industry, your front desk managerial activities matter a lot and if you can’t fulfill it properly your brand gets affected,” shares the spokesperson of Cox and Kings India Ltd.

Thursday, August 19, 2010

OLD TUNE WITH A NEW THROTTLE

It would be a real challenge to come across an Indian who wasn’t inspired by India’s ‘unofficial’ anthem, Mile Sur Mera Tumhara, that was first promoted on Doordarshan in 1988. 22 years on, the same iconic song has been revived with new characters. Does the throttle work? 4Ps B&M gives the inside view

Circa August 15, 1988: For the first time, ‘Mile Sur Mera Tumhara” was aired on the only available channel then, viz Doordarshan; and since then, for the last two decades, the audio visuals of Bharat Ratna Pandit Bhimsen Joshi (reciting ‘Mile Sur Mera Tumhara) and Dr. M. Balamuralikrishna at Kovalam beach, Chennai (erstwhile Madras, reciting a similar emotion) have never failed to mesmerise Indian listeners. Without an iota of doubt, the song captivated and enthralled an entire generation by showcasing the diversity of India and sending across a very strong message of unity. It goes beyond saying that the second song of “The Trilogy” (consisting of Freedom Torch – The Spirit of Freedom, Mile Sur and Raag Desh) became the unofficial national anthem of India. Cut to 26 January 2010: The simple eight line stanza (translated into 16 languages) was once again being aired in almost all available channels, albeit in a slightly different format. For once, those who could vividly recall the opening lines sung by Pandit Bhimsen Joshi and M. Balamuralikrishna must have been surprised. Surely the legends were missing; but nonetheless, the present rendition by none other than Amrita Surendranath and Kailash Surendranath (who had earlier worked along with the legendary Suresh Mullick of O&M Advertising), too deals with the concept of national integration. Phir Mile Sur has in it the freshness that reflects the enthusiasm of modern India, tune and lyrics that every Indian today can relate to and which could further ignite the passion for India and its diversity. But does it evoke the same ethos of Independence and emotion that the previous harmony did? Says Shubhoshekhar Bhattacharjee, CEO, Planman Motion Pictures, “Like its predecessor, which used a combination of music and images to instill a feeling of pride in Indians from Kashmir to Kanyakumari, Phir Mile Sur also speaks a universal language – love for the motherland. But yes, the first tune holds a special place in the hearts of Indians that will always remain.” Bhairavi, the raga that is common to both Hindustani and Carnatic classical music, is apparently the common theme to both the versions.

Yes, there are industry analysts who comment that the original rendition Mile Sur Mera Tumhara will remain matchless – Prathap Suthan, National Creative Director, Cheil Worldwide, gives his take to 4Ps B&M, , “If they really wanted to create that nostalgia [of the previous song], they should have kept the lyrics intact and shot it with kids as they represent the future of the nation.” Vijay Uppal, Brand Guru and Director UPFRONT Advertising Pvt. Ltd, says, “The ‘Indian’ feel which binds hundreds of millions of people through a smartly executed Mile Sur Mera Tumhara campaign is missing in the present Phir Mile Sur.”

Wednesday, August 18, 2010

BLOCKING IS NOT THAT BAD, AFTER ALL

Fastrack went ahead with roadblocking to be able to talk to its target group in a way which they like. And it worked

An innovative campaign needs an equally competitive media plan. Fastrack’s new campaign, myEXbox, is built around the brand’s theme of ‘Move On’. The TV campaign has six creatives talking about each character’s experiences with Moving On.

The Fastrack ‘myEXbox’ campaign just doesn’t stop with television but completes the loop by inviting people to upload their confessions on its website. It also gives a chance to be in the next Fastrack ad.

The media challenge was to get all of the creatives to be seen by the brand’s target group and create excitement around the contest. After much deliberation, one solution was to do a roadblock on the platform that would get the most eyeballs. Movies and music are two such key programme genres where youth spends a considerable amount of time. This insight helped identify the right media vehicle- Zoom (exclusive roadblock) and UTV Bindass (partial roadblock).

For the entire day, all the six creatives of Fastrack’s new campaign were aired. In addition, subtle integration creatives such as Aston bands and break bumpers were used to create high impact for the campaign and get buzz around the contest.

As a youth brand, we need to constantly innovate and experiment; with not only our communication but the way we use different media vehicles. The roadblocks were another such attempt toward this. It has worked very well for the brand. Roadblocking is definitely an innovative way of advertising and we always believe in doing innovative things. If any medium can be blocked for better communication, we would stick to it.

Tuesday, August 17, 2010

...And The Shakers

The Life Insurance Corporation of India (LIC) has empaneled four agencies – JWT, Draft FCB Ulka, Mudra and RK Swamy BBDO – for its media and creative duties. Reportedly, LIC has earmarked a budget of around Rs.250 crore for its advertising and marketing strategies that include a 360 degree campaign involving print, BTL, digital and radio.

Zee Entertainment Enterprises Limited (ZEEL) broke its decade long tryst with Madison and appointed Mediaedge:cia as the custodian of its media duties. The account is estimated to be worth Rs.50 crore. Mediaedge:cia will handle the media duties of Zee TV, Zee Cinema, Zee Cafe, Zee Studio, Zee Sports, et al, and also regional channels like Zee Bangla, Zee Kannada, Zee Gujarati, Zee Punjabi, Zee Telugu, et al.

Monday, August 16, 2010

Can Shera add shine to Brand India?

David Ogilvy formulated what is perhaps now the most iconic rule in the annals of advertising – and that is that a good advertisement is one which sells the brand without drawing attention to itself. After years of wait, speculation, and efforts, the Delhi Commonwealth Games Organising Committee is facing their most critical question. Can their attempts to position the Commonwealth Games 2010 as a grand affair and a unique national advertisement actually succeed in making Brand India shine? Is there credible progress till date on that front? Will reality meet expectations? Or will the world, while acknowledging the brilliance of the ‘advertisement’, simply ignore the ‘product’ and move on post the games? 4Ps B&M presents a debate over the factual opening ceremony of Brand India much before the real showdown begins!

Specimen I – Rajesh Puri, CEO of Meru Cab is all busy scaling-up his cab-service fleet these days (he has increased the count of vehicles owned by his company by 100%, to 1200, in just the past three months). Yes, there are the usual ‘fuel’ mathematics and the daily negotiations with blue-collar personnel, but of course, the ‘new-thing’ about his professional life are his daily meetings with both the officials of the organising committee of the 2010 Commonwealth games (CWG) and various car manufacturers (from 600 cars in October 2009 to 1200 in January 2010 to 1800 by October 2010; he’s just happily giving in to the temptation!). For Puri, that’s not all there is to the overall excitement of this being a golden money-minting opportunity, for he is also mulling-over prospects of opening an English language training process to deal with all the foreign tourists who’d fly into the country around the CWG days (October 3-14, 2010).

Specimen II – Subhash Chander, a middle-class Indian, who owns a Bed and Breakfast facility (Inn@Delhi, in South Delhi). He is looking forward to upgrade his Bed and Breakfast capacity from three to six rooms. When asked about his expectations being met by demand, he chuckles, “We do not entertain walk-ins, and now we can’t even do that, because all the available rooms are already booked till October 2010...”

Specimen III – Abhishek Khurana, owner of a National Capital Region-based security agency. Khurana has already added 400 new security guards to the existing strength of 3000. His motive: to tap into the congregation of cash-rich V.I.P’s flying-in for the games.

Three specimens, one motive: make most of what the fiesta in October has in store for those seeking to garner rich returns! So there’s the question – should we bet big on the 2010 Commonwealth games? Will CWG be able to sell Brand India, both economically and diplomatically (with a focus on the former)? Looking positively, why not? With the Indian government spending upto Rs.10,555 crore for hosting the CWG in October 2010 in New Delhi, brand analysts are forecasting the marketing spendingduring the event to surpass the Rs.1,300 crore mark. With such an outflow waiting to happen, what is the most likely payoff for the big spenders of India Inc.? Historically speaking, such events have always been rich in terms of dividends. In a pre-event versus post-event survey conducted by Omnibus during the 2002 Commonwealth Games held in Manchester, it was found that the brand awareness of Imperial Leather (an official Personal Care Partner of the Games) had increased by 93%, while the awareness of its slogan had appreciated by 21% post-event. Here is another one for the hopefuls – National Australia Bank(NAB) received 2,773 media mentions as the Official Banking Partner of the 2006 Commonwealth Games held in Melbourne. As far as the forthcoming CWG goes, the numbers read encouraging too, with a minimum expected number of 100,000 visitors (including athletes and team management) coming to India for the CWG alone, a global audience of two billion watching the Games, $6 billion in total business opportunity (with revenues from sale of tickets alone forecasted at $25 million) with an employment figure of 2.47 million individuals! Looking at the bigger picture, the overall economic impact of is projected at $4.5 billion by 2012. In short, despite the much-talked 2010 CWG being plagued with controversies and debates over infrastructurural issues, it is being hailed as nothing less than a wonder bubble, something that has ‘real’ cheers in store for India Inc., dressed up as a marketing marvel!

Saturday, August 14, 2010

“Rubber prices should come down by end of July or August 2010 ”

A. S. Mehta, Marketing Director, JK Tyres in an Exclusive Interaction with B&E

JK Tyres is the leader in the truck tyres segment and has been facing problems after the government relaxed the policy for the import of truck radials. A. S. Mehta, Marketing Director, JK Tyres gets candid with B&E on the future outlook and challenges for the sector. Some excerpts:

B&E: By when are you expecting the rubber prices to cool down?
AS: According to me, the prices should come down by end of July or August this year. However, that will again be around the Rs.160 mark. Having said that, it is believed that by September, the price will come down to Rs.150-155/kg and if it happens, along with fall in price of other commodities, it will provide a lot of relief to Indian tyre manufacturers. As of today, the rise in prices of the input cost is one of the biggest challenge in front of the tyre industry.

B&E: As the aftermarket segment is only going to get bigger in the time to come, do you have plans to open exclusive outlets too?
AS: When we appoint dealers, there are some dealers that want to do exclusive business with the company. We have a good mix of exclusive dealers and multi-brand counters. JK Tyres have a whopping number of 130 exclusive dealers in the country but we do not plan to open company owned company operated retail chains across the country.

B&E: What is your take on the rising imports of the Chinese tyres in the Indian market?
AS: Since the point of time the policy on the import of the Chinese radials has been relaxed is a very big threat for the industry as of today. The duty on natural rubber today is 20% and when you import tyres, you can import it at 10%. Moreover, importing from places like Sri Lanka attract a 0% duty and other ASEAN countries, you can import at 8%. What is happening here is when one imports a tyre, one has to pay 20% and when one import tyres, it attracts a lower duty. Hence, ATMA has requested to the government that either you raise the duty on the import of tyres or lower the duty on the import of rubber so that the play field is leveled.

Friday, August 13, 2010

Think before you Tweet!

Ever since actor Shahid Kapur underestimated his popularity and revealed his hotel and location in Edinburgh on Twitter, he has been having a difficult time. Even father Pankaj Kapur, who is directing him in the movie Mausam, is unhappy with the series of events since the hotel and shooting sites have been swarming with people. Seems that the effects of unintentional badmaashi are beyond repair now…

Thursday, August 12, 2010

“We needed the resources and experience of a major automotive manufacturer”

Chetan Maini, Founder of Reva & Chief of Strategy & Technology, Mahindra Reva talks about the future...

Mahindra has expanded its presence in the electric car space by acquiring a majority stake in Reva. But more importantly, it gives the electric carmaker a chance to to turn into a mainstream auto major. Chetan Maini, Founder of Reva and Chief of Strategy and Technology, Mahindra Reva tells B&E the importance of the deal and the future of the acquisition...

B&E: Will Reva be forced to change after the controlling stake sale to M&M?
CM: In Mahindra, we have found a company with similar values and a shared commitment to sustainable growth. For Reva, to grow to the next level, we needed the resources and experience of a major automotive manufacturer. Mahindra Reva now has access to Mahindra’s vehicle development technology and distribution network, significantly enhancing its ability to launch a state-of-the-art electric vehicle for global markets. Under the new agreement, M&M will own 55.2% equity in Mahindra Reva by a combination of equity purchase from the promoters and a fresh equity infusion of over Rs.45 crores (approx. $10 million) into the company. The co-founders, Maini family and AEV continue to retain a significant share in the company

B&E: Expectations are that hereon, Reva will transform into a mainstream automaker. Many doubt it. Do you?
CM: Reva has the most experience with EVs globally and has used these customer insights to develop its 3rd generation vehicles. Reva is, in fact, in the fore front of EV technology, be it latest Lithium-ion batteries, intelligent energy management systems, fast charging, advanced telematics, integrated car infotainment that helps customer plan their journeys, patented ‘REVive’ technology that addresses the range anxiety of the customer or new and bold style in NXG. The announcement with Mahindra is recognition that although Reva is at the forefront of the global EV space from a technology perspective, the company will benefit from the resources and expertise of a major automotive company in order to continue to innovate in future and to scale delivering better products to more customers in more places.

B&E: With M&M’s top brass now taking over the day-to-day affairs at Reva, how do you see your role change?
CM: Post the buyout, the Board of Mahindra Reva is re-constituted under the chairmanship of Pawan Goenka, President – Automotive & Farm Equipment Sector, M&M and the new board includes members from the Mahindra Group, Maini family and AEV. Reva has a strong management team in place and will continue to operate under my aegis as Chief of Strategy and Technology.

B&E: Won’t a difference in vision create a state of conflict between the two auto companies?
CM: No. We are at the cusp of high growth and positive explosion of this space. As a growing company, in Mahindra we have found a partner who not only shares our vision of principled and sustainable growth but one that also has a reputation for good corporate governance. As a result of Mahindra’s investment, the new company Mahindra Reva will be able to scale, innovate and accelerate for greater electric vehicle access to consumers.

B&E: Electric cars in the Indian market – fact or farce?
CM: According to Frost & Sullivan, the EV market is set to grow to 1.2 million globally by 2015, being driven by factors such as oil price uncertainties, government support and technology breakthroughs. We expect improved government policies & incentives alongwith increased customer awareness to contribute to EVs becoming the favoured second car of the household, used primarily in the city for pollution free mobility.

Wednesday, August 11, 2010

“India is an excellent fit..."

GE India CEO John Flannery affirms that the country is at an early stage of devel opment and GE has a number of solutions for its growth problems in an interaction with virat bahri of B&E

John Flannery, GE's current CEO is on an important mission - to make GE India a truly local company and to capitalise on a number of opportunities that the company has missed so far in this huge market. GE India now faces an unprecedented phase ahead, as the company will have a separate P/L and will report to Flannery under an inegrated structure. He has been with the company for over 22 years and was President & CEO, GE Capital, Asia Pacific before taking up the current role. In this exclusive with Business & Economy, expresses his views on going the distance. Some excerpts...

B&E: It seems that GE's interest in India has become more pronounced and apparent in the past one or two years. Would that be a correct assessment in your view?
JF: Like you pointed out, GE's interest in India is more apparent now. In terms of why the interest level is so high, it’s two things – firstly in the last 18 months, it has become absolutely clear that growth rates in developed countries are going to be a fraction of what they are in developing countries. So at an ultra-macro level, we have to be big in the Vietnams, the Chinas, the Indias of the world. So that’s one particular aspect. Secondly, we are talking about reverse innovation and more such concepts. We have found just superb companies in India. The more time we spend here, the more people we meet; we are more excited and impressed by some of the business models. It’s not just the labour arbitrage, it’s the very innovative supply chain model, engineering, design, et al. So we are looking at that and saying that these business models can be global. It is for us to understand them and be able to develop them to be successful not only in India but also take them to developed markets. They fit with GE on a macro basis. When you look at what’s important for India – healthcare, infrastructure, et al – These businesses are big businesses for GE as well. For instance, Triveni Engineering (recent tie up for manufacture of 30-100MW steam turbines) has a very impressive business from design, engineering, supply chain and manufacturing.

B&E: You joined as CEO last year, and the company has simultaneously initiated a restructuring of its India operations. What is the core agenda that you seek to drive in India?
JF: I want GE India to be viewed as one of India’s best INDIAN companies – not one of its best MNCs. By combining strong local talent with our global experiences, we can help India develop important sectors like power, health care, transportation & infrastructure. Achieving that vision will benefit our customers, our employees and India as a country – and doing so will provide rewards to GE shareholders as well.

Tuesday, August 10, 2010

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. Though 60% of the population in urban areas depends on the surface water sources, availability and quality are unpredictable. Moreover, population growth is leading to drastic decline in the per capita availability of fresh water. It has gone down to around 2,200m3 in 2000 from 5,150m3 of 1947, and is expected to go down by 2017 to 1600m3 .

In states like Gujarat, the water table is dropping by as high as 6 metres per year. Four decades ago, the water table was at around 30 metres; now it has increased to around 152 meters. The scenario is pretty much the same in Agra. In 1996, groundwater level was 34 metres. Ten years down the line, that dropped to 42 metres. The total cost of environmental damage in India amounts to $9.7 billion annually, as per the World Bank estimate in 1995; of which 59% results from health impacts of water pollution. Also the poor often end up paying 5-10 times more per litre than wealthy people in the same city.

Tackling the situation requires an integrated approach to multiple facets of the water problem. They include tackling the menace of water pollution, ensuring recycling of water through techniques like rainwater harvesting, engaging with the affected population to ensure that their specific needs are well understood, discouraging excesses in terms of water usage and even tackling the class divide that marginalises certain members of the community from access to this invaluable resource. Public private partnerships are the best way out. But a strong regulatory mechanism must also be instituted to ensure greater transparency and discourage profiteering.

Akram Hoque