Saturday, May 25, 2013

Try solar power

India is falling into the trap of nuclear energy which is expensive and hazardous
An unusual failure of rainfall all over the country has landed India in a crisis of power shortage since we are largely dependent upon hydel generation of power. More power must be found if India’s development is to be sustained.


The prime minister apparently found a solution to the power crisis by borrowing nuclear energy sources by inking a treaty with nuclear companies. Since then, USA’s big business has put great pressure Manmohan Singh’s UPA government to enter into a nuclear treaty with the USA.

Radiation leak is inevitable in nuclear power generation and radiation constitutes a  grave danger, whether the source be USA or Russia or former republics of the USSR. The Koodankulam nuclear power plant built with Russian help is near completion.

The common people, apprehensive of the dangers of nuclear radiation, have fought this  grave peril to their lives.  But the state is indifferent to the protests of common people and is proceeding with the project overlooking clear and well laid down scientific facts.  Long years ago I had raised my voice in vain against nuclear generation. ‘Nuclear never, solar ever’ was the slogan I coined but it was ignored by successive governments.

Solar power is the conversion of sunlight into electricity. Even with two rainy seasons, India receives good and bright sunshine all over. The average solar insolation in the country is worked out as equivalent to 2.9x107 MW of power generation capacity per year.

In addition,  solar power is inexpensive in generation.  A recent Indian Express article has explained how solar power is cheap even in small quantities domestically and saves big  transmission losses.

Likewise, wind power is easily available all over the country as has been demonstrated in the Tirunelveli District, Tamil Nadu.  How safe and locally available is this process?  In other words, it is time a massive project for wind generation of power should be undertaken all over the country.

Interestingly, there is also big business interest in these proposals.

Since power shortage has the crippling effect on development and the sun’s energy is available abundantly in most parts of our country, what we require is a colossal research on solar power. If we succeed here, it will be a national victory and can be considered the poor man’s success on the energy front. Little research has so far been done in India on this subject. But considerable potential exists if our governments dare to worship the sun.

Let me cite some long passages from what Dr Ravindranathan Thampi, solar energy expert and professor, solar energy, University College Dublin, Ireland, said: “It is simple and does not require huge investment, signing of MoUs or other complex procedures. People who are interested in investing can easily generate solar energy if they have a small roof or wall with the right inclination and with exposure
to sunlight for long hours.  The power generated can be
fed to the grid, while the production
and consumption can be monitored by an electronic meter.”

It is cheap and easy to install, but there needs to be a guarantee from the Kerala State Electricity Board that they will pay the bills on time.  Energy can be generated in small quantities.  “There are so many homes, especially NRI homes, that are locked and uninhabited for most part of the year which is ideal for feed-in-tariff. We need working models that are simple and effective.  It would cost Rs 7 per unit as against the Rs 12 per unit of the Kayamkulam plant.  Moreover, it would be free from transmission loss,” said Ravindranathan.


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

Friday, May 10, 2013

“Regulatory issues are the biggest bottlenecks”

Chandan Kumar, Dy. Director– Fixed Network Solution, Huawei India, on why India lags behind most countries in both quantity and quality of optical fibers installed

B&E: What is Huawei doing to develop optical fiber infrastructure in India?
Chandan Kumar (CK):
Huawei currently provides innovative, advanced and highly competitive solutions to telecom operators in the country to stitch optical fiber networks end to end. This helps operators to utilise optical fiber infrastructure thereby improving the last mile connectivity problem that currently exists because of lack of optical fibers in our communication infrastructure. 

B&E: How would you compare India’s optical fiber infrastructure India with that of countries like South Korea andJapan?
CK: Penetration of optical fiber infrastructure in India is very low when compared with most other countries. For example only 10-15% of base transceiver stations (BTS/enodeB) have access to fiber. Optical fiber network in India experiences lot of fiber cuts every day, which affects operators network very badly and causes damage to the optical fiber infrastructure. Moreover, the quality of optical fiber network is not as high as that of other countries like Japan, Korea and US. Also, one big problem in India is that at many places, optical fiber cables have not been laid out properly. 

B&E: What are the prime bottlenecks that India faces in its attempt to develop a world class optical fiber network?
CK: The main hurdles to developing a world class optical fiber network in India are regulatory issues like right of way, that requires the service providers to take all needed clearances from the respective owner(s) of land. It is a tedious and expensive process and hence projects become unviable. This issue needs to be looked into urgently. 

B&E: What R&D initiatives has Huawei taken to improve optical fiber infrastructure in India?
CK; Huawei’s R&D team is engaged in exploring and developing solutions to overcome limitations of optical fiber cables. It is working to provide solutions to transport higher data traffic over optical fiber infrastructure. Huawei has developed solutions that have enabled the Indian telecom operators to transport tera bytes (TB) per second traffic on a single pair of fiber cable.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Wednesday, May 8, 2013

Ports are burdened with excess traffic they can’t handle

A raft of infrastructure issues is affecting the growth and prospects of our ports. In the face of capacity constraints, lack of connectivity and inadequate mechanization, ports are burdened with excess traffic they can’t handle
The total available capacity at Indian ports during FY2012 was 1,172.93 MT while the total projected traffic for the same period is expected to reach 876.7 MT as per the National Maritime Development Programme. This translates into a Berth Occupancy Factor (BOF) of 74.7%. Going by the recommendations of the Major Port Development Plan prepared by the Port of Rotterdam, this is more than the acceptable berth congestion level. Against the ideal BOF of 60-70%, as recommended in the Plan, a majority of Indian ports operate with wavering BOFs. In 2010-11, while ports at Haldia, Vishakapattnam, Paradip and JNPT had an average BOF higher than the prescribed 70%, those at Cochin, Chennai, Goa, New Mangalore and Mumbai fell below the 60% threshold. Only Kandla port fell into the perfect mix of occupancy with an average BOF of 69.95%.

Non-adherence to the prescribed BOF levels directly impacts the efficiency of ports, something that Indian ports seem to be deeply plagued with. Another indicator of inefficiency is the cumulative average turnaround time for ships entering major ports of India, which aggregates 4.67 days. This is phenomenally high when compared to the turnaround time at the Singapore port, which is less than a day. While the delay in turnaround time can still be explained away as a result of large vessels needing more evacuation time, the tardiness in the matter of pre-berthing directly points to shoddy infrastructure and lack of ample berthing space at the ports. The fact that such pre-berthing delays were a regular feature throughout the year shows that there is an urgent need to undertake capacity expansion at the earliest. In order to quicken turnaround time as well, there is a need to have greater use of mechanization in the evacuation process rather than relying on conventional methods.

The practice and prevalence of conventional methods for port operations have been the bane at most Indian ports. In the case of Paradip port, it’s the inability to adopt modernisation that has bestowed on it the dubious distinction of having the longest turnaround time amongst Indian ports. Between FY2009-10 and FY2010-11, while the availability of modern wharf cranes at Paradip port increased from 75.3% to 95.23% during the period, its utilization rate increased by a meagre 0.3% from 20.85% to 21.15%. The situation was no different in the case of forklift trucks - while being available for use 97.21% of the time during the year, they were used only for 3.69% of the time that they were available. This sorry plight of low utilisation of modern machinery goes to show that Indian ports, instead of moving forward towards modernization, are still stuck on using tedious and slow conventional methods.

Even the Ministry of Shipping, which is the nodal agency for framing the policy agenda for port development, has not been able to spur port operators to adopt greater levels of efficiency and productivity. Its lackadaisical attitude towards port management is reflected in the fact that the MoS accepted less than appropriate target levels for performance improvement of ports. The only port to show some performance worth speaking of has been the Jawaharlal Nehru Port Trust (JNPT), which reported utilization rates above 60% and availability above 90% in 2009-10. No wonder that amongst all Indian ports, JNPT is India’s busiest container port, accounting for over 55% all Indian containerised cargo traffic.


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

Saturday, May 4, 2013

Letters to the editor

Insightful magazine
Business & Economy is one of those insightful magazines that I thoroughly enjoy reading. There have been some great cover stories back to back and the issue on “Reverse Innovation” has been one of them. The entire issue was well conceptualized. Reverse innovation has been gradually picking up steam and to stay competitive, companies should maximize its potential since innovation is not only about bringing down pricing in India. I also enjoyed the cover story on ‘Ten Ways to revive Indian Economy’, as the points the package suggested are the ones India needs to thoroughly work on in order to stay competitive. It logically described the ten reforms India should implement not only to refurbish the economy but also the entire socio-economic fabric at large. Comments from Planning Commission and Ministry of Finance were equally thought-provoking. I would look forward to see many more such issues in future.

Sukhamay Paul

Chairman, Institute of People’s Education – Coochbehar, Under Ministry of H.R.D, Govt. of India

Great supplement

Despite having computer problems and a cold that delayed me for a feedback, I thank you for writing and sending the cover story on brain mapping in your supplement “Tech Next”. I enjoyed it very much. The team has good writers and I particularly enjoyed the flow of the cover story. My only criticism is a misplaced fact. Although Rob Williams is my colleague and we have done research together and written articles that have been published, the fact is that he is not a physicist. That was someone else who I mentioned in the interview – a small thing that no one will really notice. I appreciate very much the opportunity to participate in your article.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Nielsen back on the receiving end, again?

NDTV’s strong lawsuit against TAM and the people who control it (Nielsen & Kantar) exposes manipulations that are calamitous for the entire market research fraternity. And it also begs a question oft repeated by us – why does Nielsen, in particular, find itself in the ignominious limelight so consistently?

David Ogilvy gifted us with many gems of advice, and one of them went thus, “Advertising people who ignore research are as dangerous as generals who ignore decodes of enemy signals.” Such is the importance of research in the marketing world, since it is the starting point of the marketing philosophy of ‘sense and respond’. While timely and accurate research is essential to effective advertising, it is also extremely important for media planners to ensure that a communication reaches the right target audience and makes the desired impact. Conversely, incompetent market research is equally dangerous, and MR companies have to stay on their toes to keep their research results in tune with reality. But what about market research that is manipulated, and that too, by the best in the business?

The latter is the basic context of NDTV’s recent lawsuit filed in the Supreme Court of the State of New York. The news channel has alleged that TAM ratings have been deliberately manipulated in India over the years to report a lower market share for NDTV. This, in turn, has led to losses, which are “not less than $810 million” over the past 8 years. Matters have worsened to the extent that NDTV is now seeking at least $1 billion in damages from Nielsen as well as Kantar, which jointly operate TAM ratings in India.

Nielsen is certainly no stranger to criticism over its research practices. The data released by the company for the FMCG sector is a case in point. For the quarter ending June 2012, seven of the listed FMCG giants reported an average value sales growth of 19.28% as compared to Nielsen’s estimate of 17.6%. Even more significant discrepancies were found in the data across categories and companies (as reported in a leading national daily). Nielsen has maintained that it brings out a retail audit and it is technically wrong to compare it to actual quarterly results, but FMCG players have been critical of Nielsen’s research reports over time. Unilever CEO Paul Polman has claimed in the media that Nielsen is not very accurate with their numbers.

It’s not restricted to FMCG players. A spokesperson with a consumer durables firm speaks on condition of anonymity, “We had problems with Nielsen data on our market share since they had largely ignored the regions where major infrastructure development is happening.” Once Nielsen addressed these issues, the particular player’s market share more than tripled! A radio industry official also admitted to B&E that he was unhappy with RAM readings. He cites the example of Radio One, which turned from Hindi to English in January this year. But its market share (as per RAM) remained just about the same, which is quite improbable with such a shift in audiences.

TAM ratings themselves have largely failed to find favour with the TV industry. But the case document filed by NDTV is a Pandora’s box of sorts, which goes beyond research competence to make shocking allegations of deliberate manipulation of TAM data for commercial gains & steadfast resistance by the ratings agency to make amends. At the very outset, the case document alleges that the core reason why Nielsen is neglecting customers is the fact that it is now controlled by PE players like KKR and The Blackstone Group. Since these groups have short term gains in mind and want to cash out quickly, Nielsen is allegedly looking at cost control and cost avoidance measures; the most common being “refusal to increase sample sizes” and not adapting to local conditions in countries like India and the Philippines. A committee report in 2010 indicated that the sample size of 8150 for TAM and 6000 for aMap was grossly inadequate for a market with 129 million TV watching households. An e-mail request for interaction sent to the Nielsen India office for this story went unanswered.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Thursday, May 2, 2013

“55% of our India revenue comes from mobiles”

Ranjit Yadav, Country Head, Mobile & IT, Samsung India, talks about the reasons for the success of its smartphones and the strategy for the future
Issue Date - 30/09/2012

B&E: Samsung has had a meteoric growth in India in the smartphone segment. What are you doing to create more traction for your products in the future?
Ranjit Yadav (RY):
Samsung is a full range player in India offering products for all kinds of consumers, with products starting at Rs.1200 for a basic phone and going up to around Rs.40,000 for some of our latest smartphones and tablets. We are a fully committed player in the Indian market and have over 2500 service centres all over the country. All our products have a simple DNA of innovation, differentiation and quality. Design too is one of our key product differentiations. Look at the design and ergonomics in the S3, which (we say) is ‘designed for humans, inspired by nature’.

B&E: What’s in the S3 that is different from other smartphones?
RY:
It offers a great user experience and is probably the best smartphone around. It goes much beyond simple performance and specifications; it’s about simplicity in technology. It’s intuitive, and very easy to use.

B&E: What’s your marketing strategy for smartphones?
RY:
It’s based on creating the right consumer experience. We will be very strong in digital and experience-based marketing. Like for our S3 range, you can experience the product in-store and outside as well, to demonstrate what the product can do for you. We believe consumers are available across the country for our higher range phones and not just in the metros. So we will take our marketing campaign across the country, rather than limit it only to top cities.

B&E: What has been the impact of the current economic slowdown on your smartphone business?
RY:
Slowdown is a risk that we all have to face. In the mobile phone industry sales are flat and volumes are not growing any more. Going forward there’s a risk of growth dropping off. Though, we have been growing even during the current slump, the key is to differentiate and we are good at that.

B&E: What is Samsung’s share of the smartphone market in India?
RY:
I can’t give you an exact number but we are already over 26% in volume sales in the overall handset market, and above 40% share in the smartphone segment. We dominate the smartphone market. Today the mobile division contributes more than 50% of Samsung India’s annual revenue.


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

Tuesday, April 30, 2013

B&E Indicators

Office space absorption to decline
The year 2011 saw record completions and absorption of office space. About 37 million sq. ft. of space was absorbed in 2011, higher than the previous peak of 33 million sq. ft. achieved in 2008. While construction is slated to continue at a high pace, leading to 19% higher completions in 2012 than in 2011, absorption is likely to be subdued. Policy issues and concerns over growth will also keep demand under check.

Trend of large sized leases slows
With the global financial crisis intensifying in 2008, MNCs operating in India, the key drivers of office space demand, started to take their space expansion plans cautiously. As a result, the average lease size declined sharply to 26,980 sq. ft. in 2009 from 89,650 sq. ft. in 2007. Although the industry recovered by 2010 to move up to average lease size of 35,280 sq. ft., it seems that there is still some sluggishness, when it comes to the prime locations in all major cities. Average lease size for H1 FY 2013 is pegged at 25,100 sq. ft.


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

Friday, April 26, 2013

“There is no dissidence in BJP”

The party does not believe in individual milestones and works as a team, says BJP president Nitin Gadkari in an exclusive interaction with Anil Pandey

B&E: You have completed more than two years as the president of BJP. What are your achievements?
Nitin Gadkari (NG):
We in the BJP do not believe in individual achievements. We work as a team and take collective decisions by consensus. As far as the party’s overall performance is concerned, we periodically review our performance and take effective measures to further improve it.

B&E: Factionalism was rampant in BJP when you became the national president. Have you been able to control it?
NG:
I am afraid your assessment about the BJP is untrue. There is no factionalism in our party.

B&E: It is said that some central leaders of the BJP have fueled the Yeddyurappa and Vasundhara Raje episodes. What have you done to stop this?
NG:
All these are completely baseless and motivated allegations against the BJP’s central leadership and deserve to be dismissed with contempt. I am sorry to use harsh words. But it is becoming a fashion in a section of the media to defame BJP leaders.

B&E: One of the groups within BJP made sure that Khanduri lost the elections. In UP, Yogi Adityanath and Varun Gandhi openly issued statements that harmed the party. Yet you did not take any action against them.
NG:
There is no basis for such allegations. We have analysed the factors responsible for our below expectations performance in UP and are taking corrective measures to galvanise the party for the upcoming 2014 Lok Sabha elections.

B&E: What, according to you, were the reasons for the party's defeats in UP and Uttarakhand?
NG:
We have not lost the Uttarakhand elections. We beat anti-incumbency. It is very unfortunate that we could not form the government. About UP, I have already stated that we are trying to improve things in the state.

B&E: Lack of communication among senior leaders was one of the main issues discussed at the recently held coordination meeting of RSS and BJP. How will you ensure proper communication?
NG:
All existing party mechanisms are being streamlined to further improve communications at all levels in the party and between the party and the BJP-ruled state governments.

It is being said that no party will win a majority in 2014. Do you think the BJP will be in a position to form the government?
NG:
I am confident that the BJP-led NDA will form the next government after the general elections, whenever they are held.


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

Wednesday, April 24, 2013

“The biggest challenge is to manage uncertainty”

Rohit Saboo, President & CEO, National Engineering Industries (NEI), talks about the challenges of the market he operates in

B&E: Last year, the Indian automobile industry performed below expectations. This had a negative impact on the growth prospects of the auto components sector as well. How did you offset the decline?
Rohit Saboo (RS):
We are present across the board – ball bearing, roller bearing, et al. Except for the four-wheeler industry all other industries are doing fairly well. Although growth rates are lower than last year, they are still not that bad. While the commercial vehicles segment is growing at 13%, two-wheelers is growing at 19%. This year we too have grown 17% compared to 30% last year. But this is still better than the industry growth rate. We are focusing a lot on exports to get better growth rates so that we can utilise our total manufacturing capacity. We are trying to tap Daimler, BMW, and Ford for the same.

B&E: As a manufacturer of bearings, rolled rings and other such products, how would you describe the challenges of the market you operate in?
RS:
The biggest challenge of the market we are present in lies in its uncertainty. About 42% of our turnover comes from the automobile sector and 18% from the aftermarket and half of that 18% again comes from automobiles. So overall around 50% of our turnover comes from the automobile sector, which is a very cyclical industry. If the economy is good our business also does well. If growth slips, our revenues take a hit. So we have to balance and manage this cycle very well. We plan to invest over Rs.5 billion over the next five years. But this investment will have to match the business cycle. Because if the relationship between the investment and the business cycle is not in sync, and if we invest in the wrong cycle then we will face a loss. The next challenge that we have is that most of our clients are going for higher technology items and better products at the cheapest rate. So we have to gear ourselves up to meet the market requirements. That is why we are investing a lot in our R&D so that we have better products at a lower cost.


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

Saturday, April 20, 2013

International

Inflation in China
A trade-off between inflation and growth is always difficult to manage for countries and so is China finding it to its discomfiture. Inflation in China soared to new heights, reaching 4.5% in January, the highest in the last three months. Food inflation also witnessed a sharp spike, settling at 10.5%, from the earlier 9.1%. High consumer prices are threatening to derail growth in China. Rising inflation also offers a challenge for policy makers in China who have so far been liberal with the purse strings because of heady growth untrammelled by fears of any creepy inflation. But the recent spike in the inflation breaks several months of easing prices after inflation hit a three-year high of 6.5% in July last. A possible reason being cited for the rise in inflation is the New Year, which sees a lot of consumer activity and shopping. But the rise in the consumer price index, a key indicator for measuring inflation, is surprising since despite factoring the festive season in the calculations, inflation for January was projected at 4.1% by several international experts. What is more startling is that in the same period, imports sank 15.3% y-o-y, while exports saw a decline of 0.5% only. The change in these figures indicates faltering domestic demand, which can be a red signal for the future. The drop in exports left China with a trade surplus of $27.3 billion in January, its biggest in six months.

Sony’s ratings
The changing of the guard at Sony, with Kazuo Hirai set to take over as new CEO in April, has failed to impress the market. Standard and Poor’s has lowered its assessment of Sony’s long-term credit worthiness from A- to BBB+, citing poor earnings, price erosion and falling demand as the main reasons. Stiff competition from Korean and Chinese entities also pose a severe threat to the profitability of the Japanese electronics powerhouse. S&P added that Sony’s rating could see a further downfall if it did not see any recovery in earnings within the next six to 12 months. S&P said that a major blame for the current apathetic situation of Sony rests on its strategy of aggressive expansion despite strong competition, massive erosion of prices and its high cost structure as compared with overseas competitors.

Not a good time for arcelormittal
The year 2011 wasn’t good for the world’s largest steel maker, which made a net loss of $1 billion in the Oct.-Dec quarter. The losses are attributed to large tax payout, downward revaluation of fixed assets and restructuring charges. The company has had to cope with deferred tax payment of $ 0.9 billion, a further $0.2 billion on the cost incurred on downward revaluation of fixed assets and another $0.2 billion spent on restructuring associated with its asset optimisation plans. Profit for the full year 2011 was dragged down 22.43% to $2.2 billion vis-a-vis $2.9 billion for 2010 while EBITDA for quarter (Oct.-Dec. 2011) was down by 7.5% to $1.7 billion.


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