IIPM Beyond Imagination: March 2013

Thursday, March 28, 2013

IIPM Celebrates Selfless Service

In a Highly Intellectual event, The Bharatiya Manavata Vikas Puraskars are Awarded by IIPM to Six Transformational leaders Committed to Positive social change and Equality.

It is worth walking the extra mile if at the end of it you know you have brought about a meaningful and positive change. In the same spirit, The Indian Institute of Planning and Management (IIPM) honoured six individuals from different walks of life with the prestigious Bharatiya Manavata Vikas Puraskar for treading that extra mile. This award is given for the commitment to bring about a positive change in the society and for championing the cause of equality, social justice and human welfare. The award ceremony, organised in New Delhi on March 28, 2011, was presided over by Swami Shantatmananda Maharaj of the Delhi branch of Ramakrishna Mission.

The distinguished award, which additionally has a prize money of five lakh rupees, a gold medal and a citation, was conferred upon Dr Kiran Bedi, Prof. Ilina Sen, Dr Binayak Sen, Prakash Kaur, Justice (retd) V R Krishna Iyer and former Chief Election Commissioner of India, T. N. Seshan. It is one of the various awards that IIPM has instituted to celebrate the spirit of sacrifice and selfless giving.

Speaking on the occasion, Dr Malay Chaudhuri, founder Director, IIPM, and Chairman, IIPM Awards Committee, while commending the awardees for their commitment towards their respective causes, said, “In the absence of economic planning in India, social welfare and poverty alleviation programmes are never successful. This leads to criminalisation of the society and the exploitation of the poor at the hands of the rich and the corrupt.” The ultimate cause of uprooting poverty and injustice from the country are very close to the heart of Dr. Malay Chaudhuri.

Thanking IIPM for the award, the most respected social activist and former IPS officer, Dr Kiran Bedi said, “It gives me immense pleasure as this award will go a long way in contributing towards my cause.” She urged the IIPM students and civil society to join hands against corruption and exhorted them to work for the welfare of the poor at the grassroots level. Dr Kiran Bedi runs the NGOs Navjyoti and India Vision Foundation; and supports various social causes like prison reform, child welfare and prevention of drug abuse.

Prakash Kaur received the award for her unrelenting mission of rescuing unwanted and unclaimed newborn girls and giving them a secure home and future. “I feel grateful for this award,” said Kaur, overwhelmed with emotion, “It gives me immense satisfaction to be among the people who support humanitarian causes and are ready to help all those in need. I am an insignificant person and yet the IIPM awards committee selected me for this prestigious award.”

Prof. Ilina Sen and Dr Binayak Sen were individually awarded for their dedicated efforts in restoring sustained focus on human rights in Chhattisgarh and for ensuring social justice for the tribals. In the absence of Dr Binayak Sen, his wife Prof Ilina Sen received her husband’s award too. Dr Ilina Sen, who has embraced a life full of difficulties, said, “I thank IIPM for the awards. The Bharatiya Manavata Vikas Puraskar has boosted my morale. It feels as if I am not alone in the ordeal through which my family is passing. This award has made me forget my pain for some time and I strongly hope that our struggle for social justice in Chhattisgarh and other parts of the country would produce the desired results.”

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Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

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Ranked 6th Overall
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IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
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Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
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Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
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IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Monday, March 25, 2013

Fare the Well, Dear Mr. Governor

Amidst recurring controversies regarding Governors serving The Political Interests of The Centre, A debate to either Abolish or Relook The Constitutional position of The Governor is The need of The Hour.

The position of the Governor which was conceptualised by the founding fathers of India’s constitution to provide for an independent and impartial post which would rise above partisan interests and raise his conscientious voice in the event of a crisis or conflict in a state, has unfortunately disappointed us on more occasions than one. Recurring controversies of Governors being seen working in a partial manner and even dubbed as “political agents” has dampened the integrity of the post and calls for an urgent need for reforms of the highest order to protect the larger national interest of fair governance. The question here is whether it is time for India to totally abolish the post of Governor or not.

While one might believe that the current turmoil in Karnataka has led us to prompt this debate, one look in the recent past reveals cases where Governors of states in both the UPA and NDA regimes have not only acted partially; they have also tried to overrule the electoral mandate. Apart from the recent furore created by the BJP in the case of H R Bharadwaj and E S L Narasimhan, serving governors of Karnataka and Andhra Pradesh, former governors of Bihar and Jharkhand Buta Singh and Syed Sibte Razi also came under immense scrutiny after having invited a party in minority to form a government, thereby obstructing the NDA to come to power. During the NDA regime too, there was the case of Arunachal Pradesh where the Governor played a very dubious role in the formulation of the government after Gegong Apang switched sides.

According to senior political expert Subrot Kamal Dutta, “The past 20 years have seen people with political background being nominated to the Governor’s post, which has definitely declined its dignity. Even the Supreme Court has come down heavily on the Centre over the conduct of the Bihar and Jharkhand governors in the past. The post of the Governor has to be apolitical, and only people with relevant judicial and constitutional experience should be nominated. Impetus has to be on each individual to keep the post as apolitical as possible.” Taking a fair view on the ongoing turmoil in Karnataka, one could contest that Governor Bharadwaj was only carrying out his duties by acting to ensure that an individual under scanner for alleged acts of corruption to the tune of Rs.5 billion does not stay at the helm of affairs. After all, the constitution legally provides for the Governor to act against corruption, which is what Bharadwaj did. Even if we were to believe that his actions were not influenced by the Congress, his stand invited the ire of the BJP who blamed Bharadwaj of acting hastily only to divert the nation’s attention from reports of the CWG and 2G scams that the UPA was reeling under. Either way, the Governor’s actions, even if justified, stand to lose credibility on account of political gimmicks, the kinds unlikely to end anytime soon.

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Monday, March 18, 2013

For Them, it’s About Social Sustainability

By Betting big on CSR, ITC has Once Again shown What It Takes to be one of the Fastest Growing Companies in India.

When Y. C. Deveshwar took over in 1996, ITC was experiencing an unmatchable mix of challenges. Its cigarette business had been slapped with an excise duty demand of Rs.8.03 billion, its diversification into hotels and paperboards had still not bore fruits, its forays into financial services, edible oils and international trading too were still incurring losses. In short, the company was facing a severe criticism, both from its investors and industry experts.

Cut to today, and things have completely changed for this FMCG giant. Though severe taxation and regulatory environment for cigarettes in India continue to be a cause for concern, innovation and an unrelenting consumer focus have enabled ITC to deliver a splendid performance to make its way to this year edition of B&E’s Fastest Growing Companies in India. In fact, initiatives across the brand portfolio, in terms of modernisation of cigarette packs and introduction of new brands and variants, helped ITC declare a strong topline growth of 16.3% (y-o-y) to Rs.181.53 billion in FY2010 from Rs.156.11 in FY2009. Needless to say the major contribution came from the cigarette business that reported a 14.3% rise in gross revenues, from Rs.151.15 billion in FY2009 to Rs.172.83 billion in FY2010. Earnings too grew by a robust 27% (y-o-y) to Rs.40.61 billion in FY2010 from Rs.32.63 billion in FY2009.

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Tuesday, March 12, 2013

B-SCHOOL INTERVIEW: IIM-LUCKNOW

Prof. Pankaj Kumar, Chairman, MDP, IIM Lucknow talks to Bhuvnesh Talwar of B&E about what makes IIM-L Unique, The Challenges that B-School Education faces in India and the need to Encourage Entrepreneurship...

B&E: And what do you feel are the challenges to the growth of management education in India as a whole?
PK: There have been challenges in the past, and they are here to stay. In fact, the challenges will only grow more in count and bigger in size. Management education needs to go through further transformation; I would rather say “radical change”. The gap between theory and practice needs to be narrowed down tremendously. And for this to happen, industry interface is a must. The concepts of ethics and balance, which I personally believe should be the biggest priorities in the management education system, have to be evaluated at length, so that they add value to the learnings that we impart to students. We also increasingly need to focus more on personality and soft skills development programmes.

B&E: Somehow, even the top Indian B-schools have failed to produce entrepreneurs who can contribute to the economy and help create jobs. Don’t you think so?
PK: Let us look at the situation this way – all the management schools in India, including the premier league of B-schools, are today focussing more on enhancing skills to make students effective and brilliant managers and not leaders, which ideally should have been the case. All the IIMs have only been producing enormous premium quality workforce for the industry. But thankfully, today we can sense a change in the air, with the students taking entrepreneurship seriously. They are opting out of the regular corporate jobs and are trying their hands at new ventures. And the B-schools are also taking notice.

B&E: Do you think we need more B-schools considering that there is a huge demand for management education in the country?
PK: You need to view India as a population and take notice of both the demand and supply sides. While we necessarily need to keep stringent checks on various factors – like the quality of education being imparted by the institutes, the faculty being provided, the global exposure, et al – I firmly believe that we need more number of quality management institutes in India, as there still exists a big visible gap between demand and supply of quality MBA education.

B&E: Any advice for the youngsters who aspire to become future CEOs?
PK: The new generation is well informed and is very practical. They are thriving in the present era of entrepreneurship. I just feel that they should be focussed on what they want to achieve and not get influenced unnecessarily. They should above all stick to their value systems – and this is most important.

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Monday, March 11, 2013

“Not Much Extra Cost for Green Buildings”

Navin Raheja, MD, Raheja Developers shares the Complexities of The Sector

Raheja Developers is among the biggest green building developers in NCR region with investments worth Rs.10 billion tied up. Navin Raheja, MD, shares with Mona Mehta his experiences venturing into this sunrise sector

B&E: How do cost premiums stand for green buildings viz-a-viz conventional ones and between residential and commercial, which have better returns?
Navin Raheja (NR): When the green building movement first started nearly a decade ago, the cost increase for projects was around 10 to 15 percent but today in reality, it is around 2-4% but cannot be passed onto occupiers in a competitive market like India. Secondly, there's lack of information on green building systems with too much dependency on select few consultants. Thirdly, there's difficulty in assessment of costs and requirements for compliance causing costly delays. The per sq.ft returns on commercial development are the highest as they are leased while residential are sold out at competitive prices resulting in negligible returns.

B&E: What are the long term returns in green buildings and can they break even within 3-5 years of operations?
NR: Green buildings reduce carbon emissions by about 40% compared to conventional buildings. The break even in case of a green building commercial project can occur within 3-5 years time of starting operations due to savings in energy which could go upto 80% & water between 25 to 40%. A green building can also earn Carbon Credits, approximately Rs.7 to 8 million annually for 10 years, for every 2 lakhs sq ft of conditioned area

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Thursday, March 7, 2013

INTERVIEW: THE AMBASSADOR OF GEORGIA

B&E: Keeping in mind the current scenario, do you think that Russia will ever agree for negotiations?
ZK: Georgia is ready to talk with Russia, but only under one condition – full respect of Georgian territorial integrity and sovereignty. Knowing the position of current Russian leadership, we have little hope. This is because Russian leaders, namely Prime Minister Putin and President Medvedev, have expressed unwillingness to discuss, enter into a relationship and negotiate with the present Georgian leadership. This once again confers that the objective of Russian incursion to Georgia is not only meant to occupy but also reverse the political regime of our nation. Regarding the Russian military presence in the region, it does concern us and seems to be a threat. But I would say it is not only a threat for Georgia but also another attempt of Russia to show the rest of the world that they are running the show in Caucasus region. It is also a demonstration that Russia is averse to peaceful political solutions of any problem arising in the region.

B&E: Is it the reason why you wish to join NATO? And do you think NATO can help you?
ZK: Joining NATO had been a long term objective for Georgia. It is not something new. Referendums held in Georgia a few years ago demonstrated that more than 70% of the population was supporting Georgia’s aspiration to join NATO. Needless to say that becoming a member of NATO will immediately make us feel that we are a part of the large Euro-Atlantic family. And it would also make us feel safer. By the way, one more reason for Russia to wage war on us in the year 2008 was that Georgia and Ukraine were denied NATO membership because of Membership Action Plan (MAP). Russia took it as a signal that the West is not supporting Georgia any more. At least, the West will not militarily support Georgia if Russia attacks. And this is what unfortunately happened during the 2008 war. But I repeat, we never wanted to join NATO with a view of initiating any military actions to recover the territories. So, Russia perceived European countries joining NATO as their military weakness – especially members of the NATO. Till date, Georgians continue to support our endeavour to join NATO. We will eventually become a member of the NATO family. And thus, we are continuously undertaking major reforms to be compliant to meet the necessary demands of NATO. For example, Georgia participated in the peace keeping operations in Afghanistan with an extended military unit. The Day when all the members of NATO will consider Georgia ready to join, we will be given the green signal.

B&E: You cannot win a war with Russia. Do you have alternative ways to secure that 30% land?
ZK: You are absolutely correct. One has to be a fool to think that Russia can be defeated militarily by any of its neighbours. Also, 2008 war demonstrated the weaker sides, which are quite important. The alternative is very simple – peaceful, diplomatic ways. You can always achieve what you aim for. It only takes more time. For example, you saw Russia retreating from Afghanistan; you have also seen reunification of Germany. However, we are dedicated to find solutions of long term disputes peacefully in order to recover those territories.

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Wednesday, March 6, 2013

Muthoot Finance Ltd in conversation

Managing Director, Muthoot Finance Ltd in conversation with B&E’s mona mehta

B&E: You are planning to go public shortly? Does it aim at capacity expansion alone?
GAM: Not exactly. Going for the public issue is necessary for both, scaling up the business as well as to diversify our existing investor base.

B&E: Considering the fact that the competition in this segment is heating up faster than ever, how are you planning to save your number one position?
GAM: With a gold loan book of over `100 billion and a network of close to 2000 branches, we are the market leader today and one of the most respected brands in financial services domain. As the pioneer and leader of gold loan business, our efforts will be to maintain this leadership position. Thus, we are constantly upgrading our customer service quality. Efforts are also on to vastly expand the distribution reach by improving the branch network. The company aims to add 1,075 new branches this fiscal – 575 in southern states and 500 in northern states. Among them, 600 branches have already opened.

Moreover, the group is now looking forward to set global footprints. Keeping that in mind, we have opened an office in New Jersey, US for remittance business after acquiring a company, in the UK, where gold lending has been a big business, awaiting for the regulatory approval to launch our operations. Also, we have a money exchange company in Dubai, which is in operation since last year.

B&E: Gold loan providers in general deal with short-term funding. You also do the same. What’s the reason behind it?
GAM: Gold loan is taken for personal purposes. It is now widely accepted as a short term business loan. So, the normal duration of such loans range between 3 to 6 months. However, there are schemes where the term can go up to 1 year.

B&E: Are you considering the option of acquiring small to medium gold loan financiers for capacity expansion this year?
GAM: Yes, normally we do consider all such options. But at present, we don’t have any such plan in the pipeline.

B&E: What is your our outlook for the sector? Do you think the competition will further intensify?
GAM: Yes. Competition is bound to increase as a number of large players are entering in to this business. Even banks are interested. But then, the growth potential is tremendous. As of 2009, gold stock in India is estimated to be around 15,000 tonnes and organised gold loan portfolio is still a miniscule portion of the same.

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Tuesday, March 5, 2013

Way past their vacation time!

The tax holiday provided to Indian IT companies at the dawn of this century was historic and path breaking, as it enabled the industry to reach the enviable stature that it enjoys today. But retaining this tax holiday doesn’t make sense from a futuristic perspective by Ashutosh Harbola

It was one of the few instances when the Indian government actually played a key role as an enabler for business. The tax holiday given under the Sunset Clause u/s 10A and 10B of the Income Tax Act for companies operating under Software Technology Parks of India (STPI), which provided massive exemptions for the IT industry in India, was launched in the heydays of the dotcom boom in 2000-01. The incentives were available for providing software and IT enabled services for 100% exports including exports of physical services and included exemption in custom & excise duty, reimbursement of Central Sales Tax and exemption in corporate tax on 90% of export turnover (applicable for a 10-year period).

The dotcom boom fizzled out, but the tax holiday has been a major component of India’s success as a global outsourcing hub, making more than 8000-odd IT units more competitive. In 1990, the Indian IT industry generated a mere $150 million in software and computer-related services. In FY 2008-09, the Indian IT-BPO sector had reached $71.7 billion in aggregate revenue. Software and services exports (includes exports of IT services, BPO, Engineering Services and R&D and Software products) reached $47 billion, contributing nearly 66% to the overall IT-BPO revenue aggregate.

Ever since the golden decade came to an end in 2009, a debate has been raging on whether it needs to end at all. IT companies pressed for an extension by three years, but were granted only one. In the 2010 budget session, Finance Minister Pranab Mukherjee declared that the holiday will not be extended. Industry association NASSCOM and a number of players feel this will seriously hamper India’s competitiveness. Arvind Goyal , Director-Finance, Pitney Bowes India Pvt. Ltd. cautions that this will also reduce India’s attractiveness as he says, “Local duties and tax structure do play a. vital role in swaying decisions of global IT players in favor or against of setting up captive center in one of the countries.” Infosys Chief Mentor Narayana Murthy however feels that the extension isn’t needed from Infosys’ perspective.

It’s been almost 20 years since the sector has been awarded some or the other kind of benefits. These benefits made sense when the industry was at a nascent stage. In 2009, IT services alone have grown up from $13.5 billion to $35.2 billion since 2005 with exports contributing 76% (CAGR of 32% in 2000-2009 period). Direct employment in Indian IT-BPO sector crossed the 2.2 million mark, an increase of about 226,000 professionals over FY 2008 and indirect job creation is estimated at about 8 million. As a proportion of national GDP, the sector’s revenues have grown from 1.2% in FY1998 to an estimated 5.8% in FY2009. Net value-added by this sector, to the economy, is estimated at 3.5-4.1% for FY 2009.

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Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

Saturday, March 2, 2013

Past, present and future of the company...

Chairman, MMTC with jayant mundhra on past, present and future of the company...

B&E: Who do you bear in mind as your target audience?
SB: India’s obsession and fascination with gold is well known. While some section want to keep it as a safeguard for the future, another section want to use it for purpose of jewellery. So, almost all classes in India are our target audience.

B&E: You are mainly into import of gold and selling it in India. Keeping that in mind, what is the relevance of ‘Festival of Gold’ that you hold every year?
SB: We are the biggest supplier of gold, but at the same time, our main focus is on importing gold. However, 1989 was the first year when we imported gold and sold it in the Indian market. As far as the ‘Festival of Gold’ is concerned, it has been a huge success ever since it came into existence. In fact, the festival is an exhibition where we showcase our products as well as varieties of gold to buyers from across the country. In fact, the gold fest is a platform where buyers get a platform to interact with us at length. Apart from this, the exhibition also helps artists, who come from various regions of the country, to showcase their artworks.

B&E: For the first time, MMTC recently entered into a joint venture (with Gitanjali Jewellers) to move a step closer to the retail consumers. How do you see the road ahead?
SB: This is the first time that we are entering into a joint venture and I must say that Gitanjali Jewellers is a great brand to start with. They are very aggressive in their approach to tap the market and have got tremendous brand recognition amongst Indian populace.

B&E: According to you which is your core competence?
SB: Our core competence is in doing purity check of gold and then hallmarking it accordingly. This kind of service is not provided by any other player in the country. Hence, we have also developed a special symbol for our hallmark. To understand the kind of gold a person is buying, all one needs to do is look for a hallmark.

B&E: How well has the market taken up the job of quality check so far?
SB: We first opened our shop in New Delhi, and at present, we are operating with 11 stores across India. The response has, however, been tremendous. We are now planning to increase that number to 63 shortly.

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