Thursday, May 30, 2013

Sean Penn to 20th Century Fox

Early-1999, shortly after the release of Terrence Malick's The Thin Red Line, in which he starred, Sean Penn approached 20th Century Fox and asked for a private jet to take him to a screening of the movie in Houston. Much to his dismay, the studio refused on grounds of cost and company policy. Infuriated by the rejection, Penn wrote the following letter to the studio in response. It was very quickly leaked to the press.


January 6, 1999


To whom it may or may not concern at 20th Century Fox, et al.


The purpose of this scratchpad communique may well be as much to amuse you or inform you. Clearly, its less than humble writer has found grounds for amusement in its content.

In my continuing effort to support our shared entity, "The Thin Red Line," I have yet again run into another of the endless bureaucratic hurdles that your company relentlessly plants in my path. As a result of Terry Malick's invitation, I made plans to join Terry in supporting the film's screening, and ultimately its profile in Houston. As I have two movies, two children and (as each woman is at least two people) two wives presently in distribution, my schedule is rather hectic. I therefore requested that Mr. Murdoch's gigantic corporation might be so generous (with the money they've earned exploiting the pain and suffering of myself and my peers in their tabloids) as to supply me with a private jet to travel to Houston.
The response was a clear NO.

Two things were cited: 1) The $40,000 cost. 2) Policy. As to number 1, we at my tiny little San Francisco office went ahead and priced the cost of such a jet ourselves. In fact, it came to $16,000, which we had offered would be divided by two, as Fine Line Pictures had already committed to pay half (I would do an interview on behalf of "Hurlyburly" while I was there). Next we priced the commercial fare somewhere in the area of $2,000. The final cost differential to Mr. Murdoch's pool-heating expenses: A WHOPPING $6,000, which, against the price cut I offered in my deal to act in this movie, seemed equivalent to the fair market price of one hair on Mr. Rupert Murdoch's formidable ass. Next comes policy, the number 2 reason cited us in denial of our request. Evidently this is a word prized by Mr. Murdoch's company as I ran into it before when Mr. Malick requested that I be given an opportunity to view a videotape of the movie prior to his locking the print. I think we all know what a shameful little dance went on there, with wasted time, wasted money in the name of a policy. Has anyone at 20th Century Fox considered that it might not be my policy to do 7-figure favors for multi-national corporate interests as I did when I took the salary you paid me on "The Thin Red Line"?

Bottom line is...our policies collide. Good luck with the picture.

P.S. I know you guys don't remember what the inside of a commercial airline terminal looks like, but if you send me a picture of your jets, I'll send you a picture of the door at the Red Carpet Room. Wish I could've been in Houston. It's a beautiful movie and I'd like to have helped spread the word.


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

Tashkent Ahoy!

With a potent mixture of new and old, the city of Tashkent has something or the other to offer to travellers of every budget and taste, says Saurabh Kumar Shahi

There is a flurry of images that the word Tashkent evokes inside the minds of every Indian: 1965 Indo-Pak War, the Tashkent Agreement, the sad demise of Prime Minister Lal Bahadur Shastri and the image of his body being flown back to New Delhi. That was 1965. After that there is nothing much to recall.

But while we were busy doing what we do, some tectonic changes occurred. The Soviet Union dismantled and Uzbekistan emerged as an independent nation with Tashkent as its capital. The 90s saw developments at breakneck speed as the newly independent nation was inspired to gift itself a city worthy of being a national capital. Tashkent changed, and changed for good.

First the essentials. Uzbekistan Airways runs direct flights between Delhi and Tashkent, as well as Amritsar and Tashkent. Being a relatively new airline, Uzbekistan Airways boasts of some sparkling new carriers, a mixture of Boeing, Airbus and Ilyushin, in its fleet. The flight from Delhi takes a little over two hours and the ticket prices are affordable. The Uzbekistan Embassy in New Delhi will be eager to provide you with visa and other travel related documents provided you are going there as a tourist. Individual travelers face little problem unlike some of the famous tourist destinations nearby. In fact, the liberal visa regime has seen sudden spike in number of Indian tourists who are flocking to Uzbekistan these days.

While in Tashkent, the only hurdle that you might face will be at the Customs. The law requires you to declare every penny that you are carrying inside the country. You have to sign a declaration form that has a counterfoil and keep a stamped copy with yourself. This copy needs to be returned when you leave the country. Also, once inside Uzbekistan, tourists staying for more than three days need to get registered with the bureau. If you are staying in a hotel, the onus lies on the hotel to do it for you. Once done, you are set to explore the queen of Central Asia.

Tashkent is a well-laid out city with broad boulevards and even broader squares. Taxis are affordable but motorbikes are a strict no no. City buses are in plenty with widespread routes. But the best option to see the city around is through city's well laid metro network. A mixture of Soviet era and modern routes, the metro can be used to visit almost all the areas of new city and the downtown and a few areas in the old city as well. And, like its counterpart in Moscow, the metro stations are in themselves a delight to see. Adorned with murals and engravings, and a design reflecting Soviet era aesthetics, each metro station represents a unique theme. But as much as you feel like doing it, it is strictly prohibited to click the pictures of metro stations. The security inside the network is unprecedented and tourists are advised to keep their travel documents handy.

You can cover some sections of the city on foot. In fact, if you divide the city between the old and the new part, you can actually cover each part on foot. The city has mild and pleasant summers and bitterly cold winters with the mercury dipping way below zero. The best time to visit the city is from April to September. As there is little or no humidity, the walks are pleasant and does not exhaust you beyond a point.

There are two squares that define the new part of the city and it is in between these two that many of the attractions are situated. The city's biggest square is Mustaqillik or Independence Square and  it serves as the nerve center of the Uzbek government. Spread over an area of 30 acres by the side of the magnificent buildings of Government Secretariat and Oliy Majlis, the square draws substantial crowds at both daytime and evening.

Adorned with green zones and fountains the square is overlooked by the Arch of Independence. Nearby is the Monument to Independence and Humanism. There is a pedestal with a bronze replica of the earth on its top. On this bronze sphere, the territories of Uzbekistan are engraved. Prior to 1991, this pedestal had the statue of Lenin adorning it. Below is a statue of a seated mother with a child in her lap symbolising the new nation.
On its right is the Monument of Courage, build to commemorate the courage of the people who suffered the 1966 earthquake that almost flattened the city.

Further right is the World War II memorial dedicated to the fallen Uzbek soldiers. The monument consists of a flame and sad woman and a building with two corridors with the names of fallen written on it. The design is distinctly Japanese as it was constructed by the Japanese POWs. You can also catch a show in the adjoining Turkestan theatre which is well known for its aesthetics and acoustics.

The square is linked to another famous square, Amir Temur Square, through a boulevard locally known as Broadway. The city boasts of street artists and painters, who display and sell their original artworks. There are many shopping centers, boutiques and cafes around and spending an evening here is highly recommended. You can also catch street performers in the late evening. Also,  this is the place where you can pick some good souvenirs and Soviet era antiques. You also have the Palace of Symposiums and National Library of Uzbekistan nearby.

Read more....

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 29, 2013

Manufacturing defects

Focus should not be only on service but manufacturing as well

The economies that focused on strengthening their manufacturing sector, post World War II, have prospered and became global economic super-power to reckon. However, in India, the manufacturing sector has been a laggard compared to the fast and racy service sector. As a result, the service sector’s contribution to the economy is 56.4 per cent compared to manufacturing sector’s 26.4 per cent. Only some patches of growth trajectory experienced by the manufacturing sector even if impressive and optimistic is never enough to catch up with the service sector in terms of employment generation and human capital exploiter.

However, the wide eyed analysts are staring at the stunning performance of the manufacturing sector that jump started from December last year delivering the highest growth rate in previous 6 months. The HSBC India Manufacturing Purchasing Managers’ India (PMI) – a production measure – is ever increasing peaking in December with an impressive 54.7 points, if anything, is an indicator of rising demand and frantic purchasing. However, in spite of this high gliding manufacturing run, the employment creation bottleneck persists as it used to be. The primary reason for that is high worker to fixed capital ratio or in simple parlance capital intensive industries that has become the preferred choice for both promoters as well as the consumers. A twin and opposite development of capital intensive export products have more than doubled from 25 per cent in 1993 to 54 per cent in 2010 on one hand, and labor intensive products, which has 30 per cent share has exactly halved during the same period to 15 per cent (based on the estimate by Indira Gandhi Institute of Developmental Research). As a result, despite some erratic and sometimes notable growth in the sector the employment growth has plummeted from 2.61 per cent in 1993-94 to 1.02 per cent in 2009-10.

In contrast, the service sector is expanding in leaps and bounds producing nothing short of an eye-popping contrast! In fourth quarter of FY 2011-12 when industry sector was growing at 1.9 per cent, the service sector was striding miles ahead at 7.9 per cent. Consequently, the top 3 employment generators in India for 2012 have all come from service sector viz. Healthcare, Hospitality and IT/ITES. This paradigm is the cornerstone for even engineers from top institutes opting for service when they should be engaging themselves for manufacturing sector, for which they are trained. The fees for IIT students was a huge subsidy delivery even till the last year, when it was pegged at Rs.50,000 a year, a subsidy of Rs, 1 lakh per student per year. And where are the returns of this investment, meant to train the students as functions of manufacturing sector boost, going to? Either to the foreign shore to bolster their own industry or to IT or banking sector for which engineers are not trained in IIT at the first place! But at last the government has realized the vain nature of the fund flow and decided to off-load the subsidy burden for the IIT students. The other government engineering colleges too pins to be on the same trail and it requires some extraordinary policy measures from the HRD ministry to reverse the trend.


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

Tuesday, May 28, 2013

In the big league again

Indian hockey, once a powerhouse of the world game, has been looking down the barrel for decades now. However, with the advent of Hero Hockey India League (HHIL), fans have begun to see a sliver of hope.

The tournament, which features some of the world's finest players and is due to wrap up on February 10, is being telecast in 83 territories worldwide. It has put Indian hockey back in the global big league.

According to ESPN, the official broadcaster of HIL, a comprehensive line-up of global syndication partners are showcasing the first edition of the league in these many territories. Some leading names in the world of sports broadcasting like Fox Sports from Australia, Sky Sports from New Zealand, Ten Sports in Pakistan and southeast Asia and MENA region are covering HHIL live in the territories.

According to Aloke Malik, managing director, ESPN Software India, “These partnerships reinforce our commitment to set new benchmarks in the distribution of Hero Hockey India League. We look forward to working closely with all our partners and serve hockey fans all over the world with some mouth-watering high quality content.”

If Indian hockey is reemerging, the top bosses of Indian hockey will certainly love to take the credit. Dr Narinder Batra, chairman, Hero Hockey India League, said, “We are delighted to have a strong and committed broadcast partner. It is great to know that the first edition of the league can be seen by hockey fans across the world. We are confident that the popularity of the league and the game of hockey per se will greatly benefit from these international distribution tie-ups.”

Successes of HHIL
l HHIL’s broadcast in India, at the end of Week 2, has been seen by 2.27 crore hockey fans, way more than the full tournament reach of UEFA Euro 2012, which stood at 2.04 crore.

l HHIL’s reach is almost four times that of the Men’s Hockey Champions Trophy, which had a full tournament reach of 58 lakh. l HHIL’s reach is considerably higher than that of World Series Hockey, which stood at 1.24 crore individuals at the end of Week 2. l Even on the digital front, HHIL has achieved considerable success. HHIL's Facebook page has attracted more than 410,000 fans, making it the world’s largest field hockey Facebook page. l On Twitter, HHIL has trended multiple times not just in India but also in countries like the US.

HIL began with a bang. In its first week, close to 1.5 crore people watched the league. At 1.46 crore, HIL was 1.7 times UEFA Euro 2012's reach for the first six matches.

It garnered 24 times the average weekly reach of I-league. Within the first week, HIL overtook the tournament reach of the recently concluded 2012 Men's Hockey Champions Trophy. The first week TV viewership was more than double of what World Series Hockey could deliver in the first week last year. The figures released by the official broadcaster back the claims it made before HIL began.

HIL has the sanction of the international body, International Hockey Federation (FIH). To make it a global league, players from 11 countries are rubbing shoulders with each other. The league marks a giant leap for Indian hockey.

Indian fans saw a new avatar of Indian hockey when the inaugural match was played between Delhi Waveriders and Jaypee Punjab Warriors at National Stadium, Delhi.

HIL, a five-team franchise-based league, could in the long run revive a slowly decaying Indian hockey. After India missed a berth in the 2008 Beijing Olympics and then finished at the bottom in London last year, hockey administrators in this country were at their tether's end.

But gradually, over the last couple of tournaments, the young and enigmatic Sardar Singh is showing glimpses of India's past prowess and with a new professional league now in place the game could see a dramatic turnaround.

Unlike the rival World Series Hockey, 120 hockey players – including the best from India and the world – are participating in HIL. In an auction that was held along the lines to the Indian Premier League, India captain Sardar fetched the highest price. He was grabbed by Delhi for USD 78,000. India vice-captain and ace drag-flicker VR Raghunath was bought by Uttar Pradesh for USD 76,000, Australian star Jamie Dwyer went to Punjab for USD 60,000, Fuertse was taken by Ranchi for USD 75,500 and Nooijer was sold to Uttar Pradesh Wizards for USD 66,000.

The tournament – 34 matches spread over 28 days – has already given a huge opportunity to many young players from India and abroad but the organisers will have to increase the pool of players and improve overall standards.

In a cricket-crazy country, the HIL TV ratings have been extremely encouraging. When eight years ago the Premier Hockey League was started, no one would have imagined that one day an Indian hockey league would hit the headlines worldwide.

The best thing for the league is that players like Sandeep Singh and Tushar Khandker, who were dumped from the Indian team, are proving their mettle.


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

Monday, May 27, 2013

That Yahoo Moment!

The Right-Centrist-Left divide in Israel is mostly, for appearances' sake. When it comes to respecting international law and issues of decolonisation, each faction has cut a sorry picture in the past

As the dust settled in the Israeli political landscape this week, incumbent Benjamin Netanyahu’s Likud-Beitenu coalition has claimed a premature victory in Israeli parliamentary elections. While the incumbent lost massive number of seats in the Knesset, he in all probability remains the lone probable head of the new government.

As things stand, Netanyahu's Likud-Beitenu coalition bagged the highest number of Knesset seats with 31. This was a good 11 less than what this coalition had in the outgoing Knesset. However, their likely hold in the parliament will now depend on the coalition they manage to bring together. As of now, the numbers in the Knesset suggest that the ultra-right-right and centrist-left parties have managed to score a 60 to 60 seats in the 120-seat parliament. Under the circumstances, it is likely that Netanyahu will manage to wean away some of the centrist parties and continue to rule for some years to come. Among the others, the centrist Yesh Atid pulled the biggest upset of the election by returning as many as 19 seats. The hastily put together Labour Party machinery could only manage to return 15 seats, clearly a shadow to its former self. As this story goes to print, Yesh Atid was yet to return Netanyahu's call for coalition.

Let's first look at how the parties have performed individually. As mentioned earlier, Netanyahu lost the biggest percentage of seats. Before the elections, he united his party with that of ultra-right Foreign Minister Avigdor Lieberman. To many, it appeared to be a bulldozer coalition with little or no resistance. Experts gave this coalition up 45 seats, which was a marked improvement from their previous numbers. It would have basically meant that he would have been in command in choosing his coalition partners post-elections. However, the bloc won merely 31. Also, don't forget that Likud proper has won merely 20. Technically speaking, even if he cobbles together 61 seats and forms a government, his own party will be in minority. That, for all practical purposes, means that he is staring at a political abyss.

That brings us to Ya’ir Lapid and his Yesh Atid party. Sources suggest that his 19 seats stunned everyone in Israel, including Lapid himself. People are still wondering how he pulled it off. Israeli activist and political expert, Uri Avnery, has the answer.

“Well, he has the handsome, youthful look and body language of a TV anchorman, which indeed he was for many years. Everyone knows his face. His message consisted of platitudes, which upset no one. His victory is part of a generational change. Like Naftali Bennett on the right, he attracted young people who are fed up with the old system, the old parties, the old, hackneyed slogans. They were not looking for a new ideology, but for a new face. Lapid’s was the most handsome one around. But it cannot be overlooked that he beat his nearest competitor for young votes – Bennett on the right. While Lapid did not propagate any ideology, Bennett did everything to disguise his. He went to Tel Aviv’s pubs, presented himself as everyman’s (and everywoman’s) good guy, wooed secular, liberal youngsters,” he says.

This, in many ways, also means that Yesh Atid created a severe dent in the Labour Party and Kadima's vote banks. In fact, the Labour Party, in many decades, is for the first time finding itself to be irrelevant. This is primarily because its voters are finding it increasingly hard to differentiate it from centrist or centre-right parties. It also did not help that just prior to the voting day, the leader of the party categorically told the voters that it was “not a left-wing party”.

One party that started on a positive note and genuinely wants a peaceful future for the country and the region, Meretz, managed to double the seats from three to six. It is a miracle, considering how hawkish the Israelis have turned in the last decade. It is also evident that a substantial number of Jews voted for the primarily-Arab communist Hadash party, that also managed to up its numbers.

But the question is, what is this election going to bring on table as far as the resolution of conflict is concerned. Precious little, if experts are to be believed. If technicalities are shed away, this left-right-centrist divide in Israel means little for outsiders or for the Palestinians waiting for their separate homeland. In many ways, these divisions appear superficial.
Except for the parties that represent the mammoth majority of votes of Palestinian citizens i.e. United Arab List, Hadash, and Balad; who altogether bagged 13 seats, down from 19 last time; the rest of the Israeli parliament basically constitutes of individuals and parties that basically believe in continuing with a regime of Jewish privilege at the cost of the Palestinians. Be it is adherence to international law, issues of decolonisation or rights for Palestinians, Israel's centrists, centre-left and the left have all failed in equal measures.

Says Ramzy Baroud, Palestinian-American journalist and editor, Palestine Chronicle, “Israeli bulldozers will not slow down for a minute, be it a coalition with its bulk coming from Yesh Atid or one largely reliant on the ultra-orthodox or the ultra-nationalists. If you look into the record of Israeli governments, whether the two terms of Netanyahu or previous governments under the Kadima, nothing really changed and the settlements continue to grow.”

“There is a consensus within the Israeli society and political elite that the issue of the settlements is an issue that cannot be bargained upon, the differences are mostly tactical. As for the peace process, things will remain at a stand still. There is no peace process, there hasn't been a peace process for years and most likely there won't be a peace process under Netanyahu or under the mentality by which Israel is governed." Pessimistic, but true.


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

Saturday, May 25, 2013

Can monte carlo beat the Johnny-come-latelies?

The pioneer knitwear brand in the country has moved on to straddle other apparel segments catering to women, youth and kids' wear as it seeks to transform itself into a complete solutions provider for all our clothing needs. But can Monte Carlo beat the Johnny-come-latelies? By Angshuman Paul

Monte Carlo, the Rs 850-crore brand owned by the Ludhiana-based Nahar Group, has become markedly aggressive in the Indian apparel market recently. Though earlier known mainly in the woollens segment, the brand is now present in segments as diverse as knitwear, casuals, formals, sports and tweens’ wear. Though wollen wear still accounts for 75 per cent of its revenues, the company is aiming to change the ratio and take its share of non-woollen wear to 50 per cent in the next five years.

In focusing more sharply on youth and kids’ wear, the brand has extended itself into the emerging tweens’ wear market (catering to the age group of eight to 14 years) in India. With 30 per cent Indians aged below 15 years and kids demonstrating a heightened brand awareness, kids’ prĂȘt-a-porter segment has emerged as the new playground for the Indian apparel bigwigs. Currently, the kids’ wear segment constitutes over 15 per cent of the overall apparel market in the country.

To capture the market, the group decided last year to wean away the Monte Carlo brand from Oswal Woollen Mills, under which the brand had till now been housed, paving its way to making its presence felt in the casual wear and fashion segments. But the company realises that to make this foray successful, it will have to come up with some innovative brand extension strategies. Quite a few apparel brands, like Raymond, have trod the brand extension route earlier. But when Raymond – perceived as a premium masculine brand catering to men’s clothing – made the brand extension into women’s wear, the gambit proved to be a failure. Raymond put the lessons of its failure to good use when it decided to enter the kids segment in 2006. Instead of thrusting its signature Raymond brand name to a new line of kids’ clothing, it created a new brand – Zapp. Monte Carlo has followed a similar strategy, christening its kids' wear brand as ‘Tween Monte Carlo’.

A look at recent trends in kids’ wear retail shows multiple players courting initial success before heading for a downward spiral. For example, brands like Koutons Junior, Raymond’s Zapp and Spykar’s Oyo are no longer in the business. The main reason for such reverses, analysts point out, is that the retailers did not pay heed to their pricing in an extremely value-driven segment. In the case of Raymond’s Zapp, the high pricing – the average price for an item of clothing was Rs 2,000, high by Indian standards – did not go down well with Indian shoppers. Other factors like poor positioning, indiscriminate expansion, not focusing on profitability and sometimes maybe more focus on valuations and therefore too strong an emphasis on expansion without putting adequate systems in place also played a part.

To avoid such pitfalls, Monte Carlo is making sure that its brand extension is supported with adequate branding. “If you have the right branding, then brand extension is never a bottleneck,” says Monica Oswal, Executive Director, Oswal Woollen Mills. She adds that apart from Monte Carlo, the company also has successfully managed other brands like Canterbury and women’s wear brand Alpha. “Unique pricing, supported by massive penetration and then giving a global touch to the brand have acted brilliantly for all our brands under Monte Carlo,” says Monica.

The company is also working to set up a separate manufacturing unit for kids' clothing. It also intends to target the metros and Tier 1 cities where kids and youngsters make their own purchasing decisions. Being easy on the pocket, Monte Carlo expects to make a good impact.

However, the going will not be easy. Brands like Catmoss, Mom & Me, Lilliput, Toonz Kids, Gini & Jony, Li’l Tomatoes and Ruff Kids are just some of the better-known players dominating the market. Not to be left behind, brands such as Benetton, Pantaloons and Reebok have roped in popular characters like Pucca, Ben10 and Power Rangers to lure their four to 14 age-group customers. Its major competition would be from retailers like Pantaloons. About 15 per cent of Pantaloons' annual turnover comes from teens and kids apparel. What’s more, even jeans manufacturing companies such as Spykar, Pepe Jeans and Killer are trying to climb on the kids’ bandwagon. International brands such as Tommy Hilfiger, Freelook Junior, and Adam Kids are also making efforts to expand their footprint.


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

Kati Patang

Domestic kite industry must go global to survive

I have always been a staunch believer of organising the so-called unorganised sectors of India. Not only it makes economic sense but also have a positive long term ripple effect on the society. It helps these unrecognised professionals to have a better and decent life and above all, showcase their produces at national and even the international market. Amidst all the dying industry, one industry which recently caught my fancy was the Kite Industry. Although Kite flying is a very old practice (and tradition) in India but these days one can see them being flown mostly during Basant or Uttrayan or International Kite Festivals.

Recently, the International Kite Festival, like every year, saw kite lovers from across the world gathering at Somnath in Gujarat to test their kite flying skills. This is not the only Kite festival but many such events take place across the nation during various weeks starting from December. However, in spite of such colourful hue this industry is one of those industry which is moving towards its declining stage. Undoubtedly, this industry needs a complete overhaul and lot of attention as many households are surviving on this seasonal industry only. The demand for kites may seem seasonal (in domestic market) but in reality its completely converse. A study of Chinese market and global demand for Kites makes it vivid that this seasonal industry can be made a conventional industry if tapped at global level. As a matter of fact, after declining by 50 per cent over the years, the industry is still worth almost Rs 1200 crore. Moreover, it employees over 70,000 artisans and seasonal workers across the nation with Bareilly, Jaipur, Kolkata, Jodhpur, Ahmedabad and Lucknow forming the major kite-making hubs. Taking about international market, in US and Canada, kite industry is estimated to be around $150 million (roughly Rs 750 crore market).

The kite industry has witnessed a major downfall particularly due to three main reasons. Firstly, Kite is still a seasonal industry in India. Once the festival gets over, business slacks to the point of being almost non-existent. Secondly, rising cost of raw materials along with increased competition from China-made products has made it less attractive proposition. According to a survey conducted by Assocham, “there has been an increase of about 25-30 per cent in the prices of raw materials like paper, string, powder used to colour the strings, sticks and the VAT due to which there has been a sharp decline of over 50 per cent in the business at kite shops.” Thirdly, domestic kites maker are not aware of global demand and different festivals like Weifang International Kite Festival, China; Bristol International Kite Festival, UK; Borneo International Kite Festival, Malaysia; International Kite Festival, France; Cape Town International Festival, South Africa; Washington State International Kite Festival, US and many other such festivals that takes place across the globe.


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