Monday, December 22, 2008

Bangladeshi migrants

The situation in Assam, meanwhile, continues to be grim. There are around six million illegal Bangladeshis. The Gauhati HC had earlier this year said that “Bangladeshis had become kingmakers in Assam”, and stressed on the need for a “strong political will” to remedy the situation. Some 855 students had died in the Assam Agitation in the 1970s and ‘80s, a movement aimed at forcing the government to identify and deport illegals. The situation, however, shows no sign of improvement even after the SC scrapped the controversial Illegal Migrants (Determination by Tribunals) Act, 1983, a piece of legislation that was tailor-made to protect the illegal Bangladeshis in Assam.

Arunachal Pradesh, on the other hand, seems to gain immensely from the inner line permit provision that it has, being a sensitive border state, a provision that was often seen as an obstacle in the state’s development. Here too, however, the political will is striking compared to the scenario in Assam, which through full page advertisements declared that hundreds of alleged Bangladeshis, who had been pushed out of Arunachal and Nagaland a few months ago, were in reality Indian citizens, something that should have left to the judiciary to determine. “So far as our government is concerned,” said Tsering Gyurme, parliamentary secretary and principal adviser to Arunachal Pradesh CM Dorjee Khandu, ”the inner line permit does not allow even Indians to settle in our state. So there is no question of outsiders. We even insist on Arunachalis travelling out of the state to carry identity papers.” There is an increase in the number of illegal Bangladeshis now working in Itanagar. And what of the fact that the Tarun Gogoi government had declared that the suspected illegals pushed out of Arunachal were Indians? “That’s Gogoi’s problem,” Gyurme told TSI. All Bangladeshis who were working in Arunachal Pradesh had been identified and “could be shunted out anytime”, he added. “This is not like Assam where people can come in anytime, settle and get permanent resident certificates.”

The All Nyishi Students’ Union (ANSU) had served a quit notice on alleged Bangladeshis in September this year. The students then physically removed a number of alleged illegals, which led to the All Minority Students’ Union in Assam blocking National Highway. While Arunachal home minister Jarbor Gamlin had at that stage said that there were around 8,000 illegal Bangladeshis in Arunachal, the state unit of the Congress had come out in support of the movement by Arunachali students. “We support any move to free the state of migrants,” Nabam Tuki, president of the state unit of the Congress had said at that point. Support for the innerline permit meanwhile only grows. He blamed the Border Security Force for letting in Bangladeshis. “No one goes from Assam to bring Bangladeshis into Assam,” he said, “the paramilitary forces simply let them in.”

And just how far are these governments willing to go to protect the rights of it heir people? One indicator would perhaps suffice: asked about the 1974 Indira-Mujib Pact, which has turned out to be a major impediment in so far as repatriation of Bangladeshi illegals from India is concerned, and which groups such as the Asom Gana Parishad (AGP) in Assam demand that the government renegotiate with Bangladesh, Lyngdoh was clear of his government’s stand: “Our state laws do not permit even Indian citizens to buy land in our district councils. So the Indira-Mujib Pact will not work here,” he said....Continue

Thursday, December 18, 2008

About the ‘buzz’

When a mosquito buzzes around you, something quite fascinating is happening. When any insect flaps its wings, the air above the wings swirls around and creates a pocket of moving air above the wing which has less pressure than the air below, lifting the insect upward. These little whirlpools are known as leading-edge vortices. Birds are able to fly the same way.....Continue

Wednesday, December 17, 2008

Sheila Dixit

Delhi: Congress is likely to retain power. Sheila Dixit’s horoscope has good planetary positions. Since I haven’t seen VK Malhotra’s horoscope, I cannot say with certainty that Dixit will continue as CM, but if she loses, she will be appointed Governor of some state.

Rajasthan: Vasundhara Raje will face more opposition from within BJP than the Congress. But because of her strong horoscope, she will still sail through.

Madhya Pradesh: Uma Bharti’s good planetary position turned positive on October 7, 2008 and will continue till March 20, 2009. She will again become powerful. If she cooperates with the BJP she might come to power.....Continue

Saturday, December 13, 2008

Can more than one Superpower work together for a better world?

This friction got heated up after Russia deployed its strategic bomber over the Caribbean and participated in joint naval exercises with Venezuela. The tasks took place immediately after the US aid delivery reached Georgia, post war. Venezuelan President Hugo Chavez stated (September 11, 2008) that these moves point towards "a multi-polar world". He said, "The Yankee hegemony is finished." Since the activities are happening in US-influenced regions, the next wave of cold war might spread to the Middle East. This hypothesis is evident from Syrian President Bashar Assad's statement (with reference to US-Russian confrontation) that appeared in Middle East Times on October 13, 2008, “Flames from one part of the world spreads to other regions and the fire becomes twice as strong.” It requires no rocket science to comprehend that Middle East would never want to get crushed between Russia and the US.

Leaving all this geo-politics at bay, it’s beyond doubt that world powers (and emerging powers) have wasted a lot of time in keeping the war hot. These powers could have easily solved many global conflicts to an extent, if not entirely....Continue

Friday, December 05, 2008

State HC orders unusual step to record victim's version

"How can the courts be helpless in recording evidence of a deaf and dumb person when a number of sign language experts are available to help to communicate?" Justice Ranjit Singh wondered while holding that evidence of prosecutrix (victim) recorded in this manner would be permissible under law.

No wonder, Sundari was enabled to depose due to judicial intervention which made this mode of deposition permissible under law, a development that can impact such cases in future. Inquiries indicate that the victim gave a graphic description of the incident with the help of sign language experts but against her will. However, the sign language could not go farther to provide details of the accused. But encouraged by historic HC orders about legal validity of the use of sign language and the interpretation flowing from it, Sundari was not far from recognising the accused. The trial court did not appreciate the sensitivity of the issue but the HC lent a voice to the victim to rescue her in time....Continue


Monday, December 01, 2008

Reversed: Diversity in unity!

IIPM Publication
‘Pride’ goes regional. First it was Gujarati Pride, then Maharashtrian Pride and now finally, Bihari Pride. ‘Pride’, the synonym of ‘identity politics’ rains votes, a realisation to which Bihari politicians had recently woken up. Not long ago, it was a cardinal sin to discuss ‘unity’ with Bihari politicians. But the landscape has changed after Bihari students trying to take a railways test in Mumbai were battered by Raj Thakreys goons. Now they all stand together. What a sight: Rashtriya Janata Party supreme Lalu Prasad, Janata Dal (U) top gun Nitish Kumar and Lok Janshakti Party leader Ram Vilas Paswan addressing the same press conference and speaking the same language!

But the dream did not last. The bubble burst when Chief Minister decide to go one up and sent word to all his five Members of Parliament to resign on the issue of Biharis’ being harassed in Maharashtra. And they did. Their resignations were accepted by Lok Sabha speaker Somnath Chatterjee on November 11. An enraged Lalu Prasad has challenged that if JD (U ) is at all serious about Bihari pride, they should ask even their MLAs and Council members to resign!...Continue

Thursday, November 06, 2008

IIPM Editorial

Even those who make such doomsday predictions and projections privately admit that their forecasts are grossly exaggerated. Take energy security. Sure nuclear energy will be a big plus, once it is fully operational around 2020 if the deal goes through now. If basic reforms in the sector are not implemented now, power cuts will anyway cripple India long before nuclear power arrives. And who says that the deal can never ever be revived if it fails this time? Nobody seems to be talking about that. Then again, it will be good for Bengal if the Nano project is kick started at Singur. But will its relocation forever destroy Bengal as an investment destination? If the state, like India, can provide the right environment, the right infrastructure and a lucrative market, investors – both domestic and international automatically flow. And one nuclear deal and one Nano project will not permanently change that equation.....Continue

Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read also :-

Tuesday, October 21, 2008

MICHAEL WE ARE STILL WAITING FOR THE ANSWER

If one thinks about icons that led to the evolution of the IT industry, two prominent names that immediately flash into mind are Bill Gates and Michael Dell. They both started their entrepreneurial ventures at the early age of 19, both were academic drop outs and both managed to create mammoth wealth for themselves and their compaies.

Guess their string of similarities ends at that though. While Gates, who is the software giant known for his ‘soft’ heart (philanthropy work) and his graceful exit from the day to day working of Microsoft this year, Michael Dell, who ruled the hardware industry for more than a decade, is known for his tough talking and ‘hard-core’ managerial skills, as well as his need to retain an iron fist over the company he created. Michael is currently pegged at just $16.4 billion in net worth (Forbes, March 2008) as compared to Bill Gates at $60 billion. We proceed to analyse the ‘Dell’ road and why, despite being an exceptional genius in his own right, Michael could take some notes from the Microsoft man....Continue

Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
Read also :-

Saturday, October 11, 2008

Invest in e-bonds!

With e-marriages you now get to choose your guy or gal just as you’d choose some gadget... list out the specifications you need, click and you get what you want!

Jerome P. Crabb had once said, “Getting married is like permanently grafting your hand to the cookie jar. No matter how sweet those cookies may taste, you can’t help but wonder what would have happened if you’d chosen some other dessert – brownies, for instance, or frozen yogurt, or maybe chocolate strudel.” And while some keep wondering about their choice, there are a lot more who get their hands into the cookie jar without even knowing whether they are interested in the sweets. For them convenience matters more than the end choice that they make, a choice that leads to marriag–that calls for life-long commitment. Marriages, till date are quite a family affair. So, while the debate on arranged marriage vs love marriage is still going strong, and will probably go on forever, the latest craze happens to be self-arranged: e-marriages.

For laggards, self-arranged e-marriages are about the ‘wannabe’ brides and grooms, who log onto web portals where they shortlist a match for themselves based on criterion like religion, caste, personality traits, pay packages, family details and photographs. With more and more marriage portals like Shaadi.com and Bharatmatrimony.com, e-marriages are in vogue and have given a new meaning to the concept of arranged marriage.....Continue

Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read also :-

Tuesday, October 07, 2008

Godrej’s success in FMCG will depend a lot on its push strategy

Guess what Adi Godrej (Chairman of the Rs.75 billion Godrej Group) is eying these days? The Rs.450 billion Indian FMCG industry. This was visible when he revealed his plan on April 26, 2008 to garner Rs.80 billion from the FMCG sector by 2012. So what’s his contention? “Last year, food was driving the FMCG sector, but this year there will be growth in all segments of FMCG, the highest among all the other sectors,” reasons Adi. With an aggressive profit growth target of 25-30% ahead of him, he’s coupling a brand makeover exercise with a plan to roll-out oodles of products from Godrej’s stable. Sources from the company also confirm that Godrej has set its eyes on foreign acquisitions during 2008. The multi- billion dollar question is: will just portfolio expansion & M&As make the day for Godrej?

There is a rough patch on its path, though, as analysts argue that as compared to others, Godrej has missed out on supporting its new launches with 360 degree promotion in the past. However, with a budget of Rs.1 billion per year for ‘big’ promotional activities hereon (like a logo change), Godrej wants to make up for years lost.....Continue

Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read also :-

Friday, October 03, 2008

Lighting up a new flame?

On several fronts, Venu Srinivasan of TVS has decided to take on Rajiv Bajaj of Bajaj Auto. It’s the former’s bid to emerge as the No. 2 player in the two-wheeler segment. By karan mehrishi


When M.K. Stalin, the son of DMK leader, M. Karunanidhi, and a few other paragons of politics visit a corporate event, it becomes an emotional affair in Tamil Nadu. As we arrived at the Chennai Trade Centre, the venue of TVS Motor press conference, we realised that this wasn’t the usual glitzy event. This special event on March 9, 2008, had ‘unanticipated’ special invitees, which included hundreds of auto rickshaw drivers and their families. And it seemed more unexpected, when Stalin and Venu Srinivasan, CMD, TVS Motor Company, sat in an auto rickshaw and posed for the press photographers.

The event not only invited the auto rickshaw fraternity, referred to as ‘the chauffeurs of middle-class Indians’, but also doubled as an exaltation ceremony for honouring their bravery and selfless service towards society. There were special schemes and insurance programmes announced by TVS for these unsung heroes, a cause which has not been addressed yet......Continue

Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read also :-

Monday, September 22, 2008

L. K. Advani’s dumbing down

BJP’s strongman opts for a face-lift to achieve his ultimate political dream of being India’s PM
The BJP’s parliamentary board, which ratified L.K.Advani’s candidature as the Prime Minister in waiting, is in the throes of another ticklish query: while the party, allies and cadres accept Advani as their supreme leader, will the country, and more specifically Muslims, do the same when the time comes? Therefore, members of the parliamentary board have asked the state BJP chiefs to carry out an internal survey in various states for the consumption of their cadres and other party leaders. The question they have to address: what can be done to reform Advani’s hardline image and steps that need to be taken to improve and liberalise his image.

This operation is to be headed by BJP vice president, Mokhtar Abbas Naqvi. His brief: to find out why Advani, who has a hardline Hindutva image, has been unable to make an impact on the common mass of public in the same way as Sonia Gandhi or Atal Behari Vajpayee. The question rankling the BJP top brass is despite conducting five rath yatras between 1990 and 1997, Advani is not quite considered a man of the masses. At several meetings of the parliamentary board, office bearers have told state chiefs that Advani’s name and public programme, if any in the state, should be given wide publicity. His pronouncements and statements needed to be played up and his entire programmes need to be highlighted well.

But like most leaders who have aspired to lead India, Advani is very keen to undergo an image change, from being a leading Hindutva factionalist to a moderate leader with middle-of-the road views and wide acceptability. The man chosen to conduct this face change is Naqvi, a Shia, who BJP leaders say has acceptability amongst Muslims. According to one strategy being planned, the virulent anti-terrorist rhetoric, at least at Advani’s meetings is going to be tempered down. The meetings, to be uniformly christened as anti-terrorist rallies, will be held throughout the country.

ptullah was first considered for the assignment, but since Naqvi is an old favourite of the Sangh, he got the nod over her. According to the BJP assessment, the fight in the next Lok Sabha is going to be a tough one and in a tight contest, it is important not to acquire the hostility of the Muslims. Even if a small but significant portion of that vote bank moves towards the BJP, the NDA would become a strong contender for the title fight. For the record, the BJP denies anything anything out of the way. “Advani does not need any props. He can win an election on his own,” Naqvi told B&E.

Senior leader and Rajya Sabha member, Arun Jaitley, told B&E: “Advani is our leader and we are going to go to elections under his leadership.” In fact, according to Naqvi, if all goes according to plan, then Advani would have toured all of the 500+ parliamentary constituencies by the end of 2008.

For Complete IIPM Article, Click on IIPM Article

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

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
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Saturday, September 20, 2008

Retail revolution

After losing out market share to competitors, India’s PSU bank is slowly becoming a one-stop financial shop. By asif ahmed

One down, six more to go! That’s what O.P. Bhatt, the Chairman of State Bank of India, must have thought as he prepared himself for Herculean task in front of him. On that particular day, he was supposed to interact with the boards of SBI’s six associate banks to consider the biggest merger in the history of Indian banking industry. Of the bank’s seven associates, the merger of the State bank of Saurashtra with the parent bank had already been approved; the remaining would happen soon, thought Bhatt.

But that fateful day never came. Intense opposition from the Left parties that supported the UPA Government at the Centre, and bank trade unions forced Bhatt to never attend the crucial meeting. In fact, the meeting wasn’t held at all, and the proposed merger was indefinitely postponed. However, this is one credit that Bhatt would like more than anything else. This is despite the fact that the SBI chairman has changed the way India’s largest bank interacts with its customers.

How the times have changed for SBI in the past few years. As competition intensified, SBI was hit by falling market share, had to raise funds for expansion, and look for new avenues for growth. For instance, in 2004, the State Bank Group (SBG) accounted for 27.8% of the total banking assets, which fell to 23.3% in 2007. In terms of deposits, while SBG controlled 27.6% of deposits in 2004, the figure shrunk to 23.5% in 2007. But still, Bhatt is thinking in terms of a banking mega merger.

The reason: Bhatt knows that size matters. If SBI can become a banking and financial powerhouse, it will be in a better position to combat private and foreign players. It’s only when it becomes bigger and better will SBI be able to arrest its falling market shares in various categories. Apart from the proposed merger, Bhatt has sought organic growth for SBI in India, and other neighbouring countries. The strategy was unlike that of his predecessor, A.K. Purwar, who believed in acquisitions-related growth.

Under Purwar’s chairmanship, SBI acquired three small banks - Indonesia’s PT Bank IndoMonex, Mauritius-based Indian Ocean International Bank and Kenya’s Giro Commercial Bank. As a part of the overseas-driven strategy, SBI focused on developing foreign market that had substantial Indian population. During his tenure, SBI also made it to the coveted list of Fortune Global 500 list; he made the bank a member of the $1 billion revenues club, and was the first Indian bank to join it.

Bhatt comes from a different school, and thinks differently. According to him, the domestic market still offers immense opportunities to expand, and there are far more critical issues to be dealt with. “Overseas acquisitions can wait,” he said the day he took over as the chairman of SBI. However, Purwar’s legacy still lingers around. For example, during Bhatt’s time, SBI became the first Indian bank to open a fully-fledged branch in China. “Being India’s largest bank, it is only befitting that SBI should be the first to open a branch in mainland China,’’ said Bhatt. But this isn’t a focus area.

Keeping in line with the local mindset, Bhatt expanded the bank’s network in India. He tied up with other banks and institutions to cross-sell banking and financial products. S. K. Mishra, General Manager (Marketing and Cross-Selling Department), State Bank of India, explains, “In the Indian financial markets, mutual funds are rapidly gaining ground among retail investors due to various advantages such as professional management, diversification, and liquidity. For us, the tie-up will open up opportunities to provide our vast client base with a wider choice of products to meet their diverse financial needs and give boost to our fee-based incomes.”

Over the next three years, SBI plans to offer more financial services products like general insurance, custodian services, venture funds, wealth management, and pension-fund management. Given its size, number of branches, and growing customers’ base, it will not be difficult for the bank to woo customers for the new products. At the same time, SBI is the only Indian bank to have got the approval to manage the government’s pension fund. That, in itself, will be a big boon to future revenues and profits.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
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Monday, August 11, 2008

American in-laws…

…will they accept the Indian affair of Hollywood?

The Oscar winning flick Elizabeth earmarked the debut of Indian cinema on the American silver screen. Ever since, the on and off flings between Bollywood and Hollywood have always been there. But it seems those flirtatious affairs between the two are now taking shape of a serious romance. Be it Anil Ambani’s aggressive Big Motion Pictures (a part of Reliance Big Entertainment) or Ronnie Screwvala’s consistent UTV, the chase for the Hollywood cheese is really heating up among the Indian corporate production houses. But what is it that has kicked off this romance?

What will be the compatibility quotient between the two? More importantly, will the American in-laws be able accept this ‘Indian affair’ of Hollywood? The vital statistics of Hollywood are one of the biggest bait enticing the biggies of Bollywood to invest in the industry. Sample this: The American Media and Entertainment (M&E) industry is worth a mind boggling $612 billion (in contrast to a paltry $13.6 billion Indian M&E industry) accounting for 40% of the M&E industry in the world. The movie business alone in America is worth $35 billion (compared to $2.4 billion of the Indian film industry) and contributes the lion’s share of 42% to the world film business worth $84 billion. Talking about the Indian production house’s Hollywood stint, Naresh Gupta, Head, Planning, Publicis India says, “This was bound to happen… Hollywood is the biggest film market in the world. How can one not target such a lucrative market?”

For Complete IIPM Article, Click on IIPM Article

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

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

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Friday, August 08, 2008

From creating adequate infrastructure to cashing-in on lucrative business opportunities, this state is writing newer benchmarks.


IIPM Ranked No. 1 B-School In Global Exposre - Zee...

From creating adequate infrastructure to cashing-in on lucrative business opportunities, this state is writing newer benchmarks. Call it the ‘Andhra’ benchmark! angshuman paul explains why...


In fact, cajoling investors by pro-actively supporting them has been the growth mantra for Andhra. Walk into Andhra Bhavan in the national capital if you need a psychological proof of the same where giant hoardings greet you, claiming what the Government has done to develop infrastructure and how it’s keen to help investors. Even Balvinder Singh Kalsi, President & CEO, DuPont India, who is investing Rs.1.5 billion by November 2008 to set-up a sprawling knowledge centre in Hyderabad confirms, “The Andhra govt. has been very co-operative and compared to other states, it has been politically peaceful. In fact, Andhra is one of those states where investors find no political disturbances.”

Infrastructure development, cashing in on lucrative businesses supported by enticing investors, Andhra is proving wrong every critic that doubts its status as the Best Marketed State in India. Christened as Vision 2020, Andhra has also planned out its investment inflow targets till 2020 – a super-collosal $750 billion! However, this state has an Achilles heel – tourism! Beyond Hyderabad and pearls, it has missed out on highlighting its costal tourism spots. The result is that while on one hand, it can boast of the highest count of domestic tourists (with the figure at a respectable headcount of 12.79 crore in 2007), its foreign tourist count is pathetic; proving why the state misses out on the thick revenue stream. And though it’s making efforts today as Ram Narayan, Tourism Minister, Andhra Pradesh claims, “Our efforts are to make Andhra Pradesh a leading state with regard to inbound foreign tourists as well.” Andhra has one last opportunity left untapped, for which it has also tied-up with Iran’s Cultural Heritage, Tourism and Handicrafts Organisation (CHTHO).

Really, critics talk about the sudden spurt in capitalistic interests of Andhra and its pitfalls, but one thing’s for sure – it takes a lot to walk away with the glorious crown! Andhra is crowned the 4Ps B&M Miss India State 2008; what a moment of pride for all Andhrites!!!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

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

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Wednesday, August 06, 2008

Success is 1% inspiration and 99% perspiration... Believe it?

RNSSL displays the many weapons in its arsenal to 4Ps B&M

Money grows on the tree of persistence! And Rane NSK Steering Systems Limited’s (RNSSL) persistence (in supplying steering systems) over the years has proven this Japanese adage to be true. Rising input costs and lower profitability have hit the automotive industry where it hurts the most. But as an exception, RNSSL with their breath taking technology is surging ahead steadily with sheer determination of making its mark and ‘steering’ the industry.

In 1997, RNSSL kicked off as a 50:50 JV between Rane group (India) and NSK Ltd (Japan) with an equity capital of Rs.179 million. Today, it boasts of manufacturing plants in Chennai and Bawal (Haryana). The company has pumped in Rs.377 million in the recently opened Bawal plant which has an annual production capacity of two lakh electric power steering systems. “We have decided to invest in this plant keeping in mind with our overall strategic growth plans. RNSSL will grow in its chosen segments through expansion, upgraded technology and synergetic diversification,” says L. Ganesh, Chairman, Rane Group.

The company has done well on the balance sheet too. Over the last 3-5 years they have recorded a CAGR of 20% in terms of revenues and have won numerous awards including Gold award from Frost & Sullivan and Zero PPM award from Toyota in 2007.

For Complete IIPM Article, Click on IIPM Article

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

Tuesday, August 05, 2008

Indian pharma companies

So does it mean that Indian pharma companies have lost their appetite? Or is it capital constraints giving them hiccups? “No”, says Anindya Acharya, Deputy Director, Drugs and Pharmaceuticals, CII. “It’s a well planned strategic move by the Indian pharma companies targeted towards improving their portfolios by entering certain niche segments rather than gobbling-up the entire portfolio of the prey.” Certainly, domestic pharma market is going through a transformation phase, led by strong underlying growth drivers and has witnessed robust growth over the last couple of years. According to a KPMG-CII Pharma Summit 2007 Report, the industry has grown at a CAGR of 13% from 2002-2007 and is further expected to grow at over 16% over 2007-2011. So there’s no dearth of future growth in the sector.

Indian players are also focusing on capturing emerging opportunities in certain niche specialties which offer higher and more sustainable margins to compete with their international counterparts. Moreover, the strategy also compensates for the intense pricing pressure that the generics segment is witnessing these days. But then, “what really holds promise?” seems to be the billion-dollar question.

“While areas like diabetics, cardiovascular hold great promise, some of the traditional sectors like respiratory, anti-infective et al are segments where the Indian companies have an edge over their counterparts as these segments are not well researched globally and have higher success ratio compared to other therapeutic segments,” avers Sarabjit Kour Nangra, VP Research, Angel Broking. Even a recent Deutsche Bank report says, “Currently the most important segment on the domestic market is anti-infective; they account for 25% of total turnover. Next in line, and accounting for one-tenth each, are cardio-vascular preparations, cold remedies and pain-killers”. Thus by gaining dominance in any of theses therapeutic areas, the Indian companies want to make up with what they seem to have lost as result of increasing generics competition.

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

Monday, August 04, 2008

Many a hurdle on its path to glory

But this emerging force faces many a hurdle on its path to glory. One of them are the bigger fish like Reliance, Dabur, Future Group et al which are charting out massive plans to grab ailing customers with their pharma retail stores. Then there is also the bitter truth about those ‘huge’ planned investments by ‘bigger’ players. So will it be a threat for MedPlus? Madhukar denies it as, “Others are focussing on both pharma and personal care, while we are/will be purely into medicine. Also, we have a massive expansion plan for every metro in South India. So by the time they come in, we will already have captured enough shelf-space!”

Fast and furious, MedPlus is venturing into other domains of medicine and healthcare as well. Not compromising with its image of being low-cost and at convenient locations, it is creating family clinics which comprises a network of 50 physicians. And there’s more geographical expansion on the cards with the company planning to add 1500 stores to its current count by the end of March 2008.

Adds Madhukar, “Many of these stores will be in northern India. We are trying out the franchisee route also, because now MedPlus has been able to create a brand of its own.” Sure, with north India too under its control, the bigwigs will need to watch out for this doctor; lest he prescribes the ‘exit’ pill for them!

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Source :
IIPM Editorial, 2008

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

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