Showing posts with label IIPM Ranking. Show all posts
Showing posts with label IIPM Ranking. Show all posts

Saturday, September 7, 2013

The Miracle that Matters

Imagine.. A ledge, high, very high, more than three miles high above the waters of the nearest sea... High above the clouds, where shards of ice fly like witches on brooms in winds that howl like banshees and where snowy glaciers still carve out morraines like they have since time began...   Looking down on all of creation, from the roof of the world sits that ledge...

And on that frozen ledge sits a man.. the high winds and the sun have carved their own story on his craggy features. He sits with his eyes closed and his long dark hair piled into an untidy mop on his head. Now imagine that on in those frigid and giddy heights, he sits naked in the snow, wrapped in a coarse blanket. But that blanket does not keep him warm for it has been dunked in the icy waters of nearby river. To wrap that blanket around one’s body is to feel the cold congeal into a blade that seems to saw through bone... through every bone. But if you are there already and can see him there on that cliff then you must also see the steam rising from the blanket that covers the man’s body... You stare in amazement as the steam rises like mist from a river. You wonder what fire burns in this man’s core that can dry a blanket like it was wrapped around not flesh and blood but an industrial oven.

Most of us would have died of hypothermia while the frost bit through our extremities. But here this man sat on his seat on the crag, calm and serene while ice turned to smoke all around him. Is that a miracle, you ask. And answer is it is not, for there are many monks that wander in the frigid wastes of the Himalayas, both in India and in Tibet,  who are adepts at the art of raising a fiery storm through their yogic powers that would keep them warm on  the coldest nights. This drying of a wet cold blanket is almost a rite of passage for yogis and monks across many  orders. The Tibetans call it ‘tumo breathing’ and some Western explorers have learnt this art too.

It is said that Alexandra David-Neel, one of the first Western women to travel to Tibet in the early 1900s, learnt this ancient technique of generating internal heat from the monks.  During her 12 years in Tibet, Alexandra found many opportunities to be grateful to those from whom she had learnt this art for without it, she too might have perished in cold vastness of Tibet’s passes where many explorers, unable to meet the harsh demands of this beautiful yet unforgiving landscape, have given up and left to meet their maker. Alexandra David-Neel’s accounts of her journeys to the roof of the world are replete with accounts of yogic masters performing miracles every day. I came across these accounts while digging up stories to validate the claims made by the subject from last week’s column – The five Tibetan rites of rejuvenation.

Another miraculous feat that these monks from the mountains seem to have mastered is the art of ‘lum-gom’ trance walking. Trance walkers have trained their bodies to cover long distances in effortless leaps. Explorers to the Tibetan plateau, even Western scientific research teams have claimed that they have seen these yogis bounding across the rugged mountains in long leaps in a manner that seemed to suggest that they were floating through the air. Both ‘tumo’ and ‘lum gom’ are techniques that are taught in monasteries on the high passes. They involve special breathing and visualization techniques. And unlike stories of masters from other cultures, these miracles aren’t restricted to a few individuals and are relatively common across different sects.

Perhaps the most popular legends that have floated out of these secretive mountains that kept Tibet secluded from the rest of the world have been tales of amazing longevity. At a 100, it is said these masters have merely entered their youth. Early explorers to Tibet have claimed that they have met masters who been around for more than 200 years. Unfortunately, there aren’t very many gerontologists who have studied these yogis but if you were to look to go to places like Dharamshala and meet the oldest lamas who have made India their home, you will see 80 year olds walking up the steep mountain trails with the kind of vigour that would do men half their age proud. They may not live well beyond the ‘usual 100s’ but these Tibetan yogis definitely live their years well. I don’t know if it’s the mountain air, their Spartan lifestyle or their yogic practices that give them this youthful constitution, but whatever it is, it really works.

But these are miracles I have only read about or heard. Except for the rather fit octogenarian lamas I came across in Dharamshala and Mcleodganj, there isn’t much I can personally vouch for. But there is one miracle that this Tibetan meditative life path has given ample evidence of to all who chose to ask and it is this…

When the Chinese army invaded Tibet in 1949, it did what invading armies do. Resistance was crushed. Defenseless monks were  tortured and killed and a cultural and religious purge was followed by attempts at Hanification of Tibet. More than a million people lost their lives, perhaps brutally. Every Tibetan home would have lost a loved one or more. Tibet should be a country seething with anger.

And yet, every Tibetan I have met in my travels has spoken of the Chinese invaders with a degree of compassion. Some have said that they hold no ill feelings towards the Chinese even though they suffered at the hands of the invaders. Some lost loved ones, others lost homes and livelihoods. And yet they feel that they had earned this suffering through their actions in another life. The Chinese were mere puppets in the hands of their own karmic fruits.  In a film about the yogis of Tibet, I saw a young monk admit that he felt a degree of  anger and resentment towards the Chinese. His family had suffered unspeakable atrocities and had seen libraries and monasteries destroyed. But then, the monk added that (unlike his elders) he perhaps felt this anger because he hadn’t progressed enough in his practice.

In an interview in the same film, Tenzin Gyatso, the 14th Dalai Lama, recounts this story about a monk who had been jailed and tortured by the Chinese. After his release, the monk escaped into India where he met His Holiness. One day, the Dalai Lama asked him about his time in prison and the monk replied that there were times when he felt that ‘he was indeed in danger…’. And when His Holiness asked about the nature of this danger’, the monk replied that at times while he was being tortured, he was indeed in danger of losing compassion for the Chinese

I had met the Dalai Lama for an interview about two years ago. And the words that I still remember from that day were in response to a question about what should one’s response be to an oppressor, be it a nation or an individual like let’s say, an Osama or a Hitler? The Dalai Lama had just smiled and said we should remember that it is the oppressor who needs compassion far more than the oppressed because while the latter has already endured a karmic cycle, the former has only begun to sow the seeds of his sins.

And this approach of treating one’s enemy like a teacher and forgiving him or her all his sins is perhaps the greatest miracle that has emerged from those passes in the mountains. Heat that vaporizes ice, leaping across miles or living a very long life might all be miracles worth chasing.


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

Monday, July 29, 2013

The Mamata factor

Powerful state units of the Bengal and Kerala CPM are preparing for a showdown

While Trinamool Congress might have unleashed a reign of terror in Bengal against CPM leaders, the April 9 Delhi incident where CPM cadres decided to heckle and insult chief minister Mamata Banerjee and her Finance Minister Amit Mitra, has brought the Left party’s influential West Bengal and Kerala units on a collision course.

Following the Delhi attack, Trinamool has already launched a violent retaliatory campaign but more than anything else, it was the action of CPM’s Delhi unit that has further vitiated relations between the central leadership, read general secretary Prakash Karat, and the West Bengal unit. Tempers are running so high that the state CPM has accused Karat with ignoring the state unit before embarking on adventurism of this kind.

Veteran Leftist leader Ashok Ghosh, secretary of the Forward Block, openly sought a clarification from the state CPM leadership, particularly from CPM secretary Biman Bose, asking ``how long should we suffer for the blunders committed by your party?” Leader of another Left constituent RSP’s Khitij Goswami, too toed the same line and questioned the rationale of the Delhi action at a time when the Left was facing the Trinamool onslaught as well as trying to consolidate its position which was drastically eroded in the assembly and Lok Sabha elections.

The CPI(M) had traditionally thrown its weight around at its smaller partners and even the `historic’ defeat has not helped change this equation. While Left constituents are angry with big brother, within the CPM, leaders have questioned this so-called party programme of the Delhi unit directly under the control of Karat. The incident has revived the old battle lines between general secretary Prakash Karat and Buddhadeb Bhattacharyya, who is unhappy at Delhi’s unilateralism.  Bhattacharya’s anger is justified. For the first time since Mamata came to power, CPM had an opportunity to push the government into a corner and was brimming with the possibility of revival.

The Delhi episode has put paid to their plans. Biman Bose, sources say, had informed Karat of their displeasure. According to reports, people protesting in front of Planning Commission were all members of CPM’s local committee in West Delhi and not its affiliate Students Federation of India (SFI). The Delhi action was carried out by party full timers

Apparently to deflect peoples’ attention and to gain the confidence of state leaders, Karat wrote to President Pranab Mukherjee urging him to decide whether West Bengal Governor M K Narayanan’s ‘political intervention’ in seeking an apology from the party Politbureau for the Delhi incident was justified. To the utter dismay of Karat, this action has failed to mollify the state leadership with even front partners viewing it as a gimmick, a ploy to hide his own failures.

These leaders privately admit that Narayanan was right. After all the Chief Minister and Finance Minister were attacked. They do not feel it was highly improper for the governor of a state, who holds a constitutional post, to declare that a political party or its leaders have ‘forfeited their right to function within a democratic framework’. These leaders feel that Karat should have had the moral guts to confess his wrong instead of blaming the governor. The governor said that CPM was entitled to voice complaints, but could not resort to using rods against ministers. He even suggested that this ``premeditated” attack was “serious enough to warrant a public apology from the CPM Politbureau.’’

The anti-Mamata demonstration was planned to protest against the attitude of the West Bengal government towards the custodial death of SFI leader Sudipta Gupta in Kolkata.

West Bengal CPM leaders and Karat have been at logger heads for quite some time and state leaders blame the general secretary for this miserable state of affairs in its once strong hold West Bengal. They say Karat forced his dictates against the will of the state unit and eventually the party had to suffer huge electoral losses.

While CPM leaders do not intend to intensify their agitation against the Trinamool government for the moment as it would send a wrong message to the people, Karat and his associates want the state to embark on a militant form of agitation. Even secretary of Delhi CPM, Puspendra Grewal, a Karat protegee has come out justifying the action.


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

Friday, May 24, 2013

Flirting with danger

From times immemorial, man has been drawn towards the unknown – be it Ferdinand Magellan and his trip around the world or Edmund Hillary and Tenzing Norgay in their quest to conquer the highest mountain peaks in the world. As these men challenged the limits of their endurance and courage, there were hundreds others who stood behind them with vital support – both economic and moral. While India has had its fair share of daredevils, mass support and more importantly media exposure has largely been absent. For example, Colonel Kotiyal, who has been atop Mount Everest twice and back, is a completely unknown figure. However, there is growing a breed of Indians who are making a name for themselves in the international community by nurturing as well as indulging into the spirit of adventure.

Take Anchal Khurana for example. While she is not exactly a popular public figure, the circle of people who take an interest in sky-diving know her well as someone who is doing her bit to make the sport accessible in India. She is running the Kakini Enterprises which is working specifically to provide opportunities to more and more people to jump from the skies, quite literally. Her team of instructors have got the ratings in free fall and tandem jumps, having made their mark in para jumping in the armed forces.

Anchal's work has not been easy nor is she anywhere near her goal. A lot of work and streamlining remains to be done before skydiving becomes a popular sport. “This sport needs meticulous preparations and a lot of money to train people. You require an aircraft or a helicopter to jump from and then you require a parachute which will cost upto Rs 5 lakhs" says she. Apart from money, there are a number of permissions that need to be taken like clearances from the Director General, Civil Aviation, the nearest Airport and the local administration.

Similarly, Ajit Chouhan and his band of friends have been hard at work to promote adventure sports in the backwaters of Raigarh. Self funded, this group of 13 that calls itself the Friends Foundation has started organising a congregation of a whole gamut of adventure sports since 2012 in an event they call ‘UDAAN – flight to your dreams’. Ajit talks about the interesting story behind this initiative: “All of us are into business and whatever time we get, we try participating in one of the many adventure activities. And then suddenly it struck us,: if instead of going on individual adventures, we did this on a larger scale, it would let both our families and other people participate. Thus, in February 2012, we made a beginning.”

TSI visited Raigarh and witnessed this event which is one of the few platforms where every activity in the adventure category is available. Para gliding, hang-gliding, para sailing, bungee jumping, rappelling, hot air balloon, all terrain biking; these are are just a few of the  activities that were on offer. What is interesting to note is that a large part of the adventurers were women. Many of them had come with their families, like Natwar Aggarwal, who was encouraging his teenaged daughters to jump off from a huge height with bungee cords tied to their feet. Kakini Enterprises was a part of it as well, with the response being overwhelmingly large. “We had to turn people back even though they were ready to pay us as much we wanted,” says Anchal.

There has been some positive response from the government as well. Many states have come up with their own plans to help in organising adventure sports and activities. Speaking to TSI, Chattisgarh Tourism Minister Brij Mohan Aggarwal said, “I was not aware that UDAAN is so well organised and is of this high scale. We are giving them a support of Rs 10 lakh and are busy formulating policies to help such activities.” TSI got to know that the Chattisgarh state government recently took the help of professionals to devise methods to make Chattisgarh a adventure sports hub. Uttarakhand, Himachal Pradesh, Rajasthan, Jammu and Kashmir and Madhya Pradesh are helping to get such activities organised as well, and for good reason.


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

Thursday, May 9, 2013

State governments have not augured well for the Indian mining sector

The mining ban in Karnataka, transport bottlenecks in Orissa, and a rising pendency of applications awaiting action from various state governments have not augured well for the Indian mining sector. Although the reopening of a few mines in Karnataka could bring some reprieve, issues related to the regulation, taxation and fiscal policy are bound to further stress miners

While the mining industry can be partially held responsible for the current mess and its adverse impact on allied industries, there are examples where the state governments have been accused of creating instability in the business environment. Currently, there are over 40,000 mineral concessions and about 25,000 renewal applications pending with different states. In Orissa, for instance, even a company like Tata has not been given renewal of their mining leases by the state government. “We have a huge reserve in this country, but production is not being encouraged. Instead, imports are being allowed,” says former Planning Commission Additional Secretary L. P. Sonkar. “Not only that, people are even trying to remove import duty. It’s strange,” he adds. In Orissa, there has been violation of environmental law. If production increases beyond the permissible level, there are provisions in the Environmental Protection Act where you can penalise the companies. “But to restrict the movement for people who have not been carrying out operations illegally, like they did in Karnataka, is not right,” says Sharma, referring to Orissa government’s transport restrictions.

As per the data available with the steel and mines department of the Orissa government, in the first quarter of the current fiscal, traders in Joda mining circle (the largest mining circle in terms of iron ore production in the country, accounting for 25% of India’s total output) lifted 57% less iron ore for export purpose over last year’s figure, despite sharp rise in production. Even for FY2012-13, the state government has capped the iron ore production for Joda mining circle at 40 MT. As a result, a maximum of 400 trucks can be allowed in a day to carry material from this circle for the purpose of export.

Even the proposed Mines & Minerals (Development & Regulation) Bill (MMDR Bill) 2011, which wants mining companies to share 26% of their net profit with the local community, has had miners worried for long. They fear that the new profit-sharing formula could well be an end of the road for the industry. Countering the industry’s contention that the proposal to allot shares to project affected persons (PAP) will change the holding pattern of the firm with time and, thereby, is not a workable idea, the ministry has argued, “The concept of allotting the share to the PAP is to inculcate a sense of belonging among them with that mining company. They will be a part of the process by attending the general body meetings of that company.”

The MMDR Bill 2011 laid in the Lok Sabha is currently being debated by the Standing Committee. The bill provides for hefty fiscal burdens on miners in addition to what they already pay to the state governments and other utilities by way of fees, tax, royalty, freight, etc. “The MMDR Bill will ruin the mining industry. With such stringent laws, you will not get any FDI or technology. Domestic firms that invest will also suffer from negative growth and only illegal miners will prosper,” says Sharma. Another major point of contention is states getting full powers of grant of mineral concessions.

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

Tuesday, May 7, 2013

Has BJP lost the plot in its entirety?

At a time when it should ideally have been gunning for the UPA government’s head for its failures, the saffron leadership finds itself busy dousing in-house fires. With just over a year left for the big elections, the BJP leadership looks surprisingly bent on giving the Congress another term on a platter.

The infighting within the country’s principal opposition party is certainly not a revelation. Neither is the fact that the BJP has failed to arrive at a consensus over its prime ministerial candidate. These are issues that could have been easily brushed under the carpet for a later day; had the timing not been so crucial for the party’s ambitions of coming to power, and if only the BJP had acted responsibly as the Opposition. However, a chain of events has exposed the absence of decisive leadership in BJP and the turmoil that it faces internally. As the country’s principal Opposition party, it was the BJP’s responsibility to expose the chinks in the Congress-led UPA government’s armour. However, unable to handle its own problems, that job was rather easily ceded to Arvind Kejriwal and his team. As Kejriwal and Co. went on an attacking spree against the who’s who of the Congress’ leadership, the BJP was left with no option but to be satisfied with merely reacting to the allegations levelled by India Against Corruption. The BJP’s inability to tend to its weaknesses has not only given the Congress a breather; it has also helped Kejriwal hijack the issues that were predominantly in the Opposition’s kitty earlier. Be it price rise, corruption or black money, Kejriwal has used these issues to position himself as perhaps the BJP’s biggest rival. What is worse is that the lack of decisive action against allegations of corruption made on both leading national parties has lent more credence to Kejriwal’s attempts to paint both the Congress and the BJP with the same taint brush.

The BJP’s reactions to the claims and the allegations made by Kejriwal have also put on display the conundrum that party strategists are reeling under. Soon after Kejriwal attacked BJP president Nitin Gadkari for receiving 100 acres of agricultural land in Maharashtra in what appeared to be a quid-pro-quo deal with the Congress-NCP government in the state, the party trashed the allegation as false and baseless; and borne out of Kejriwal’s attempts to hog prime time limelight. “A lot of hype was created about the press conference; as if some big bomb is being exploded... Kejriwal tried his best to dig out some scam but could not find anything,’’ maintained Sushma Swaraj, Leader of Opposition in Lok Sabha.

Contrary to the party’s understanding of what the press conference achieved, Gadkari now finds himself in the middle of a major controversy surrounding his dubious business dealings. Moreover, his refusal to step down from his post has rendered himself, and the BJP, extremely vulnerable to charges of being soft on corruption. This, until recently, was the BJP’s persistent agenda against the Congress!


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

Friday, May 3, 2013

"We'll stick to what has made us a winner globally"

Vikram Bakshi, MD, North & East, McDonald’s India, on the chain’s aggressive strategies to meet its 2015 goals amidst intensifying competition among QSRs

B&E: What has been the core strategy responsible for McDonald’s good show over the last few years?
Vikram Bakshi (VB):
Our main strategy has been to get closer to customers in a meaningful way. So we have been experimenting with formats like drive-thru’s. Since we can’t operate all these formats in cities, we have opened on national highways and satellite towns. Then we have been very successful in working in tandem with retail development. We ensure that we get the corner space in big malls, and it has worked really well for us. Also, we are moving into newer places with our brand extensions. Like opening our restaurants at gas stations, at Metros and cinema halls. We’re also getting aggressive with home deliveries; it’s doing very well for us. Then we have 24-hour open format restaurants on national highways. So for every standalone restaurant, we are doing three brand extensions, which can be anything from a 24-hour format on national highway to a kiosk, a delivery or a drive thru.

B&E: So what is your expansion target over the next three years?
VB:
Currently we are doing about 257 restaurants. In three years we will reach about 500 restaurants, and another 700 brand extensions, which we are not counting as separate restaurants. So I would say I will have over 1,000 customer touch points.

B&E: You have cut down prices of some products. What’s the strategy behind it considering that almost every FMCG company is hiking prices due to rising input costs?
VB:
It’s a very clear strategy aimed at attracting more consumers to our restaurants. So I would not say it’s cutting down prices, but more of a rationalization of prices of some items. What we are doing is what any smart brand will do in a market like this. We want to sell more at a time when people are pulling back on spending due to rising inflation. So we’re making our products affordable for them. I never look at money in percentage terms (e.g. bottom line or profit) but more in the absolute value of it, as we are still in a growth and expansion phase here. Next year is important for us, as we plan to grow far more aggressively than we have grown this year.

B&E: What has been your growth rate in the last fiscal and what’s your target for the ongoing one?
VB:
We have grown in excess of 40%, and expect to grow by more than 50% in this fiscal year. We have doubled the number of restaurants in the last three years, and our target it to double it again in the next three and a half years, by the end of 2015. If you look at it, this means we aim to achieve by 2015, what we have achieved in the last 15 years. It’s a tough target and we need to stay focused and on course.


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, April 27, 2013

So far, it just about fits the prescription

In the past couple of years in particular, Indian pharma companies are seeing the fruits of their labour, particularly in the US generics market. However, retaining their competitive edge may not be as simple

For Big Pharma, this is a period of unprecedented difficulty, a time to retrospect on past failures. However, Indian generic firms are bang in the middle of a potential dream run. As a recent Frost & Sullivan report points out, drugs worth around $150 billion are expected to go off patent protection globally. This naturally opens a huge window of opportunities for Indian drug manufacturers. Are they ready?

Profitability figures certainly suggest that some players are moving away from the shadow of a difficult past in the latter part of the previous decade. Sun Pharma, which has got the highest number of drugs in its ANDA (Abbreviated New Drug Application) pipeline, reported revenues of Rs.40.15 billion, a growth of 29.3% yoy. Its net profit stood at Rs.19.27 billion, growing by 39% yoy; and it gained 13 places in the Power 100 list to rank at 41. The US business of Sun Pharma alone grew by nearly 30% in the same period. Cipla’s profit rose by 16% yoy to reach Rs.11.23 billion in FY 2011-12 and it was ranked 65 in the Power 100 (a gain of 12 positions). Dr. Reddy’s Laboratories, which has just entered the BSE-30, also reported a healthy 28% rise in topline in the fiscal to reach Rs.67.39 billion. Its net profit, however, grew by just 2.1% yoy to Rs.9.12 billion, even as it gained two places to be ranked 80 in the B&E Power 100. The company was stung by the poor performance of its generic version of Zyprexa and falling margins in its core business. Contrarily, launches of generic versions of Caudet and Zyprexa have helped Lupin. It managed double digit growth in US. However, its PAT for FY 2011-12 shrank nominally and stood at Rs.8.04 billion owing to high depreciation and interest costs; taking its rank to 86 (a gain by two positions). The BSE Healthcare Index surged by around 5.6% yoy and has outperformed the Sensex by around 14 percentage points.

In 2010 and 2011, companies like Glenmark, Aurobindo and Sun Pharma were able to further consolidate their positions in the US generics market by bagging around 33% of ANDA approvals from the US Food and Drug Administration (FDA). The FDA approved a 2,244 ANDAs between 2007 and 2011, of which Indian companies grabbed final approval for 694.

Considering the intense competition from their BRICS counterparts, the figure holds high significance. During the same period, aggregate tentative approvals by FDA reached 518, out of which Indian companies secured 200 (FDA data).

Also, Indian companies are consistently growing their para IV filings and niche complex chemistry molecules. Most of these segments, especially injectables, inhalers, ophthalmic, oral contraceptives and controlled release products are set to lose patent guard beyond 2012. Moreover, being characterized by complex manufacturing techniques, entailing greater investments in R&D and manufacturing, these segments have higher entry barriers and thereby potential for higher profitability. Also, the percentage of US FDA approvals won by Indian firms has jumped from 27% to 33%. Raghavendra Saha, Senior Advisor, CII asserts, “In the past 15 years, not even a single new molecule has been found. Hence, it isn’t hard to claim that the era of blockbuster drugs has gone and the future belongs to generics.”

However, Indian companies need to manage their litigation processes well, since this led to massive cost escalations in the past, particularly with Ranbaxy Laboratories (incidentally, the Daiichi Sankyo-owned company declared a loss of Rs.30.52 billion for the nine months ending December 2011, as per its most recent report). Dr. Kamal Kumar Sharma, MD, Lupin Ltd. says, “At Lupin, we do not chase any and everything possible. We try to sort out and identify cases where we have a decent chance of winning.”


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

Saturday, April 20, 2013

Can Japan break the deflation cycle?

With deflation the major drag on growth and the biggest long-run economic threat, pressure was growing on the Bank of Japan to respond. And it did – with yet another round of quantitative easing and by announcing an inflation target of 1%. But then, are these measures enough to bring the Japanese economy back on track?

At a time when major economies across the globe are finding it hard to rein in galloping inflation, the Bank of Japan (BoJ) has stunned the world by announcing its intention to hit a newly established (for the first time ever) near-term inflation target of 1%. Economic growth, currency devaluation, or drag on productivity: what’s the motive?

The reason is simple. To break the deflation cycle and a strong yen, both of which have been choking off Japan’s economic growth over the past 15 years. In fact, the two problems are interconnected. Typically when central banks pump liquidity into markets following recessions, businesses and consumers borrow, growth picks up and eventually inflation rises. This is not the case in Japan, where deeply entrenched deflationary expectations and other factors weigh on loan demand. The combination of deflation in Japan and inflation elsewhere pushes up the purchasing power of the yen relative to other currencies. A strong yen in turn weighs on exports, the main driver of growth in the Japanese economy. And that’s exactly what is happening in the “Land of the Rising Sun”. Japan’s economy shrank for the third time (between October & December 2011) in the last four quarters. The first estimate of Japan’s fourth quarter GDP showed the economy contracted 0.6%, significantly worse than consensus forecast of a 0.3% decline. This is equivalent to a 2.3% fall in GDP on an annualised basis. Further, while Japan’s monthly trade deficit widened to ¥613 billion in January, following December’s ¥569 billion shortfall, yen sits high at ¥80.30 against the dollar.

Sadly, deflation also adds to the real burden of public debt, which is a major problem for Japan. With a public debt figure to GDP ratio hovering around the 200% mark (The Bank of International Settlement projects that even under “a best case scenario” Japan’s debt could zoom past 400% by 2040!), its situation is worse than even the most recent citadel that fell – Greece. Interestingly, all the while the country’s GDP hasn’t moved an inch. Japan’s nominal GDP is almost the same as it was about 15 years ago ($5.58 trillion today as compared to $5.24 trillion in 1995). Unbearable debt amidst close to zero growth in over 15 years puts Japan in an awkward macroeconomic situation!

Thus, to get out of this status quo Japan is once again relying on a technique called quantitative easing (QE). As opposed to flooding the money supply with newly printed currency, the BoJ has announced to pump 10 trillion yen ($130 billion) into the economy through purchases of government bonds by the end of 2012. But while the QE will lift the supply of money, policymakers face a greater challenge in trying to get households and businesses to borrow. So, will the BoJ’s latest move succeed in breaking the deflation cycle?

Previous bouts of quantitative easing and currency intervention did not have a sustained downward impact on the yen, lift inflation, or provide a meaningful boost to the real economy. Agrees Matthew Circosta, the Sydney based Economist at Moody’s Analytics as he tells B&E, “These policies have been rendered useless because of the deflation mind-set embedded in Japanese consumers and businesses.” Excluding the oil-induced inflation spike before the 2008 crisis, core inflation hasn’t reached 1% since 1997.


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

Friday, April 12, 2013

Walmart’s Wait & Watch Game

Wal-Mart is in no Hurry to up The Ante in India. The Retailer is Expanding and Strengthening its Wholesale Business, Hoping to Leverage those Strengths in The Future when Multi-Brand retail opens up.

These are interesting times for organised retail in India. Even more so for Wal-Mart, the world’s largest retailer and the largest listed company by revenue (roughly $422 billion in sales last year). The Bentonville, Arkansas-based Wal-Mart knows that India - which it entered in 2007 through a 50:50 joint venture with Bharti Enterprises - is critical to its ambition to further grow its lucrative global business. Already 26% of the company’s revenue comes from outside the US. Wal-Mart’s international business clocked more than $100 billion in revenue last year, expanding by more than 80% in the last five years.

Indubitably, India is a big pond for big fish Wal-Mart. But there’s a big catch. Wal-Mart’s strategy hasn’t really worked well outside the North and South American markets of Mexico, Brazil and Canada. In most major Asian and European markets like Germany, South Korea, Japan and China, Wal-Mart hasn’t exactly lived up to its formidable reputation as the world’s mightiest and meanest retailer. After entering Germany in 1997 through acquisitions, it exited the market in a jiffy in 2006 (less than a decade), owing to intense competition from the likes of Metro AG. Clearly, its brassy American ways failed to find favour with the Germans. A more or less similar set of circumstances forced it to close the doors on South Korea in 2006 (again, in less than a decade). In Japan, too, Wal-Mart has had a spotty performance so far, failing to live up to any lofty expectations. Its ELDP (Every day low price) scheme is not finding favour with the Japanese, who are ready to pay higher prices for quality. The story in China is not so happy either where its profits and sales are reportedly declining, creating survival issues for the company.

These developments have certainly dented Wal-Mart’s confidence, forcing a change in its strategy. The company is more cautious now about entering new markets. It has learnt its hard lessons. The aggressiveness - entering new markets by buying out local competition (like in Germany and South Korea) - is now tempered with a new-found mellowness and it now sees virtue in the wait-and-watch approach to new markets before taking the plunge.

Wizened to the ways of the new markets and armed with some hard-nosed learnings it entered India through an equal partnership. The logic was unimpeachable. A $1.3 trillion economy, with a 1.2 billion billion population, an expanding middle class (growing in riches and getting brand-conscious by day), India’s $450 billion retail industry is the fastest-growing sector of the economy with sales expected to grow at more than 30% till 2014. Yet, India remains one of the last untapped major retail markets (organised retail is less than 5%). In fact, among the 30 largest emerging markets, India ranks the third-most attractive, according to a recent report by consulting firm AT Kearney. Business Monitor International, a London-based agency in the field of industry research, says retail sales in the third-largest Asian economy might grow to $785 billion by 2015 from $396 billion in 2011 if FDI restrictions are eased soon. Currently, India limits overseas investment in single-brand outlets to 51% and 100% in cash-and-carry stores, which can only sell to other retailers and dealers. But most international retailers are gunning for opening up of the lucrative multi-brand retail, which the Indian government has vetoed so far fearing backlash from mom-and-pop store operators, who constitute 70-80% of the retail Indian market.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 

Tuesday, April 2, 2013

Walmart’s Wait & Watch Game

Wal-Mart is in no Hurry to up The Ante in India. The Retailer is Expanding and Strengthening its Wholesale Business, Hoping to Leverage those Strengths in The Future when Multi-Brand retail opens up.

These are interesting times for organised retail in India. Even more so for Wal-Mart, the world’s largest retailer and the largest listed company by revenue (roughly $422 billion in sales last year). The Bentonville, Arkansas-based Wal-Mart knows that India - which it entered in 2007 through a 50:50 joint venture with Bharti Enterprises - is critical to its ambition to further grow its lucrative global business. Already 26% of the company’s revenue comes from outside the US. Wal-Mart’s international business clocked more than $100 billion in revenue last year, expanding by more than 80% in the last five years.

Indubitably, India is a big pond for big fish Wal-Mart. But there’s a big catch. Wal-Mart’s strategy hasn’t really worked well outside the North and South American markets of Mexico, Brazil and Canada. In most major Asian and European markets like Germany, South Korea, Japan and China, Wal-Mart hasn’t exactly lived up to its formidable reputation as the world’s mightiest and meanest retailer. After entering Germany in 1997 through acquisitions, it exited the market in a jiffy in 2006 (less than a decade), owing to intense competition from the likes of Metro AG. Clearly, its brassy American ways failed to find favour with the Germans. A more or less similar set of circumstances forced it to close the doors on South Korea in 2006 (again, in less than a decade). In Japan, too, Wal-Mart has had a spotty performance so far, failing to live up to any lofty expectations. Its ELDP (Every day low price) scheme is not finding favour with the Japanese, who are ready to pay higher prices for quality. The story in China is not so happy either where its profits and sales are reportedly declining, creating survival issues for the company.

These developments have certainly dented Wal-Mart’s confidence, forcing a change in its strategy. The company is more cautious now about entering new markets. It has learnt its hard lessons. The aggressiveness - entering new markets by buying out local competition (like in Germany and South Korea) - is now tempered with a new-found mellowness and it now sees virtue in the wait-and-watch approach to new markets before taking the plunge.


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

Right idea, wrong radar

Competition Commission of India has notified its norms to prevent M&As from creating monopoly like situations. But they may prove ineffective and even counterproductive in their current form by virat bahri

Chances are bright that you will not catch the usually staid Bill Gates make a politically sensitive statement. But in one of his very famous comments a few years back, he had made three of them in one go. He lampooned his own country for not being able to catch Saddam Hussein, called the EU a passing fad (doesn’t look so way off anymore!) and also exclaimed that he was sick of fascist lawsuits! Gates’ reaction was to the different lawsuits that Microsoft had to confront on either side of the Atlantic. A number of companies like Microsoft have gone through hell facing legal ire when they are deemed to have reached dominant positions in their respective industries and also misused these positions to generate supernormal returns, kill competition or exploit customers.

The Competition Commission of India (CCI) has recently taken some steps to prevent the possibility of M&As leading to monopoly-like situations in India, whether they are solemnised within or beyond its borders. The norms stipulate that post merger/acquisition entities with combined assets greater than Rs.15 billion (or > $750 million globally and at least Rs.7.5 billion in India) or belonging to a corporate group with turnovers greater than Rs.60 billion in India (or >$3 billion globally & at least Rs.7.5 billion in India) will have to notify. Similarly, combinations with turnovers greater than Rs.45 billion in India (or > $2.25 billion globally & at least Rs.22.5 billion in India) or belonging to groups with turnovers over Rs.180 billion in India (or >9 billion globally & at least Rs.22.5 billion in India) will have to seek approval. Industry people hail it as a great decision for a country that is seeing increasing M&A activity. But will these norms be effective enough? Or can they prove counterproductive instead?

As per data from PwC, M&A deals in India reached $36.15 billion in 2010, a growth of 85.67% yoy. The more interesting part is that $10.7 billion from the value is accounted for by the Bharti-Zain deal, one of the key strategic bases for which was the unparalleled extent of competition in the Indian telecom market! A point that needs to be underscored is that when you are discussing the entire concept of past and current monopolies in the Indian market, a number of names would actually come up from the public sector itself like Coal India, SAIL (when you consider captive ore mines) NMDC, BHEL, or Indian Railways!


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

Monday, April 1, 2013

“Despite a Saturated UAE Market, our Subscriber Base Grew”

With 135 million mobile subscribers, UAE’s Emirates Telecom Corp. (Etisalat), is a $9 billion-a-year topline earning name. Ahmed Bin Ali, Group Sr. VP & Global Spokesperson for Etisalat, talks to B&E’s steven philip warner, about his company’s fight in a saturated domestic market, its 4G dreams, multi-billion capex plans and why the company scrapped a $122 million plan to bid for Syria’s third mobile licence.

B&E: Emirates Telecommunications Corporation, Etisalat, currently operates in 18 countries across Asia, the Middle East and Africa. There is speculation that you are looking to expand into new geographies outside the continents you are currently operating in. Is that true?
Ahmed Bin Ali (ABA):
No. Actually, for the present, Etisalat is focussed on expanding strategically within our core markets of Asia, the Middle East and Africa. You need to understand that we are in a position where we have already developed a significant footprint and established a presence in the most active and fastest growing markets in these regions. Our operations in these regions are growing strongly, and we are quite a satisfied company with our current continents where we operate in, for now.

B&E: So you say, you sit very comfortable in terms of geographies. Since 2006, Etisalat has invested close to $5.74 billion as capex in these markets – a larger chunk of which was in overseas markets, outside the UAE. But there are some danger signs when it comes to your payoffs. As compared to the previous year, your net profit actually fell by 13.6% in FY2010. Do we take this as a sign of some uncertainty in your international investment strategy?
ABA:
In FY2010, our international operations increased their contribution to our Group’s revenues to 23% from 16% in 2009, and profits to 7% from less than 1% the year before. Given the relative young age of our operations, these are good indicators that our investment strategy is on track. Today, we continue to have a strong balance sheet and are rated amongst the most creditworthy operators in the world by global credit rating agencies. This means we even have the ability to engage in acquisitions.

B&E: In March this year, the company withdrew plans to bid for Syria’s third mobile licence. The company said that the terms of the deal did not offer sufficient value for its shareholders. Could you please elaborate?
ABA:
True. Earlier this year, Etisalat decided not to proceed and compete in the Syrian mobile bid, despite having earlier qualified to participate in the process. Etisalat conducted an extensive and careful study alongside financial advisors, legal experts and technicians and determined that the terms and conditions of the bid would not enable Etisalat to achieve its objectives regarding the technology and value we wished to bring to the market. We worked hard to develop this opportunity, but we had hoped the terms and conditions would have been more attractive.


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

Thursday, March 28, 2013

"Nato's Inevitable War" An Article by Fidel Castro

Before The Western Allied forces Launched Air Strikes on Libya, Fidel Castro had Predicted that NATO would Wage a War against Col. Muammar Gaddafi. Here is what he Communicated to Planman Media

In contrast with what is happening in Egypt and Tunisia, Libya occupies the first spot on the Human Development Index for Africa and it has the highest life expectancy in the continent. Education and health receive special attention from the State. The cultural level of its population is without a doubt the highest. Its problems are of a different sort. The population wasn’t lacking food and essential social services. The country needed an abundant foreign labour force to carry out ambitious plans for production and social development. For that reason, it provided jobs for hundreds of thousands of workers from Egypt, Tunisia, China and other countries. It had enormous income and reserves in convertible currencies deposited in the banks of the wealthy countries, from which Libya acquired consumer goods and even sophisticated weapons that were supplied exactly by the same countries that today want to invade it in the name of human rights.

The colossal campaign of lies, unleashed by the mass media, resulted in great confusion in world public opinion. Some time will go by before we can reconstruct what has really happened in Libya and separate the true facts from the false ones that have been spread.

Without any doubt, the faces of the young people who were protesting in Benghazi – men and women wearing the veil or without the veil – were expressing genuine indignation. One is able to see the influence that the tribal component still exercises on that Arab country, despite the Muslim faith that 95% of its population sincerely shares.

Imperialism and NATO – seriously concerned by the revolutionary wave unleashed in the Arab world, where a large part of the oil is generated that sustains the consumer economy of the developed countries – could not help but take advantage of the internal conflict arising in Libya so that they could promote military intervention. The statements made by the US administration right from the first instant were categorical in that sense.

But the US could not drag China and Russia to support the approval by the Security Council for a military intervention in Libya, even though it managed to obtain however, in the Human Rights Council, approval of the objectives it was seeking at that moment. With regard to a military intervention, the Secretary of State stated in words that admit not the slightest doubt: “No option is being ruled out”.

The real fact is that Libya is now wrapped up in a civil war, as we had foreseen, and the UN could do nothing to avoid it, other than its own Secretary General sprinkling the fire with a good dose of fuel.

Why is the effort to present the rebels as prominent members of society demanding bombing by the US and NATO in order to kill Libyans? Some day, we shall know the truth, through persons such as the political science professor from the University of Benghazi who, with such eloquence, tells of the terrible experience that killed [many], destroyed homes, left millions of persons without jobs and forced them to emigrate.


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