Friday, May 31, 2013

Macaulay: Pioneer of India's Modernization

A much-needed rescue act

Of all the aulaads and putras that Indians of a saffron hue regularly demonise, “Babur ki aulaad” and “Macaulay putras” have been the most reviled. And while the former have been subjected to death and destruction, the latter have been let off with mere lampooning.

Zareer Masani’s ‘Macaulay: Pioneer of India’s Modernisation’ is an attempt to delve into the little known world of that subject of scorn – Thomas Macaulay. Considering Macaulay’s impact on Indian social and political changes, it is surprising that pretty little scholarly work has been done on this man. Apart from Arthur Bryant’s scholarship in the early 1930s, historians and researchers have neglected Macaulay. And considering he himself was a historian of great calibre, the snub appears more pronounced.

For most Indians, the name is limited to debates that explore whether or not he did the right thing by introducing English as the language for administrative, economic and scientific activities by replacing Persian, Hindi and Sanskrit. The more informed ones also debate about his contribution to the formation of Indian Penal Code. However, Thomas Babington Macaulay was much more than that. And this book is an endeavour towards knowing the man and his time.

Once, in her rare light moments, when Macaulay was described to Queen Victoria as a “book in breeches”, she is supposed to have laughed. But the description was not off the mark. For the uninitiated, Macaulay was a Whig ideologue and politician who was also, by every measure, one of the best linguists and historians of his time. Macaulay believed in the emancipation of the masses and fought to abolish slavery in the UK.

He was also a qualified reviewer and essayist, and naturally had a huge appetite for books. In fact, The Lays of Ancient Rome, his scholarly work of poetry exploring the history of Rome, is considered by many a masterpiece. His reviews, often scathing, used to feature, among other places, at the Edinburgh Review at regular intervals.

The author drives home the point that it was his training as a Whig politician that prompted him to work towards the emancipation of Indians as well. What also comes out from this study is that Macaulay believed in practicality and was essentially a utilitarian. When he realised that the conflicting laws of different castes and religions was proving a hindrance to governance, he proposed the a common law that was adapted some two decades later as the Indian Penal Code. Although Macaulay did not live to see it implemented, he can feel satisfied that even in the 21st century, the law remains surprisingly relevant and practical. The problem lies in its implementation and for that we must point a finger inwards. Similarly, the Indian Civil Service (ICS) was a product of his endeavour.

The author has tried to put Macaulay’s actions and thoughts in the context of the immediate environment in which he operated. And more than anything else, this act alone is the greatest service that anyone could have done to him. His biases are laid bare, but never without putting it in perspective. For example, when purists debated about the superior nature of Sanskrit and Persian grammar, especially as compared to English, Macaulay is supposed to have quipped, “Does it matter in what grammar a man talks nonsense?” The idea was not to belittle the language but drive home that much of the new ideas, whether political, philosophical, scientific or otherwise were being either penned or translated in English. It was but logical and practical that English became the new language of the masses.

One must nor forget here that unlike the Orientalists of his time or even later, Macaulay never questioned the intelligence of the native or doubted their capability to grasp modern ideas. He only disapproved of the way and language through which he was supposed to introduce these ideas to the natives.


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

NSD & Bollywood - Gateway or road block ?

Monojit Lahiri talks to some ex-luminaries for insights into this tricky issue.

Do you really need to learn acting to make a name or big bucks in Bollywood? Did the Big 3 who dominated the 50’s, 60’s, even 70’s (Dilip-Dev-Raj) learn acting? Cut to 2013. Did any of the present Big 3 (SRK-Aamir-Salman) go to any acting institution? What’s the big deal about theatre academies and film schools like NSD and FTII, which generate such huge debates? Is NSD a garland or albatross around the neck of the graduates? Passionate and idealistic as many were, ultimately, isn’t Bollywood the only recourse? Did  their training help in breaking in and making a name that would offer them rewards – big bucks, super movies, respect and critical acclaim along with fan following – commensurate with the intense commitment and dedication they gave to their time spent in NSD?

What better way to kick off the debate by going to the go-to luminary, the greatest ad of NSD, Naseeruddin Shah. Did the acknowledged genius consider the years spent there as a nursery, training ground or time wasted? “I genuinely believe that too much is made of this training business. Remember the cardinal truth: Acting is always learnt, never taught. You can go to the finest acting school on earth and learn nothing! What it did teach Om (Puri) and me, however, was to mug up pages of dialogue quickly and deliver an effective performance. What the great Ebrahim Alkazi taught us was not how to act, but how to respond, imbibe and absorb an environment that reeked of drama.” Did NSD help him in Tinsel town? He frankly believed it didn’t and was a hindrance. “My training was constantly at war with what Bollywood perceived as good acting. It was, however, totally my fault. I was far too self-absorbed and blinkered and didn’t read the fine print that stated the kind of acting/performance B-town celebrated and mass audiences loved. The result was that while the Parallel Cinema, a tiny section of audiences and arty critics rooted for me, the mass-audiences rejected me, wholesale! Today if I have some audience – acceptability (having learnt the hard way!) NSD doesn’t really feature in it.”

Om Puri doesn’t quite buy into Naseer’s point of view. “Never was training more important and relevant than it is today. Biceps, aerobics, horse-riding and dancing are all very well, but what about the small matter of acting?! I am grateful to NSD because it gave me both, the training and the confidence to confront all odds and equipped me to face and overcome all challenges. It was Alkazi-saab’s encouragement that gave a Patiala-ka-chhokhra like me to go eyeball-to-eyeball with Jack Nicholson and Amitabh Bachchan.”

Anupam Kher, who was also head honcho of his alma mater for a while a few years ago, refuses to be reverential and calls a spade…a shovel! Kher believes that much has changed from then to now and puts his finger on attitude being the biggest problem. “Bollywood is a different space where actors are seldom familiar with either internationally revered – Ionesco, Chekov, Ibsen, Brecht, Stoppard, Osborne – playwrights or plays. To throw these names at them reeks of arrogance or a superiority/posturing that is neither required nor necessary to make your point. In fact, it puts them off and forces them to stay away from this snooty lot!  Confluence not conflict is the name of the game and it would be worthwhile emulating the icons of Hollywood – Brando, Pacino and De Nero, Olivier, Burton, even Hopkins, among others who brilliantly adapted from theatre to movies in seamless fashion without throwing attitude! It really would be ideal if, today, kids would concentrate on learning the basics of acting instead of constantly fantasizing how they can be the next SRK or Salman Khan. It’s sad to see this changed NSD.”  Pankaj Kapoor takes this lament forward. “While our mentor Alkazi saab had no grouses with B-town, he taught us that acting didn’t begin or end with Rajesh Khanna. He introduced us to the best of art, music, world cinema and the magic of great, powerhouse performances. However, times have changed. New themes, concepts and new-age directors continue to throw up new challenges. NSD needs to re-align its focus.”


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

Wednesday, May 29, 2013

The dustbin economy

The country needs to master waste management technology 

A recent statement regarding waste management by senior regional advisor of UN Economic Commission for Africa (UNECA) that "the conditions of African countries and India are alike" aptly describes the dismal state of India’s waste management. Several reports have shown the horrific issue since long time but hardly anything has been implemented across the country. Ignoring a grave concern like waste management, the nation is gradually becoming the world’s largest wasteland and endangering its sustainability in the long term.

A 2012 World Bank report on solid waste issues estimated that 160,000 million tonnes of waste is generated everyday in urban India with a per capita of 0.34 kg a day. Sadly, per capita waste generation is going to double (0.7 kg) by 2025. While the nation is not able to manage its own waste, it is now even importing waste from Western countries. A report released a few years ago confirmed that a huge quantity of household waste was being collected every week from UK (under the veil of recycling and waste treatment) but was eventually shipped and dumped into India. Under the ‘go green and improve the environment’ campaign, the UK Council was exporting its garbage to India at a hefty price. The garbage export made more economic sense as it just cost them 40 pounds (to export) compared to 150 pounds if they were to process and re-cycle the same.

The Solid Waste Policy 2000 has been around for more than a decade but this has largely remained on paper. This is not to deny that some municipal corporations across India's cities have put some effort to beautify their cities. Additionally, it's estimated that around Rs 3,000 crore is spent every year by different municipal bodies on disposal of garbage. Given the size of india, this figure actually sounds miserly. Moreover, till date, municipal corporations have taken short term solutions of landfilling rather than adopting a sustainable system of waste disposal.


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

Persistence paid off

On January 20 this year, TSI carried a cover story India’s other Shame: Missing Children in which our correspondent tracked down victims and highlighted how more than 60,000 children disappear every year in the country, most never to be recovered. Dishing out several heart wrenching and specific stories of lost children, the story slammed the police and media apathy. While kidnapped children belonging to upper class families drew their attention, the economically poor children continued to be sold as labourers or made to beg or sell drugs. TSI had done a story in 2008 on the issue which received appreciation but was also sniggered at the editorial decision to put it on the cover. The story did however give due credit to activists who have persisted with their demand for justice. TSI’s persistence bore fruit and some mainstream news organisations recently started to give the required coverage to the problem.


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, May 27, 2013

Kai Po Che! Yet again...?

I didn’t get any good roles, I was jobless and my career was in the dumps! So I had no choice, but to quit, says film director Abhishek Kapoor...

After starting your career with acting, what made you move to direction?
I didn’t get any good roles, I was jobless and my career was in the dumps! So I had no choice, but to quit. Also, the film Industry was not like what it is today. The 80s was the worst time for the film industry and I happened to make my debut at that time. Instead of doing more mediocre roles, I decided to step back, take some time off and then write and make movies.

How did you get into filmmaking?
I started to write a story and then I felt so excited about it that I thought it should be made into a movie. Then I felt that I would be the best guy to make it. I didn’t really go to any film school or assist anyone. I just found my way through it.

What inspired you to make a movie on rock bands, a concept yet not very well known to Indians?
The movie was never about rock music or bands. It was about people. It was about friendship, relationships – boyfriend-girlfriend or husband and wife. The rock band or music concept was just a backdrop. Similarly, even Kai Po Che! has all these things, but Gujarat is the backdrop and it has cricket and politics and the earthquake and all of that. But the film is about friendship and relationships. For me, as a director, there is nothing more challenging than to be versatile. If I do something completely new and I go through the process where I can learn something; that’s exciting for me. If I do something that I have already done before or do what 20 other directors are already doing, then what is so good about what I am doing?

Why did you choose to make a film on the book, The 3 Mistakes of my Life?
Chetan had offered me 2 States as well, but I felt that this book (The 3 Mistakes of My Life) had a lot of cinematic potential. It’s a big story which is very simply told in a book and is a little bit filmy. I felt that as a filmmaker, I could add a lot of things to the story. I found the characters very exciting too. Ishan, Omi and Govind are fabulous and that’s what really got me to do it.

How was it working with a fresh cast?
I think I have got a great cast. As an audience, when you see new people you wouldn’t see what I see. But when the film is out these people are going to be very busy. These people are exceptionally talented. They are as good as the best actors of the country today and I am very proud of them.

How did you come up with the title - Kai Po Che?
Kai Po Che means to cut from a kite and it’s a victory call. I went to Ahmedabad for Makar Sakranti and if you go and have a look at it, all the terraces during that time are filled with so many people flying kites. It’s a big celebration and that’s what the film is about. It’s about the celebration of life and at the same time it is a victory call. So, metaphorically, the title suits the kind of story I want to tell. It has got this energy and an element of freshness.

After Rock On!! which was completely your idea, did you feel restricted with the script of this film since it is already a book?

You have read the book so you have your own vision of the book. But that’s the fun. Now, with this, I am engaging the audience on another level. Now that you’ve read it, you have to see how I have visualised it and how I show it. That will be my personal exchange with the audience… like, this is how I see Ishan, Govind and Omi and this is how I see the drama played out. The book goes in many different directions, but I had to choose one trajectory. We’ve made about 50 per cent changes in it. There are a lot of things which I have taken out and a lot of things that I have added. However, despite new characterisations, twists etc it is still the book. If you’ve read the book and when you see the film, you’ll know what kind of adaptation it is. So it’ll be interesting for someone who’s read the book to see it.

You seem to be very close with Farhan Akhtar…
It’s a great relationship. We have been good friends for a long time and worked on Rock On!! together.


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

Sunday, May 26, 2013

Deregulating Regulations!

Deregulation of diesel price would reduce irrational subsidies!

Finally, after series of flawed policies, I saw some sensible and path-breaking policies being announced by our incumbent government. After rounds of debates and discussions, the government finally took the ‘obvious and long-awaited’ decision of deregulating the diesel prices across the nation! This one policy that should have been implemented a way back, came at the time when the nation is facing an economic turbulence and the ruling government is fighting for its survival! Keeping everything at bay, deregulating diesel price would solve multiple problems and in all probability, would provide an impetus to the economy as well.

Now that diesel price is being deregulated, the state-run oil marketing companies can decide diesel prices in sync with global crude oil prices. The oil company would no more have to sell diesel at lower price than required or a price that spelled losses for the economy at large. This would not only reduce the gap between petrol and diesel prices but would save crores by sidelining the huge subsidy (worth Rs 95,000 crore per year) that is currently being allocated for keeping the diesel prices low! A back of envelope calculation shows that a one unit price hike in diesel price would save 4,000 units of subsidy. This further will help the government to reduce the fiscal deficit and maintain a judicious fiscal deficit to GDP ratio! As per a study by CARE research, “Every rupee hike in diesel price trims under-recoveries by approximately Rs 80 billion annually... An overall diesel price hike of Rs 5/litre by the end of FY14 along with currency appreciation is expected to reduce losses on sale of diesel to an average of Rs 5/litre for FY14 compared to current losses of Rs 9.6/litre.” Furthermore, deregulation of price would eventually reduce hoarding and black marketing of diesel. I still remember the beelines at fuel station hours prior to the fuel price hikes and also the ‘no-availability’ status of fuel the very next day – a clear case of fuel hoarding! Given the price gap between diesel and petrol price, subsidised diesel is mostly redirected to affluent than needy.

This move will finally bring back the private players in the arena. Reliance Industries, Shell and Essar Oil which had to shutter down their fuel station a couple of years back, would now be back in business. Now both the government owned pumps and private players would try to woo their customers with other freebies as diesel would be sold at same price by both these entities. However, the government needs to chalk out clear plans of reimbursing the premium from farmers and other allied sectors. No doubt, this would definitely increase the input costs for the farmer, but just like LPG cylinders, these pockets of population can be issued a limited supply of subsidised fuel through privately owned authorised outlets!


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

Friday, May 24, 2013

Is the game up?

Team India, as we knew it, is clearly on its last legs. It is time for a new beginning but where are the few good men who can stand up to be counted? saibal chatterjee and Ajay Rana conduct the postmortem of a death foretold

On Tuesday, Mahendra Singh Dhoni’s boys registered a thumping victory over England in Kochi’s Nehru Stadium to draw level in the ongoing five-match ODI series. The beaming captain was quick to acknowledge that “this is the kind of pitch we were looking for”. Unwittingly, he was articulating a bitter truth. Things have come to such a sorry pass that it appears that the Indian cricket team can no longer win a match in any format of the game unless it is handed a 22-yard leeway by the curator.

After India lost the tall-scoring opening game of the current series in Rajkot, Dhoni trotted out an excuse that would have been dismissed as funny had it not been so spectacularly ludicrous. He suggested something to the effect that the outfield was lightning fast and the strokes played by the English batsmen got more value than they deserved. He however did not go on to claim that the outfield had slowed down when India came out to bat. Small mercy!
   
Well, Dhoni has been under tremendous pressure of late and some of his post-match utterances have only reflected the state of his mind. The World Cup triumph of 2011 is a distant memory. A nation that was once high on MSD has been brought down to earth by a string of humiliating Test defeats over the past year. Captain Cool has lost his much vaunted calm.

For great cricket teams (like Clive Lloyd’s West Indies, Steve Waugh’s Australia and now, South Africa), winning is a habit. For India, on current form, losing seems to be routine, especially in Test cricket. So questions are bound to arise. Is cricket in this country in terminal decline? Or is this a mere blip in the radar?

“What goes up must come down,” says former India captain and legendary left-arm tweaker Bishen Singh Bedi. “With a little bit of effort, it will go up again.” The spin meister may be right, but is there anybody out there willing to put in that “little bit of effort” that can make the difference in the long run?

Given the present flow of things, the Indian cricket fan has little reason to be optimistic. And that is a far cry from the state of affairs that prevailed virtually all through the last decade, one of the most eventful in the history of Indian cricket.

From the time former New Zealand opener John Wright took over as the Indian team coach in November 2000 and struck up a successful duet with captain Sourav Ganguly, India has been a force to reckon with in strictly cricketing terms, and not merely as the nation that generates 70 per cent of the game’s revenues. The slump since the 2011 World Cup is easy to explain. Lack of planning for the future and widespread complacency brought on by the continuing commercial gains have been the bane.

The rise and rise of Team India, which was built on epic triumphs both at home and overseas, culminated under the Gary Kirsten-Mahendra Singh Dhoni combo. The team wrested the number one spot in the ICC Test rankings in 2009, albeit briefly, before winning the 2011 ODI World Cup. India was on a roll.


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

ExecutiveMBA





Thursday, May 23, 2013

Heard of Koshal?

Ajit Nayak reports on how people of Western Odisha are outraged at how politicians and the media are indifferent to their demands for a new state. But that dream does look distant

Orisa lawyers protestK C Panda is a retired professor settled in Sambalpur. He is what you can call a news junkie. He is well aware of the demand for Telengana that seems to have climaxed into a paroxysm of protests. He is also tracking the now on and now off demand for separate states of Vidharbha and Harit Pradesh to be carved out of Maharashtra and Uttar Pradesh respectively. But what gets his goat is the almost complete ignorance and indifference to persistent demands for a state of Koshal to be carved out of the western regions of Odisha. Mr Panda cannot hide his outrage and anger when he describes national level journalists who have no clue whatsoever of the movement for Koshal. His by your leave remark is indeed ominous: " It seems only violence, disruption or something outrageously newsworthy attracts the attention of Delhi-based media".

For Panda and his partners in the cause, the template for Koshal is ready and has precedents. They cite the examples of Chhattisgarh that was carved out of Madhya Pradesh and Jharkhand that was carved out of Bihar. In both cases, the two erstwhile regions of MP and Bihar were rich in minerals and natural resources, had large tribal populations and were victims of apathy and indifference from distant state administrations. Incidentally, Panda and his friends also point out another striking similarity between the regions that have been demanding separate statehood. They point out how the Naxalite movement traces its roots to Telengana. They point out how apathy and disdain led to a huge increase in Naxalite activity in Jharkhand. And they point out how Naxalites hold sway in large swathes of what could be Koshal and Vidharbha. But then, when even Telengana seems a distant reach despite the ruling UPA government in Delhi having publicly spoken in favour, what chance would a little known and debated movement have for Koshal?

The demand for a separate state in the name of Koshal has been brewing in the Kosalanchal (western part of Odisha) since a long time. But it has always been a relatively muted and unheard voice. The demand has become louder over the past one decade following the joining of intellectuals and bureaucrats who not only help to strengthen the agitations at various levels but also create public opinion by exposing the negative attitude of the state government towardd the development of the region. Several coastal leaders do admit the constant ‘apathetic attitude’ of the state government has become the prime reason behind the demand, but they do not want to spare the region as it is full of mineral and forest resources.
The Koshal area or Kosalanchal was not a part of Odisha as it was in the Central Province for a long time, but with the efforts of the few local intellectuals and broadminded people the land was included in Odisha to form a new state based in language in 1936.


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

Friday, May 10, 2013

B&E Indicators

Capital norms: A problem

Annual return on equity for Indian banks has constantly declined over the past few years. While the figure was at 16% in financial year 2007-08, it is now expected to touch 14% in FY’14. Similarly, RoA for Indian banks, which was close to 1.2% in FY’08, has now come down nominally over the past few years. Prime reasons for this is the increase in mandatory capital levels. This has left the banks with comparatively lesser money to lend.

Banks may turn back at customers

While most banks have decided to pass on the benefit of the interest rate cuts to their customers in the past, this may not happen again. This time, the banks may focus on preserving net interest margin (NIM) by maintaining their base lending rates. This simply means that even if the RBI reduces policy rates, the benefits may not reach the end customers the way it should have.


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

Wednesday, May 8, 2013

When GM went broke four years ago, not many gave it a chance to come back from rehab. Those Cassandras are now eating their words as the lumbering giant strikes back with a vengeance.
 

A lot has changed for General Motors (GM) since it went adrift in rough seas four years ago. In the summer of 2008, about a year before GM became a ward of the state, its CEO Rick Wagoner was desperate to catch at straws in a futile bid to prevent his company from going belly up. The financial results for the 2008 spring quarter left no one in doubt about GM’s bleak prospects: a $15.5 billion loss, its third-worst in a century. GM’s revenue in North America had fallen $10 billion y-o-y (33%). And for the first time, after donning the mantle of being the no.1 car maker in the world from Ford in 1931, GM lost that position to Toyota.

But the worst was yet to come. Finding itself at the end of financial tether, Wagoner flew to Washington DC, cap in hand, to ask for $10-12 billion of easy loans from the Fed. But his demeanour – flying in a private luxurious jet at the company’s expense – rubbed many in Washington the wrong way. In quick time, Wagoner was booted out and the doddering company was offered a lifeline in the form of government bailout funds after being put under bankruptcy court protection. GM declared in its filing that it had $172 billion in debt and $82 billion in assets. Its m-cap having plumbed the depths of investor confidence, stood at $2.21 billion in March 2009 when Wagoner departed. The value of GM stocks had cratered to $3.62 as against the trading levels of above $70 when Wagoner had joined as CEO in June of 2000.

Wagoner’s exit did not exactly move GM away from over the hump. Through the initial months of restructuring, the company became a revolving door for a succession of CEOs who drifted in and out without making an impression. It was only after Daniel Akerson arrived in September 2010 that the company once again rediscovered its competitive gene. Since then, the automaker, which had lost about $100 billion in the years before its 2009 bankruptcy, has been consistently profitable. In the latest quarter (Q4, 2011), GM made $1.7 billion in profits, besides having already repaid $24.1 billion of the $49.5 billion in government aid it had received. But the biggest icing on the cake was that GM’s worldwide sales rose 7.6% to 9 million vehicles in 2011, helping the auto major to once again grab pole position as the world’s no.1 car seller (a position it had ceded to Toyota in 2008). That’s surely a remarkable achievement for a carmaker that looked completely down in the dumps until two years ago.

The uptick in sales came about on the back of the strong showing by its flagship Chevrolet brand, which sold a record 4.8 million vehicles last year (more than total sales of brands like Nissan and Honda). European carmaker Volkswagen was the second-largest seller of vehicles worldwide whose sales rose 14.3% to 8.2 million vehicles followed by the likes of Toyota, which expects its 2011 sales to come in at around 7.9 million vehicles, down about 6% from 2010. Analysts attribute GM’s recent swell performance to its strong US and China operations. Being the two biggest markets for carmakers today, GM has done well to wedge the China market open in its favour by collaborating with its local partner (SAIC Motor Corp), a strategy that has paid off handsomely. In 2011, GM sold more than 2.5 million vehicles in China, registering an 8.3% increase from the previous year. In the North American home turf, GM clocked sales of over 2.5 million vehicles at a 13% growth trajectory last year.

According to Jeremy Anwyl, Vice-Chairman of Edmunds, GM was lucky to have come out of its bankruptcy and consequential restructuring at a time when global market conditions were once again turning favourable for the automobile industry. “The bankruptcy allowed GM to cut costs and fundamentally restructure its operations from a cost & incentives perspective.”


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

Tuesday, May 7, 2013

A Europe of solidarity...

The only way to reverse the trend in the European Union is to recapture the spirit of solidarity that animated the European project from the start

Originally, the European Union was what psychologists call a “fantastic object,” a desirable goal that inspires people’s imaginations. I saw it as the embodiment of an open society – an association of nation-states that gave up part of their sovereignty for the common good and formed a union dominated by no one nation or nationality. The euro crisis, however, has turned the EU into something radically different. Member countries are now divided into two classes – creditors and debtors – with the creditors in charge. As the largest and most creditworthy country, Germany occupies a dominant position. Debtor countries pay substantial risk premiums to finance their debt, which is reflected in their high economy-wide borrowing costs. This has pushed them into a deflationary tailspin and put them at a substantial – and potentially permanent – competitive disadvantage vis-à-vis creditor countries.

Recent developments seem to offer grounds for optimism. The authorities are taking steps to correct their mistakes, especially with the decision to form a banking union and the outright monetary transactions program, which would allow unlimited intervention by the European Central Bank in the sovereign-bond market. Financial markets have been reassured that the euro is here to stay. That could be a turning point, provided it is adequately reinforced with additional steps toward greater integration.

Unfortunately, the EU’s unfolding tragedy characteristically feeds on such glimmers of hope. Germany remains willing to do the minimum – and nothing more – to hold the euro together, and the EU’s recent steps have merely reinforced German resistance to further concessions. This will perpetuate the division between creditor and debtor countries.

A widening gap in economic performance and political dominance is such a dismal prospect for the EU that it must not be allowed to become permanent. There must be a way to prevent it – after all, history is not predetermined. The EU, originally conceived as an instrument of solidarity, is today held together by grim necessity. That is not conducive to a harmonious partnership. The only way to reverse the trend is to recapture the spirit of solidarity that animated the European project from the start.

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
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Unforgivable conduct

Cases related to corruption in the Indian defence establishment must be dealt with severely

For long, it was believed that the Defence set-up in our country is above the purview of corrupt practices. That, too, has now been proved wrong owing to alarming irregularities. Army canteens are a case in point, which are now getting exposed as breeding grounds of corruption. In June this year, CBI arrested CSD’s Joint General Manager (JGM) Brigadier Anuj Kainthla in connection with a corruption racket for taking a bribe of Rs.7.5 lakh from a private firm Sankalp Consumer Products to unfairly promote the products of manufacturers that the latter represents. Another JGM Bikas Ranjan Daschaudhary was also arrested along with Sankalp Director Milind Govilkar, after he was caught redhanded while taking a bribe of Rs.1.25 lakh from the latter.

CSD, which has an annual purchase bill of around Rs.100 billion, has 600 suppliers to supply over 4000 items. Interestingly, the credentials of 200-300 suppliers are questionable and proper guidelines are allegedly not being followed in vendor selection. Irregularities are being seen in other defence wings too. CBI questioned Jatinder Singh, ex-Commandant of the National Defence Academy in September 2012 regarding a recruitment scam of C-grade officers, where the total bribe money had supposedly reached Rs.17.6 million.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
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Sunday, May 5, 2013

India shining for sony?

The consumer electronics major may be losing its brand halo in Europe and America but it continues to grow its business in India centred around TVs, laptops and smartphones

Just a couple of months after taking charge as President and CEO of Sony Corp, Kazuo Hirai visited New Delhi and Mumbai to strategise on new growth opportunities in India. The troubled global consumer electronics major saw its operating profit slid 77% to $80 million and it suffered a net loss of $314 million for the first quarter of the current fiscal ended June, results for which were announced in August. The figures, which incorporate Sony’s entire operation, represent a fourth consecutive year of losses for the struggling Japanese firm. With the company suffering losses globally due to adverse conditions in its major markets such as Europe and the US, Sony has set its sights on emerging markets like India to assuage the gravity of its losses. In line with this game plan, Hirai announced that Sony is targeting to treble its India revenue to Rs.200 billion by 2015. Sony India had clocked a turnover of about Rs. 63 billion in 2011-12 and is expecting a 35-40% growth in the current fiscal.

At first blush, Sony India’s revenue target looks too good to be true. But the company’s confidence in India is bolstered by the fact that unlike its American and European markets where consumer confidence has crashed dramatically, India still comes across as a country with strong economic fundamentals and where demand for consumer electronics among its youth and middle class still holds good. Also, compared to the revenue targets set by its competitors like LG and Samsung (both aiming around $10 billion by 2015) and even Panasonic, which is aiming to reach Rs.250 billion in the same period, Sony’s figures appear remarkably modest. But making good on one’s target could be a slippery goal to achieve, especially in the times of economic downturn. One only needs to look at how miserably LG failed in achieving its stated FY 2011-12 revenue target of Rs.200 billion, closing the fiscal just above Rs.160 billion. The main reasons for the debacle were the failure of its smartphone category, and increased competition in the ACs and flat panel TV space. The danger for Sony is that it might fall into a similar trap, in its blind dash to reach its 2015 target.

There are other speed bumps on the way too. One major wrinkle in Sony’s India plan is that the company has a limited product line. As competition in the consumer electronics domain is ruthless, competitors like Samsung, Apple, LG and others can be counted on to give no quarter without a good fight. Moreover, competition will intensify even further, especially in Sony’s flagship product category of flat panel TVs. Currently, the flat panel Bravia range contributes the lion’s share of Sony’s revenue at 35%, followed by consumer PC range Vaio at 20%, and the digital camera range Cyber-shot at 15%. Its other divisions like Mobile, PlayStation gaming et al contribute the rest.

The company has hitched its hopes high as it believes that unlike other consumer durable players, it is not a category player. “We are more of a brand player. So we don’t sell televisions, we sell Bravia. We don’t sell laptops but Vaio, and we don’t sell cameras but Cyber-shots,” avers Sony India Managing Director Kenichiro Hibi, who took over the reins of the Indian operations in July this year. So unlike other leading consumer electronics players, who build their category portfolio around a slew of product lines, Sony believes in keeping a simple and narrow focus: pick up a hero brand from a category and build onto it, rather than aim to spread thin in a category.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
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Friday, May 3, 2013

Quest of the headless horseman...

China is overtaking India in its quest for growth by leaps and bounds, and it’s doing so by embracing innovation. However, except for a few instances, the ecosystem for fostering intellectual property continues to be dismal in India

Patents are funny little things. To understand what we’re trying to say, consider this – “A method for creating networking database containing a plurality of records for different individuals in which individuals are connected to one another in the database by mutual recognition of a relationship. This mutual recognition of a relationship is inferred by the possession of the Guest Key of one member by the other member. This paradigm for network expansion allows users to proactively grow their networks both using the site features and using tools they may be more familiar with, such as email, messaging, talking, etc.” If you’re feeling that we have crammed up a significant space with a definition straight out of a software programming manual, which for now makes no sense at all, then you’ll probably be shocked to know that this in summary is what defines a social network. This in fact is the abstract of the first ever social networking patent that was granted to inventors Jared Morgenstern and Edward Lim. The original assignee of the patent was Sixdegrees.com – a now defunct portal which was in some ways a shadow of what Facebook has evolved into. It was ahead of its time and therefore had to shut shop. However, the patent was later, in 2003, acquired by Reid Hoffman (Co-founder, LinkedIn) and Mark Pincus (Co-founder, Zynga) for $700,000 fearing that if resourceful players like Yahoo get their hands on it, they’ll bring the entire social networking ecosystem to a standstill for a significant amount of time. Their anxiety was compounded by the fact that most social networks during those days were start-up which were having trouble putting up money for basic infrastructure like servers. Had Yahoo (which was also a bidder) acquired the patent and gone on an offensive, these new businesses would have had no choice but to close down. For now, the owners of this seminal patent are, well, sitting on it. Pincus is out of the social networking business (before Zynga he had been a co-founder at a social network called Tribe.net). But Hoffman is very much on the same terrain. And his website LinkedIn is emerging as one of the most successful and sustainable social networks after Facebook. If for some reason he decides to sue Facebook, the latter will have no choice but to either settle down for an obnoxious amount or licence out some of its own patents in exchange for Hoffman’s.

In fact, very recently, Mark Zuckerberg experienced first hand what it might mean to get locked into a patent battle with a rival. After joining Yahoo, Scott Thompson – the now fired CEO – spearheaded the filing of a 10 patent infringement lawsuit claiming that Facebook had been violating Yahoo patents in the areas of news feeds, advertising and privacy settings. Instead of plunging into the battlefield Facebook agreed to licence its patents in exchange for Yahoo’s apart from strengthening the existing advertising and content sharing partnership. Before this unsolicited drama, the social network had to cough up $40 million to acquire some patents from Friendster (a social gaming site founded in 2002) in 2010. Now with privacy becoming a huge issue, Zuckeberg has finally managed to get a patent for ‘Dynamically generating a privacy summary’ which he had applied for in 2006. The patent defines the process of displaying a user’s profile based on his/her privacy settings. The development will help the now listed company by protecting a significant part of the social networking experience. Other social networks might have to eventually license out the patent from Facebook.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
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Thursday, May 2, 2013

The famine that India did not waste!

Between 1965 & 1967, the Government of India was up against an extremely daunting challenge – the Bihar Famine. It compelled the then PM Indira Gandhi to realise the importance of self sufficiency in food for India’s long term interests. This realisation led to the Green Revolution, and things were never the same

It was circa 1966-67. Anil Vibhakar, then a high school student, has chilling memories of the last famine that hit his home state Bihar, along with other parts of India. “Newborn babies and young infants cried and shrieked for their mothers’ milk. But young mothers were not in a position to generate milk in the absence of enough food,” he recalled.

Vibhakar, now a senior journalist based out of Gaya, also recalled how many people vomited after eating wheat chura. Ultimately, they developed a taste for it and mixed it with milk powder and also made kheer (Indian dessert) out of it. In adjacent Jehanabad, Bali Ram Mishra narrates how pregnant women were most affected in light of poor calorie intake and found it hard to deliver babies. Similarly, Vijendra Singh in Patna recalls how his grandfather failed to grow even a blade of grass and the family carried on for a few months with a reserve stock of food.

On account of a decline in death rates, India’s population grew from 300 million in 1947 to 500 million in the 1960s. This led to increased demand for food and India’s food imports rose from 1 million tonnes in 1950 to 10 million tonnes in 1966.

The genesis of the Bihar famine lay in the successive monsoon failures of 1965 and 1966 that affected south Bihar, currently Jharkhand. Some reports peg the total loss of lives at 2,500. The year 1965 was already a year of deficient rainfall. Then a double tragedy struck by way of floods in north Bihar and poor monsoons in the south.

As a result, foodgrain production declined to less than 25% of the normal in large parts of south Bihar. Annual production in Bihar fell from 7.5 million tonnes to 3.5 million tonnes and availability of foodgrains declined from 13.4 ounces to 6.5 ounces per head. Some 30 million people faced scarcity and famine with around 18.8 million cattle. Studies pointed out that food shortage in Bihar was significant in 17 out of 17 districts, with 9 districts producing less that 50% of normal output.

The Congress Working Committee decided to hike the central allocation to the state. In a month’s time, the allocation of foodgrains to Bihar from the central pool increased from 70,000 tonnes in October 1966 to 150,000 tonnes in December that year and further to 2,25,000 tonnes between April-October 1967. Thanks to the US Public Law 480 Program (PL-480), India got continued food supplies and the Bihar Famine did not precipitate a national calamity. PL-480 or Food for Peace is a funding avenue by which US food can be used for overseas aid. It was signed by then President Dwight D. Eisenhower in 1954 after US produced surplus grain and as a result, global prices crashed. But PL 480 was given to countries that didn’t antagonise US geopolitical interests.

Food imports were used by US to arm-twist ‘non-aligned’ India into accepting its position. Leading US political scientist Paul R. Brass, in an article titled Political uses of Bihar Crisis: The Bihar Famine 1966-67, wrote: “Lyndon Johnson was known to be angry with Mrs. Gandhi (Indira Gandhi) and the Government of India for their disagreement with US Policy towards Vietnam and he adopted ‘short-tether’ policy of adjusting the release of aid, including food aid, to India...” The US still uses food imports as a diplomatic tool as is visible in recent cases of North Korea and Iran. It denies food even on commercial terms.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
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Wednesday, May 1, 2013

The pro-India view

H.E. Peter N Varghese AO Australian High Commissioner to India

The India-Australia coal trade is a token of India’s growth story driven by huge domestic demand, which is one of the highest in the world. Earlier, the imported coal from Australia was mainly cocking coal used for domestic consumption but the future import usage would be centered on thermal power generation, another important prerequisite for India’s growth story. It would be myopic to look into India’s growth with quarterly or yearly results – India’s economy has undergone many twists and turns – from Hindu rate of growth to a fast paced one from the time of liberalization. That notwithstanding, a massive pool of young population would be the key to India’s success in the long run. In this age of globalization, India’s economy is not a phenomenon in isolation, rather its being impacted by the global economy and economic meltdown in Europe and North America always have a negative effect on it. The strength of Indian economy is based on certain factors viz. it is a consumption based economy, its high savings and high investment level, and then if it can win the challenge of education for its citizens. Economy is a part of an ecosystem and it does not exist independently. Economic growth and political stability are clearly inter-related. Further, India’s democracy is the pillar of strength for its economic advancement, which provides as shock absorbers, so that in the long term economic growth speeds up.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
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