Thursday, October 29, 2009

Government’s new found love for private enterprises seems to be finally taking shape in the form of PPPs.

No doubt, they are the only way forward for the Indian economy towards growth at present, but then, there are areas which need immediate attention, if the government doesn’t want to hit a road block, feels Niharika Patra

What can be more surprising to a person, who is visiting India after a long time, than a host of long and shimmering roads, swanky buildings and above all, a sudden increase in the quality of basic amenities provided by the government. After all, it’s a never-seen-before India for him!

All thanks to the government’s new found love for private business houses, an impressive combination of public projects and private money is finally making India a place to be. Though, one cannot disagree that the results have been few and far, but the good thing is that the whole concept of mixed economy is finally coming up with the combination, which is certainly making the idea click.

In fact, public-private partnership (PPP) is that one thing which can make India rub its shoulders with the dragon nation, when it comes to world-class infrastructure coupled with the much needed push for the Indian economy. Agrees M. Y. Reddy, Committee Head, Infrastructure, FICCI, “Applying PPP model to the infrastructure is what can give the sector the necessary boost that it wants as of now.”

Though the idea is not new for the Indian policy makers, PPPs have been utilised to a greater extent only during the last decade or so (and that have been mostly limited to roads, airports, ports, bridges, et al). However, the recent announcements made by Finance Minister, Pranab Mukherjee, to provide infrastructure sector the much needed push, through clearing of pending PPP projects, would surely open new doors, not only for the private sector, but will also make projects like that under National Highways Authority of India (NHAI, which requires 60 highways to be built across India with an upward investment of Rs.70,000 crore) get going once again.

Even steel, ports and the Railways have been waiting for long for some big programme implementations under PPP. In fact, a latest report by BNP Paribas shows that the Railways alone provides for an investment opportunity close to a whopping Rs.2.7 lakh crore in the next eight years. Of the whole corpus, an investment of Rs.68,000 crore is alone needed by the Dedicated Freight Corridor, which covers 2,800 kms of rail corridor across seven states of India.

But then, that’s not all. Poverty eradication and social reforms too are reaching ground levels and this is where the PPP model is eying for a big opportunity. In fact, Food Security Bill, which talks about providing grains to the poor at Rs.3, can do wonders coupled with a proper distribution system. For instance, the use of Smart Cards (for the distribution of food grains), the latest innovative step that allows the holder to check the status of their application and stock while facilitating easier and more transparent distribution of stocks, provides huge business opportunity to Smart Card producers, who have been eagerly waiting to tap the huge potential in the public sector. The initiative (which has already tasted success in National Health Insurance Scheme) can be seen as a win-win solution for both the government as well as private players. Avers S. Kumarswamy, Chairman, Agrochemicals Promotion Group, “Public distribution has been a problem not only for the BPL families, but also for the ingredient suppliers of fertilisers and seeds because of the rampant corruption.” Certainly, Smart Cards would to a great extent also help in removing that devastating loophole.

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Source : IIPM Editorial, 2009

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

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Tuesday, September 01, 2009


Detail of all IIPM branches

Sunil Bharti Mittal believes that life gives everyone at least one big break, and he got his big break when he was awarded the telecom licence for the National Capital Region and launched services in 1995. The ‘big boys’ in India Inc. laughed at him then. But With Airtel a clear market leader today, they are not laughing anymore. teaming up with his brothers - Rakesh and Rajan Bharti Mittal now - sunil is bent on extracting another big break from destiny. financial services, retail or agri-biz: Where will the next big leap for the mittal brothers come from? savreen gadhoke, suRbhi chawla and gyanendra kashyap dive into the mittal empire for some answers...

“I am a new age entrepreneur. I believe I represent the changing face of India,” said Sunil Bharti Mittal (SBM to his friends and colleagues), while addressing faculty and students at the convocation function of a management school in Bangalore. His self-assessment could not have been more accurate! The manner in which he has been able to usurp a ‘pole-position’ in India Inc. (from right under the noses of the Tatas, Birlas and Ambanis of the world) stands testimony to his revolutionary streak. For those who came in late, the Ludhiana boy started with a bicycle parts business and today straddles a multi-billion dollar telecom empire.

It all began when he applied for and won a telecom licence and launched mobile services in Delhi and NCR in 1995. That was the beginning of SBM’s battle with the ‘big boys’ to stake his claim to a coveted ‘pole position’ in Indian business – a battle, which he has won, fair and square. With a market cap of Rs.1.52 trillion (as on June 2, 2009), Bharti Telecom now stands tall among India Inc.’s top rankers, amidst the Ambani and Tata empires – the very names that once perhaps sparked his envy! If the MTN deal comes through (see box on pg.71) , Bharti’s stature will grow bigger and better.

The telecom dream is on track. But not resting on past laurels, Mittal already seems to be looking for the next big leap. In fact, he had started fantasising about new frontiers years ago. And last year when he gave up the role of Bharti Airtel’s CEO to Manoj Kohli, the desire in part was to focus more on emerging businesses. Along with brothers Rakesh and Rajan Bharti Mittal, the winsome threesome have laid out the roadmap for Bharti Enterprises. Financial services (where Bharti teams up with AXA); retail (with Walmart as their winning gambit) and processed foods (a JV with Singapore based Del Monte) are the new playing fields. Question is, which of them will deliver the goods? Do these forays have it in them to come up to the stature of brand Airtel? More important, do the Mittal brothers have it in them to repeat their telecom achievements?

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2009

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

For More IIPM Info, Visit below mentioned IIPM articles.
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Wednesday, August 19, 2009

Bingo! We all tasted ITC’s madness... didn’t we?


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Brand: Bingo!
Agency: O&M

No Confusion, Great Combination yelled ITC’s Bingo, with the result that a completely new snack got a munching response from the Indian market. Within a month, Bingo’s brand recall was as high as 70%. And introducing 15-16 flavours simultaneously helped Bingo grab 16% of the market in just 9 months. The ‘Mad’ angle did prove sane for the brand new product...

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

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Tuesday, July 28, 2009

A. CHAKRAVARTY, CR. CHIEF, MCCANN ERICKSON


Shahrukh khan is coming to IIPM - IIPM 4Ps Quiz

1. Happydent’s campaign
2. Fevicol’s ad campaign
3. Coke’s ‘Thanda matlab Coca Cola’ campaign
4. Hutch’s ‘You and I’ campaign
5. Liril’s waterfall campaign created and conceptualised by Alyque Padamsee

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

For More IIPM Info, Visit below mentioned IIPM articles.
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Tuesday, July 14, 2009

All that glitters...


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Gold has again emerged victorious, but investors need to be selective in choosing the right instrument

As the global stock markets continue to ride the turmoil roller-coaster and fixed deposit returns bite dust amid falling interest rates, investment in gold seems to be the right choice for all investors. And why not, after all when the equity markets were melting last year, gold was silently surging to new highs justifying Indian women’s love for it for once at least.

From Rs.10,658.75 (per 10 gms) on January 1, 2008, gold prices have taken a giant leap and touched Rs.15,150.00 on April 1, 2009 – offering a phenomenal 42.13% return to its investors in just 15 months. Amar Singh, Head of Research, Angel Commodities confirms, “Gold buying in the last one year has not yielded any losses.” This is primarily because the base cost of bullion can never become lower than its cost of production unlike in equity market. Agrees Pratim Patnaik, AVP and Head Retail Business, Kotak Commodities, “Gold has always been an investment for retail public. The risk reward ratio in gold is highly favourable for the long term investors as the returns are expected to be skewed positively.”

However, while investing in gold, investors must keep a few things in mind like they must avoid investing in gold jewellery. It’s simply for the fact that such a move attracts VAT at a very high rate and thus investors’ return on investment falls sharply. To get a proper return on the yellow metal analysts suggest to invest in gold coins or bars, which are stamp duty and VAT free.

As fund houses are going gaga over Gold ETFs (Exchange Traded Funds) these days, investors can also evaluate their options to make some investments in these schemes. Investment in GETFs will make investors’ life a lot easier as while giving the benefits of investment in gold, GETFs relieve the investor from all hassles associated with physical possession of gold like, the storage cost, liquidity, purity et al.

As per Keyur Shah, Associate Director, World Gold Council, “Currently, gold is one of the best performing asset classes. It continues to remain the most accepted and time tested asset class for its proven ability to preserve value over time and act as an effective portfolio diversifier, which come to the forefront in times of economic downturn, making it extremely relevant in today’s time.” Going by his words, this is definitely the time when investors must give a serious thought about investing in gold; but at the same time they must invest in the right instrument.

Deepak Ranjan Patra

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