2 WHEELERS

Why Study Abroad When IIPM Gives You 3 global Advantages!

From men clad in bell-bottoms flaunting their legendary Lambretta to Chetak becoming the owners’ pride and on-lookers’ envy to modern day leather jacket clad youngsters doing va...va... vroom... on their mean machines... all this while, the twowheeler industry has held its cranium high.

However, in the current aeon (as compared to a decade back), the dynamics of the industry has undergone a 360-degree transformation. It has not only marked the end of the geared scooters, but bikes have increasingly started ruling the minds of Indian consumers and companies. Moreover, in case of bikes, the war between the makers is not restricted to mere cosmetic makeover. Instead, it has been elevated to the next level with technical makeovers becoming a part of the players’ arsenal. Hero Honda and Bajaj – the number one and the immediate follower introduced the revolutionary fuel injection in the two-wheeler segment (Hero Honda in Glamour and Bajaj in Pulsar).

And there were others too who jumped into the party... with greater enthusiasm (if you please!). There was TVS which made all preparations for that moment when these leaders would fail and it would pick up the momentum from where they left, walking away with the spoils...

And with its revolutionary products like Apache, TVS is no more a third choice for the Indian consumer. Then of course, can we forget the multinational titans like Suzuki and Honda Motors & Scooters India (HMSI) which are aggressively expanding their footprint on Indian soil and making huge progress when it comes to usage of advanced technology that too with an unshakeable do or die spirit. On a lighter note, the situation can well be described as a world war in the domestic twowheeler industry, and rightly so, since India is already the world’s second-largest two wheeler market.

Interestingly, in this era, it appears that scooters are making a strong comeback (with almost every player in the industry possessing at least one ungeared two-wheeler in its portfolio). And here too, the technological race has been flagged off. The scooter giant Bajaj has moved a step ahead of competition by introducing the fuel injection technology in the ungeared scooter space, which is at the moment dominated by HMSI.

Bajaj, which took the industry by surprise when it launched the Pulsar range, now plans to take biking in India to a new level by introducing 250cc+ bikes in collaboration with Japanese samurai, Kawasaki. It is also learnt that Bajaj is betting on the dual-fuel strategy and compressed natural gas powered bikes would be launched in a matter of a few months from now.

But having said that, it would indeed be wrong to predict a victor, as there are still a host of unplayed manoeuvres on the Indian twowheeler chessboard. Moreover, it will be interesting to observe the dynamics of the industry over the next half decade, since on one hand, Bajaj plans to move out of the bread and butter entry level segment of the industry in a phased manner, while Hero Honda continues to focus on that very segment with even HMSI planning an imminent entry into the space.

Well, what will payoff is a different story. As far as the industry is concerned, its future is positively sealed. With the two-wheeler industry continuing to grow at a CAGR of 15% for two years that is FY 2007-2009, and with all the two wheeler majors announcing major expansion plans (Bajaj Auto plans to invest Rs.15 billion over the next four years and Hero Honda plans to pump-in roughly Rs.4 billion in FY 2008 to take its total capacity to 4.4 million units from the current levels of 3.9 million units), the prediction for this robust industry will stump many a gloomy soothsayers.

However, in the long term, as the Indian market matures and the premium segment become the bread and butter of the industry instead, the current kings may have to face a series of bouncers from HMSI and Suzuki, taking into consideration their R&D edge especially in the premium space. But one cannot completely write-off Indian czars, more so since they have already started working in this direction. Intensive R&D, benchmark product launches and ultimately striking the right chord with consumers will be deciding factors for the success of this sector as a whole.

If the premium segment is hot, so are ultra-cheap cars. Can the industry overlook the threat that Tata’s and Nissan’s ultra-cheap (dream) cars would give to the current market pie of two-wheeled tycoons? Are they geared for it? We’re willing to wait, and so are you, we hope, for the future will tell tales of men that perished on burnt out two-wheels while on a high speed highway; and of kings that donned the crown and zoomed ahead, past all that mattered. Ah! and yes, on the very same Indian highway!

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Source : IIPM Editorial, 2008

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

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Acer :- Life is busy. Acer makes it easy

Why Study Abroad When IIPM Gives You 3 global Advantages!

BRAND : Acer
AGENCY : Dentsu marcom
BASELINE : Life is busy. Acer makes it easy

DESCRIPTION: Passengers on a flight are getting irritated over hanging of their laptops. Enter Hrithik Roshan, who merrily whistles a tune. Everyone looks back at him, when he says, “Problem? No Acer ‘e’ ki? The Acer ‘e’ technology that reduces setting so easily, that manages your power, your presentations, your security, almost everything you know.” The V.O. says, “Acer 5583 laptop powered by Intel’s Centrino duo processor technology.” Hrithik signs off saying, “Life is busy, Acer makes it easy.”

4Ps TAKE: Even as there’s stiff competition amongst PC companies, Acer is out with yet another ad using the delectable Roshan. Having launched Acer laptops in the Indian market, the power idea is now to boost sales. Roshan, as usual, manages to grab attention as he describes the product’s USP: the ‘e’ technology that will never let you down. The setting of the ad, inside an aircraft, subtly positions the product as a brand to be aspired. This one’s an ace up Acer’s sleeve.

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Source : IIPM Editorial, 2008

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

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China galloping onwards to third position

Why Study Abroad When IIPM Gives You 3 global Advantages!

China, which is always being compared with India on every parameter, will now soon be the world’s third-largest economy. According to the country’s National Bureau of Statistics, the Dragon has been snorting fire like never before and its growth rate in 2006 went up from 10.7% to 11.1%. Now, it is all set to overtake Germany, which is currently in the third position (the US is, of course, numero uno, and Japan is at number two), with its total output being estimated at $2.705 trillion (21.1 trillion yuan), and its foreign reserves touching a new high of $1.33 trillion. And it’s not just the Dragon that has been growing at breakneck speed. Singapore too is witnessing a similar boom. According to Singapore’s trade ministry, GDP grew an annualised 12.8% in the quarter ended June 2006, exceeding all expectations! A lot of the growth is being attributed to the real estate sector.

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Source : IIPM Editorial, 2008

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

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After OPEC, a gas cartel! Well, Putin is impressed

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What was meant for all, actually fall into the hands of countries that behaved like corporations. First it was Organisation of Petroleum Exporting Countries (OPEC) world’s foremost recognised oil cartel; now a gas cartel appears to be in making, courtesy, Vladimir Putin’s Russia and Ahmadinejad’s Iran. The intentions of Vladimir Putin can be gauged from the act when recently Putin took the whole world by surprise by planting its flag on the ocean floor under the North Pole in a symbolic gesture to claim the rights to the sea-bed, which could be rich in oil and gas.

Russia happens to be a dominant player in the natural gas and a major supplier to many erstwhile USSR countries and other European countries. Russia’s state-controlled Gazprom exports natural gas to nine European countries. Russia has world’s largest proven natural gas and eight largest oil reserves. As such Russia has the ability to dictate gas prices and influence the natural gas supply, Russia turned off the natural gas tap to Ukraine and Moldovo in January 2006 and threatened to pull out the plug to Belarus and Georgia in late 2006 over price negotiations. The above examples not only damaged Russia’s image as a reliable energy provider, but also made it quite apparent that Russia is using gas a political tool to gain economic mileage.

A string of deals by Russia with other Central Asian countries like Kazakhstan, Turkmenistan & Uzbekistan indicates for a high probability of Russia along with countries mentioned above, along with Iran joining hands for a natural gas cartel. “A gas OPEC is an interesting idea,… our main aim is to co-ordinate our activities with an eye to the solution of the main goal of unconditionally and securely supplying the main consumers of energy resources,” Putin said in a Kremlin new conference. But past instances fail to prove Putin’s viewpoint, where Russia has used gas as a weapon to control its neighbours.

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Source : IIPM Editorial, 2007

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

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The Attenborough heirlooms

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Brothers in caste, creed & deeds...

They are perhaps the most famous brothers in the living memory of the British; where one was labelled as the most trustworthy public figure in a poll; the other claims the same faith among his peers and admirers of his school of work. Though their life’s work has been dedicated to subjects as different as chalk and cheese, their single-minded obsession with the same, is a direct give away to the fact that these two stalwarts are kinsman in spirit as much in body.

While Richard Attenborough, born on August 29, 1923, was the eldest of three siblings, David Attenborough was three years his junior and the middle child. Their father, the principal of University of Leicester, set high benchmarks for his three sons. Where Richard, a laggard in studies, wished to pursue acting, he set him the challenge of winning the much sought after Leverhulme drama scholarship from The Royal Academy of Dramatic Arts. David on the other hand faced the test of winning the open scholarship in order to attend the natural science trips at Cambridge. And so they set forth upon their journey uphill, though opting for two entirely different trails.

An 18-year-old Richard made his professional debut on stage and a year later in 1942, he enacted the role of a deserter in, In Which We Serve. From there on he would go on to epitomise the English wimp in the chunk of his films of the next two decades. He pursued roles of darker hues too, such as that of Pinkie the Hoodlum in Brighton Rock (1947). He also starred in Satyajit Ray’s 1977 movie – Shatranj Ke Khiladi. In 60s, he divided his attention between acting & production and along with writer/actor Bryan Forbes, he set up Beaver Films. In the late 60s, he began to direct movies too and his very first – Oh, What a Lovely War! – garnered much acclaim. Three more directorial ventures followed in the 70s followed by his magnum opus Gandhi (1982), which bagged three Oscars, including one for Attenborough as the Best Director.

Unlike his brother, David showed no inclination in getting in the front or at the back of the camera and completed his graduation in 1942 in Natural Sciences at Cambridge University. He started out editing children’s science text books & in 1952 he moved to BBC. Initially, he became a producer in the Talks Department; the head of his department disapproved of his teeth, which discouraged him to get in front of the camera but it wouldn’t be long before he managed to produce and present the three part series – The Pattern of Animals – during the making of which he met Jack Lester. The result of that association was Zoo Quest, which upon Lester’s illness, Attenborough would go on to anchor. As the show steadily rose to become Britain’s most popular wildlife show, so did Attenborough’s career graph. In 1952, he became responsible for introducing his countrymen to colour television as Controller of BBC2. Eight years after he took on editorial responsibilities of both the BBC networks as Director of Programmes, he grew jaded of his routine and decided to introduce some colour into his life too – he resigned and returned to making programmes! Based on South Asia’s natural history, Eastwards with Attenborough became the first of several series that include the 1979 13- part series, Life on Earth, his ode to Antarctica – Life in the Freezer (1993) – among many others.

Old age hasn’t slowed down the Attenborough brothers at all. In his 70s, Richard starred in movies like Jurassic Park (1993), Miracle on 34th Street (1994) & Elizabeth (1998). Going strong in his 80s too, his latest directorial offering, Closing the Ring, will premier on September 14, at the 2007 Toronto International Film Festival. Equally robust, 2000 witnessed David Attenborough in State of the Planet, which focussed on the environmental crisis and more recently in Sharing Planet Earth that aired on June 24, 2007.

The Attenborough brothers have received many prestigious honours too, where Richard was knighted in 1976, Sir David was awarded the Order of Merit in 2005. On the face of it Richard & David Attenborough are siblings who couldn’t be more disparate and though their routes differed, their final destination was the same – the hearts of their audiences and the minds of generations to come.

Edit bureau: Anu Gulmohar

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Source : IIPM Editorial, 2007

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

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Rising of India

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Six decades have now passed since Independence. And the textile sector has had a key significance for India, even before Mahatma Gandhi launched the revolutionary Swadeshi movement. But while liberalisation & organized retailing have enhanced the prospects, Indian apparel is yet to achieve its rightful place on the world map. Will we ever be able to catch up?

Think of the word ‘apparel’ and you are pushed back into a psychedelic state of mind, with your highly intensified receptors almost blinding you with the fl ashy, theatrically lit ramp. Then you could feel overpowered by the razzle-dazzle brought forward by the troupe of bedazzling models (not forgetting those goose bumps) & struck dumb (and deaf) by the overwhelmingly stupefying proceedings. The applause follows them all – and there you’re left wondering if there could be a better showcasing opportunity to the hundreds of beauties that just passed by… leaving you in a trance (well, almost)! At the end of it all, something plays on your bewitched mind; a question – “did I miss something?” And it’s already the next day before you realise that it was in all sincerity meant to be a fashion parade to showcase something which can crudely be referred to as ‘textiles talent’!

Think what you want to, but textile honchos around the world take advantage of this craze with the case in the Indian context being no different as the real ‘models’ of India Inc. gear-up fast for a ‘creativity-filled’ autumn ahead. And with multi-million dollar game plans, the industry is teeming with players ready to create a splash, well realising the potential of the fiercely growing Indian textiles market – a fact corroborated by global equity giant Blackstone Group’s 50% stake buyout in Gokaldas Exports on August 21, 2007 for a handsome Rs.6.76 billion. The fact of the matter is that, currently, one can only witness ‘growth’ smeared all over the Indian textile mart as Ravi Thakran, President (Asia-Pacific) of Louis Vuitton Moët Hennessy (LMVH) justifies, “Today, India stands first in terms of setting up production units... To top it all, it also enables the investing party to have a grip on the fast growing home market...” All this only further testify es why more and more foreign entities are sensing bright prospects for their investments in garments manufacturing & outsourcing business in India.

As per CRISIL, the Indian textiles sector is forecasted to touch a sprawling $110 billion in net revenues (domestic sales & exports) by 2012 – a dazzling appreciation of 479% when compared to the $19 billion during 2006-07. Exports, too, are predicted to escalate to a breathtaking $50 billion by 2010! Keeping in mind the immensely fertile development, it comes as a little surprise that Indian textile titans are relentlessly upgrading their manufacturing infrastructure and pumping in resources on a large scale to make India the world’s next fashion capital. Sure enough, India will have to bite the bullet in order to achieve this feat as there are various challengers even in this regard. However, Gianluca Bollani, Fashion Coordinator of Corneliani votes for India as far as offerings are concerned as he maintains, “Compared to other Asian countries, India has a unique offering in the textile world and those are value added products like special cotton yarns, fabrics, made-ups et al. Most Italian fashion houses today resort to India for these value added products.”

Well, whether it makes it to the top is still a question subject to many constraints, but there’s still another carrot and that’s the domestic haute couture market, which is currently steaming ahead at an annual growth rate of a noteworthy 10% (as per CII). No wonder, the Ambanis and Wadias are fast getting their acts together with primo brands – Vimal & Bombay Dyeing, respectively. But with other relatively smaller players already capturing a major share of the market – although in a fragmented fashion – both globally & in Indian sub-continent, the question remains – “Isn’t it an act too late?”

Well, ill-strategies and utterly discouraging government norms forced many textile mills to close shop during the 1970s & 80s, which was also considered a rampant fragmentation period in the textile industry as D.K. Nair, Secretary General, Confederation of Indian Textile Industry (CITI) exclaimed, “Many textile mills in the mid-1980s couldn’t even dare to diversify. Then there were labour laws at that time, which always supported the labourers (unions) and never looked at the problems faced by manufacturers...” However, what ultimately resulted was a plethora of unorganised players coming together with their aggressive growth strategies... And today, these are the very entities which are minting colossal profits, promising to take on the world of textiles by storm & challenging global titans!

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Source : IIPM Editorial, 2007

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

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Growing @ Talent.com

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Handpicking talent right from the campuses, nurturing them on the job and infusing a sense of ownership to a large extent helps in retaining talent at HCL. The highly dynamic IT industry is experiencing a staggering attrition rate of around 20%. Some companies have even gone ahead, claiming a massive 30% attrition. However, HCL has an altogether different take on the attrition issue. The rate of attrition for younger employees – who have been a part of HCL Info systems – for less than five years - is around 15-18%. However, the attrition figure for employees who have been around for more than five years, it is a miniscule 5%. Punekar feels that the younger lot coming in today is simply short of direction. They are in a hurry to reach the top and hence resort to job hopping, but once they stick around in an organisation for more than five years, then they prefer to stay.

Talk to Punekar for sometime and one more aspect of his personality that shines brightly is his passion – not only for the company, but also for the work he does. No wonder, this HR veteran has inculcated a culture driven by ‘passion’ in the company as well. Today, HCL in industry circles is known as a company driven by passion, where passion even takes precedence over processes. All of these show HCL as being a very informal organisation. But informal does not mean that the employees are left altogether to do as they like. Like all known organisation, HCL too has in place a proper performance appraisal system whereby employees across the country are constantly monitored with the help of the right soft wares. The HCL philosophy is simple: ‘what gets measured, gets reviewed and what gets reviewed, gets improved.’ States Punekar, “We’ve a matrix to measure performance of the employees on a daily basis.” At HCL, performance results in handsome rewards and the right kind of remuneration. Punekar further reveals, “We have pioneered a lot of things as far as rewards are concerned. We were the ones who introduced the concept of profit sharing and also the first ones to bring the concept of ESOPS in India.” In fact, by 2005, HCL had covered all its employees under their ESOPS programme.

Rewards aside, HCL also knows how to touch the heart of its employees. In 2001, HCL contributed and encouraged its employees to build their own houses under a project called HCL Towers. In addition to it, to make life simpler for employees, HCL provides facilities like transportation, administrative facilities et al. Though HCL may justifiably claim not to be a full-fl edged soft ware focused company but one cannot deny that for this ‘Entrepreneurial Incubator’ of the Indian IT industry, HR certainly ensures that the HCL garden is always blossoming with talented and well-managed human capital.

(H)uman (C)onduct (L)ist

• Calls itself a campus organization as trainees are picked up straight from campuses.
• Received the highest rating of Five Star in the ‘Dataquest-IDC Best Employers Survey,’ 2005.
• HCL wins IMM Top Organisation Award 2007 for Excellence. Human Resource Development was one of the key parameters for the award.
• HCL Support wins the DQ Channels-2006 Gold Award for Best After Sales Service on a nationwide customer satisfaction survey conducted by IDC.
  

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Source : IIPM Editorial, 2007

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

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Tick-Tock, Tick-Tock

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Intel India has successfully deployed its tick-tock model and the results have been outstanding. As Rahul shares, “You have the next generation micro architecture and then you have the next generation processor. Th at is what challenges Intel as it changes the paradigm every year. So, it is an inward challenge that Intel has & for us that’s one of the critical things keeping us ahead of technology.”

Further elaborates Praveen Vishakantaiah, Director, Digital Enterprise Group (DEG), Intel India, “The ‘TICK’ piece is to make sure that we’re able to take a mature architecture and then benefit from process technology advancements. The ‘Tock’ is to take a mature architecture and to move it into an advanced architecture mode. So innovations have to come up not only on the process side but also on the architecture side, once every year. The challenge is to ensure that each of these ticks and tocks keep going in step with each other.”

All the different divisions of Intel, be it the Mobility Group, have their separate individual goals and targets, though the common Intel philosophy persists. Take DEG for instance, as Praveen elaborates, “DEG plays a strategic role on how clients will go forward in the market between the servers & mobility space. We’re primarily focusing on the Xeon platform, clearly one area where Intel globally is doing very well. Intel India DEG is strategic in nature at this point...”

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Source : IIPM Editorial, 2007

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

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TCL goes local in India

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Chinese consumer electronics manufacturer, TCL, is mulling to set up a manufacturing unit for colour TV & DVD player in the northern part of the country within the next three years. TCL had conducted a study to locate manufacturing sites in India & Noida came out as a preferred location. Apart from meeting domestic demands, the site would also be used as its global sourcing hub and would supply to players like Sony & Philips. Local manufacturing would also enable it to supply products to retail majors like Reliance & Wal-Mart. However, the company is tight lipped about the investment and capacity details of the plant.

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Source : IIPM Editorial, 2007

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

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When in Frome...

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.... You can do your own thing at the community exposition!

There are cultural festivals and religious festivals, national festivals and seasonal festivals... Here’s a community festival. Home to artists and manufacturers both living and working in the small historic market town in South West England, the Frome Festival promises to be a literary and musical bonanza to include more than 110 events over a period of 10 days – from July 6 2007 to 15. The sense of community, derived from shared interests, is visibly strong. The days will present a fine symphony of all genres of music – folk, jazz, classical etc. while literature buff s can drown themselves in the world of films, exhibitions, visual arts and other events.

Now seven years old, Frome Festival takes place at the local chapels, Merlin Theatre, Memorial Theatre etc.. A multifaceted feast for all involved, these events looking to enthuse and entertain would have a common emphasis – art. A treasure trove of historic and architectural marvels and a hub for contemporary arts, Frome Festival might prove more fruitful than visiting 7 different places in 10 days!

An exhibition titled ‘Ground’ inspired by the landscape around will be on in Rock Lane Gallery. Besides, in keeping with the global rave and rant about environment, this festival is busy too with painting the town, not red, but green, that will include the Green Fair, Farmers’ Markets and the Green Music/Movie projects. Youngsters from Frome Community College and Critchill Special Needs School feature in events of storytelling, drama and computer-generated sound scape. The Youth Council holds a series of workshops and a Youth Café at the United Reformed Church Hall. For the young at heart, Frome Recreation and open ground support (FROGS) will have workshops along the river walk and a grand closing ceremony outside what they call Cheese and Grain. Let the magnificent display paint the canvas of your imagination with images that will surely find way to your travel diaries.
Edit bureau: Yefu Daniel Chen

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Source : IIPM Editorial, 2007

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

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Those are not just power & energy sectors that will become beneficiaries of this deepening love affair

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Positive Spin Offs

The spin off benefits for the power sector in India too would be tremendous. American utility AES Corporation has already inked an agreement with the government of Chattisgarh to set up a 1,000 MW coal fired power plant at a cost of $1.3 billion. Of course, analysts caution against early euphoria because none of these power projects will eventually materialise if state governments do not reform their State Electricity Boards.

It is not just the power and energy sectors that will become major beneficiaries of this growing and deepening love affair between the two largest democracies of the world. Trade between the two nations is poised to take a quantum leap as a result of this. Both Commerce Minister Kamal Nath and US Trade Representative Robert Portman pledged that the value of Indo-US trade will double in the next three years from the current levels of $21 billion a year. The enormous opportunity that exists for trade to flourish between the two countries can be gauged from the fact that just merchandise trade between US & China (excluding trade in services) is worth $300 billion a year currently.

A Joint Indo-US CEO forum that was set up last July during Manmohan Singh’s visit to Washington has been given the responsibility to ‘fast track’ this process. Ratan Tata heads the forum from the Indian side, while the JPMorgan Chase Chairman, William Harrison, heads the American side. The Deputy Chairman of the Planning Commission and one of the architects of India’s reforms journey, Montek Singh Ahluwalia, has been given the specific responsibility of ensuring that there are no glitches in this exciting journey of Indo- US collaboration that lies ahead.

Of course, it is not going to be an extended honeymoon alone between the two when it comes to trade ties. The controversial WTO negotiations are still deadlocked in agriculture and other areas and the deadline to settle disputes is April 30, 2006. Says Kamal Nath: “Both of us believe that deadlines must be kept. We are working towards it. We have to see how convergence can be reached and modalities worked out before the deadline.” Though just symbolic, the decision of the US government to allow mango imports (!) from India reflects the rapidly changing perceptions in the United States.

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Source : IIPM Editorial, 2007

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

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Nokia in 2007 is how we saw it in 2005

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It was the inaugural issue of Business & Economy, the beginning of a journey, we are sure, will enrich and provoke readers for decades to come. Beyond the excitement of bringing something spanking new into this world, we were concerned deeply with providing a

nalytical stories that could dissect a corporation, a sector, a policy and an institution or even a trend in the most comprehensive, yet readable manner. We genuinely believed that Indian business magazines fell short of genuine analysis & healthy critique. Nokia story was our first attempt to do what we so passionately believed in. Back then, Nokia looked simply invincible & had even become a generic brand when it came to the exploding market for mobile phone handsets. Yet, we predicted that Nokia would face stiff competition from Motorola, LG & Samsung, and that its image could take a beating in the high end of the market. We also wrote that the deal with HCL was in jeopardy. Chest thumping may not be the best of traits; but on this second anniversary of the magazine, we can surely say we were right all the way!

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An year of restructuring, resurrection, star shooting & cricket! Zee makes waves...

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Doomsayers have written off Subhash Chandra twice, and twice this one-time rice packer from Hisar, Haryana, has risen from the ashes like a Phoenix to prove them wrong. Coming from a humble background, (Chandra is a Class 12 dropout) he has built the country’s largest media & entertainment powerhouse. Today, Chandra is worth a staggering $2.3 billion and is often called the ‘Indian Rupert Murdoch’, though he would disapprove of the tag. Besides, his love-hate relationship with Murdoch is quite well known.

‘Subhash Ji’s’ Zee is still runs in a very traditional manner; yet it has managed to set many precedents in the industry. The work culture has barely few signs of the hip MNC lifestyle, and yet Zee’s channels can be accessed in over 120 countries across the world.

After the de-merger of Zee Tele films Ltd., the group recently announced the financial results of the de-merged Zee Entertainment Enterprise Ltd. (ZEEL) for the quarter ending March 31, 2007. The consolidated revenues for the quarter were Rs.3.84 billion (growth of 10.6%). The consolidated operating profit stood at Rs.951 million, a rise of 112%. Moreover, for the financial year ending March 2007, advertising revenues rose by 32% to touch Rs.7.06 billion and subscription numbers were up by 27%. On a consolidated proforma basis, revenues for ZEEL and its subsidiaries stood at Rs.14.41 billion, while PAT was recorded at Rs.2.4 billion, a growth of 12.3%. On a standalone basis, ZEEL stood at rank 129 in the B&E Power list. Stated Chandra on the results, “We are investing our time & efforts both in reaching out to new viewers as well as in capturing a larger mind share of our existing viewers. And we have succeeded in our effort consistently in the last several quarters.” Added Puneet Goenka, Whole Time Director, “During the fourth quarter, we faced intense competition for eyeballs from the Cricket World Cup and other competition. Despite these events, Zee TV has been able to maintain its ratings across time bands and has averaged 211 Gross Rating Points for the quarter…”

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Source : IIPM Editorial, 2007

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

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IIPM : The Indian Institute of Planning and Management
IIPM is a best b-school. It is a business school of management. It's full name is The Indian Institute of Planning and Management. ...

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Reliance Communications is rapidly integrating across the telecom domain

In the rapidly developing business hub of Navi Mumbai, a mini technology enclave has become the object of tremendous respect and admiration. It’s the Dhirubhai Ambani Knowledge City, home to Reliance Communications, a company that has now come into its own, and is now within striking distance of Bharti TeleVentures, when it comes to market share. Once you step inside the Knowledge City, magnificent steel architecture and glass buildings grab your attention even from a distance; pretty much the way Anil Ambani’s crazy expansion spree has boggled the minds of all and sundry. And as you move a little inside the National Operation Centre (which monitors the entire cellular and land line network of Reliance across the country), you can’t help but get inspired, yet again, from the very familiar words inscribed alongside the picture of the legendary Dhirubhai Ambani – “Growth has no limit at Reliance. Only when you dream it, you can do it.”

Standing true to Dhirubhai Ambani’s words, RCL has emerged as one of the fastest growing companies in India with a momentous 612% increase in its net profi ts (which now stand at $734 million) for the financial year, ending March 31, 2007. “During the year, each of our businesses recorded strong revenue growth and expanded their margins, deriving leverage from the growing scale of operations. We are delighted at the many firsts and record achievements at Reliance Communications, in the first year of our listing,” said a proud Anil Ambani. While the wireless business witnessed a growth of 46%, reaching $2.48 billion, the broadband business performed exceptionally well with revenues of $265 million, registering a staggering 123% increase.

Of course there have been troubling developments as well. Perhaps the most critical one was losing out in the bidding for Hutch, further exacerbated by the fact that Vodafone has gained an entry into the Indian telecom Armageddon. And their planned entry into GSM remains... well... in the planning stage! Would such stumbling blocks kill the RCOM dream? Or can the younger Ambani pull a rabbit off his multi flavoured hat?..

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