Wednesday, June 5, 2013

Why Ray's heroes are a breed apart...

On the occasion of legendary filmmaker Satyajit Ray’s 21st death anniversary on April 23rd 2013, Monojit Lahiri pulls back to provide both, a long shot and a close-up of what made his heroes so different, special and unique.

In epics, sagas, legends and folklore, the ‘hero’ is always Mr. Perfect. Brave, bold, truthful, chivalrous and noble. In the Mumbai-manufactured ‘masala’ movies, add sexy handsome and macho (and don’t bother to strain the brain cells too much!). For over three and a half decades the one hero who blazed the screen and scorched the imagination of millions was the towering and charismatic Amitabh Bachchan.  In recent times, the likes of Sunjay Dutt, Sunny Deol, Abhishek Bachchan, Akshay Kumar, Ajay Devgn, The Khan combine (Saif included) and Hrithik Roshan have clashed swords for that coveted clot.

In serious cinema (parallel cinema that is) the concept of hero and heroism is not quite as bombastic. Here there is no specific agenda to titillate the wish-fulfillment aspect of the turned-on viewer.  He does not spew armpit rhetoric aimed at the front benchers.  He is a flesh and blood character, acting out real feelings with identifiable honesty, sensitivity and feeling. Agreed, he doesn’t always win, but who does?  Not you or me – only the larger than life caricatures in masala land!

The heroes of Satyajit Ray’s films are a breed apart.  They are even more rooted to the soil and milieu of their environment. Observes Chidananda Das Gupta with rare perception in the most definitive book written on the maestro, The Cinema of Satyajit Ray. “The natural character of an actor was important to Ray, not only in the case of the non-professional, but professionals as well. He must, in real life, reflect some of the basic qualities sought in the character to be portrayed. Acting against the grain of the actor’s nature is unacceptable in Ray’s scheme of things. That is precisely why Ray’s actors exude more or less the same impression of themselves in real life as they do on screen.  Soumitra Chatterjee, Dhritiman Chaterjee (Pratidwandi) or Pinaki Mukherjee (Jana Aranya), all have the unmistakable imprint on them of an intellectual pursuit and contemplative nature. The characters they play on screen are very like themselves.”

Let’s start with Apu in Apur Sansar, the third and last chapter of his unforgettable (Pather Panchali, Aparajito) trilogy.  Apu is a young  man who marries, writes his first novel and then loses his wife in childbirth. This tragedy sends him staggering into the wilderness.  His pathos is summed up in one magnificent image as he casts away the sheets of the novel. They flutter down the hillside in the luminous light of dawn, evoking an overwhelming sense of melancholy. Apu is filled with nostalgia, but when at last he is reunited with his on, it gives him a new vitality and joy with which to face the future.  Thus the wheel has turned full circle and the trilogy closes with Apu carrying his child just as it began with his grandmother rocking him in the cradle. Fittingly for the role of the sensitive Apu, Ray introduced Soumitra Chatterjee – an actor whose physical and intellectual parallels bore such striking resemblance to the character he was to portray, that it inspired the prestigious Time magazine to eulogise, ‘His actors act not with the usual combinations of oriental drama, but as though the camera found them alone and simply living; and they live as few characters in pictures do – real lives that swell to the skin with pain and poetry and sudden wit.’

Take Nayak where the great god, Ray, took Bengal’s (late) King of Hearts, Uttam Kumar for the first time, causing many to believe that the maestro had finally lost it!  Nothing of course was further from the truth. The essence of the film concerned itself with the emptiness that plagued the life of a celluloid superstar. The storyline oozes out of the empty confines of an air-conditioned coach carrying him to Delhi, where a State award awaits him. On the trip he meets an intelligent, young, woman journalist (Sharmila Chatterjee) in the dining car.  A rapport develops between them and in a rare moment of human contact, he tells her of his most private frustrations, doubts and weaknesses.  While it is commonly recognized that Ray’s best works are derived from literary sources other than his, his eye for impeccable casting has almost always been universally acknowledged. Uttam Kumar was Bengal’s reining superstar, whose mere name on the marquee set off serpentine queues. What Ray did was to write a script with him in mind, eliminating his popular, cliché-ridden mannerisms and concentrating on his seldom-tapped acting prowess. In this he succeeded magnificently, inspiring the late star to comment, “Manikda was the first director to really teach me what film acting was all about.”  This new insight was reflected in most of his subsequent movie roles.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
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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
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Rajita Chaudhuri-The New Age Woman

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Thursday, May 30, 2013

Whispering death

By skirting the necessary UNSC mandate, Drone attacks are fast becoming an extrajudicial alternative to boots on the ground, says Saurabh Kumar Sahi
 

They say it hits with a warning. Only if you consider the constant humming sound that hits your eardrums everyday, a warning. In Waziristan's non-polluting environment in the absence of industrial units and vehicular pollution, it is pretty much a hiss.

At lower altitude - and fraction of seconds before the missile hits - the hum turns into groan. It is not for nothing that locals, in their tongue, call it “whispering death”. The whisper here is also symbolic; a substantial part of the world's population only talks about drones in whispers; and that too, only those people who know about it. The world of Predator drones is a murky collusion of silence, opacity and undisclosed complicity.

In October 2012, during my trip to Peshawar in Pakistan, I got the opportunity to meet for the first time people who have been directly affected by drone war in Pakistan; they are not exactly media's most heard voices, either globally or in Pakistan's elite English newspapers.

The survivors narrate a sordid tale of how drone war has turned from an attempt towards inflicting surgical strikes to a psychological warfare that takes enormous toll on the population.

Ashfaqullah, a boy in his mid-teens, explains the everyday pressures that the drone culture has inflicted in the region. “You constantly hear the hum. It never stops. It's like somebody watching your back. You feel threatened sitting with  friends. It might be mistaken for a gathering and hit. You avoid any sudden movements. It has become a part of our life.”

Ashfaqullah and his friend Khalil Khan had witnessed the infamous drone attack in the town of Datta Khel that took place in March 2011 killing over 40 people and injuring scores more. A meeting between local businessmen and tribal elders of the area was convened in order to settle the dispute over an adjoining mine. The leaders had given a notice to the government officials detailing the meeting. However, in the late morning, a  drone sent several missiles right in the middle of the gathering killing over 40 of them. The strewn body parts were barely sorted to give them a proper burial.

Datta Khel is by no means an exception. There are several organizations including The Long War Journal and The New America Foundation that have come up with figures of civilians killed. Although they vary dramatically, considering an unusually high level of secrecy that the American administration maintains over these attacks, it is expected that between 2,562 and 3,325 people were killed in Pakistan alone between June 2004 and September 2012, of which anything between 474 and 881 were civilians, including 176 children. The numbers of those injured is almost double of that.

What leads to such high civilian casualty? Experts suggest that there are two major factors involved here. The first, and possibly the deadliest, is the very perception of terrorist that drone operators have. In the case of “kill lists”, one is at least certain that a particular individual is being targeted. The CIA and the US military have prepared overlapping “kill lists” that is updated regularly. Insiders say that the military’s list is finalised during Pentagon-run inter agency meetings that is later approved by the White House. The final list go through White House counter-terror adviser, and the newly-announced CIA head, John Brennan to the President. President Obama is believed to sanction some of the most serious ones himself. But the attacks often deviate from these lists. These are called “Signature Strikes”.

Says Robert Naiman, Policy Director, Just Foreign Policy, “In the case of so-called 'Signature Strike', the assessment of whether or not the person is a terrorist is hazy at the best. Therefore, it is not uncommon to hit any gathering that appears to be a Taliban gathering. Very often, funerals and marriages have been wrongly targeted. These men are not on any list, not even the suspected list.”

The second reason is what experts call, “double trap”. In case a target is hit and there are civilian causalities who are not dead, the locals try to evacuate them for medical attention. However, in the “double trap” strike, a second hit follows, even while the evacuation is in process, killing more people. In fact, locals in Pakistan suggest that such is the fear of the second strike that at times injured are left unattended for hours, killing many of them.

Insiders who know how this war is being fought, claim that more often than not, the people who control drones consider every adult a potential suspect. With such a broad brush to play with, there is little surprise over mounting civilian casualties.

Former Secretary of Defence, Leon Panetta, in the past has not only called the drones “precise”, he also labeled it as “the only game in town” for the disintegrating al-Qaeda. That is a commonly-held view inside the US security apparatus. However, David Kilcullen, the celebrated key adviser of former US Army General David Petraeus, testified in front of the Congress, claiming: “Since 2006, we have killed 14 senior al-Qaeda leaders using drone strikes; in the same time period, we’ve killed 700 Pakistani civilians in the same area.” That roughly gives you a ration of 50 to 1. Talk of precision.

The natural question then is this: why go ahead with it? Experts sggest, there are many reasons.

“From a totally American perspective, I can think of three justifications. Drone strikes are less costly in terms of dollars. Second, drone strikes are less expensive in terms of lives lost. In the world of drone warfare, no one returns with post-traumatic stress, none back with missing limbs. Which leads me to my third justification—that drone strikes are less costly in terms of objections in the court of public opinion. Insulated by technology, the strikes appear to us—and more important, to those around the world—on our TV screens as little more than a scene from 24,” Mark McKinnon, the celebrated media adviser to many Republican big-shots once famously quipped.

Although McKinnon is a conservative, he has done some plain speaking as far as the drone war is concerned. I am not sure about the public opinion in the US, but the legal aspect of the entire drama has started catching up.


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

Saturday, May 25, 2013

Strains of a hundred strings

Music has the power to dispel all negativity in the darkest of places, Abhay Rustum Sopori, scion of a legendary family of santoor players, tells Arundhuti Banerjee as he discusses his efforts to keep classical and folk music alive in trouble-torn Kashmir.

In January 1990, Srinagar-born Abhay Rustum Sopori, then in his pre-teens, visited Delhi with his family for their annual winter vacation. And he never returned to the Valley.

Militancy had engulfed Kashmir and his father, santoor maestro Bhajan Sopori, was transferred to the Delhi kendra of All India Radio. “We do keep going back to Kashmir but haven't been able to live there ever since,” says the santoor player, now in his early 30s.

Abhay's family has been playing the instrument for seven generations. His grandfather, Pandit Shamboo Nath Sopori, is regarded as a doyen of the Sufiana gharana. His father, having learned the ropes from an acclaimed master, has carried the family tradition forward over the subsequent decades.

Pandit Shamboo Nath Sopori, who had thousands of disciples in the Valley and elsewhere, was instrumental in arousing a keen interest among common people in Kashmir's rich classical and folk music traditions.

Bhajan Sopori, on his part, masterminded a musical renaissance in Kashmir in the 1970s. He took the santoor to new heights. The burden of this magnificent legacy sits rather easy on Abhay Sopori's shoulders.

“My father once said that if you want to destroy a state, you do not need atomic power. All that you have to do is just dent its culture and the state will collapse automatically. I realised the value of that statement when I started visiting the border areas of  Jammu  and Kashmir” says Abhay.

The young musician has constantly fought to keep Kashmir's classical and folk music alive despite the many challenges that are posed by over two decades of unrest and official apathy. “I sing because I can,” he quips.

He credits his gharana for the quality of the work that he does. “People ask me whether the style of my singing is my signature. Actually it is very much a part of the Sufiana gharana that I belong to,” he explains.

The family runs the Sopori Academy for Music and Performing Arts (SaMaPa), which in recent years has been in the forefront of organising classical music soirees in the Valley against great odds.

The activities, which have continued amid militant strikes, army clampdowns and unending curfews, are a response to the lackadaisical manner in which the state government has tended to approach the task of promoting classical and folk music and its many exponents in Kashmir.

Abhay refers to an experience that he personally had with the officialdom in 2005 as the turning point. “I had been invited to a concert by the state government. The organisers told me that the response would be very good and that only 50 people would be in the audience,” he recalls. “I was dumbfounded. Just 50 people and they were saying the response was good?”

The same year at the SaMaPa Music Festival, Abhay saw for himself what exactly was amiss. He says: “I wanted to invite the then governor SK Sinha to the event. When I asked the secretary of the state academy about the possibility, he told me that the governor was not interested in attending a music festival. So I wrote to him personally. The governor confirmed that he would attend. It was obvious that some people were out to sabotage the event.”

As it transpired, the 2005 SaMaPa Music Festival was a roaring success with over 150 artistes in attendance. However, the media coverage left much to be desired. “The next day's newspapers had photographs of only the governor and me. They had nothing to say about all the other performers who made the show such a huge success,” says Abhay.


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

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Saturday, May 11, 2013

The luxury segment has been racing ahead

While growth in the mass passenger car segment has stalled, the luxury segment has been racing ahead. India’s rising numbers of millionaires and well-heeled young professionals are driving this trend even as luxury car makers are creating new segments to generate demand and excitement

So even though the economy continues to stutter, decades of growth has spawned a new upper class with global tastes and aspirations that is driving the luxury car market expanding at 40% annually, say industry analysts and research firms. According to a Confederation of Indian Industry-AT Kearney report, India’s luxury market was worth $5.8 billion in 2011 and is expected to treble by 2015. A recent survey done by Frost & Sullivan says that “The Indian luxury car market will grow by six-fold by 2020”. According to the survey, the luxury car market is expected to record 300,000 units per year in sales by the end of this decade. “If we talk about the next decade, i.e. from 2013-2023, India would be a market for luxury cars. Growth seems to be the fastest in this segment, says Abdul Majeed, National Automotive Leader at PricewaterhouseCoopers.

Mercedes-Benz, which came to India in 1994, was the largest seller of luxury cars in India till a couple of years ago when fellow German rival, BMW, beat the company to the numero uno position in 2009. That year, Mercedes recorded 3,202 units in sales whereas BMW sold a good 3,587 units, topping the sales chart. Audi, which was then just making its presence felt in the Indian market, registered 58% of whopping yoy growth in 2009, selling 1,987 units. Since 2009, the competition has gotten more intense and scalding hot. The German players have been at each other’s throat, straining their muscles to outperform in the competitive luxury car market, which has grown thicker with the entry of newer players like Volvo and Jaguar Land Rover.

On one hand we have the entry level luxury brands like BMW, Audi, Mercedes and Volvo; on the other hand there are the mid-level luxury brands like Jaguar and Land Rover (starting from about Rs.5 million) and then there are the ultra-luxe brands, some of the biggest names in the sports car and super luxury segment, like Bentley, Lamborghini, Rolls Royce, Ferrari, Aston Martin, Maserati and Bugatti. The arrival of these big guns in the Indian market over the past two years has further redefined and segmented the luxury car market: So we now have the entry-level, mid-level, super luxury, sports cars and SUVs. Another key trend in this luxury space is the sudden upsurge in the entry level cars starting as low as Rs.2.2 million.


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

Parties Play The Caste Trump Card

With national political parties finding themselves out on a limb in Karnataka, it’s the caste-based regional outfits that are calling the shots. Will the political cookie in this southern state crumble the way of Uttar Pradesh?

Karnataka is gearing up for Assembly elections in April. With the fortunes of the ruling BJP and the Congress hitting the skids in the state, caste-based regional formations are likely to gain in the post-poll scenario.

Karnataka is set to go the Uttar Pradesh way. UP is India’s largest state and is accustomed to electoral fragmentation on caste and community lines. Karnataka, only one third the size of UP, is not. So, if a hung Assembly is what the April elections yield, the development would mark a paradigm shift in Karnataka politics. Congress, BJP and Janata Dal are the three parties that have traditionally jostled for seats in the Vidhana Soudha. Two new forces have lately jumped into the fray. Former chief minister BS Yeddyurappa’s Karnataka Janata Party (KJP) and Badava Shramika Raitha Congress (BSR Congress), led by B Shriramulu, the right hand man of jailed mining baron Gali Janardhana Reddy, are likely to queer the pitch for the national parties by taking away a chunk of their votes.

While none of the five contenders are in a position to sweep the polls, KJP and BSR Congress could both wrest enough seats to give the principal parties a run for their money. But in the run-up to the elections, none of the political formations is keen to get into any alliances, preferring to wait and watch the for eventual outcome. For Congress and Janata Dal (Secular), the April polls could be just another electoral battle. But for BJP and KJP, it would be an acid test. The BJP would be out to demonstrate that it has the strength to live down Yeddyurappa’s exit. For the party leaders who have been instrumental in pushing Yeddy out of the BJP, the likes of KS Eeshwarappa, Ananth Kumar, Sadananda Gowda and Jagadish Shettar, the upcoming election would be an opportunity to prove a point.

Yeddy too, would be determined to make the BJP, a party he served for four decades, pay for the folly of neglecting a regional mass leader with the backing of the dominant Lingayat community.

The BJP will also have to contend with the BSR Congress. Yeddy’s mass support and the Reddy’s money power had catapulted BJP to power in Karnataka in 2008. With both now gone, it would be an uphill task for the party to retain power. BJP is unlikely to win more than 50 to 60 seats. In that eventuality, it would be back on the Opposition benches.

In the past, the Congress has had to suffer the consequences of sidelining Veerendra Patil, who was not only a mass leader but also had control over the party’s rank and file. This was something that Yeddy lost no opportunity to remind the BJP’s central leadership of.


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

Saturday, May 4, 2013

The next frontier

The ban on gutkha products is hypocrisy; it is high time that the government tackled the cigarette industry head on

Last year in April, we wrote an op-ed requesting the Indian government to ban tobacco; citing statistics that proved how the issue was far more pressing than perceived. We even mentioned how “24% of school-going children and 5 million children under the age of 15 years are addicted to this poison”. However, we have not seen any major policy breakthrough in this regard so far.

A very recent move by 14 state governments to impose a ban on gutkha sales, manufacturing, distribution, transportation, display and storage may be considered as a step ahead towards the reduction of tobacco production by 80% by 2020. However, it has ‘again’ raised questions on the credibility of the government’s intention towards curbing the ultra-strong cigarette lobby. The decision to ban gutkha has received an overwhelming response, but the Smokeless Tobacco Association alleges that “the powerful lobby of cigarette companies” is behind the step-motherly treatment meted out to them.

A recent study published in The Lancet, which is a renowned medical journal, revealed that with 275 million users, India ranks second in terms of tobacco users after China. Another government report says that 26% of India’s population (around 312 million) comprises tobacco-chewers compared to 5.7% and 9.2% cigarette smokers and beedi smokers respectively. India has acquired the shameful tag of being the oral cancer hub of the world. As per the first Global Adult Tobacco Survey (GATS) – India 2010, around 0.9 million tobacco-related deaths occur in India annually as compared to 5.5 million worldwide. So, it becomes extremely necessary to take some action against tobacco industry. But the moot point here is – why should cigarette and beedi escape regulation?

On one hand, 14 state governments have been prompted to ban gutkha and other forms of chewing tobacco products, which are toxic and addictive as per the Food Safety and Standards (Prohibition & Restrictions on Sales) Regulations Act, 2011. Consequently, government officers even decided to raid all gutkha shops and seize products of offending vendors. On the other hand, many reports have exposed that the ban on smoking in public places has had a very little impact. No such drive was executed by the government against sales of cigarettes, which are also being sold within 50 meters of school premises. No state government has taken stringent steps to control that.

In this context, it is well known that powerful lobbying is working in favour of the cigarette industry.

Long back in 2002, former Union Cabinet Minister of Health and Family Welfare, Shatrughan Sinha declared that he had been receiving threatening calls from the tobacco lobby; demanding that he should go slow on placing curbs on tobacco. Later on in 2007, then Union Minister of Health and Family Welfare of the Government of India, Anbumani Ramadoss, who had implemented stringent controls on tobacco and alcohol sales and advertisements to India, stated that 4 CMs and 150 MPs tried to back the tobacco industry. However, he refused to identify any of them.

But he said in reference to introducing grim pictorial warnings on cigarette packets and other tobacco packets that “the powerful lobby is going all out to ensure the warnings don’t appear.” Even our Supreme Court has expressed doubt on the government’s intentions to bring amendments in the Tobacco Control Act in front of a ‘too strong’ tobacco lobby. Moreover, ministers like Veerappa Moily and Pranab Mukherjee have always taken a pro-industry stand as 80% of beedi workers are from their constituencies. To crown it all, a ban on gutkha will only increase the sales of cigarettes.


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

Thursday, May 2, 2013

UPA government: Caught in ‘CAG’mire

Close on the heels of its report on the allocation of 2G spectrum, which led to the cancellation of 122 licences, three CAG reports indicting the ruling government has left the UPA red-faced yet again. As the usual blame game holds crucial reforms to ransom, can India expect answers from its elected leaders?

If being dysfunctional was an attribute to go by, India’s parliamentarians would have won laurels. Sadly though, the case is not so. Our memories of parliamentary proceedings in recent times are ridden with disruptions and logjams that have resulted in the government earning a dubious reputation of being one in ‘policy paralysis’. This tag has been synonymous with India’s staggering economic growth along with a plethora of scams scarring the country’s reputation and the trust of its citizens. In early August this year, the Comptroller & Auditor General (CAG) of India released three reports that created a storm in political circles. These reports – on the allocation of coal blocks, the Indira Gandhi International Airport in Delhi, and Ultra Mega Power Projects (UMPPs) – have left the UPA government on a sticky wicket. For instance, according to the CAG’s report on the allocation of coal blocks submitted on August 17, 2012, the government allocated 142 national coal blocks arbitrarily to state-run and private companies from the period ranging between 2004 and 2009. During this period, the charge of the coal ministry was with none other than the Prime Minister Manmohan Singh himself. Result: The Parliament has been paralysed for the eighth consecutive day (till the time the magazine went for print) with the opposition demanding the PM’s resignation and cancellation of coal block allocations.

Coal, or black gold, currently accounts for about 70% of India’s energy consumption. Given the dependence of the power, steel and cement sectors on this vital fuel, the government’s handling of coal production and supply has always been mired with controversy and shortages. Until 1993, there was no specific criteria for allocation of coal blocks and most allocations were done based on letters of recommendation from concerned state governments. However, after 1993, the allocations made by the coal ministry based on recommendations of an inter-ministerial screening committee. The screening committee recommended the allocation of coal blocks to a particular allottee out of all the applicants for that coal block by way of minutes of the meeting of the committee. “There was nothing on record in the said minutes or in other documents on any comparative evaluation of the applicants for a coal block which was relied upon by the screening committee,” the CAG report stated, adding, “Minutes of the screening committee did not indicate how each one of the applicant for a particular coal block was evaluated. Thus, a transparent method for allocation of coal blocks was not followed by the screening committee.” As per the report, one that has gained maximum attention, the government deviated from the standard protocol of competitive bidding, resulting in an estimated loss of Rs.1,86,000 crore. 142 coal fields were sold since July 2004 to private and state-run companies. Interestingly, some of the 57 coalfields bought by private companies in 2004 did not even begin production till 2011, while some companies made enormous profits by selling the coal mines. It further estimated that private companies made windfall gains because of the low bidding prices paid for the fields. Meanwhile, coal imports during the period (2007 to 2011) increased from 49.80 million tonnes to 68.92 million tonnes.

Quite expectedly, a much-awaited statement by the PM tagged the CAG’s findings as ‘disputable’ on grounds that the policy of allocation of coal blocks to private parties, which the CAG had criticised, was not introduced by the UPA. “The policy has existed since 1993 and previous governments also allocated coal blocks in precisely the manner that the CAG has now criticised,” the PM said. The PM added that the CAG’s premise that competitive bidding could have been introduced in 2006 by amending the existing administrative instructions was ‘flawed’. Apart from rubbishing the CAG findings, Dr. Singh also sought to lay the blame on major coal and lignite bearing states such as West Bengal, Chhattisgarh, Jharkhand, Orissa, and Rajasthan for opposing a switch over to the process of competitive bidding. The CAG, understandably, has also come in for its fair share of criticism and the realm of attack has been far ranging. “If coal is not mined, it remains buried within mother earth, where is the loss,” asked Finance Minister P. Chidambaram. “The loss can arise only if coal is mined and sold,” he said, defending the PM. Digvijay Singh went a step ahead slamming the CAG for giving exaggerated figures and even targeted CAG Vinod Rai of political aspirations.


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

Tuesday, April 30, 2013

International

CNOOC: canadian buyout
The dragon goes off on oil hunt
In a world that shows an unquenchable thirst for energy, Chinese business dragons are leaving no stone unturned to grab available resources. Recently Chinese offshore oil and gas giant CNOOC announced that it will buy Canadian company Nexen Inc. for a whopping $15.1 billion. Nexen is Canada’s 12th-largest energy company with a capacity to produce about 213,000 barrels of oil or its equivalent per day. This is not the company’s first attempt to go for a big ticket acquisition in the energy resources of North America. Back in 2005, CNOOC had attempted to acquire U.S. based Unocal for $18.5 billion. But the attempt proved futile due to the political turmoil it kicked up in the U.S. Since that abortive bid, Chinese companies confined themselves to buying minority stakes overseas. However, the current acquisition, if it clears the regulatory hurdles in Canada, will consolidate CNOOC’s holdings in Canada. CNOOC intends to set up its regional headquarters in Calgary and increase spending to develop the Canadian company’s energy reserves. The company has already chipped in with about $2.8 billion investment in other energy projects in Canada. However, the Canadian government has recently been very conservative in allowing foreign companies to invest in the country’s natural resources. Further, the deal also needs to be cleared in the U.S. by the Committee on Foreign Investment. This is because Nexen’s deepwater assets are largely based in the Gulf of Mexico and in the U.K. and CNOOC will need to take an operating licence for its North Sea operations. While the energy boom in North and South America is luring the rest of the world to explore the opportunities there, the macro challange will be to establish a collaborative framework to allow the countries with the resources and the countries with the expertise to work together to harness the fruits of this boom.

facebook: advertising revenue
Investors want to see more money
In the race for dollars coming out of digital advertising, Google still leads the business, but Facebook numbers make it a strong contender as well. Of the two, Google is doing better; CEO Larry Page claims a $2.5 billion run rate for mobile ads, which appears to give the company more than 100% of the global market. However, even that’s not enough for investors, who fret that Google’s cost-per-click keeps falling as mobile ads become more prominent. Google customizes its advertisements based on what one searces for, whereas Facebook customizes its advertisements based on who you and your friends are. During the company’s second-quarter earnings call with analysts, Facebook claimed it was making about $500,000 a day off its mobile ads, which would amount to $182.5 million over the course of a year. Its ad revenue stream was $992 million for the quarter, up 28% year on year and 14% sequentially from the previous quarter. That’s healthy growth but Facebook is still under intense pressure to show that it is growing fast enough. Advertisers are looking forward to have more concrete evidence that actual advertising on Facebook offers a return on investment.


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

Thursday, April 25, 2013

Eight years of UPA and eight & a half lessons

Most newspapers, magazines and television channels have been spouting wisdom and much more about 3 years of the current UPA regime. I think, it would be more honest to look at 8 years of the UPA. After all, it was in 2004 that Dr Manmohan Singh was appointed (mark my words: appointed, not elected) the Prime Minister of India. The composition of the alliance may have changed, like the Left no longer being a part of the dispensation. But the core of the UPA has remained the same over the last 8 years.

Before I write about the eight and half lessons that we Indians can draw from 8 years of the UPA regime, allow me to describe the two principal leaders of UPA. First, Sonia Gandhi. No matter what her critics say, the fact is that she has revived the Congress when it looked like all was lost and displayed more political astuteness and maturity than most other leaders. Then Manmohan Singh. No one can doubt his personal integrity and the wealth of experience he has as an administrator. Besides, no one should even begin to doubt their commitment to India.

And yet, things are in a sorry shape and the remarkable story of the rise and rise of India is now becoming one of gloom, despair and anger. Very clearly, something has gone horribly wrong. I don’t need to bore you by recounting statistics to show how badly things have gone wrong. It is crystal clear that the two top leaders of the UPA and their advisors must do something drastic, and something soon. Otherwise, the India growth story and the UPA will both be history in 2014. But before they do anything, here are eight and half lessons they can draw upon.

Lesson number one is perversely biblical – the road to hell is paved with noble intentions. Sonia Gandhi gathered together a band of highly educated, articulate and committed individuals and formed the National Advisory Council. No one doubts the sincerity of the NAC members and their noble intentions. After all, who in her right mind would refuse to accept inclusive growth as an ideal? And we all applauded initially when a landmark legislation like RTI was passed. We were less enthusiastic, but still reluctantly supportive, when it came to the NREGA. We wondered how the Food Security act would be implemented in corrupt India. We shook our heads in wonder when the Forest Act was being foisted. And the logical climax was when the horror called the Communal Violence Bill was midwifed. These noble intentions will rip apart the very fabric of Indian society. I am all for resurrecting Mother Teresa and letting her run India. But is that how you run a complex nation in the 21st century?

At least the jholawala NAC types look suitably humble, if infuriatingly sanctimonious. Lesson number two is about the so called political deal makers of the UPA, who have been insufferably smug and arrogant when it comes to dealing with opponents. Most of us remember how Congress spokesman Manish Tiwari had to go quiet for months after heaping abuse on Anna Hazare. We forget how UPA managers simply did not bother to consult any opposition party on how to tackle the movement growing around the Lokpal Bill. And do remember how leader of the opposition Sushma Swaraj protested that her opinions were rudely ignored when it came to appointing a new CVC. It was only when the Supreme Court cancelled the choice of the UPA that its arrogance was exposed. Confidence is great, insouciance is maybe ok, but arrogance usually comes back to haunt you.


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

Tuesday, April 23, 2013

R&D’s ultimate challenge: The ecosystem conundrum

A Tuck-IIPM Think Tank-B&E global joint study on innovation ecosystems
 

Does R&D actually create long term value for a company, or on a larger canvas, an economy? A number of research papers have tried to establish a correlation between the two. A 2004 IMF working paper titled R&D, Innovation & Economic Growth: An Empirical Analysis, prepared by Hulya Ulku, concluded that “there is a strong positive relationship between innovation (patent stock) and per capita GDP in both OECD and non-OECD countries”. Pelin Demirel, Nottingham University Business School and Mariana Mazzucato, The Open University, Economics Department, empirically analysed whether R&D led to improved growth in the US pharmaceutical industry between 1950 and 2008 in their paper titled, “Innovation and Firm Growth: Is R&D worth it?”. They saw mixed results, and concluded, “For large firms, patenting is the main criterion that allows firms to grow through their R&D efforts. For small firms, on the other hand, it seems harder to achieve R&D led growth.”

As developing economies increase their play in global economic growth, there seems to be a corresponding increase in their share of global R&D as well. The UNESCO Institute for Statistics reported that the number or researchers in developing countries has increased by 45% from 2002-2007. In 2007, developing countries had around 500 researchers per million inhabitants (3,600 is the average in developed countries) and accounted for 24% of expenditure. Unsurprisingly, India PM Dr. Manmohan Singh recently lamented our poor spends in R&D (0.9% of GDP) and the irony that MNCs like GE and Motorola had set up world class R&D centres in our country while our own industry lagged far behind.

However, this particular cover feature, which is a joint study between the Tuck School of Business (ranked number 1 in the Economist’s ranking of full time MBA programs globally last year), B&E and IIPM Think Tank along with primary reserch insights from the Indian Council for Market Research (ICMR), views R&D from the perspective of how we can maximise its outcomes, rather than just how much we can spend. Prof. Ron Adner, an award winning professor of strategy at the Tuck School of Business with a decade of research in the field of innovation behind him, provided the basis of this joint study with his seminal work on innovation ecosystems. In his widely acclaimed book The Wide Lens, he critically examines why the best of customer-driven R&D can fail to produce a successful product/service if the ecosystem for innovation that the company resides in (which includes the entire value chain) is inadequately equipped for that innovation.


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

Friday, April 19, 2013

BandE Indicators

India’s energy demand on rise
The Indian economy has continuously recorded high growth rates and has become an attractive destination for investments. It’s this superlative growth that has been driving up energy demand in all sectors. For instance, at present, more than 45% of total final energy in India is consumed in the building sector. This share is expected to go up manifold as real estate boom in India continues to surprise the world.

Vehicles add to the burden
India’s vehicle fleet too is likely to grow six-fold to about 380 million vehicles, including two-wheelers, by 2030. With this growth, India’s total energy demand is likely to increase manifold. Meeting this demand would mean that India’s share of world energy consumption would rise significantly, and thus India would have to find and secure energy resources much faster than other countries.



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

Monday, April 15, 2013

Is Greece eventually moving towards a eurozone exit?

It was expected that multi-billion euro bailout packages and stringent austerity measures would create the desired effect and save Greece. But given the events post the 50% write down, which reduced Athens’ debt by €100 billion, it seems Greece’s exit from the eurozone is a ‘very real’ possibility.

On July 21, 2011, Angela Merkel, Germany’s Vice Chancellor convened an emergency meeting in Brussels (Belgium). Member states of the eurozone were summoned to take key decisions pertaining to addressing the crisis. But more importantly, the meeting called for deciding on the fate of Greece – which without more money being injected – was about to default on its overwhelming debt which stood at €91 billion. At the end of the meeting, Greece was granted yet another bailout worth a staggering €109 billion taking up the total amount of money pumped into the Hellenic Republic to €200 billion. The eurozone’s rescue fund – the European Financial Stability Facility (EFSF) – was also boosted by €190. While the repayment period was extended to 15 years from the erstwhile 7 years, interest on repayments over bailout funds was reduced to 3.5% from 5%. These relaxations not only indicated that keeping the Union intact was of paramount importance to the Europeans, but also convinced markets across the globe that Athens would not default on its debt – not in the near future at least.

But as it turns out, expecting anything out of the bargain was utter hogwash. An October 21st revaluation of Greece’s financial condition revealed that the EFSF – given its commitments to Ireland and Portugal apart from Greece – was not well equipped to support the mounting debt ailing Athens. A fresh analysis reveals that Greece would be needing €252 billion to finance its debt instead of the €109 billion agreed upon on July 21. Eurozone members realised that at this pace, Greece would end up eating into the funds reserved for Ireland, Portugal and Italy. As a result, another meeting was summoned on October 27. After more than 10 hours of negotiations, eurozone members finally came out with a supposed plan to save Greece – the private sector agreed to take a 50% cut on Greek bonds, which in turn reduced Greece’s debt by €100 billion. Prior to this, the Hellenic Republic’s debt burden amounted to 160% of the value of the economy. Now it has come down to 120%. Further, the deal also encompassed a bailout package of another €100 billion.

However, nothing seems to have changed. Instead of receding, yield on Greek bonds surged (yield on 10-year debt jumped 235 basis points in the week following the new arrangement). Moreover, Greece will only manage to repay its creditors if the recovery rate is strong. The possibilities of this happening look bleak once you consider that Greece would have a GDP equivalent to 2008 levels in 2015 (that makes it the slowest recovery in eurozone)!


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
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
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Face

To the spirit of exploration

The recent margin pressures faced by Godrej underscore the fact that its international acquisitions are a step in the right direction. Now it’s time to consolidate.

As a strategy to scale up business and growth, the $3.3 bilion real estate-to-soaps conglomerate Godrej Group has always been known for its strong tradition of joint ventures and acquisitions. Once synonymous with locks and safes, the group today has a presence in FMCG, consumer electronics, engineering, IT and other fields and has around two dozen companies dealing with everything from aerospace to chicken feed. Last fiscal, the company had a net revenue of Rs.25 billion and net profit of Rs.4.4 billion. But till around four to five years ago, Godrej was predominantly a domestic Indian FMCG company with a good cash flow. Like most Indian FMCG companies, it focused on diversifying its product portfolio and expanding its distribution reach. If a really good acquisition target came along, the company was willing to show some ambition, but there wasn’t anything exciting beyond that. Still, business was good and cash flow even better. After provisioning for its business requirements, the company was still left with a pile of cash, which it liberally gave out to its shareholders. As such, it had a high dividend payout ratio and dividends of upto 70- 80% was not uncommon. The company believed in giving back to shareholders and it thought that paying big fat dividends was the best way to do it. Then around 2005, Godrej started thinking of putting its cash to better use. That was the time when homegrown FMCG giants like Marico, Godrej, Dabur, Emami and Wipro started sprouting ambitions for inorganic growth and realised that the home turf alone was not good enough for expansion and growth.

With plenty of cash to boost its confidence and acquisitive yearnings, finding suitable acquisition targets hasn’t been a hurdle for the group’s flagship company, Godrej Consumer Products Limited (GCPL). The company has been on a global shopping spree for the past several years. There was a realisation that if the company wanted to push beyond its existing levels of growth, it would have to alter its current business paradigm. In 2005, GCPL, for the first time, began trying out different business models and exploring different geographies in the quest for global growth. That year, it made its first acquisition in the UK when it bought Keyline Brands. Since then, the company has made roughly one foreign buy every year. It bought Rapidol and Kinky in South Africa in ‘06 and ‘08 respectively, Tura in Nigeria in March ‘10, then Megasari Makmur in Indonesia in April ‘10, followed by Issue and Argencos in Latin America in May and June of ‘10. The group, according to an IDFC Securities report, has already spent over $600 million on its international buys, mostly in emerging markets where demographic and behavioural profiles are similar to that of India. These acquisitions have not only helped Godrej build a presence in new geographies such as Europe, Latin America and Africa, but also helped it cross-sell its home-grown brands. An additional incentive to invest in these markets can also be traced to the fact that multinationals like Unilever, L’Oreal and Procter & Gamble don’t have a domineering presence in these regions, which provides ample scope for regional brands to grow.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
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
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Face

Friday, April 12, 2013

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

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

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

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

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

B&E: Etisalat plans to invest $15 billion (Dhiram 55.09 billion) to upgrade its telecommunications networks over the next five years to meet the expected demand in online data usage. How do you plan to finance the expenditures?
ABA:
Etisalat has a variety of tools which it can access to finance its payments – including cash. We are not highly leveraged and have strong relationships with all the major international and regional banks. We are a long-term investor and although the capex may rise in the short-term, this infrastructure is essential if we are to compete several years down the road. The growth in Internet usage is such that if operators do not put in place fiber optic networks and new wireless broadband technologies right away, the consumer will find their experience greatly reduced. And we are aware of that.


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