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	<title>Indra's Drishtikona (Viewpoint)</title>
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	<pubDate>Thu, 28 Aug 2008 13:36:35 +0000</pubDate>
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		<title>Mamta Mercy and Nano</title>
		<link>http://drishtikona.com/archives/industrymanagement/002185.php</link>
		<comments>http://drishtikona.com/archives/industrymanagement/002185.php#comments</comments>
		<pubDate>Thu, 21 Aug 2008 05:06:09 +0000</pubDate>
		<dc:creator>Indra</dc:creator>
		
		<category><![CDATA[Industry/Management]]></category>

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		<description><![CDATA[Tata Motors' 'Nano' has suddenly and certainly put Indians' innovation capability at higher platform along with the best in world. Many articles by western economists in media and their presentations at International conferences refer to 'Nano' as symbol of this emerging economy that many perceive as a prospective superpower. CK Prahalad is certainly one of those dreamers. Nano is very much a product for the bottom of the pyramid. Many think Nano can bring about a revolutionary change in manufacturing sector in a globe starving with fuel crisis. There are others too. 

Karl Ulrich is Wharton professor of operations and information management and Kevin Dehoff, a partner at Booz & Company. One <a href="http://www.strategy-business.com/sbkw-podcasts/podcast/episode006">interview</a> with strategy+ business on 'High- leverage Innovation-Lessons from the Auto industry', went on as follows:

<font color="#008000" size="4"><blockquote><b>Strategy+business</b>: One of the things that we are seeing from Tata, in particular, is innovation at the bottom of the pyramid, if you will, stripping a car to its very basics. That is cost-in-manufacturing innovation.

<b>Ulrich</b>- I think that the Tata vehicle is going to be fascinating to watch because I think there will be Americans who will say, "Why can't I have a $2,000 car?" And it will force us to really confront what is the minimal requirement on personal transportation. When the vehicle starts to approach the price of a nice mountain bike, you start to say, "Maybe I don't need a 6,000-pound vehicle with a global positioning system in it to get to the grocery store." So I think that innovations in the developing markets will actually have some repercussions in the Western and mainstream markets. 

<b>Strategy+business:</b> It would be interesting to see how and if Toyota responds to Tata. 

<b>Dehoff:</b> I think that that's a challenge for Toyota in terms of how they take that successful product development model that I mentioned and globalize it. Right now it's a very successful model; it's largely a centralized model that works out of Tokyo. I believe that one of their challenges going forward is how do we replicate that model around the world. 

<b>Knowledge@Wharton</b>: Karl, going back to your point about American consumers reacting to the [Tata] Nano. What roles do users or customers play in automotive innovation, and is the role growing? 
Ulrich: Well it is interesting because users often can play many different roles. In some industries they can be innovators themselves. 
</blockquote></font>
It's certainly a compliment to India's innovative might.

Tata Motors is readying to start trial production of the Nano in Singur, famous by now in India and abroad less for the location of the manufacturing plant of Nano and more for the Mamata-led agitations against the acquisitions of the fertile agriculture land of petty farmers ffor Tata Motors plant. It may starts from September 1. The suppliers of auto parts are eagerly looking for the potentially huge business. And millions of customers including women, students and even farmers are waiting to see the little machines all around them.  But an element of uncertainty hangs over because of the<a href="http://www.business-standard.com/india/storypage.php?leftnm=3&autono=331924"> Mamata's Trinamul Congress threatening</a> to go ahead with an indefinite siege of the site from August 24. <font color="#FF0000" size="4">Can't Ma (Mata) show her mamata (motherly kindness to Tata Motors dreams and the country's pride?  Why can't Mamta Didi appreciate the prosperity of the region that the plant can bring about in the region? Why is so obstinate? Does she wish Tata to come to her and beg for it?

<a href="http://www.financialexpress.com/news/Mamata-hints-at-direct-channel-with-Tata-Motors/350869/">Let Mamta ask </a>for all that she wishes to provide to the farmers or affected ones as<a href="http://www.indianexpress.com/story/350969.html"> compensation</a>, but not create a situation that emanates a poor image of the state to the local as well as foreign investors. Let the Leftists only take the credit of hijacking prosperity of the state, as I am sure<a href="http://www.business-standard.com/india/storypage.php?leftnm=3&autono=331925"> West Bengal unionism</a> will not give up its traditional way of working for making every one poor. 
</font>

---Latest
<a href="http://www.telegraphindia.com/1080822/jsp/frontpage/story_9727496.jsp">‘Worried’, Tata</a> flashes Singur alert]]></description>
			<content:encoded><![CDATA[Tata Motors' 'Nano' has suddenly and certainly put Indians' innovation capability at higher platform along with the best in world. Many articles by western economists in media and their presentations at International conferences refer to 'Nano' as symbol of this emerging economy that many perceive as a prospective superpower. CK Prahalad is certainly one of those dreamers. Nano is very much a product for the bottom of the pyramid. Many think Nano can bring about a revolutionary change in manufacturing sector in a globe starving with fuel crisis. There are others too. 

Karl Ulrich is Wharton professor of operations and information management and Kevin Dehoff, a partner at Booz & Company. One <a href="http://www.strategy-business.com/sbkw-podcasts/podcast/episode006">interview</a> with strategy+ business on 'High- leverage Innovation-Lessons from the Auto industry', went on as follows:

<font color="#008000" size="4"><blockquote><b>Strategy+business</b>: One of the things that we are seeing from Tata, in particular, is innovation at the bottom of the pyramid, if you will, stripping a car to its very basics. That is cost-in-manufacturing innovation.

<b>Ulrich</b>- I think that the Tata vehicle is going to be fascinating to watch because I think there will be Americans who will say, "Why can't I have a $2,000 car?" And it will force us to really confront what is the minimal requirement on personal transportation. When the vehicle starts to approach the price of a nice mountain bike, you start to say, "Maybe I don't need a 6,000-pound vehicle with a global positioning system in it to get to the grocery store." So I think that innovations in the developing markets will actually have some repercussions in the Western and mainstream markets. 

<b>Strategy+business:</b> It would be interesting to see how and if Toyota responds to Tata. 

<b>Dehoff:</b> I think that that's a challenge for Toyota in terms of how they take that successful product development model that I mentioned and globalize it. Right now it's a very successful model; it's largely a centralized model that works out of Tokyo. I believe that one of their challenges going forward is how do we replicate that model around the world. 

<b>Knowledge@Wharton</b>: Karl, going back to your point about American consumers reacting to the [Tata] Nano. What roles do users or customers play in automotive innovation, and is the role growing? 
Ulrich: Well it is interesting because users often can play many different roles. In some industries they can be innovators themselves. 
</blockquote></font>
It's certainly a compliment to India's innovative might.

Tata Motors is readying to start trial production of the Nano in Singur, famous by now in India and abroad less for the location of the manufacturing plant of Nano and more for the Mamata-led agitations against the acquisitions of the fertile agriculture land of petty farmers ffor Tata Motors plant. It may starts from September 1. The suppliers of auto parts are eagerly looking for the potentially huge business. And millions of customers including women, students and even farmers are waiting to see the little machines all around them.  But an element of uncertainty hangs over because of the<a href="http://www.business-standard.com/india/storypage.php?leftnm=3&autono=331924"> Mamata's Trinamul Congress threatening</a> to go ahead with an indefinite siege of the site from August 24. <font color="#FF0000" size="4">Can't Ma (Mata) show her mamata (motherly kindness to Tata Motors dreams and the country's pride?  Why can't Mamta Didi appreciate the prosperity of the region that the plant can bring about in the region? Why is so obstinate? Does she wish Tata to come to her and beg for it?

<a href="http://www.financialexpress.com/news/Mamata-hints-at-direct-channel-with-Tata-Motors/350869/">Let Mamta ask </a>for all that she wishes to provide to the farmers or affected ones as<a href="http://www.indianexpress.com/story/350969.html"> compensation</a>, but not create a situation that emanates a poor image of the state to the local as well as foreign investors. Let the Leftists only take the credit of hijacking prosperity of the state, as I am sure<a href="http://www.business-standard.com/india/storypage.php?leftnm=3&autono=331925"> West Bengal unionism</a> will not give up its traditional way of working for making every one poor. 
</font>

---Latest
<a href="http://www.telegraphindia.com/1080822/jsp/frontpage/story_9727496.jsp">‘Worried’, Tata</a> flashes Singur alert]]></content:encoded>
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		</item>
		<item>
		<title>Car Engine Undergoes Innovational Transformation</title>
		<link>http://drishtikona.com/archives/industrymanagement/002184.php</link>
		<comments>http://drishtikona.com/archives/industrymanagement/002184.php#comments</comments>
		<pubDate>Wed, 20 Aug 2008 00:02:23 +0000</pubDate>
		<dc:creator>Indra</dc:creator>
		
		<category><![CDATA[Industry/Management]]></category>

		<guid isPermaLink="false">http://drishtikona.com/archives/industrymanagement/002184.php</guid>
		<description><![CDATA[To keep the global warming under check and for making the cars fuel-efficient and green, perhaps the maximum contribution can come through innovations in power train or engine. Engine being mechanical unit with many parts with combustion chambers as the nerve centers, a combination of mechanical features, close tolerances, surface finishes, and better materials can make the difference. However, the use of electronics and computerized control can further improve the fuel efficiency as well as emission.  

On one hand the trend seems to turn to electric or hybrid cars with some trying to convert the <a href="http://news.cnet.com/8301-11128_3-10007646-54.html?tag=newsLeadStoriesArea.0">hybrid with plug-in capability</a>. However, the innovation works in old technologies are also fighting back. So new hybrid systems, fuel cells and electric motors will be chasing a moving target. The internal combustion engine will be getting better too. <a href="http://www.economist.com/science/displaystory.cfm?story_id=11919344">Some recent improvements</a> are as follows:
 
<blockquote><font color="#008000" size="4">1.<b>Supercharger</b> forces more air into the combustion chambers of engine. A new dual-speed supercharger provides its highest boost at low speeds, and thus gives the car a huge 40% increase in torque, or pulling power. The supercharger developed by Antonov Automotive Technologies, a British company, is purely mechanical and uses planetary gears to change speed. As claimed, it could be used to reduce the size of a car's engine by up to 50%-so it would use less fuel and produce fewer CO2 emissions, but still provide good performance. 

2.<b>Fuel injectors</b> can metre fuel more precisely than carburettors, and variable-valve control can optimise the opening and closing of inlet and exhaust valves to produce more power when accelerating or greater economy when dawdling around town. The same systems are also used in some big and thirsty engines to shut down a few cylinders when driving slowly.

3.The <b>e-Valve system</b> is new development made by Valeo, a French automotive supplier. It uses electromagnetic controls to open and shut valves instead of pushrods operated by a camshaft. As each valve can be operated independent of any other, all sorts of tricks become possible, including shutting down cylinders and switching temporarily from the traditional four-stroke Otto cycle (as developed by Nicolaus Otto, a German engineer in 1876) to a type of Atkinson cycle (an ultra-lean system invented as a rival in 1882 by James Atkinson, a British engineer, but which suffered from a lack of power). As Valeo reckons, on average their e-Valve system can cut fuel consumption and CO2 emissions in a car by up to 20%. It could also be used to make three- and two-cylinder engines that run efficiently and smoothly.

4.<b>Fiat's new valve-control system</b>, Multiair, uses hydraulics and electronics to optimise valve settings. When combined with a turbocharger (a supercharger driven by exhaust gases). The system can produce a "downsized" two-cylinder engine that can perform like a bigger four-cylinder one, but with fuel savings of some 20%.

5.<b>Daimler's DiesOtto</b> engine will use a combination of variable valve-control, fuel injection and turbocharging. It can switch between operating as a petrol engine, with agility and power, to operating as a diesel, with economy and torque. The DiesOtto engine starts as a petrol engine with spark plugs igniting the mixture of fuel and air in its cylinders, and remains as a petrol engine when high performance is needed. But at low and medium speeds the engine switches into diesel mode, in which the fuel is ignited by compression and heat alone. A 1.8-litre four-cylinder test version of DiesOtto fitted to a prototype Mercedes S-class saloon produced plenty of power, but also returned an average fuel consumption of 5.3 litres per 100km (equivalent in America to 44.4mpg)-extremely good for a such a big car. The vehicle's emissions were also lower.

6.<b>Ricardo</b>, another British automotive-engineering company has been working on an engine that can switch from four-stroke to two-stroke running. Two-stroke engines can provide very high levels of torque. Ricardo reckons such an engine could not only improve fuel economy by 27% over a traditional engine but also greatly reduce its size and complexity. And because small engines take up less space in a car, that means there will be more room for occupants, inviting more innovative designs.

</font></blockquote>By putting all these technologies together, small cars capable of breaking the 100mpg barrier will become possible. Getting more than 80mpg from some small diesel-powered cars is already feasible-with a very light foot on the accelerator. Hybrid cars as available today are still pretty costly. The internal combustion engine remains hot for innovations. Even Indian auto engineers and the research institutions must focus their work on it and help in developing the technologies to improve the performance of the engine. 

Two developments indicate the direction in which the car developments wish to move. A new company <a href="http://www.teslamotors.com/efficiency/how_it_works.php">Tesla Motors</a> is building <a href="http://www.google.co.in/search?q=Tesla+Motors+&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-GB:official&client=firefox-a">high performance electric cars</a>. And a huge prize money in <a href="http://www.progressiveautoxprize.org/">Automotive X Prize</a> aims at driving the innovations in auto industry. 

<font color="#FF0000" size="4">It is really exhilarating to know that ISRO is leveraging its expertise in cryogenic technology to design hydrogen fuel cells to store hydrogen, and has teamed with Tata Motors to develop a prototype of a hydrogen passenger car to be launched in the Indian market later this year. Can the synergies of technical knowledge with all the research institutions in the country produce a commercial viable solution for use of hydrogen fuel cells? Can India take a lead in making a breakthrough innovation to find alternative solution to fossil fuels that is causing so much of concern worldwide? </font>
]]></description>
			<content:encoded><![CDATA[To keep the global warming under check and for making the cars fuel-efficient and green, perhaps the maximum contribution can come through innovations in power train or engine. Engine being mechanical unit with many parts with combustion chambers as the nerve centers, a combination of mechanical features, close tolerances, surface finishes, and better materials can make the difference. However, the use of electronics and computerized control can further improve the fuel efficiency as well as emission.  

On one hand the trend seems to turn to electric or hybrid cars with some trying to convert the <a href="http://news.cnet.com/8301-11128_3-10007646-54.html?tag=newsLeadStoriesArea.0">hybrid with plug-in capability</a>. However, the innovation works in old technologies are also fighting back. So new hybrid systems, fuel cells and electric motors will be chasing a moving target. The internal combustion engine will be getting better too. <a href="http://www.economist.com/science/displaystory.cfm?story_id=11919344">Some recent improvements</a> are as follows:
 
<blockquote><font color="#008000" size="4">1.<b>Supercharger</b> forces more air into the combustion chambers of engine. A new dual-speed supercharger provides its highest boost at low speeds, and thus gives the car a huge 40% increase in torque, or pulling power. The supercharger developed by Antonov Automotive Technologies, a British company, is purely mechanical and uses planetary gears to change speed. As claimed, it could be used to reduce the size of a car's engine by up to 50%-so it would use less fuel and produce fewer CO2 emissions, but still provide good performance. 

2.<b>Fuel injectors</b> can metre fuel more precisely than carburettors, and variable-valve control can optimise the opening and closing of inlet and exhaust valves to produce more power when accelerating or greater economy when dawdling around town. The same systems are also used in some big and thirsty engines to shut down a few cylinders when driving slowly.

3.The <b>e-Valve system</b> is new development made by Valeo, a French automotive supplier. It uses electromagnetic controls to open and shut valves instead of pushrods operated by a camshaft. As each valve can be operated independent of any other, all sorts of tricks become possible, including shutting down cylinders and switching temporarily from the traditional four-stroke Otto cycle (as developed by Nicolaus Otto, a German engineer in 1876) to a type of Atkinson cycle (an ultra-lean system invented as a rival in 1882 by James Atkinson, a British engineer, but which suffered from a lack of power). As Valeo reckons, on average their e-Valve system can cut fuel consumption and CO2 emissions in a car by up to 20%. It could also be used to make three- and two-cylinder engines that run efficiently and smoothly.

4.<b>Fiat's new valve-control system</b>, Multiair, uses hydraulics and electronics to optimise valve settings. When combined with a turbocharger (a supercharger driven by exhaust gases). The system can produce a "downsized" two-cylinder engine that can perform like a bigger four-cylinder one, but with fuel savings of some 20%.

5.<b>Daimler's DiesOtto</b> engine will use a combination of variable valve-control, fuel injection and turbocharging. It can switch between operating as a petrol engine, with agility and power, to operating as a diesel, with economy and torque. The DiesOtto engine starts as a petrol engine with spark plugs igniting the mixture of fuel and air in its cylinders, and remains as a petrol engine when high performance is needed. But at low and medium speeds the engine switches into diesel mode, in which the fuel is ignited by compression and heat alone. A 1.8-litre four-cylinder test version of DiesOtto fitted to a prototype Mercedes S-class saloon produced plenty of power, but also returned an average fuel consumption of 5.3 litres per 100km (equivalent in America to 44.4mpg)-extremely good for a such a big car. The vehicle's emissions were also lower.

6.<b>Ricardo</b>, another British automotive-engineering company has been working on an engine that can switch from four-stroke to two-stroke running. Two-stroke engines can provide very high levels of torque. Ricardo reckons such an engine could not only improve fuel economy by 27% over a traditional engine but also greatly reduce its size and complexity. And because small engines take up less space in a car, that means there will be more room for occupants, inviting more innovative designs.

</font></blockquote>By putting all these technologies together, small cars capable of breaking the 100mpg barrier will become possible. Getting more than 80mpg from some small diesel-powered cars is already feasible-with a very light foot on the accelerator. Hybrid cars as available today are still pretty costly. The internal combustion engine remains hot for innovations. Even Indian auto engineers and the research institutions must focus their work on it and help in developing the technologies to improve the performance of the engine. 

Two developments indicate the direction in which the car developments wish to move. A new company <a href="http://www.teslamotors.com/efficiency/how_it_works.php">Tesla Motors</a> is building <a href="http://www.google.co.in/search?q=Tesla+Motors+&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-GB:official&client=firefox-a">high performance electric cars</a>. And a huge prize money in <a href="http://www.progressiveautoxprize.org/">Automotive X Prize</a> aims at driving the innovations in auto industry. 

<font color="#FF0000" size="4">It is really exhilarating to know that ISRO is leveraging its expertise in cryogenic technology to design hydrogen fuel cells to store hydrogen, and has teamed with Tata Motors to develop a prototype of a hydrogen passenger car to be launched in the Indian market later this year. Can the synergies of technical knowledge with all the research institutions in the country produce a commercial viable solution for use of hydrogen fuel cells? Can India take a lead in making a breakthrough innovation to find alternative solution to fossil fuels that is causing so much of concern worldwide? </font>
]]></content:encoded>
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		</item>
		<item>
		<title>Why am I hopeful on Indian Economy?</title>
		<link>http://drishtikona.com/archives/industrymanagement/002172.php</link>
		<comments>http://drishtikona.com/archives/industrymanagement/002172.php#comments</comments>
		<pubDate>Fri, 08 Aug 2008 01:27:26 +0000</pubDate>
		<dc:creator>Indra</dc:creator>
		
		<category><![CDATA[Industry/Management]]></category>

		<guid isPermaLink="false">http://drishtikona.com/archives/industrymanagement/002172.php</guid>
		<description><![CDATA[
Rangrajan, a former governor of RBI predicts slowdown of GDP growth to 7-8%. Inflation has gone highest in last 13 years. But many like me feel hopeful about the Indian economy. I see many rain bearing clouds all over the sky. 

How can the growth slow down, if direct tax collection go up and up and that also by as high a figure as <a href="http://www.business-standard.com/india/storypage.php?leftnm=3&autono=330708">47% for April-July</a>?  

<a href="http://www.business-standard.com/india/storypage.php?leftnm=1&autono=330671">Big companies </a>are trying to put in huge investment in investment such as solar power. As reported, major players like Essar, Indiabulls, Reliance, ADAG, Tata Power, Suryachakra and Euro Group among others have come calling to the Gujarat Energy Development Agency (GEDA) with proposals lined up in photovoltaic, thermal and hybrid solar projects. Nobel Laureate Professor John Byrne to chart a roadmap that will help in translating proposals of over 600 MW into a reality.<a href="http://www.business-standard.com/india/storypage.php?leftnm=3&autono=330846"> The US-based Clinton Foundation</a> is in talks with the Gujarat government to set up an 'Integrated Solar City' project with a capacity to generate a 5,000 Mw over a period of time. 

A <a href="http://www.business-standard.com/india/storypage.php?leftnm=1&autono=330675">gearbox manufacturing company</a> is expecting orders worth Rs 1,100 in next quarter and expects to reach Rs 1,000 crore as revenue. The country can't slip back with manufacturing performing so well.

<a href="http://www.business-standard.com/india/storypage.php?leftnm=3&autono=330719">Power secto</a>r has switched over from E&Y to IIT-Roorkee for consultation for its 3 Ultra Mega Power Projects (UMPP) of 4,000 Mw each at Cheyyur (Tamil Nadu), Munge (Maharashtra) and Bedabahal (Orissa). It is imposing the faith in engineering institutes and its knowledge resources.
 
India is going ahead with ambitious healthcare programme. <a href="http://www.businessweek.com/globalbiz/blog/globespotting/archives/2008/07/travel_blogue_d_3.html#more?chan=globalbiz_asia+index+page_top+stories">India Inc</a> is participating. Ramalinga Raju, chairman and founder of Satyam Computer has set up the Emergency Medical Research Institute in Hyderabad and has started piloting an emergency service, using the dial numbers 108. EMRI today is serving 147 million people in three states. Raju plans eventually to cover the entire country. <a href="http://www.business-standard.com/india/storypage.php?leftnm=3&autono=330637">The government</a> is creating infrastructure for the required basic human resources. 

<a href="http://www.business-standard.com/india/storypage.php?leftnm=8&autono=330694">IT companies</a> are flourishing against all news of loosing the glow. The total number of programmers working on Sun Microsystems' platforms in India has risen to 7,40,000, retaining the country's position as the leading developer location across the world in comparison to 7,00,000 developers in China and around 600,000 in the US. In January this year, India had overtaken the US and China to emerge as the largest developer location for Sun Microsystems with over 6,29,000 programmers working on its platforms.
  
And interestingly, <a href="http://www.thehindubusinessline.com/2008/08/07/stories/2008080750942100.htm">the industry's associations</a> are joining hands with institutes to make them move along the growth of the country. As reported, the Bengal Engineering & Science University, the West Bengal University of Technology and the Confederation of Engineering Industry (CII) on Wednesday signed a memorandum of understanding to collaborate in the development of soft skills among students who are likely to opt for a career in the IT sector. 

And as a good development<a href="http://www.businessweek.com/globalbiz/content/aug2008/gb2008083_550101.htm"> 'One Laptop per Child'</a> has landed in India after failing to negotiate twice with the government of India. And this time it is with Reliance ADA Group. I see million of poor primary school students using laptop to father their knowledge and participate with the mainstream to help the country grow with its best known strength of knowledge.

And it is this knowledge that makes the largest automaker company of the world to recognize the talent of the country. Toyota i<a href="http://www.thehindubusinessline.com/2008/08/07/stories/2008080750220200.htm">nvolved fifty Indian engineers</a> in developing its compact cars. So it is not only IT and BPO. Further to that even the public sector companies have started doing great. For instance,<a href="http://www.business-standard.com/india/storypage.php?leftnm=3&autono=330845"> Delhi Metro Rail Corporation</a> (DMRC) has emerged as the sole consultant for the metro rail network to be set up in Karachi, Pakistan's biggest city.  

And I believe<a href="http://www.financialexpress.com/news/India-will-hop-and-skip-to-superior-tech/345469/"> 'India will hop and skip to superior tech'</a> and attain sustainable high growth rate. 

However, India faces maximum danger of all kind in all sectors from its politicians and any one claiming to have some following with vagabonds that can go to any extent and to any low. I wish the younger generation came out with a different model for politicking business. 
]]></description>
			<content:encoded><![CDATA[
Rangrajan, a former governor of RBI predicts slowdown of GDP growth to 7-8%. Inflation has gone highest in last 13 years. But many like me feel hopeful about the Indian economy. I see many rain bearing clouds all over the sky. 

How can the growth slow down, if direct tax collection go up and up and that also by as high a figure as <a href="http://www.business-standard.com/india/storypage.php?leftnm=3&autono=330708">47% for April-July</a>?  

<a href="http://www.business-standard.com/india/storypage.php?leftnm=1&autono=330671">Big companies </a>are trying to put in huge investment in investment such as solar power. As reported, major players like Essar, Indiabulls, Reliance, ADAG, Tata Power, Suryachakra and Euro Group among others have come calling to the Gujarat Energy Development Agency (GEDA) with proposals lined up in photovoltaic, thermal and hybrid solar projects. Nobel Laureate Professor John Byrne to chart a roadmap that will help in translating proposals of over 600 MW into a reality.<a href="http://www.business-standard.com/india/storypage.php?leftnm=3&autono=330846"> The US-based Clinton Foundation</a> is in talks with the Gujarat government to set up an 'Integrated Solar City' project with a capacity to generate a 5,000 Mw over a period of time. 

A <a href="http://www.business-standard.com/india/storypage.php?leftnm=1&autono=330675">gearbox manufacturing company</a> is expecting orders worth Rs 1,100 in next quarter and expects to reach Rs 1,000 crore as revenue. The country can't slip back with manufacturing performing so well.

<a href="http://www.business-standard.com/india/storypage.php?leftnm=3&autono=330719">Power secto</a>r has switched over from E&Y to IIT-Roorkee for consultation for its 3 Ultra Mega Power Projects (UMPP) of 4,000 Mw each at Cheyyur (Tamil Nadu), Munge (Maharashtra) and Bedabahal (Orissa). It is imposing the faith in engineering institutes and its knowledge resources.
 
India is going ahead with ambitious healthcare programme. <a href="http://www.businessweek.com/globalbiz/blog/globespotting/archives/2008/07/travel_blogue_d_3.html#more?chan=globalbiz_asia+index+page_top+stories">India Inc</a> is participating. Ramalinga Raju, chairman and founder of Satyam Computer has set up the Emergency Medical Research Institute in Hyderabad and has started piloting an emergency service, using the dial numbers 108. EMRI today is serving 147 million people in three states. Raju plans eventually to cover the entire country. <a href="http://www.business-standard.com/india/storypage.php?leftnm=3&autono=330637">The government</a> is creating infrastructure for the required basic human resources. 

<a href="http://www.business-standard.com/india/storypage.php?leftnm=8&autono=330694">IT companies</a> are flourishing against all news of loosing the glow. The total number of programmers working on Sun Microsystems' platforms in India has risen to 7,40,000, retaining the country's position as the leading developer location across the world in comparison to 7,00,000 developers in China and around 600,000 in the US. In January this year, India had overtaken the US and China to emerge as the largest developer location for Sun Microsystems with over 6,29,000 programmers working on its platforms.
  
And interestingly, <a href="http://www.thehindubusinessline.com/2008/08/07/stories/2008080750942100.htm">the industry's associations</a> are joining hands with institutes to make them move along the growth of the country. As reported, the Bengal Engineering & Science University, the West Bengal University of Technology and the Confederation of Engineering Industry (CII) on Wednesday signed a memorandum of understanding to collaborate in the development of soft skills among students who are likely to opt for a career in the IT sector. 

And as a good development<a href="http://www.businessweek.com/globalbiz/content/aug2008/gb2008083_550101.htm"> 'One Laptop per Child'</a> has landed in India after failing to negotiate twice with the government of India. And this time it is with Reliance ADA Group. I see million of poor primary school students using laptop to father their knowledge and participate with the mainstream to help the country grow with its best known strength of knowledge.

And it is this knowledge that makes the largest automaker company of the world to recognize the talent of the country. Toyota i<a href="http://www.thehindubusinessline.com/2008/08/07/stories/2008080750220200.htm">nvolved fifty Indian engineers</a> in developing its compact cars. So it is not only IT and BPO. Further to that even the public sector companies have started doing great. For instance,<a href="http://www.business-standard.com/india/storypage.php?leftnm=3&autono=330845"> Delhi Metro Rail Corporation</a> (DMRC) has emerged as the sole consultant for the metro rail network to be set up in Karachi, Pakistan's biggest city.  

And I believe<a href="http://www.financialexpress.com/news/India-will-hop-and-skip-to-superior-tech/345469/"> 'India will hop and skip to superior tech'</a> and attain sustainable high growth rate. 

However, India faces maximum danger of all kind in all sectors from its politicians and any one claiming to have some following with vagabonds that can go to any extent and to any low. I wish the younger generation came out with a different model for politicking business. 
]]></content:encoded>
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		<item>
		<title>Indian Automakers and Hybrids</title>
		<link>http://drishtikona.com/archives/industrymanagement/002170.php</link>
		<comments>http://drishtikona.com/archives/industrymanagement/002170.php#comments</comments>
		<pubDate>Tue, 05 Aug 2008 23:11:28 +0000</pubDate>
		<dc:creator>Indra</dc:creator>
		
		<category><![CDATA[Industry/Management]]></category>

		<guid isPermaLink="false">http://drishtikona.com/archives/industrymanagement/002170.php</guid>
		<description><![CDATA[It is great news. Toyota is <a href="http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=&id=3f32adec-2462-486c-adb1-8d49d186b54f&&Headline=Toyota+to+launch+its+hybrid+sedan+in+India&strParent=strParentID">going to launch</a> its<a href="http://www.toyota.com/prius-hybrid/"> hybrid Prius</a> in India. I don't know how reliable is the news. I wish it to be correct. Honda has already done that. However, with no concession on taxes, the price of <a href="http://www.ibnlive.com/news/honda-launches-indias-first-hybrid-car/67374-25.html">Honda Civic</a> will be about Rs 21 lakh with taxes constituting half of it. I don't know why can't the government do away with many taxes, as it will be huge saving on oil and emission. I was surprised when Honda announced the launch why Toyota didn't do that. As much as I know the customers in US have already accepted Prius as good alternative to the regular gas guzzling cars. With Vikram Kirloskar with Toyota I expected that to come first. CII as well as SIAM must impress upon the government to give the manufacturers some tax advantages too. If the requirement is high enough, the manufacturers may even make India a manufacturing base too. Toyota today has gone ahead of GM to become number one auto manufacturer in the world. Its annual worldwide capacity is 10 million units. India's market is lucrative enough for Toyota to give a sustainable lead. India is to gain a lot from Toyota as it has attained the ultimate in manufacturing practices in the world. Its <a href="http://www.google.co.in/search?q=Lean+manufacturing&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-GB:official&client=firefox-a">lean manufacturing</a> and legendary <a href="http://www.google.co.in/search?hl=en&client=firefox-a&rls=org.mozilla:en-GB:official&hs=smV&sa=X&oi=spell&resnum=0&ct=result&cd=1&q=Toyota+Production+System&spell=1">Toyota Production System</a> has gone beyond auto sector and improved the productivity. However, surprisingly Toyota has been among the last manufacturers to enter both China as well as India. 

As reported, 'the 2008 version of Prius has been adjudged the most fuel-efficient midsize car in the US. Sold in over 40 countries across regions, the hybrid variant has also been rated as the third least carbon dioxide emitting vehicle in Britain. As the first commercially mass-produced gas-electric hybrid, one million Prius vehicles were sold by April worldwide, including 592,000 units in the US and 315,000 units in Japan.'      

As I came to know from some of my friends in auto industry,<a href="http://www.financialexpress.com/news/Auto-majors-line-up-more-hybrid-car-launches-in-India/343210/"> the manufacturers</a> such as Tata Motors and Mahindra and Mahindra are developing hybrid of its own.  I wish both the manufacturers took a 'Nano'-approach to cut down the price to the minimum. Let the scientists and technocrats of IITs and other famed research institutions of the country get into some practical researches to make some essential products such as a <a href="http://www.howstuffworks.com/hybrid-car.htm">hybrid car</a> or small hybrid SUV as answer to soaring fuel prices and growing concerns over emissions that can be produced and sold world over a practical reality. Every<a href="http://thestar.com.my/news/story.asp?file=/2008/8/2/nation/20080802213911&sec=nation"> country</a> is trying to go hybrid through collaborations or its own development endeavours. Why shouldn't India do it? <a href="http://www.financialexpress.com/news/Hybrid-carswill-they-work-for-India/271927/">Why should there be doubt</a> if hybrid cars will work for India? 

<font color="#FF0000" size="4">I was amazed to learn about the project of solar driven car initiated by Delhi College of Engineering and shocked to know that they are not getting fund as little as Rs 16 lakh to take it to the right conclusion in a country where Rs 150,000 crore goes in subsidies that never reach the beneficiaries. Interestingly, Toyota has planned to use solar panel in Prius too. </font>  

<font color="#008000">As many of IITs find it interesting to work with IBM, Microsoft and other IT companies, I wish it start working with the auto companies too in the innovation works related to every aspect of the vehicle from development to manufacturing and servicing too. </font>

The challenge is to reduce the price of input with innovation in many fields including <a href="http://books.google.co.in/books?id=6EfS0jRFQTkC&pg=PA164&lpg=PA164&dq=Hybrid+cars&source=web&ots=Na__4jOLJH&sig=QBanvasTgrmgCSH7IokEVx9NYts&hl=en&sa=X&oi=book_result&resnum=3&ct=result">battery</a>. A price tag of Rs 8-10 lakh can make a hybrid car sell in commercially viable volume in India too. It will extend the challenge to the auto component sectors too. It is interesting that in auto sector Indian manufacturers have learnt the tricks from Japan. Perhaps Japan has trained maximum number of Indians in manufacturing sectors. It gets reflected in the maximum number of the <a href="http://www.google.co.in/search?q=Deming+Prize+Winners+from+India&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-GB:official&client=firefox-a">Deming Prizes that Indian manufacturing enterprises</a> have own.

India can go ahead of China only with innovative approaches that must cover all aspects of product development for high-tech items and it must learn from Japan and not from China.  

A country is today known by <a href="http://economictimes.indiatimes.com/India_among_worlds_top_15_automakers/rssarticleshow/3324760.cms">its position as automaker</a> and vehicles that its people own and use. But as demanded by mother earth, the vehicle must use minimum of fossil fuel and must be as far as possible green. All who can think of ideas to achieve those goals will be called servant of mother earth and remembered.  
]]></description>
			<content:encoded><![CDATA[It is great news. Toyota is <a href="http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=&id=3f32adec-2462-486c-adb1-8d49d186b54f&&Headline=Toyota+to+launch+its+hybrid+sedan+in+India&strParent=strParentID">going to launch</a> its<a href="http://www.toyota.com/prius-hybrid/"> hybrid Prius</a> in India. I don't know how reliable is the news. I wish it to be correct. Honda has already done that. However, with no concession on taxes, the price of <a href="http://www.ibnlive.com/news/honda-launches-indias-first-hybrid-car/67374-25.html">Honda Civic</a> will be about Rs 21 lakh with taxes constituting half of it. I don't know why can't the government do away with many taxes, as it will be huge saving on oil and emission. I was surprised when Honda announced the launch why Toyota didn't do that. As much as I know the customers in US have already accepted Prius as good alternative to the regular gas guzzling cars. With Vikram Kirloskar with Toyota I expected that to come first. CII as well as SIAM must impress upon the government to give the manufacturers some tax advantages too. If the requirement is high enough, the manufacturers may even make India a manufacturing base too. Toyota today has gone ahead of GM to become number one auto manufacturer in the world. Its annual worldwide capacity is 10 million units. India's market is lucrative enough for Toyota to give a sustainable lead. India is to gain a lot from Toyota as it has attained the ultimate in manufacturing practices in the world. Its <a href="http://www.google.co.in/search?q=Lean+manufacturing&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-GB:official&client=firefox-a">lean manufacturing</a> and legendary <a href="http://www.google.co.in/search?hl=en&client=firefox-a&rls=org.mozilla:en-GB:official&hs=smV&sa=X&oi=spell&resnum=0&ct=result&cd=1&q=Toyota+Production+System&spell=1">Toyota Production System</a> has gone beyond auto sector and improved the productivity. However, surprisingly Toyota has been among the last manufacturers to enter both China as well as India. 

As reported, 'the 2008 version of Prius has been adjudged the most fuel-efficient midsize car in the US. Sold in over 40 countries across regions, the hybrid variant has also been rated as the third least carbon dioxide emitting vehicle in Britain. As the first commercially mass-produced gas-electric hybrid, one million Prius vehicles were sold by April worldwide, including 592,000 units in the US and 315,000 units in Japan.'      

As I came to know from some of my friends in auto industry,<a href="http://www.financialexpress.com/news/Auto-majors-line-up-more-hybrid-car-launches-in-India/343210/"> the manufacturers</a> such as Tata Motors and Mahindra and Mahindra are developing hybrid of its own.  I wish both the manufacturers took a 'Nano'-approach to cut down the price to the minimum. Let the scientists and technocrats of IITs and other famed research institutions of the country get into some practical researches to make some essential products such as a <a href="http://www.howstuffworks.com/hybrid-car.htm">hybrid car</a> or small hybrid SUV as answer to soaring fuel prices and growing concerns over emissions that can be produced and sold world over a practical reality. Every<a href="http://thestar.com.my/news/story.asp?file=/2008/8/2/nation/20080802213911&sec=nation"> country</a> is trying to go hybrid through collaborations or its own development endeavours. Why shouldn't India do it? <a href="http://www.financialexpress.com/news/Hybrid-carswill-they-work-for-India/271927/">Why should there be doubt</a> if hybrid cars will work for India? 

<font color="#FF0000" size="4">I was amazed to learn about the project of solar driven car initiated by Delhi College of Engineering and shocked to know that they are not getting fund as little as Rs 16 lakh to take it to the right conclusion in a country where Rs 150,000 crore goes in subsidies that never reach the beneficiaries. Interestingly, Toyota has planned to use solar panel in Prius too. </font>  

<font color="#008000">As many of IITs find it interesting to work with IBM, Microsoft and other IT companies, I wish it start working with the auto companies too in the innovation works related to every aspect of the vehicle from development to manufacturing and servicing too. </font>

The challenge is to reduce the price of input with innovation in many fields including <a href="http://books.google.co.in/books?id=6EfS0jRFQTkC&pg=PA164&lpg=PA164&dq=Hybrid+cars&source=web&ots=Na__4jOLJH&sig=QBanvasTgrmgCSH7IokEVx9NYts&hl=en&sa=X&oi=book_result&resnum=3&ct=result">battery</a>. A price tag of Rs 8-10 lakh can make a hybrid car sell in commercially viable volume in India too. It will extend the challenge to the auto component sectors too. It is interesting that in auto sector Indian manufacturers have learnt the tricks from Japan. Perhaps Japan has trained maximum number of Indians in manufacturing sectors. It gets reflected in the maximum number of the <a href="http://www.google.co.in/search?q=Deming+Prize+Winners+from+India&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-GB:official&client=firefox-a">Deming Prizes that Indian manufacturing enterprises</a> have own.

India can go ahead of China only with innovative approaches that must cover all aspects of product development for high-tech items and it must learn from Japan and not from China.  

A country is today known by <a href="http://economictimes.indiatimes.com/India_among_worlds_top_15_automakers/rssarticleshow/3324760.cms">its position as automaker</a> and vehicles that its people own and use. But as demanded by mother earth, the vehicle must use minimum of fossil fuel and must be as far as possible green. All who can think of ideas to achieve those goals will be called servant of mother earth and remembered.  
]]></content:encoded>
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		</item>
		<item>
		<title>Crude Oil and Onion</title>
		<link>http://drishtikona.com/archives/industrymanagement/002169.php</link>
		<comments>http://drishtikona.com/archives/industrymanagement/002169.php#comments</comments>
		<pubDate>Tue, 05 Aug 2008 10:21:39 +0000</pubDate>
		<dc:creator>Indra</dc:creator>
		
		<category><![CDATA[Industry/Management]]></category>

		<guid isPermaLink="false">http://drishtikona.com/archives/industrymanagement/002169.php</guid>
		<description><![CDATA[There was hue and cry in the world, as the crude price jumped to $147+ for a barrel. And the world population today can't think of a life without energy for which the only popular and economically viable source is the fossil oil. None of the producing companies in oil producing countries said that their wells had dried or were going to dry soon and so they are conserving by gradually reducing the production. But the speculators made the prices rise. I don't know how much the people or the countries owning the oil fields get benefited or lose out of the day-to-day price rise or fall. I assume the baiters would have been making the maximum of the cut. With the same production and consumption too, the crude prices have now come down to $124 last week and is expected to go further down. But as the consequence of the earlier surge that made many experts predict that the price might touch as high as $250 or even $500 per barrel, the economy of many countries got huge shock. Many stock markets collapsed including our own making many losing huge amount. Prices of all the commodities went up and so the inflation rate causing sleepless nights for the prime minister and finance minister. And suddenly the whole world started talking of conservation, higher fuel efficiencies, smaller cars, or hybrid cars. I don't know a world body can't devise a way out to avoid this situation? Why can't in the larger interest of the world population a uniform programme be taken up to cut down the use of crude oil gradually? Why can't the scientists and technocrats pull together their energies to find a viable solution? Why should it be a monopoly of a country or two?  

Many a time I feel the situation created by the speculators who so ever they might be is similar to those who control the market prices of onion and potato. Even at the time when there is no one to buy the produce from the farmers at the time it is ready, the consumers in India keep on paying what the traders wish to extract. Why should the price for a common item such as onion be Rs 16 or 20 a kilo? If a government and the theories of free economy can't control the price of this essential item, how can it appreciate and affect the price of crude oil? 

Can some one tell me the difference in pricing of oil and onion? <font color="#FF0000" size="4">Left to me, I would have gone for a differential pricing of onion charging the price of gold for onion from the oil producing countries that import our onions. The countries producing onion should get into cartel to fight with the oil producing countries. 
</font>
Can some one give his opinion on my agony?    
]]></description>
			<content:encoded><![CDATA[There was hue and cry in the world, as the crude price jumped to $147+ for a barrel. And the world population today can't think of a life without energy for which the only popular and economically viable source is the fossil oil. None of the producing companies in oil producing countries said that their wells had dried or were going to dry soon and so they are conserving by gradually reducing the production. But the speculators made the prices rise. I don't know how much the people or the countries owning the oil fields get benefited or lose out of the day-to-day price rise or fall. I assume the baiters would have been making the maximum of the cut. With the same production and consumption too, the crude prices have now come down to $124 last week and is expected to go further down. But as the consequence of the earlier surge that made many experts predict that the price might touch as high as $250 or even $500 per barrel, the economy of many countries got huge shock. Many stock markets collapsed including our own making many losing huge amount. Prices of all the commodities went up and so the inflation rate causing sleepless nights for the prime minister and finance minister. And suddenly the whole world started talking of conservation, higher fuel efficiencies, smaller cars, or hybrid cars. I don't know a world body can't devise a way out to avoid this situation? Why can't in the larger interest of the world population a uniform programme be taken up to cut down the use of crude oil gradually? Why can't the scientists and technocrats pull together their energies to find a viable solution? Why should it be a monopoly of a country or two?  

Many a time I feel the situation created by the speculators who so ever they might be is similar to those who control the market prices of onion and potato. Even at the time when there is no one to buy the produce from the farmers at the time it is ready, the consumers in India keep on paying what the traders wish to extract. Why should the price for a common item such as onion be Rs 16 or 20 a kilo? If a government and the theories of free economy can't control the price of this essential item, how can it appreciate and affect the price of crude oil? 

Can some one tell me the difference in pricing of oil and onion? <font color="#FF0000" size="4">Left to me, I would have gone for a differential pricing of onion charging the price of gold for onion from the oil producing countries that import our onions. The countries producing onion should get into cartel to fight with the oil producing countries. 
</font>
Can some one give his opinion on my agony?    
]]></content:encoded>
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		</item>
		<item>
		<title>Entrepreneuring India</title>
		<link>http://drishtikona.com/archives/industrymanagement/002168.php</link>
		<comments>http://drishtikona.com/archives/industrymanagement/002168.php#comments</comments>
		<pubDate>Mon, 04 Aug 2008 04:06:42 +0000</pubDate>
		<dc:creator>Indra</dc:creator>
		
		<category><![CDATA[Industry/Management]]></category>

		<guid isPermaLink="false">http://drishtikona.com/archives/industrymanagement/002168.php</guid>
		<description><![CDATA[I try to think over about my positive outlook towards Indian economy. I love to keep before me the celebrities like Abdul Kalam and CK Prahalad as icons of hope of a prosperous super power India. Kalam did that with 'India 2020' and Prahalad has his 'India @75'. What does sustain my hope?<a href="http://www.outlookbusiness.com/fullcontent.aspx?editionid=50&editiondate=09%20Aug%202008"> Outlook Business</a> has stories of some entrepreneurs who have successfully created niche companies. Each of the stories is exhilarating. I could never think of these unique business models. Here are the selected few:

<a href="http://skmegg.com/knowus1.htm">SKM Egg Products</a>  <a href="http://www.outlookbusiness.com/inner.aspx?articleid=1909&editionid=50&catgid=9&subcatgid=897">manufactures egg powder</a> that it exports to 24 countries at a factory, capable of producing 4,600 tonnes a year at Choagapalayam village near Erode in Tamil Nadu. About 40% of its Rs 100 crore revenues (for year ended March 2008) came from Japan, and another 40% from Europe. 

Naval Kishore Singh, 73, a former employee of Tata Steel, has used his expertise at catching deadly, poisonous snakes. His income from the venom extraction exceeds Rs 1.2 crore with Christian Medical College, and Bharat Serum as main clients. Interestingly, Singh has no office and operates from a tea stall in Jamshedpur. 

<a href="http://www.outlookbusiness.com/inner.aspx?articleid=1903&subcatgid=897&editionid=50&catgid=9">Narayana Peesapaty </a>sold his flat to get into a business of producing edible cutlery using sorghum as base and vegetable pulp-spinach, beetroot and carrot to add color and nutritive value. Narayana has applied for process patent, and dreaming big. He is also developing an edible plate that can go well with a pizza. It will be something like those ice-cream cones. 

<a href="http://www.outlookbusiness.com/inner.aspx?articleid=1910&editionid=50&catgid=9&subcatgid=897">Sandip Taware's Bhagirathi Hatcheries</a> is one of the estimated 1,000 emu-farms that produce about 33,000 tonnes of emu-meat in India. <a href="http://en.wikipedia.org/wiki/Emu">Emus</a> are Australian birds, and its meat, as claimed, is healthier. Interestingly, India produces 1.9 million tonnes of chicken meat every year. Is it not a great story of enterprising Indians? Could one think of such an enterprise few years ago? 

<a href="http://www.outlookbusiness.com/inner.aspx?articleid=1904&editionid=50&catgid=9&subcatgid=897">Central Parking Services</a> with its 1200 employees and annual revenue of RS 45 crore in 2007-08 provides parking management solutions: designs car parks, installs equipment and manages them. 

<a href="http://www.outlookbusiness.com/inner.aspx?articleid=1900&subcatgid=897&editionid=50&catgid=9">Acme Tele Power Ltd</a> of Manoj Kumar Upadhyaya, http://www.acmetelepower.com/ an electronics engineer from Shahjahanpur's government polytechnic, is now a company with Rs 1,800 crore revenues for 2007-08 with presence in 17 countries with already secured seven patents (additional 14 pending approval) in energy management solutions. 

<a href="http://www.google.co.in/search?q=Appachi+Cotton+&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-GB:official&client=firefox-a">Appachi Cotton</a> based in Pallachi, Tamil Nadu presently with revenue of Rs 30 crore <a href="http://www.outlookbusiness.com/inner.aspx?articleid=1902&subcatgid=897&editionid=50&catgid=9">aims to strike big</a> through organic textiles route. It has been growing organic cotton through contract farming over 400 acres in Karnataka that is likely to increase to 1,000 acres in next two years.

<a href="http://www.google.co.in/search?q=KAM-Avida+Enviro+Engineers&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-GB:official&client=firefox">KAM-Avida Enviro Engineers</a>, a now a Rs 25 crore company, <a href="http://www.outlookbusiness.com/inner.aspx?articleid=1901&subcatgid=897&editionid=50&catgid=9">makes and maintains sewage drain</a> cleaning equipment and in the next three to four years will have four lines of business: drain cleaning equipment, compacting garbage disposal trucks, industrial vacuuming machines and street sweepers. 

<a href="http://www.outlookbusiness.com/inner.aspx?articleid=1906&subcatgid=897&editionid=50&catgid=9">Sunny Water Sports</a>, http://sunnywatersports.com/Default.asp an Rs 5 crore manufacturer of boats, has now more than 110 types of boats to offer, and became the first local manufacturer of two storeyed luxury boats two years ago. Cost arbitrage apart, Sunny Water Sports has been able to keep its client satisfied on quality standards and timely delivery.

<a href="http://www.business-standard.com/india/storypage.php?autono=330182">Many young men and women</a> in the country are trying to put their<a href="http://businesstoday.digitaltoday.in/index.php?option=com_content&Itemid=1&task=view&id=4948&sectionid=5&issueid=27&page=archieve"> ideas</a> in to business enterprises and even don't hesitate to quit good jobs for the same. . Finance is not very difficult for these successful <a href="http://businesstoday.digitaltoday.in/index.php?option=com_content&task=view&issueid=35&id=5777&Itemid=1&sectionid=5">startups</a> with <a href="http://www.thehindubusinessline.com/ew/2008/08/04/stories/2008080450010100.htm">many venture capital firms</a> looking for good businesses to invest in. And many successful celebrities such as <a href="http://www.livemint.com/2008/08/01235122/The-applied-IDEAS-man.html?h=A3">Nandan Nilekani</a> find pleasure in encouraging them. 

It is this entrepreneuring India that will change the face of India and bring it in the league of prosperous nations.
]]></description>
			<content:encoded><![CDATA[I try to think over about my positive outlook towards Indian economy. I love to keep before me the celebrities like Abdul Kalam and CK Prahalad as icons of hope of a prosperous super power India. Kalam did that with 'India 2020' and Prahalad has his 'India @75'. What does sustain my hope?<a href="http://www.outlookbusiness.com/fullcontent.aspx?editionid=50&editiondate=09%20Aug%202008"> Outlook Business</a> has stories of some entrepreneurs who have successfully created niche companies. Each of the stories is exhilarating. I could never think of these unique business models. Here are the selected few:

<a href="http://skmegg.com/knowus1.htm">SKM Egg Products</a>  <a href="http://www.outlookbusiness.com/inner.aspx?articleid=1909&editionid=50&catgid=9&subcatgid=897">manufactures egg powder</a> that it exports to 24 countries at a factory, capable of producing 4,600 tonnes a year at Choagapalayam village near Erode in Tamil Nadu. About 40% of its Rs 100 crore revenues (for year ended March 2008) came from Japan, and another 40% from Europe. 

Naval Kishore Singh, 73, a former employee of Tata Steel, has used his expertise at catching deadly, poisonous snakes. His income from the venom extraction exceeds Rs 1.2 crore with Christian Medical College, and Bharat Serum as main clients. Interestingly, Singh has no office and operates from a tea stall in Jamshedpur. 

<a href="http://www.outlookbusiness.com/inner.aspx?articleid=1903&subcatgid=897&editionid=50&catgid=9">Narayana Peesapaty </a>sold his flat to get into a business of producing edible cutlery using sorghum as base and vegetable pulp-spinach, beetroot and carrot to add color and nutritive value. Narayana has applied for process patent, and dreaming big. He is also developing an edible plate that can go well with a pizza. It will be something like those ice-cream cones. 

<a href="http://www.outlookbusiness.com/inner.aspx?articleid=1910&editionid=50&catgid=9&subcatgid=897">Sandip Taware's Bhagirathi Hatcheries</a> is one of the estimated 1,000 emu-farms that produce about 33,000 tonnes of emu-meat in India. <a href="http://en.wikipedia.org/wiki/Emu">Emus</a> are Australian birds, and its meat, as claimed, is healthier. Interestingly, India produces 1.9 million tonnes of chicken meat every year. Is it not a great story of enterprising Indians? Could one think of such an enterprise few years ago? 

<a href="http://www.outlookbusiness.com/inner.aspx?articleid=1904&editionid=50&catgid=9&subcatgid=897">Central Parking Services</a> with its 1200 employees and annual revenue of RS 45 crore in 2007-08 provides parking management solutions: designs car parks, installs equipment and manages them. 

<a href="http://www.outlookbusiness.com/inner.aspx?articleid=1900&subcatgid=897&editionid=50&catgid=9">Acme Tele Power Ltd</a> of Manoj Kumar Upadhyaya, http://www.acmetelepower.com/ an electronics engineer from Shahjahanpur's government polytechnic, is now a company with Rs 1,800 crore revenues for 2007-08 with presence in 17 countries with already secured seven patents (additional 14 pending approval) in energy management solutions. 

<a href="http://www.google.co.in/search?q=Appachi+Cotton+&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-GB:official&client=firefox-a">Appachi Cotton</a> based in Pallachi, Tamil Nadu presently with revenue of Rs 30 crore <a href="http://www.outlookbusiness.com/inner.aspx?articleid=1902&subcatgid=897&editionid=50&catgid=9">aims to strike big</a> through organic textiles route. It has been growing organic cotton through contract farming over 400 acres in Karnataka that is likely to increase to 1,000 acres in next two years.

<a href="http://www.google.co.in/search?q=KAM-Avida+Enviro+Engineers&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-GB:official&client=firefox">KAM-Avida Enviro Engineers</a>, a now a Rs 25 crore company, <a href="http://www.outlookbusiness.com/inner.aspx?articleid=1901&subcatgid=897&editionid=50&catgid=9">makes and maintains sewage drain</a> cleaning equipment and in the next three to four years will have four lines of business: drain cleaning equipment, compacting garbage disposal trucks, industrial vacuuming machines and street sweepers. 

<a href="http://www.outlookbusiness.com/inner.aspx?articleid=1906&subcatgid=897&editionid=50&catgid=9">Sunny Water Sports</a>, http://sunnywatersports.com/Default.asp an Rs 5 crore manufacturer of boats, has now more than 110 types of boats to offer, and became the first local manufacturer of two storeyed luxury boats two years ago. Cost arbitrage apart, Sunny Water Sports has been able to keep its client satisfied on quality standards and timely delivery.

<a href="http://www.business-standard.com/india/storypage.php?autono=330182">Many young men and women</a> in the country are trying to put their<a href="http://businesstoday.digitaltoday.in/index.php?option=com_content&Itemid=1&task=view&id=4948&sectionid=5&issueid=27&page=archieve"> ideas</a> in to business enterprises and even don't hesitate to quit good jobs for the same. . Finance is not very difficult for these successful <a href="http://businesstoday.digitaltoday.in/index.php?option=com_content&task=view&issueid=35&id=5777&Itemid=1&sectionid=5">startups</a> with <a href="http://www.thehindubusinessline.com/ew/2008/08/04/stories/2008080450010100.htm">many venture capital firms</a> looking for good businesses to invest in. And many successful celebrities such as <a href="http://www.livemint.com/2008/08/01235122/The-applied-IDEAS-man.html?h=A3">Nandan Nilekani</a> find pleasure in encouraging them. 

It is this entrepreneuring India that will change the face of India and bring it in the league of prosperous nations.
]]></content:encoded>
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		</item>
		<item>
		<title>Indian Growth Story- Gloom or Bloom</title>
		<link>http://drishtikona.com/archives/industrymanagement/002162.php</link>
		<comments>http://drishtikona.com/archives/industrymanagement/002162.php#comments</comments>
		<pubDate>Tue, 29 Jul 2008 23:58:31 +0000</pubDate>
		<dc:creator>Indra</dc:creator>
		
		<category><![CDATA[Industry/Management]]></category>

		<guid isPermaLink="false">http://drishtikona.com/archives/industrymanagement/002162.php</guid>
		<description><![CDATA[What happened in Lok Sabha on July 22 must have heartened many, though the climax with Rs 1 crore on table might have made some morose too.  Record high inflation is hurting the majority of middle class badly. Interest rate is causing further damage. I don't understand why following the textbook rules, the banks must increase the interest rate to reduce inflation. Stock market has made many poorer. The India's foreign exchange reserves remain still at around $300 billion. The International Monetary Fund (IMF) has lowered India's growth forecast to 8 per cent in 2008-09 (9.3% in 2007-08). According to some, the figure may go lower. One of the global rating agencies, Fitch lowered India's credit outlook. FM advises not to mourn 8% but to celebrate: "Very few countries and hardly any large nation except China are growing at eight per cent, and eight per cent growth will still be higher than the average rate of 5.8 per cent achieved during the six years of NDA rule." I hate him comparing with NDA rule after four years in office. 

However, many have positive outlook for India's growth.

A group of top <a href="http://in.rediff.com/money/2008/jul/18sl1.htm">economists from Ernst & Young </a>believe that India is on track to surpass China in growth. "We believe this is India's moment," declares Keystone Chief Economist William T Wilson. 

Interestingly, the companies are ready <a href="http://www.businessweek.com/globalbiz/content/jul2008/gb20080717_900118.htm?chan=globalbiz_asia+index+page_top+stories">to face the situation and to change strategies</a> for keeping the growth going. For instance, big IT companies such as TCS and Infosys were in the auto component design space for a few years now. Now even the relatively smaller ones such as KPIT Cummins Infosystems, Onward Technologies, Neilsoft and CADES among others are getting into the automotive design business for better margins and higher growth in these times of economic slowdown. 

Private sectors are moving fast with many achievements. New airports at<a href="http://www.outlookindia.com/full.asp?fodname=20080804&fname=Hyderabad+Airport+(F)&sid=1"> Hyderabad</a> and Banglore have come in operations. The country's <a href="http://specials.rediff.com/money/2008/jul/17sli01.htm">biggest private sector port</a> has started working in Andhra Pradesh. 

A yet to be released white paper, 'India's Role in the Globalization of the IT Industry' by Evalueserve, a KPO, <a href="http://economictimes.indiatimes.com/Indian_IT_sector_set_to_be_2nd_largest_Study/articleshow/3276958.cms">forecasts</a>, "India will create the second largest IT services labour pool after the US within the next seven to eight years. By 2015-2016, the number of professionals working in the IT industry will grow ten-fold (from 2001-2002) and the total revenue will grow 22 times." 

<a href="http://www.strategy-business.com/li/leadingideas/li00081">Indian outsourcers</a> are competing well with MNCs and going global. The increasing complexity of contracts with big U.S. customers; growing wage pressure at home; the rising value of the rupee; and a fierce counterassault by IBM, Accenture, and Electronic Data Systems (EDS) (recently purchased by Hewlett-Packard Company) have obliged the Indian companies- Satyam, Wipro, Infosys, Tata Consulting Services, Cognizant Technology Solutions, and HCL Technologies- known by the acronym SWITCH, to go global and create new multinationals that are much less India-focused. The battle between the fast-growing Indian outsourcers and the big U.S. firms shapes up as an intriguing test of the ability of companies from emerging countries to go toe-to-toe with the best that the West has to offer. And the world is to wait and watch who wins.

With a total of 282<a href="http://infotech.indiatimes.com/articleshow/3264815.cms"> outsourcing contracts</a> valued at $49 billion in total contract value (TCV) and $10 billion in annualised contract value (ACV), the IT outsourcing industry notched up record business during the first two quarters of the current calendar year, according to TPI, the sourcing data and advisory firm. IT companies such as<a href="http://timesofindia.indiatimes.com/Business/Wipros_Q1_net_profit_up_25_at_Rs_908cr/articleshow/3252102.cms"> Wipro</a> (25%) and <a href="http://timesofindia.indiatimes.com/Business/India_Business/Satyam_profit_rises_45/articleshow/3252106.cms">Satyam</a> (45%) are still making pretty high profits in Q1. Even manufacturing companies such as <a href="http://www.business-standard.com/india/storypage.php?tp=on&autono=43315">Hyundai</a> projects to double export figures this year.    

Private business houses and its associations are still ambitious and wish to keep the India's growth story exciting. According to Confederation of Indian Industry (CII), "India can record a GDP growth rate of about 8.6 per cent during 2008-09, given the increasing capital expenditure by the private sector and the healthy incremental capital output ratio of around 4." 

<a href="http://businesstoday.digitaltoday.in/index.php?option=com_content&Itemid=1&task=view&id=6103&sectionid=23&issueid=34&page=archieve">Mumbai-based Centre for Monitoring Indian Economy </a>(CMIE) expects the Indian economy, driven by large capacity additions, to expand by 9.5 per cent during the current year. According to CMIE estimates, fresh investments of Rs 4,44,708 crore over 400 projects were announced in the first quarter (April-June) of this financial year alone. This comes on the back of equally robust numbers in 2007-08, when more than 3,000 new projects, entailing investments of over Rs 17 lakh crore, were announced. There were 14,450 projects with committed investments of more than Rs 61 lakh crore at the end of 2007-08 with maximum number of projects covering key sectors like power, services, construction, mining, machinery, chemicals, metals and metal products. 

How can with impending slowdown the capex boom in India would have continued? How could more and more fresh investments get announced every quarter?

Let the politicians not spoil the boom party even in the gloom of terror created by the sick minds.
]]></description>
			<content:encoded><![CDATA[What happened in Lok Sabha on July 22 must have heartened many, though the climax with Rs 1 crore on table might have made some morose too.  Record high inflation is hurting the majority of middle class badly. Interest rate is causing further damage. I don't understand why following the textbook rules, the banks must increase the interest rate to reduce inflation. Stock market has made many poorer. The India's foreign exchange reserves remain still at around $300 billion. The International Monetary Fund (IMF) has lowered India's growth forecast to 8 per cent in 2008-09 (9.3% in 2007-08). According to some, the figure may go lower. One of the global rating agencies, Fitch lowered India's credit outlook. FM advises not to mourn 8% but to celebrate: "Very few countries and hardly any large nation except China are growing at eight per cent, and eight per cent growth will still be higher than the average rate of 5.8 per cent achieved during the six years of NDA rule." I hate him comparing with NDA rule after four years in office. 

However, many have positive outlook for India's growth.

A group of top <a href="http://in.rediff.com/money/2008/jul/18sl1.htm">economists from Ernst & Young </a>believe that India is on track to surpass China in growth. "We believe this is India's moment," declares Keystone Chief Economist William T Wilson. 

Interestingly, the companies are ready <a href="http://www.businessweek.com/globalbiz/content/jul2008/gb20080717_900118.htm?chan=globalbiz_asia+index+page_top+stories">to face the situation and to change strategies</a> for keeping the growth going. For instance, big IT companies such as TCS and Infosys were in the auto component design space for a few years now. Now even the relatively smaller ones such as KPIT Cummins Infosystems, Onward Technologies, Neilsoft and CADES among others are getting into the automotive design business for better margins and higher growth in these times of economic slowdown. 

Private sectors are moving fast with many achievements. New airports at<a href="http://www.outlookindia.com/full.asp?fodname=20080804&fname=Hyderabad+Airport+(F)&sid=1"> Hyderabad</a> and Banglore have come in operations. The country's <a href="http://specials.rediff.com/money/2008/jul/17sli01.htm">biggest private sector port</a> has started working in Andhra Pradesh. 

A yet to be released white paper, 'India's Role in the Globalization of the IT Industry' by Evalueserve, a KPO, <a href="http://economictimes.indiatimes.com/Indian_IT_sector_set_to_be_2nd_largest_Study/articleshow/3276958.cms">forecasts</a>, "India will create the second largest IT services labour pool after the US within the next seven to eight years. By 2015-2016, the number of professionals working in the IT industry will grow ten-fold (from 2001-2002) and the total revenue will grow 22 times." 

<a href="http://www.strategy-business.com/li/leadingideas/li00081">Indian outsourcers</a> are competing well with MNCs and going global. The increasing complexity of contracts with big U.S. customers; growing wage pressure at home; the rising value of the rupee; and a fierce counterassault by IBM, Accenture, and Electronic Data Systems (EDS) (recently purchased by Hewlett-Packard Company) have obliged the Indian companies- Satyam, Wipro, Infosys, Tata Consulting Services, Cognizant Technology Solutions, and HCL Technologies- known by the acronym SWITCH, to go global and create new multinationals that are much less India-focused. The battle between the fast-growing Indian outsourcers and the big U.S. firms shapes up as an intriguing test of the ability of companies from emerging countries to go toe-to-toe with the best that the West has to offer. And the world is to wait and watch who wins.

With a total of 282<a href="http://infotech.indiatimes.com/articleshow/3264815.cms"> outsourcing contracts</a> valued at $49 billion in total contract value (TCV) and $10 billion in annualised contract value (ACV), the IT outsourcing industry notched up record business during the first two quarters of the current calendar year, according to TPI, the sourcing data and advisory firm. IT companies such as<a href="http://timesofindia.indiatimes.com/Business/Wipros_Q1_net_profit_up_25_at_Rs_908cr/articleshow/3252102.cms"> Wipro</a> (25%) and <a href="http://timesofindia.indiatimes.com/Business/India_Business/Satyam_profit_rises_45/articleshow/3252106.cms">Satyam</a> (45%) are still making pretty high profits in Q1. Even manufacturing companies such as <a href="http://www.business-standard.com/india/storypage.php?tp=on&autono=43315">Hyundai</a> projects to double export figures this year.    

Private business houses and its associations are still ambitious and wish to keep the India's growth story exciting. According to Confederation of Indian Industry (CII), "India can record a GDP growth rate of about 8.6 per cent during 2008-09, given the increasing capital expenditure by the private sector and the healthy incremental capital output ratio of around 4." 

<a href="http://businesstoday.digitaltoday.in/index.php?option=com_content&Itemid=1&task=view&id=6103&sectionid=23&issueid=34&page=archieve">Mumbai-based Centre for Monitoring Indian Economy </a>(CMIE) expects the Indian economy, driven by large capacity additions, to expand by 9.5 per cent during the current year. According to CMIE estimates, fresh investments of Rs 4,44,708 crore over 400 projects were announced in the first quarter (April-June) of this financial year alone. This comes on the back of equally robust numbers in 2007-08, when more than 3,000 new projects, entailing investments of over Rs 17 lakh crore, were announced. There were 14,450 projects with committed investments of more than Rs 61 lakh crore at the end of 2007-08 with maximum number of projects covering key sectors like power, services, construction, mining, machinery, chemicals, metals and metal products. 

How can with impending slowdown the capex boom in India would have continued? How could more and more fresh investments get announced every quarter?

Let the politicians not spoil the boom party even in the gloom of terror created by the sick minds.
]]></content:encoded>
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