Why Can’t Ratan Tata Save Buddha?

I am surprised and shocked. Mamta’s fast has gone on for now 25 days. Trinamool Congress chief Mamata Banerjee’s fast against land acquisition in Singur enters the 25th day today. With her health deteriorating in the evening, Banerjee had to be put on oxygen support yesterday.

Narrating how the project was brought to Bengal, Buddha desperately said yesterday at Bengal chamber of commerce meeting that the Tatas were shown three or four locations in the state and they first chose a site at Kharagpur. The Tatas are already present there. But, on the day Bhattacharjee was sworn in as chief minister for his second term, Tata group chairman Ratan Tata had come to Kolkata. It was then he had told the chief minister that, if he could get land nearer to Kolkata, Singur would be his choice. “How could I not keep Ratan Tata’s request?” Bhattacharjee said. “I persuaded him like anything to prevent him from going to Uttaranchal. And now if he has to go away, we will never be able to raise our head. No industry will ever come to Bengal,”

Why is Tata Motors so adamant in locating its Rs 1-lakh-car project at Singur? One will agree that the West Bengal government committed to give it the land at Singur. But it was only after they rejected the offer of Kharagpur where Tatas are already having some factories including Tata Bearings that may be a vendor to Tata Motors.

I don’t understand why Tata Motors can’t change its mind and save Buddha Babu who went out of the way to offer Tatas the 3-crop fertile land at Singur that was known to be a Trinamool stronghold.

What will Tata Motors technically loose if it shifts its project to some other locations? It is a poor strategy of Tata Motors to stick to its point. I am sure the government can find a different place for it near Kolkata itself, and Mamta will agree for it. It will break the stalemate and save the embarrassment of Buddha’s government. Today the whole Bengal is watching this battle between Mamta and Buddha. If Tatas think that Mamta will give up her fast that is already in 24 days old without making Buddha bend, they are mistaken. It would have been nice for Tatas to come on its own, and request for some other alternative locations near Kolkata. It would have enhanced the image of Tatas and Buddha Babu would have been obliged for this noble gesture.

I wish the good sense prevailed over Tatas.

PS “I cannot say no to Ratan Tata, otherwise we will never be able to raise our heads,”<

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Entrepreneurs-in-making but manufacturing

Here are some stories of the young men and women from just one reputable business school who have given up the cozy life and fat salary packets of multinational to start something of their own and perhaps setting the trends for new India.

Anuradha Agrawal, (2002) started community kitchens almost a year ago in the slums of Ahmedabad. She has now turned it into a profitable venture much to the surprise of many. About 30 community kitchens, comprising 30 families each, are currently working. She now wants to take this number to 100 in the coming months. http://www.business-standard.com/common/storypage_c.php?leftnm=10&autono=308750 “Each family on an average spends Rs 70 on their food. While we save Rs 15 from this amount by way of bulk purchase of ration and vegetables, half of it is passed on to the families and the rest is spent on maintenance of the kitchens. Community kitchen also saves fuel for these families,” she says. In the process, Anuradha is transforming their taste-based food habits into a more healthy diet.

Vivek Pahwa (2006) launched a website for second marriages. The website boasts of 20,000 registered users wanting to go in for a second marriage. Changing life patterns in the country would further add to this list in future.

Gunjan Aggarwal (2002) saw an opportunity in vocational training. Her firm, Avsarr, a job opportunity platform, is now training young boys and girls in financial services to cater to the requirement of three banks. A typical 7-9-day training is enough to make them employable in areas of helping the banks expand their current and savings accounts. “We need not impart knowledge in behavioural psychology to these people. A short training is enough to develop necessary skills,” she says. And her idea is working.

Ashish (2002) with 15 years of service in the Armed Forces, now offers technology and a platform to address risk and intelligence. According to him, every business now needs to address the issues of real risk, not just business risk, after the terror attacks in the US and elsewhere brought the security issues into the realm of overall planning of a company.

With growth in GDP approaching to double digit and increasing telecom and Internet penetrations, the potentials for entrepreneurships in on and off-line services are huge. However, I only wish that all institutes of excellence started putting a special thrust to induce this younger generation of entrepreneurs to go for manufacturing too. The big retail outlets in organized sector can also encourage entrepreneurship in manufacturing, as Maruti did for auto components manufacturing. Manufacturing can only bring prosperity to the millions and let our IITs and IIMs find the way out to create an explosive growth of manufacturing sector.

However, another area of hope among many potential sectors is one in food. Here are some entrepreneurs from food processing industry that must be emulated:

United Pizza Restaurant Pvt Ltd, a Bangalore-based company operating a pizza restaurant chain called US Pizza, plans to start exporting ‘made in India’ pizzas through its under-construction factory in Bangalore, scheduled to go on stream by March 2008. Under the arrangement, United Pizza would only have to take care of the production of pizza base with tomato puree and Indian cheese, minus the toppings. “Various pizza companies, especially European, which would find it credible to outsource pizzas from India.”

Other area where the institutes of excellence must contribute is India’s agriculture sector that can contribute in enhancing the prosperity for a larger number of populations. Some entrepreneurs are already setting examples by making agriculture more commercial. Agro Dutch Industries is the leading exporter of mushrooms from India, a 100 per cent export oriented unit with a turnover of about Rs 250 crore. Himalya International Limited is another company that exports fresh mushrooms and various products made out of mushrooms in the US market. It is planning to double its capacities to meet the export demand. And these companies have succeeded in persuading its buyers to improve on price to take care of rising rupee.

There is ample proof that India’s high economic growth is being fuelled by the rising innovation intensity of its industries. But innovation in India must become a religion. Will it require a mandatory inclusion of technocrats in politics and administration? I am basing my view on an article in New Scientist that makes an interesting observation: “Does China make faster and more determined progress because most senior leaders of the Central Government were trained as engineers (Politburo of Engineers)?”

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Bihar- Hope and Despair

Nitish Kumar may be a nice man, perhaps gentleman unlike Laluji. However, my views are not based on any facts. It is through the media reports about Nitish that I liked. Recently, all his party men were after the blood of Raghubans Prasad Singh. Television channel showed footages of two boys (age 11 years) working in the field of Raghuraj Singh, the brother of Union rural development minister Raghuvansh Prasad Singh near his Shahpur home under Mahnar in Vaishali (Hajiprur). However, it was established later that the two are “regulars in schools” and “had pulled the log across the field when promised a chance to appear on television and Rs 20 each.” Nitish behaved as a real mature person. He didn’t go with his men. And finally, the truth came out. Another news report related about his visiting his senior party man George Fernandes and requesting him to inaugurate some development projects in Muzaffarpur. George Fernandes have gone against Nitish with no malice and inhibition, as he didn’t back him for heading the party.

These acts are magnanimous. But then is it good enough for Bihar and its people?

But then good news came from Tokyo. NMG (Nalanda Mentor Group) had its second meeting, headed by Nobel Laureate Amartya Sen, recently at Tokyo. By early next year, the blueprint for reviving the 1197 AD Nalanda University in Bihar – is expected to be ready. At Tokyo, the NMG decided that the university would have schools of Buddhist studies, philosophy and comparative religions; historical studies; international relations & peace studies; business management and development studies; languages and literature; and ecology and environmental studies. I had some more ambitious dreams about this rebirth of Nalanda. It must have also included institutions of excellence of technology and sciences at par with MIT. NMG can invite western countries too to join in this unique endeavour, or IISc and IITs to pull together their resources to set up institutions in the premises. Alternatively, the IIT and IIM for Bihar, sanctioned by the HRD ministry should become part of the campus.

Another exciting news report related to sugar sector that may become the main industry for Bihar. Reliance Industries, Hindustan Petroleum Corporation Ltd and India Glycols Ltd have bid for closed sugar mills in Bihar. The privatization must move on fast track and the government must encourage the private companies to include ethanol, cogeneration as well as some food-grain based manufacturing activities in the state on priority.

Even with all the troubles and mudslinging between the trio the people of Bihar have retained their innovative talent and entrepreneurships. And that is evident when I read the report: Kanishk and Lipika Sinha, a young couple from Patna have invented an energy-saving rather fuel-free engine, at a cost of Rs 35,000, which can run without petrol or diesel and can last for a 4.5-lakh kilometre run. Kanishk Sinha recently got the engine patented (1077/Del/2005) with BigPatents India, a body supported by the Ford Foundation.

But again I appeal to Nitish to concentrate on the law and order situation that might have improved by statistics but not in real term and in the perception of the investors. Kidnapping and abduction are still rampant. A recent report in Mail Today was agonizing how it is now a moneymaking business for small enough criminals. It requires ruthless handling and exemplary harsh punishment.

Another report about the central agencies dropping the rural road building projects due to Naxalite’s fear is shocking: “The Indian Railway Construction Company (IRCON) working on many road projects in Bihar is planning to abandon the work due to the threat by Naxals. Under the Pradhan Mantri Gram Sadak Yojana (PMGSY), Bihar has a target to connect 9,600 villages involving a road length of 27,000 km. Out of 38 districts, IRCON is taking care of eight districts, NHPC and NPCC will make six each, CPWD four while the remaining districts are managed by NBCC. Out of nearly 57 such road projects initiated in the four districts of Arval, Gaya, Aurangabad and Jehanabad, nearly 23 have been abandoned due to the Naxal menace.”

As much as I understand the Naxalites in Bihar are misguided unemployed youths from deprived class. Demands of extortion and ransom money by the so-called Naxalites and kidnappers are indications that the movement is not for the uplift of the deprived class, but it is for making easy money. It requires tough but humane handling. Let the state form a small and effective core group with some social scientists and religious gurus too to look into the solutions of the problem. Urgent land reforms, extensive skill building, massive adult education, and thrust on value building at school may be the basic necessity. I suggest that the politicians in their meetings including the Janata Durbars with so-called ‘aam adami’ insist on people present for sending their children to schools compulsorily.

Further, it pains to know that ‘Bihar’s committed expenditure towards interest payment, administrative and pension payments is almost twice the state’s own revenue resources.’ Bihar needs motivated and dedicated officers to make it move out from the rut. I wish they could have set some examples with some innovative approaches.

By now Nitish would have done much more than what has happened in last two years. Let us hope Nitish’s hard work pays back.

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Why Envy If Politicians Develop their Villages?

I came across some reports how the politicians served their own villages when in power in ‘Metro India’. The stories related to Mulayam Singh Yadav, Lalu Yadav and Nitish Kumar.

As reported, Nitish had been indifferent or knowingly avoided doing anything special for his own village till now. He could have certainly done many things even as politician in his earlier days with his influence and acquaintances, or when he was an effective cabinet minister in central government during NDA rule.

The cabinet colleagues of Nitish are now falling over each other to make up for Nitish’s neglect and uplift the condition of Kalyanbigha, the ancestral village of Nitish Kumar in Nalanda district. Bihar’s various ministers have promised an Industrial Training Institute (ITI), an Rs 2-crore power substation in the village and an Rs 35-crore grid station at Harnaut nearby, a 12-bed state-of-the-art hospital and a 12- room government higher secondary school. Road construction minister has promised to convert the 8-km single lane road linking the village to NH31 into a double lane.

Lalu had also done the same or a little more for his village, Phulwaria and Rabri for Selar Kalan. A 22-km road to Phulwaria from the district headquarters got built that envied the neighbouring villages. But as the climax, the railway ministry has undertaken an ambitious project to link both the villages through a rail network on the Hathua-Bhatani section and the last Railway budget provided a fund of RS 230 crore for the project. I feel amazed why the system permits this. Should not there be criteria clear enough to avoid such partisan project?

However, all that Lalu had done is nothing in comparison with what Mulayam did and wished to do for Saifai, his village of 4000 people in Etawah: an international-standard air-strip, a 500-bed super specialty hospital, a world class flood-lit cricket stadium, an athletic stadium, a lion safari, and an indoor stadium almost like Talkatora of Delhi. Mulayam wanted a Boeing 747 to land at the airstrip. As usual, Mayawati has shelved all the projects. But how can the money already spent be justified? The airstrip has sucked in Rs 100 crore of taxpayers’ money, and the stadium Rs 50 crore.

I don’t find anything wrong with the basic development work and wish everyone who can, must do this as a minimum for his village. Every legislator must get a high school, an Industrial training Institute, a health care center, and electrification for his village. The legislator must use all the resources at his hand to provide these facilities for his village or for the villages of his mother or wife using the fund that he gets every year. At least, it will mean so many of the villages upgraded.

Anyone who succeeds in life must do something for his own village where he was born and brought up. I was shocked to read a story about the village of Ambanis. Why the village wouldn’t have been one with all facilities, particularly professional schools for training skills to all the boys and girls? Will the Ambanis be any way poorer if they would invest in these facilities for the people of the village?

However, the administrative reform must eliminate the possibility of building a stadium and international airport in some chief minister’s or even prime minister’s village.

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Auto Sector Getting Innovative

Auto component sector started localization with reverse engineering in 80s. I had opportunity to work with General Motors, Vauxhall Motors, Isuzu Motors, and Mitsubishi Motors for various projects. Development of components was difficult as it used to a proprietary item of the vendors of the OEMs. Indian component manufacturers used too ask for sample parts and did the best to duplicate it. Naturally over the years, the component manufacturers have mastered its product. As a new trend, even small and mid-sized auto parts manufacturers in the country are trying to supply a totally sub-assembled or fully assembled units that go straight in car assembly.

Design engineers of even tier II auto component companies today can be seen engaged in analyzing, designing and testing auto components on high-end computer-aided design and engineering component ‘morphing’ tools. A company without a capable and strong design team can’t improve and innovate the products and processes to be and remain competitive. Many big such as Bharat Forge and Amtek Auto or even small companies too are trying to acquire design firms in developed countries to get strongly placed fast into the innovation business. Many are trying to build on own locally.

Autoline, an Rs 200-crore vendor of several leading automobile companies bought Detroit Engineered Products, an American design firm, for $15 million (Rs 60 crore), and is now heading to be a global ancillary.

RSB Transmissions is an Rs 600-crore auto ancillary firm in Pune. The CEO claims “to have even advised original equipment manufacturers (OEMs) on why a component has to be designed in a particular way.” To give such advice, the design team has to be capable of going a step beyond the OEM’s component specification. RSB, for instance, designed a propeller shaft 10 kg lighter than its original weight, which, coming as it did from an Indian ancillary, surprised the OEM. RSB has invested Rs 12 crore in R&D, and has also acquired Michigan-based Miller Brothers, a precision machining company, for $19 million (Rs 76 crore). RSB’s ‘i-Design’ team is a separate entity working with OEMs on component quality, weight, design and pricing.

SRF Ltd has made innovative modifications on some old machines combining two processes of twisting and cabling with a lot of saving. Anand Group has brought about innovations in car ACs making it cheaper. Sona Steering under the able leadership of Surinder Kapur has enhanced its R&D budget by 15%. As reported, Sona has developed a steer-by-wire technology that may be showcased in coming Auto Expo 2008.

Medium-sized ancillaries have also been spending more on R&D over the past three years. Importantly, foreign majors such as Toyota who are noticing the rise in defect rate among their vendors, find Indian ancillaries a viable source. Clearly, a capable design teams can add a lot of value. It gives the ancillary company freedom from the OEMs.

However, design talent is expensive and scarce requiring a lot of nurturing from the top management. It is not easy to direct the engineering capability into R&D. IT today attracts the best brain. However, it is not difficult to build a great design team, as it requires picking up the right kind of people who may, on their own, may not like to join IT, because of their interest in design.

Many foreign firms are trying to set up its R&D wing in India because of a great pool of talent. Eaton Corporation, a US-based $12-billion (Rs 48,000-crore) firm, has already created a ‘professional services centre’, comprising 500 engineers dedicated entirely to R&D to focus on clean technologies for the Indian and global automotive sector.

As announced recently, General Motors Corp, global automakers is setting up a new Collaborative Research Lab (CRL) in partnership with the Indian Institute of Technology, Kharagpur to carry out research in areas of electronics, controls and software. It had already an R&D center in Bangalore. GM has also opened its India Design Lab in Bangalore, which will comprise 100 professionals involved in styling cars.

CII too has undertaken “Mission for Innovation in Manufacturing” since May 2006. The best part is that many globally reputed management consultants are helping in its endevour to Indian manufacturing sectors globally competitive.

Many a times I feel every person in any profession must learn the basics of the art and science of innovation techniques at stage of education.

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Comrades’ West Bengal

Many a time I wondered how could West Bengal remain so poor and less developed even after 30 year of stable leftist rule. I did write about my experiences how the leftists spoiled the industries of West Bengal through trade unionism that basically terrorized the management. Any one in managerial staffs had to suffer and lead a life with fear or tow whatever the union representatives wanted. I had to pay for my bold management stands against the wishes of union many a time during HM days.

The whole world and particularly leftist intellectuals have painted the rosiest picture of the changes in rural Bengal. As much as I have noticed and conclude the local people in rural Bengal have started working very hard for getting the maximum of yields from the farming shaking off the older dogma. West Bengal didn’t use the workers from Bihar and other poor state for farming, other northern Indian states such as Haryana and Punjab did.

I don’t know how correct is Mukulika when she claims, ” Only under Left Front rule, the gorib (the sharecroppers and daily wage labourers) have gained a modicum of self-respect, a luxury no one in their families had ever experienced before. It is now possible to ride a bicycle or wear trousers without being ridiculed by members of wealthier castes.” I had friends from the rural areas since my school days and was very much in contact with the large number of local employees in HM with rural background.

Mukulika Banerjee, a reader in social anthropology, University College, London happens to write her experiences in two Muslim villages in Birbhum of West Bengal in Times of India on December 3, 2007.

After the left takeover in West Bengal, the comrades rule the state and all in administration including IPS or IAS officers are to keep the comrades in good humour. Union decides whom to employ, whom to promote, who gets the company quarters, and even who gets some advance payment.

I never knew that the grip is so intense in rural Bengal. Mukulika writes:

A ‘comrade’ controls all life in an average village of West Bengal today. In his sphere of influence, the local comrade reigns, his word is law. Successful comrades are those who are able to ingratiate themselves into every single village matter.

The comrade controls even personal lives of the people. No marriage transaction for a young girl can be made without the comrade’s consent, brothers cannot settle inheritance issues without the comrade’s support and no one can even dream of starting a new business without the comrade and his sons trying it out first.

The comrade’s lust, desire for control and greed rules the lives of the people. Any challenge to this power is met with disproportionate punishment. Access to the village lane can be cut off to the offending member’s household, a mysterious stampede of cows can ruin a standing harvest, a girl can be raped as she walks home in the dark or a young man is beaten up in front of his prospective in-laws.

Ironically, ministers, senior leaders in Kolkata and district capitals seem unaware of these happenings. They express surprise. Why should they bother if it means easy electoral victory for them election after election?

The reason for these repeated victories is complex calculus of consent among the voters, systematically and painstakingly created by a hard-working party organisation. And why do various section vote for the left?

The gorib vote for it because they genuinely think that their fragile self-respect could be taken away under a Congress regime, returning the village to the horrible old days of their fathers’ humiliation. The middle peasantry and upper castes vote for the LF in the hope that this will restrain the local comrade from raising the minimum wage. Families vote for the LF hoping that the comrade will allow them to resume negotiations for their daughter’s wedding.

For anyone who has lived in a village in West Bengal, an everyday phenomenon is: The roar of motorcycles, the constant violence and threats, the decimation of any nascent opposition party activities, the growing arrogance of party cadres.

And that is the genesis of Nandigram.

Electoral victory has been a remarkable success for the Left Front in West Bengal. But is it a democracy of the people, by the people, and for the people.

I wonder if Bengal and its people can take pride in it. Can other help? Perhaps, the answer is a big ‘NO’. The whole of India can only keep on watching from a distance and making their impressions about the changing Bengal from the high rising buildings and malls in Kolkata, and the announcement of many industrial houses about the setting up of factories.

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Bihar-Some light in darkness

For almost a month, I have not written about Bihar. ‘Chetawani’ or ‘Sankalp’ rallies only made me morose. Why can’t Paswan and Lalu change their political strategies for the sake of the people of Bihar at least for some time? After all they had and will get ample opportunities to prove themselves. And they are still in position from where they can bring about a visible change in Bihar, if not in whole of it, at least in their constituencies. Laluji can see that all the factories that he has proposed to set up in Bihar start construction before he goes out of the present portfolio. Paswanji too can help Bihar having a hub of drug manufacturing. Bihar has all the inputs for pharma industry. Let their party legislatures concentrate in their constituencies at least utilizing the legislature funds that are in millions per year. They may also help in getting the central projects expedited wherever they are effective.

Whatever appears in media, particularly what we see on various news channels about Bihar is only disgusting. However, Aditi Phadnis has written ‘Well-begun but half done’ in Business Standard on December 1, 2007 about the changes in Bihar in last two years of Nitish rule. It was refreshingly nice to read except for the reference about caste dominance.

Here are some portions from the article:

The roads that the state has built are not spanking new four-lane state highways. They are small stretches between villages or between a state/national highway and a village. You have to live in a village to know what this access to the outside world means. Small rivulets that turn into vast swathes of still water un-navigable after the monsoons have been tamed because building or repairing small bridges has been decentralized.

Footfalls in state hospitals continue to grow. Classes in panchayat-run government schools are being held. Every girl child born in a family below the poverty line will be given Rs 2,000 that the UTI will manage until she comes of age.

One quintal of rice to every flood-hit family – regardless of economic status – will continue to be given two months until after the floods. This was earlier 25 kg, barely sufficient for a family of four and would result in large-scale migration every year to stave off hunger.

A scheme to provide a toilet to every home, no matter how small, will cost the state government Rs 1,300 crore but will at least begin to address the problem of sanitation in rural areas.

There was a time the MLA was everything and the DM, nothing. Now it is the other way round. This is causing tension, with party men otherwise loyal to the chief minister, turning against him for being so bureaucracy-led.

However, there are times when Nitish Kumar comes to a standstill while taking administrative decisions. The state has not acquired a single acre of land for industry wanting to invest in Bihar.

The result: an investor for the Rs 1,320 crore Appu Ghar amusement park project got an assurance from the Bihar government that state-owned land on the banks of the Ganga in Patna would be given to him. Then the chief minister got cold feet. The project has since relocated to Delhi. The state government has cleared proposals worth Rs 2,37,000 crore since coming to power. But only the bravest are actually putting money in the state.

With the best of intentions and working 18-hour days, Nitish Kumar needs to succeed, not just for Bihar but also for India. To do this, he needs to be resolute.

I am sure there are many more things happening. I heard the vigilance commission has effectively moved to take action against black seeps. As reported, “since January 2006, the bureau has laid 153 traps and caught more than 178 public servants including IAS and IPS officers, engineers, and senior officials of the forest department.” Many criminals are behind the bar. Crime is under check. But can’t Nitish move faster on the industrial development front too? Can’t he pick up someone who can do some miracles in taking the proposed investments on fast track? As the Chief Minister of Bihar, he can pick up any one he wishes who can make Bihar industrially developed. Perhaps, main obstacles to investment in Bihar relate to the perception about the crime and corruption in the state. Perhaps that will take time.

I personally feel that the trio of Nitish, Paswan, and Lalu can do that by shaking off their party affiliation. Let them stop criticizing each other in public. It would not make any difference if they don’t do that. Let them shift their personal priorities to uplift Bihar that still live with the lowest per capita productivity in agriculture at Rs 661 against the national average of Rs 2,370, and the lowest investment having a highly adverse credit-deposit ratio of 24.5% against the national average of 53.4%. 56.5% the population of the left-out Bihar still lives in flood-prone conditions. Bihar has the country’s second largest number of poor at 41.4% after Orissa (46.4%). Furthermore, more than half (55%) of the state’s urban population lives on just Rs 19 each day.

Are they listening?

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Booming and Blooming India-XXIX

A sluggish manufacturing sector pulled down economic growth to 8.9% in the second quarter of 2007-08 as compared to 10.2% during the corresponding period of the previous year, despite a good show by the agriculture and mining sectors. Rising rupee has affected manufacturing. But the fundamentals are strong. Inflation is within the limit set by RBI. Companies are investing and preparing to face the unavoidable. Confidence level is high. India must move to a GDP growth of 10% or more. It is under discussion. The foreign exchange reserve bulges to $272 billion. India may soon use some in interest of the nation.

RCom set for $5.6 bn order: Reliance Communications Ltd (RCom) is getting ready to place what will be, at 70 million lines and an estimated value of $5.6 billion (Rs22, 288 crore), the biggest order ever by an Indian Telco.

Cement capacity: According to recent expansion plans, installed capacity is expected to increase to 186 mn.tpa by end FY2008, and 219 mn.tpa by end FY2009, and up to 241 mn.tpa by end of FY2010.

<b>Infosys climbs higher on FinTech 100 list: Infosys Technologies Ltd for the fourth consecutive year has been named to the FinTech 100, an international annual listing of the top 100 global application and service providers that derive more than one third of their revenue from the financial services industry. Infosys ranked 14 on the annual list by American Banker and Financial Insights, up from 18th position in 2006.

ITC plans to add 20,000 e-Choupals: ITC is looking at increasing its e-Choupal footprint to nine more states adding 20,000 more kiosks, and 10 million farmers to its network by 2010. Currently, ITC’s e-Choupal network operates in six states with 6,400 kiosks in 40,000 villages, covering 400,000 farmers and it will be expanded to include 1lakh villages in 15 states.

Three Indians in Fortune list: Ratan Tata has been named by global business magazine Fortune as one of the top 25 most powerful business heads, along with steel tycoon L N Mittal and PepsiCo’s Indra Nooyi. The Fortune ranking closely follows a list by another global business publication Forbes, released earlier this month, that named India’s richie-rich led by Mittal and Ambanis.

US subprime crisis fails to crack Indian realty boom: There will be demand for over 24.3-million new dwellings for self-living in urban India, and over half of this will come from outside top 100 cities, according to ‘Housing Skyline of India 2007-08’, a study by Delhi-based research firm, Indicus Analytics. India’s booming real estate industry, growing at a scorching 30 per cent and estimated to touch $60 billion by 2010, has caught the fancy of global realtors and investors who have pumped in or are looking to invest heavily in the sector.

From London to Paris, they woo Indian investors: With India Inc emerging as a serious investor around the globe, various governments and cities, from London to Paris, are now courting Indian companies, seeking their investments.

Punjab potato farmer pioneers French fries: An agro-processing plant set up by local potato farmer Mandeep Singh is set to give Punjab’s Jalandhar district the tag of being the first to have an Indian company indigenously produce French fries in the country.

Rs31,000 cr plan on skills development in the pipeline: The Union government has proposed spending Rs31,000 crore on skills development over the next five years according to a draft of the 11th Plan, as against just Rs 350 crore allocation for skills development in the 10th Plan. India needs to expand vocational training from the present capacity of a mere two to three million to at least 15 million new entrants to the labour force.

Indian blue-chip cos create 3 times more wealth than US firms: India’s 30 blue-chip companies, part of the stock market benchmark Sensex, may be minnows compared to their US counterparts, but they have created nearly three times more wealth for their investors this year so far compared to the American giants.

Asia’s Young Entrepreneurs: John Hummelstad, regional director of emerging technology and venture capital in Asia-Pacific for Microsoft is impressed by the dynamism of entrepreneurial companies in India. “Before they were writing code for others, and now they’re developing their own code base and moving forward from there.”

IIMB students get foreign internships: For the first time, Indian Institute of Management Bangalore (IIMB) will have 110 students interning aboard. Of the 249 students who got internship offers, 68% accounted for investment banking followed by 17% for management consulting firms.

Carbon trade may prove another IT sector for India: The World Bank has said that with growing concerns for global warming and climate change, the carbon trade market, which is set to grow from the present level of 30 billion dollars annually to 100 billion dollars, can prove another IT sector for India.

India to have 20 million broadband: Connecting over six lakh villages with broadband connectivity will help introduce the power of IPTV as an enabling tool that could eventually bring BPOs to locate in India’s villages. Today the country has about 2.7 million connections. 2 Mbps and above connected needs are expected to be made free or should be charged only on the basis of usage of content.

Acquisitions continue: Gitanjali Gems has acquired US retail jewellery chain Rogers for $18.5 million to boost the company’s retail presence in abroad. Rogers revenues this year stood in the region of $80 million. Plethico Pharmaceuticals, a leading Indian herbal and nutraceutical (a combination of drug and food products) company, has agreed to acquire Natrol, a nutritional products company in the US, for $81 million (Rs 318 crore). Welspun India has turned around UK’s largest terry towel brand called Christy, which it had acquired it in July 2006. Nirma acquired the US-based natural soda ash producer Searles Valley Minerals (SVM). The acquisition, third in a row in three years will place the detergent maker among the world’s top seven producers of soda ash. Hindalco Industries, an Aditya Birla group company, is scouting for copper mines in Columbia, Peru and Argentina. Tata Steel signed a joint venture agreement with Australia’s Riversdale Mining Ltd to set up a special purpose vehicle to develop a hard coking and thermal coal project at Riversdale’s key coal exploration tenements in Mozambique. Indian Film Outfit Goes Hollywood: Prime Focus Group (PRFO) , a Mumbai-based postproduction house for films, TV shows, and advertisements, intends to pay $43 million for a pair of Los Angeles companies, Post Logic Studios and Frantic Films.

Indian BPOs move to Latin America: After making a splash in US, European and Japanese markets, Indian ITeS companies in the last two years have seen many of them set up shop in countries like Chile, Brazil, Argentina, Uruguay and Mexico. From TCS to Satyam, Evalueserve to 24/7, Indian companies have now opened development centres or acquired companies all across Latin America.

NRI creates mice resistant to cancer: An Indian-origin researcher at the University of Kentucky has led a team to create mice that are resistant to aggressive types of cancer.

Moser Baer to set up solar project in Rajasthan: The photovoltaic unit of optical media storage device maker Moser Baer (India) Ltd would invest about $25 million (approx Rs100 crore) to set up a solar power project with an estimated generation capacity of the project is 1-5 mw in Rajasthan.

Satellite technology to clear urban mess in Delhi: The government is planning to come up with a 3-dimensional geo-spatial data of land, buildings and underground utilities in the city using satellite and aerial photography. The new technology, “Delhi State Spatial Data Infrastructure”, which is supposed to be in place by February 2009, is expected to help government in a number of ways including detecting power theft, streamlining tax collection, helping courts in settling property disputes and managing traffic and relief operations during disasters.

Biometric ATM to Chhapraula village: Punjab National Bank has taken the initiative to install North India’s first biometric ATM at the Chhapraul that will help the illiterate and semi-literate customers by helping them to withdraw cash, make balance enquiry and get mini statement with the facility of voice guidance.

<b>Indians in US: India is in the top three of legal immigration in the country accounting for a little more than 1.7 million with nearly 39 per cent being US citizens, said the study released by Center for Immigration Studies. Indians in Santa Clara County, home of the Silicon Valley, have the highest median household income, own the most valuable homes, and are the best educated, according to a latest Census report. However, the brains are flocking back home too. Calcutta University (CU) recently received applications for an assistant professor’s post in the biochemistry department from more than 80 scholars working in US, UK and German.

And an achievement that every Indian can be proud of: “The Indian Space Research Organisation (ISRO) entered into the exclusive club of nations capable of building cryogenic engines with a thunderous sound of a rocket test that lasted 12 long minutes.

Indian story is reaching everywhere and interests everyone who matters.

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Christ in India

In my active professional days when I used to travel very often, I remember seeing some books about the years Christ spent in India on the bookshops of airports. I never took it seriously. I considered them as a book that claims Taj Mahal as Hindu Temple. Many years ago, one of acquaintances talked of the discovery of US by Buddhists in ancient times. It is difficult to ascertain the truth and historicity, but it is interesting reading.

It was interesting to read that very soon a $20 million film, The Aquarius Gospel, will trace Christ’s “lost years” between the ages of 14-30, on which the Bible is silent. It will show he spent some of that time in Kashmir, was deeply influenced by Buddhist and Hindu teachings.

Outlook has a feature by Raghu Karnad on this that also provides some references to the books of some authors on the subject:

In 1887, a Russian historian, Nicolai Notovitch, returned from Ladakh and claimed that after falling from his horse and breaking his leg, he had been laid up in the Hemis monastery near Leh. While there, from conversation with the monks, he learned that they revered a prophet named Issa, an incarnation of the Buddha, who was born in far-off Israel and arrived in ‘the Sind’ in his 14th year. The deeds of Issa were recorded in lengthy documents, some of which were stored in Hemis and which Notovitch was allowed to view after much pleading. They further described how Issa went to Orissa to study the Vedas, but angered the Brahmins by trying to teach the Sudras. Notovitch claimed he wrote down as much as he was able to from the Hemis documents, which he later published as The Unknown Life of Jesus Christ.

Levi Dowling published ‘Aquarian Gospel’ on which the film is going to be based, in 1908. Another book, ‘Jesus Lived in India’ by German scholar Holger Kersten became a bestseller in India.

Fida Hassnain may be the most dedicated scholar and defender of the story of Jesus in Kashmir. As the former director of the State Archives, Archaeology Research and Museums in the J&K government, he has personally examined a number of documents-in Chinese, Sanskrit, Arabic, Pali and Persian-which he says point to the presence of Jesus in Kashmir. The most important piece of evidence, to him is the Bhavishya Mahapurana, one of the 18 Hindu Puranas. “It provides information that Jesus met the King of Kashmir,” Hassnain says. “He gives his name as Isa-Masih, he says ‘I am known as the Son of God, born of a Virgin’, and he also says he has suffered, meaning, on the cross. The manuscript was in the possession of Maharaja Partap Singh of Kashmir, who later gave it to the Bhandarkar Research Institute, Pune.”

Hassnain’s version of events is much more controversial than the one the filmmakers are using: he proposes that Jesus did not die on the cross, but recovered from the Crucifixion and returned to Kashmir to resume his preaching. The Ahmadiyya community of Muslims believes the same version of events, which is one of the reasons they are treated as heretics by mainstream Muslims. Like the Ahmadiyya communtiy, Hassnain believes the body of Jesus was interred at the Rozabal Shrine in Srinagar under the name of Yuzu Assef.

I don’t know if Christ traveled to India. But by the time of Christ, Arabs and even Europeans knew India. As it happens with young smart people such as those who migrated to US from Europe or the migrants from India who established their colonies in South East Asia, Christ might have come to India. After all, Guru Nanak had also traveled to Arab countries and visited the Islamic shrines.

Globalization thus started in ancient time itself.

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Manufacturing Melts and Vanishing Jobs

The rupee strengthening more than 15 per cent in last few months against the dollar have severely eroded the margins of exporters and competitive advantages. What can be done to cut the costs to shore up the bottom lines of the exporting companies? After all, a company can survive and grow only if it makes money.

Manufacturing is the most affected sector. The worst hit are export-intensive businesses like textiles, leather, handicrafts and engineering. And the companies are now resorting to drastic measures, like retrenchment drives, to stay competitive. The estimated job losses run into several millions. According to the Federation of Indian Export Organisations (FIEO), the apex export body, almost 8 million jobs are likely to be lost this financial year. And the problem may get worse if the rupee continues to appreciate as in recent time.

Most textile companies are opting to downsize to cope with a loss of export income. But the option is certainly anti-people in a country where job loss leads to a miserable life with almost no alternative job opportunity for the workforce retrenched. The textile and apparel exporters seem worse hit by the dollar’s depreciation. The reason is obvious. More than 80 per cent of India’s textile exports are dollar-denominated. According to the Confederation of Indian Textile Industry, almost 500,000 jobs are likely to be lost this year. FIEO puts the expected number of jobs lost at 600,000. According to the Tirupur Exporters Association, almost 10,000 direct jobs have been lost in the region and by the end of the year; the number could soar to 50,000. The products of textile companies are highly price sensitive. Most garment and apparel companies supply to the intensely competitive retail market in the US and Europe, where sharp price hikes is difficult. The exporters have consciously moved up the value chain to hand embroidered and denim products. But 60-70 per cent of the market is still with the low-end garment exporters who work on thin margins.

Another sector reeling under the rupee’s rise is leather. More than 90 per cent of exporters have a turnover less than $5 million (Rs 20 crore) and account for half of the country’s leather exports are in the small and medium sector working on wafer-thin margins. The large units with more than $15 million in revenues account for only a fifth of the total exports. The sector employs 2.5 million workers. And all of them face the risk of job loss.

The rupee appreciation has also affected the handicrafts industry badly. As reported, the exports of handicrafts have been growing consistently at an average rate of 16-17 per cent over the previous years. Since June, exports have shrunk. The Export Promotion Council of Handicrafts (EPCH) estimates that export of handicrafts during the current year may decrease by 15 per cent in comparison to 2006-07. According to EPCH, almost 800,000 artisans are already jobless. However, many a times it seems the bogey of retrenchment is only to get the government attention and subsidies or other financial assistances.

According to commerce ministry estimates, exports dipped 56 per cent in handicrafts, between 6 and 22 per cent in textile-related sectors, and 6 per cent in leather in April to October 2007 over the same period last year.

How can the companies face the fallouts of rupee appreciation that is not under the control of the country? India can’t become China or Hong Kong that have a fixed exchange rate with dollars for many years. But should it not be a matter for discussion at WTO level? The parity among the currencies of different countries must be a necessity for globalization.

But then how can these manufacturing sectors survive and flourish? I personally feel that the trade associations take a very short-term view of the competition. It talks of relief from the government: refund of all local levies (State and municipal), reduced interest rates on pre- and post-shipment credit, withdrawal of service tax applicable to all export related activities; and moratorium on the return of principal loan amount. And under the political pressure and lobbying, the government yields. Chidambaram on Thursday announced additional relief measures for the exporters in his third such package since July. However, it has neither satisfied exporters’ nor the commerce ministry. The highlight of today’s measures include a two per cent subvention in export credit (essentially a reduction for which the government bears the burden), exemption of service tax for three more services that exporters use (storage and warehousing, specialized cleaning services and business exhibitions) and lower customs duty on raw materials for textiles.

It is unfortunate that they hardly talk of productivity improvement, technological innovation, making the products more acceptable by improving the quality through continuous dialogues with the employees.

Why should they jump to one point solution by retrenchment? How much is the labour cost today in manufacturing? Why can’t they take the workforce in confidence to accept a cut in the compensation for the troubled period, if they are honest? Why can’t the trade associations and the government agencies assist in looking into cost reduction of various elements?

With abundance of cotton and rawhide in the country, the cost of the major input is certainly low unless the intermediaries are jacking that up. The manufacturers are paying much less to the shop floor workers than the other Asian countries pay. For instance, in the handicraft sector the price depends on the attractiveness of the products that comes from the skill of the craftsmen. Traders pay the minimal compensations to them. Many a manufacturers, particularly the traders are unscrupulous. The subject requires an in-depth study of various aspects.

What are the high costing elements in production processes and administration? Why can’t that be reduced instead of retrenching the workmen, raising alarm and crying for alms from the government? Perhaps the whole lot of the people of the country at all levels prefers to live an easy life with subsidies and doles instead of finding technical solution to face competition.

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