Concept of Corporate Farming and India

Posted on September 7, 2007 by indra

MS Swaminathan has rightly expressed his concern in the lead article ‘Not a grain to spare‘ in Hindustan times today.

“How can we achieve the desired growth rate in agricultural production? The growth rate in the production of cereals declined from 4.13 per cent in the period 1984-85 to 1994-95 to 1.09 per cent between 1994-95 and 2004-05. Annual growth rate in the agriculture sector as a whole declined from 3.69 per cent in the period 1990-96 to 1.65 per cent during 1996-2005. Net sown area, gross cropped area, fertiliser use and electricity consumption all declined. Growth rate of terms of trade for agriculture declined from 0.95 per cent per annum during 1990-96 to -1.63 percent during 1996-2005. In Punjab, even farmers with over 3.00 hectares are unable to earn an income comparable to that of a class IV employee of the Government of India. 84% of all the farmer households are the small and marginal ones. Fifty seven per cent of India’s total employment and 73 per cent of total rural employment come from farm sector. Farming in our country is the backbone of the livelihood security system for a majority of our population.”


How many of us know about the corporate farming that is going to come up sooner than expected in India? Punjab is taking the lead again. It will spread awareness and knowledge of the modern farming technologies and management practices too. This includes deploying latest technological equipments and upgrading the existing agricultural process. I only wish India remained more with organic products-fertilisers and insecticides to protect the crop from various insects and diseases and avoid what west do, blindly.

A visit to FieldFresh’s ‘Agricultural Centre of Excellence’ (ACE) in Ludhiana can tell what is going to come. It is a project of Bharti Enterprises (supported by the Rothschild) venture with Rothschild. One can see fields full of baby corns, chillies and bitter gourds; and meet technicians from South Africa and New Zealand who supervises and teaches local hands. Many a times it reminds me of the good days when Brishers and then Americans used to work in the automobile company to which I was attached.

Very soon all the good practices will be in place. Farmers across the country will gradually start following that to better manage, produce and also build an efficient cold-chain, which will allow consumers both in India and abroad access to good, fresh produce. Even smaller land holding as vendor to bigger farm can be viable

Very soon the work on the main processing unit will be complete. It will have four lines, capable of processing 16 tonnes of fresh produce every hour, once it starts functioning.

It’s a 300-acre facility. The company has already set up a temporary small processing unit to manage the baby corn crop in one side. In this sanitised unit, some 100 women are working in a production line, opening, cleaning, and cutting, sorting and packing baby corn for both the domestic market and for export.

A row of greenhouses is under construction. One can look into a couple of functional enclosures. The first one is growing cherry tomatoes, and it seems that farmers have taken soil out of the equation altogether by growing the vines out of ‘grow bags’-polythene bags packed with a growing medium, primarily coconut husk, with three plants growing out of each bag. The bags are fed with an Israeli-designed micro-irrigation system and in turn feed water and fertiliser to each plant.

Cherry tomatoes offer excellent return. While setting up a covered greenhouse and micro-irrigation system can cost up to Rs 15 lakh an acre; the return in a year can reach Rs 40 lakh. Returns are better if farmers invest in coloured capsicums. ACE is growing that in the adjoining greenhouse.

Technicians at ACE are developing crops that can be grown in other parts of the country-Himachal Pradesh, Madhya Pradesh and Rajasthan-where FieldFresh is setting up shop. The company has even taken up cold storage at Amritsar airport so that it can export the produce fast. It could take only a day to get produce from the field to a shelf 5,000 km away.

This provides a glimpse of new farming that India will resort too to make the farmers as prosperous as those in West. However, will the corporate farming provide the answer to all the difficulties of Indian farmers that MS Swaminathan mentions in his article?

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Mayawati Missions in Her Fourth Inning

Posted on September 6, 2007 by indra

I had great hope from Mayawati when she returned this time to form the government in UP, my home state now, with clear majority. I rather developed a respect for her political strategies and social engineering that won her the election. I thought she would be concentrating on UP development instead of wasting time and resources in political gimmickry or on whimsical personal agenda.

I was afraid that she would suspend the power plant of Anil Ambani, because of his political affiliation with Mulayam and party. But very soon Mayawati cleared all hurdles for the project to go ahead. It was a great surprise but gave me a lot of pleasure. If the project gets going, it will bring a hope of better UP on power front, more so for Noida. My hope got strengthened, when Mayawati also announced use of energy saving CFL lights in all government buildings in the state. And in quick succession came the agricultural policy with contract farming. I thought some good advisers are around her.

Like Bihar, UP had been unfortunate to miss the bus of development for some decades now because of poor political leadership with misplaced priorities. UP had been sliding down on the development and overall growth- in infrastructure, agriculture, as well as in industry.

I have mentally prepared a wish list with some important projects for UP that can change the state’s economy and image too:

Airport: The civil aviation ministry has finally approved the setting up of a new international airport at Jewar, near Noida. It can come up by 2010. And the state government must push for it. It will certainly add to the prosperity of the area.

Taj Express: I got excited when Mayawati in her earlier term as Chief Minister came up with this ambitious 150 km-long Taj Corridor expressway from Greater Noida to Agra. I was really morose when Mulayam government put the project in cold bag through legal hurdles along with the flyovers of Noida. I have not heard very lately about the progress, but I am sure the project will get expedited. And perhaps I can drive on that expressway in my lifetime itself. I get my confidence from the announcement of another ambitious road project that will take me to my village home much faster and open the avenues for prosperity of the region through which it will pass.

Ganga Expressway: Mayawati announced a 1,000-km modern eight-lane access-controlled Ganga Expressway from Noida to Ballia, on the left bank of the Ganga at a cost about Rs 40,000 crore. Mayawati promises, ‘While normally such projects take five to seven years to be completed, the UP government intends to finish it in three years.’ Can this expressway be developed on the line of Delhi Mumbai Industrial Corridor (DMIC) project? Though there are not many in central government to back it, Mayawati with her clout can certainly do that, if so wishes.

Noida-Greater Noida- Ghaziabad Education Hub: Mayawati must make Noida-Greater Noida- Ghaziabad grow as the largest education hub of the country. The region already has a large number of private medical and engineering colleges, as well as management schools I wish the institutes come well on the quality of education that it impart to the students. And with a little support on infrastructure from the government, the region can become the world-class hub of knowledge sector too with enterprises of IT, ITeS, and high end BPO such as LBO and R&D.

To add to the above list, I have some more ambitious project in my suggestion box: Ghaziabad has all the potential to become a hub for heavy engineering industries. Lucknow-Kanpur- Allahabad can grow positively as knowledge as well as manufacturing hub with a large number of world-class professional institutes (IITs and IIMs) and laboratories already present. Mirzapur- Varanasi-Chunar can be developed as a hub for handicrafts such as pottery, carpets, silk textiles, and stone sculptures.

However, one gets hurt when media reports keep on detailing Mayawati’s ‘acquisition’ spree and demolition drives:

“Plans are on to take over all of the plush Mall Avenue in Lucknow’s VIP area. The UP chief minister already has a huge fortress-like house here, courtesy her earlier reign (all ex-CMs in UP are entitled to homes). But now she’s ordered the building of another “ex-CM’s bungalow” on a 1,00,000 sq ft plot nearby. A sum of Rs 10 crore has been earmarked for it. Her party trust has purchased a 55,000 sq ft plot across the road and two more bungalows-allotted to ministers who will be shifted elsewhere-are also going into her kitty. The only property in the area that isn’t hers yet belongs to an industrialist-and reports say he’s been made an offer he can’t refuse. If things go to plan, Mall Avenue will soon become Maya Avenue. (Meanwhile, renovations at her official bungalow, 4, Kalidas Marg, which Mulayam Singh Yadav had “dirtied”, is complete. Cost: a mere Rs 4 crore!)”-(From Outlook).


And then comes another news: “Mayawati plans to raze a nursery school that falls in the security zone around CM’s residence. The CM’s grandiose plans for erecting gigantic statues of Dalit leaders saw government bulldozers chipping away at Lucknow’s Ambedkar Stadium until a high court bench slammed the brakes on the demolition. On the same excuse of her security, officials plan to take the hammer to Lucknow’s oldest Municipal Nursery School, established on 122 Mahatma Gandhi Marg on May 14, 1951.” (From Times of India)

I wish the reports are just media meddling.

People will have no objection if she comes with a plan to build special schools and hostels so that 100% children from the underprivileged classes can get good education. But at least I find no prudence in building huge memorials of Kansiram and Ambedakar in all the district headquarters. Let Mayawati realize that it would be just waste of money that could and must be used for the benefits of the people. Let her use all that money in building houses for the needy people. I shall have no complaint or objection. I wish God gave Mayawati moral strength and maturity to amend her way so that posterity remembers her for good reason. But we have noticed her mercurial character when she withdrew the agricultural policy declared by her only few days ago under pressure of traders and middlemen and without serious consideration on the advantages. All that makes me feel bad. But I still hope she will soon be different and put her government on development as the top priority.

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Priorities , Political Patries, and Productivity

Posted on September 5, 2007 by indra

Why is our political leadership so much away from the priorities for the nation? Why the left is creating so much of hue and cry when many important needs are not getting any attention? What is more important- the timely assistance to the flood victims, a well-established disaster planning or a protest against joint navy exercises of 5 nations– India, US, Japan, Australia and Singapore? And what a comfortable way of protest or picnic! The Volvo buses are carrying 81 comrades in temperature-controlled air-conditioned comfort, riding on air suspension and cruising at speeds of over 100km per hour from Kolkata to Visakhapatnam to protest.

Dipankar Gupta in an article ‘Fission in Empty Water’ in Hindustan Times says, “The UPA has so far been unable to make any significant dent on the conditions of poverty or improve on the delivery of public goods, particularly to the rural poor. This, rather than beating our chest about our right to test nuclear bombs, should have been the principal concern of the left. Unless the definition of socialism has changed in recent times, their ideology was all about raising the living standards of citizens, particularly those of the poor.”

BJP had initiated some projects of national importance. It hardly talks about them now and protest for unwanted delay. One such project was the transformation of roads to an international standard starting with GQ and E-W and S-W Corridors. GQ is still some kms away, but NHAI has hardly made any progress on corridors. Time and again, UPA has been announcing various phases of road building projects that keep the people happy. How one feels like when a world-class truck manufacturers blames the road condition? Volvo, who has started manufacturing heavy trucks in India has said, “Higher horse-power Volvo trucks could not be adequately optimised in India as average running speeds on highways were very low due to poor road infrastructure and congestion.” How can the inefficiency and cost of transportation change? Should this not be the subject of performance appraisal on which the government must put its priority and the opposition must protest? BJP has all time to waste for holding Parliament on N-Deal, blocking the Sethusamudram project and in pacifying Patel for Modi in Gujarat, but not for these road projects. Unless it comes out heavily on the development politics, it has no political future.

As reported, the productivity gap between the US and most other economies has continued to widen. In the US, the value added per person employed in 2006 was $63,885, while it was $6,587 in India. Why don’t the political parties ask CII and FICCI to find a solution for this productivity gap and press the government to assist? But then how can the politicians do it? They are too busy in settling their personal scores and priorities.

What a shame! The Delhi High Court had to direct Union health minister Anbumani Ramadoss to sign the degree certificates of AIIMS students within 24 hours – the very same certificates that the minister was refusing to sign. Does Anbumani not have any thing else to do but fight with just one director of AIIMS? Ramadoss – according to agency reports – has signed the certificates. Was it not a sordid instance of the continuing turf war between the minister and AIIMS director P Venugopal that was threatening the careers of young doctors who have laboured to earn their degrees?

While our parliamentarians are busy in protests, when the Chinese are planning to learn English from Indians and go ahead to the top position in IT/ITeS sector too.

I am sure they would have seen ‘Chak De! India’ by now. If not, let the I&B ministry arrange a free show of the film for the parliamentarians with their party bosses too with heavy snacks and drinks too, so that they can take some lessons.

Chak De! India.

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Powering India-5 Hydropower

Posted on September 4, 2007 by indra

In 2005, we were in USA. One of the most impressive places that we visited was Hoover Dam. I was amazed with the number of tourists visiting the site and the amount of revenues that must be getting generated along with significant employment through various service providers.

During our school/college days, we heard of Pandit Nehru’s Bhakra Nangal. Maithon and Tillaiya of DVC were in West Bengal itself. We visited Maithon from IIT. We could have visited Bhakara Nangal too during out last trips to Manali but for Sirohis. I don’t know if Bhakra has some basic infrastructure to interest tourists. Unfortunately, the tourism has never been the part of initial design of these huge manmade projects.

When we were visiting Hoover, I thought of Bhakra a number of times. Perhaps I mentioned too in my writing at that time. Interestingly, the Bhakra Nangal plant, now more than 40 years old, has operating costs of only Rs 0.10 or US$ 0.002 per unit. DVC units will be costing similarly. What can be a better and cheaper (too) way for power generation? A hydropower plant neither wastes the water it uses, nor pollutes it.

But then something went wrong at national level. Shockingly, from about 46% in 1970, the share of hydroelectric power dropped to 40% in 1980, 29% in 1990 and, again, to just about 24.8% in June 2007. Project like Sardar Sarovar kept getting dragged. Medha Patkar, Arudhanti Ray, protest rallies and court cases became the hot news in media for years to obstruct hydroelectric projects. India could not cash on its huge potential of hydropower. Interestingly, the oldest Hydropower power plant in Darjeeling District in West Bengal with installed capacity is 130KW was commissioned in the year 1897 and is still in operation.

As against the estimated 150,000 MW of hydroelectric power potential in the country, the installed capacity is only 33,486 MW. Work on another 15,000 mw is in progress. But 80% of the potential still remains to be realised.

Countries like Canada and Norway have exploited 48% and 58% of its hydro potential respectively. Brazil has attained 31%. As estimated, hydropower supplies at least 50% of electricity production in 66 countries and at least 90% in 24 countries.

Interestingly, three gauges project in China on Yang-Yang River is the largest power station in the world having installed capacity of around 18,200 MW. Earlier the world’s largest operating hydroelectric power station is ITAIPU with installed capacity of 12600 MW located at the Border of Brazil and Paraguay.

While the media is flooded with debate on the Nuclear Deal with US and its importance for the energy demand of the country, an aggressive policy and execution of hydropower projects could have solved the power shortage to a great extent.

Many more have also come in operation in last decade, and many are in planning stages. We saw the Tehri Dam in Uttarakhand while in construction when we went for Chardham of Uttarakhand. That was commissioned in 2006. The Nathpa Jhakri and Koyna IV projects were completed in 2002 and 1998 respectively. Two hydropower projects — the Rampur Hydropower Project downstream from Nathpa Jhakri on the River Satluj in Himachal Pradesh and the Vishnugad Pipalkoti Hydropower Project on the River Alaknanda in Uttarakhand are under progress. Image below will show the various locations and progress.

One of my friends is in the business of small hydropower projects. He has completed one near Manali against all odds and obstacles because of the administrative inefficiency and carelessness. The whole of the northern India along the Himalayan range from J&K to Arunachal Pradesh has huge potential for hydropower projects. Naturally the hydro projects may be the big ones such as Sardar Sarovar that involves environmental concerns emanating from submergence of large areas involving forest, rehabilitation and resettlement of the people and safety of dams. The state government must go for smaller hydropower projects at least on faster track, as it hardly has the rehabilitation problem that is holding up the bigger projects.

Interestingly, hydropower projects up to 25mw capacity are eligible for substantial cash subsidy from the ministry of non-conventional energy sources. A project income is exempt from tax for ten years and has a long concession period of about 40 years while providing a perennial stream of revenue to the investors. The construction may take hardly 2-3 year.

As reported, Himachal Pradesh had allotted almost 400 small hydropower sites to various potential developers since 1997 and has also invited applications for allotting another 200 sites. Surprisingly, just 15 hydropower projects came up in Himachal in last decade. Is not something strange and drastically wrong?

NHPC is the major player in bigger hydroporojects. Even NTPC, Tata Power, Reliance Energy, Lanco and GMR are planning investments to tap the hydro resource. Possibility to get carbon credits under Kyoto Protocol is more for hydro projects.

Will the administration take the challenge to get to the target? Will all the hydro project sites be made places of tourists’ interest too? Will the water reservoir of bigger projects be made a source for soft water fishes and provide employment to willing people?

The country policy document on hydropower intends “to increase the hydropower share in overall generation to 40%.” India’s minister of power claims to make India power surplus by 2012. He has plans to do that and had set a target too. But he may miss the target that has happened time and again for last few decades.

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Krishna and His Relevance

Posted on September 4, 2007 by indra

Today is Krishna Janamashatami. At 12 in the night, all the temples will declare the birth of Krishna and the fasting public will take ‘prasad’ and food. Surprisingly, the north India celebrates the occasion in temples with dances, songs and rituals, while west, Maharashtra and Mumbai in particular, celebrates it in its lanes, roads, and other public places with Gobindas and dhahi-handi competitions offering prizes up to Rs 10 million.

I was surprised to see an opinion poll on NDTV-India on the programme Khabardar. Which Krishna is relevant in today’s context- ‘makhan chor’ (butter thief), Divine dancer with gopis and Radha with music of his flute, or destructor of devils? More than 95% voted for the last option suggested. However, among the celebration that is getting telecast on all news channels, the whole nation in busy in the first two ways of remembering him. Is it not contradictory?

Krishna is one of the most colourful characters from our mythologies. Many believe him as historical figure too. I have been to Mathura where he was born in a prison of his maternal uncle, Kansa, Gokul where he grew and Vrindavan where he played his flute and danced with gopis in his divine dance. I had been to Kurukshetra too where Mahabharat was fought and where he recited the wonderful Gita. Delhi itself was Indraprashtha. Hastinapur is also near by in Uttarpradesh. He kept on shifting between Indraprastha and Hastinapur before the Great War Mahabharat carrying out the negotiation to avoid the war.And then Krishna retreated to Dwarka to ddistance the clan from the enemies. Last February, we visited Dwarka.

Krishna has three clear characters. As a child, he was brave and skilled enough to kill many who were sent to kill him. The kids of the country can emulate the child Krishna. He can be a good character for animations film such Hanuman or Ganesh. As a young man, he set an ideal model of romancing and enjoying the divine music and dance through flute and ras. And a matured adult, Krishna is great strategist who gets the respect of even the intelligentsias of the time. In one way he is the hero of Mahabharat. Without using any weapon, he led Pandavas to the final victory in the war. Gita remains the inspiration for the whole world. He is very much relevant even today, perhaps more than even Gandhi. India can’t win the war on terror following Gandhi. Perhaps Krishna and his Gita have answer to deal with the terror and the terrorists.

Krishna is relevant, as each age group can find in Him an inspiration, if it seeks that with positive approach. India needs a Krishna for its police community too. A Krishna only can eliminate the rampant corruption and criminality in the political class that is holding back the country to become prosperous and poverty free.

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Booming and Bubbling India- XVI

Posted on September 3, 2007 by indra

India’s growth story remains intact. According to Subir Gokarn, chief economist, Standard & Poor, Asia Pacific, “I don’t see any surprises. The momentum of industrial growth in 2006-07 has continued.” “JP Morgan is likely to revise up the full year growth forecast for the year 2007-08 to 8.6 per cent from 8 per cent earlier,”

India’s economy in the April-June quarter grew a faster-than-expected 9.3 per cent from a year earlier, led by robust manufacturing and services. India’s wholesale price index rose 3.94 per cent in the 12 months to Aug. 18, lower than the previous week’s 4.10 per cent due to a decline in some manufactured product prices. Economic growth is changing caste-based deprivation logic.

Domestic companies outsmart MNC peers in profits: Indian companies have performed better than their multinational counterparts in India in the first quarter of FY08.

Breakthrough in bio-diesel process: Researchers at the Indian Institute of Chemical Technology (IICT) in Hyderabad have discovered a way of using a well-known fungus to “substantially” accelerate the process and thereby reduce the cost of producing bio-diesel.

DRDO to take industry aboard unmanned flight: DRDO is in talks with several companies such as Larsen &Toubro Ltd, Godrej and Boyce Ltd, the Tata group and state-owned Hindustan Aeronautics Ltd (HAL), India’s defence aircraft maker, to design and develop the MALE (short for medium altitude long endurance) UAV in five years.

Samsung to commission Chennai plant: Samsung India Electronics Private Limited is all set to commission its Sriperumbudur plant near Chennai built on a 50-acre plot in the SIPCOT Sriperumbudur Industrial Park that will initially manufacture colour televisions and monitors. It has a capacity to make 1.5 million TV sets and 1 million thin film transistor (TFT) monitors.

Fortis plans 40 hospitals by 2010: Ranbaxy promoter group company Fortis Healthcare is planning to invest Rs 1,800 crore for setting up a medicity in Gurgaon and intend to have 40 hospitals under the Fortis group across 14 states by 2010. As reported in TOI, the Mukesh Ambani group is working with his A-team on a plan to put into place at least 1,400 hospitals.

Tata Consultancy bags deal with Hawaiian Airlines: Tata Consultancy Services had signed a multi-year contract with Hawaiian Airlines to provide IT, business process outsourcing and infrastructure services of approx $40 million to provide maintenance and support services to the airline’s revenue accounting application.

At 100, Tata Steel aims to double output: India’s Tata Steel, the world’s sixth largest steel maker since its purchase of Britain’s Corus group, aims to more than double production by 2015 as it celebrated the 100th anniversary of its founding on Sunday, 26 August. By 2015, Tata Steel hopes to add another 35 million tonnes to boost its worldwide annual production to 61.1 million tonnes. Tata Steel though signed the memorandum of understanding (MoU) with Orissa government on November 17, 2004, aims to commission the Kalinga Nagar plant by 2010.

Nod for Noida: The civil aviation ministry has approved the setting up of a spanking new international airport at Jewar, a two-hour drive east from Delhi that will come up by 2010. Greater Noida to Varanasi in less than 10 hrs: 8-lane road project set to roll.

MNCs still bullish on India R&D: At least a dozen large-scale companies including Allergan, Eisai Pharma, Dupont, Astra Zeneca, Johnson & Johnson, Bristol-Myers Squibb, Pliva, Ratiopharm, Nektar Therapeutics, Sigma Aldrich and Teva-have chosen the country as a safe haven for investment in drug research and development (R&D) since January 2005, when the Indian Patent Act was amended.

Now, TV on Shatabdi Express: The railway ministry plans a major upgrade of entertainment in its Shatabdi Express coaches that will soon have flat-panel television touch-screens on each seat, equipped with head-phones offering passengers options of “live” and pre-recorded entertainment and movie channels. It is because of the competition from the aviation sector.

Mysore CAD firm to up headcount: iCAD Engineering Pvt Ltd, the Mysore-headquartered civil engineering services company specialising in designing and detailing steel structures as per American standards, plans to up headcount to 200 people in Mysore and the overall strength to 300 in the coming year. Interestingly, the SME firm, founded by the two alumni of the Jayachamarajendra College of Engineering, has been instrumental in hiring physically challenged people to its workforce. It is a success story with humane face.

Government to upgrade ITIs: The government would upgrade as many as 500 ITIs in the government sector and another 1,400 ITIs that function with private sector participation, to global standards. Can’t the number increase tenfold?

India set to overtake UK in VC investments: According to the report, “India’s VC market with a growth rate of around 90% is likely to overtake the UK by 2009.”

JSW Steel to up capacity ten-fold: JSW Steel plans to export 10 million tonnes of steel in the next 10 years. This is part of its plans to scale up its steel-making capacity nearly 10 times in the next ten years.

EIH plans Rs 4,500 crore expansion: The Oberoi Group, which owns or manages the Oberoi Hotels and Resorts and Trident Hilton brands, plans to invest Rs 4,500 crore to increase its room capacity in the super-premium segment by over 60 per cent over the next five years, from a room capacity of 4,100 to 6,800, through new hotels in India and abroad. And all the hotel tariffs will be now in Rupees for even the foreigners.

Indian executives get behind MNC wheel: Many MNCs such as Sapient, Xansa, Aricent, and Cognizant, have been hiring people aggressively in India and now have more than 50% of their workforce working out of this country. Will it not make the market of graduates hot and the middle class bulge?

Govt sure of meeting $160bn export target: “We are confident of meeting the export target of $160 billion set for 2007-08 if the rupee remains at 40-41 to a dollar.” Ensure quality, improve productivity, and be innovative. Who can stop India?

HRD Ministry for first virtual technical university: The HRD Ministry is working on proposal to put in place India’s first virtual IIT Technical University, where students who have appeared in JEE and have taken admission in engineering colleges, can opt for this course along with the regular engineering course.

10% ethanol blending in fuel to be mandated: While blending-at 5%-is currently optional for individual states, the 10% blending of ethanol will be made mandatory by October 2008. And let us start calculating the savings to national exchequer.

Creating The Farmer’s Convenience: Farmers will be able to use WRs from accredited warehouses after delivering their produce as collateral for short-term borrowing for working capital. Farmers can hope to maximize profits by selling when prices are favourable.

Govt invites $10-bn global tenders for 126 aircraft: Though it could be six years before the first planes start arriving, 18 of the medium multi-role combat aircraft (MMRCA) will be purchased in flyaway condition and the remaining 108 manufactured in the country under a ToT agreement. The Indian defense sector keeps Western countries tempted.

Ashok Leyland, Nissan ink pact: Japan’s Nissan Motor Co. has tied up with Indian truck and bus maker Ashok Leyland Ltd to jointly manufacture small trucks and other light commercial vehicles in India. I wish the venture to bloom and blast the competition.

Indian movies likely to earn $213 million: Indian movies are gaining popularity in the overseas market and are expected to fetch Rs8.5 billion this year with the market growing by 18% annually, mainly because of the growing Indian diasporas around the world. Chak De! India.

Pvt firms invest record $3.8 bn in India: Global private equity firms, including Blackstone and Carlyle Group, have made an investment of USD 3.8 billion in 2007 so far in the country, up 50 per cent from the year-ago period.

NSE becomes world’s 2nd fastest growing stock exchange: The National Stock Exchange has become the world’s second fastest-growing bourse in terms of number of listed companies, while Bombay Stock Exchange has consolidated its position as the biggest bourse. NSE recorded a 16.6 per cent jump in the number of listings to 1,274 during one-year period ended July 2007, while BSE has become home to a total of 4,853 companies.

Firstsource acquires MedAssist for $330 mn: Mumbai-based Firstsource Solutions, a pure-play business-process-outsourcing provider, has acquired US-based MedAssist Holding for $330 million (Rs 1,353 crore). It is the second-largest acquisition after Wipro bought out Infocrossing for about $600 million.

Karuturi’s bed of roses in full bloom: Bangalore-based Karuturi Networks has acquired Dutch floriculture major Sher Agencies in a e50-million ($69 million) deal to become the world’s biggest rose producer. After the takeover, the company’s top line will bloom from Rs 100 crore to Rs 400 crore. Karuturi’s rose-producing capacity will also grow from about 150 million stems to around 650 million. It reminds of earlier reports on Andhra floriculturists going in Ethiopia for rose growing.

Apollo Hospitals arm buys US firm Zavata: Apollo Hospitals Enterprise Ltd’s associate firm, Apollo Health Street Ltd, has acquired Atlanta-based Zavata for about $180 million. Zavata is a healthcare-focussed business-process-outsourcing firm with about 1,000 employees. Even the doctors are great entrepreneurs these days.

Now, mid-sized cos on acquisition spree: Of the 126 outbound deals worth of $29.78 billion made during January to June 2007, several transactions were done by mid-sized companies, says a study by PricewaterhouseCoopers.

13 Indian cos in Red Herring top 100 in Asia list: Thirteen Indian technology firms have come among the top 100 in the Asia-Pacific region by global media company Red Herring. The ‘2007 Red Herring 100 Asia´ awards recognise private companies with cutting edge technologies in the Asia-Pacific region.

India-born reign high on innovative start-up list in US: The three companies — Bloom Energy, Expensr and Vanu — have been featured in “The Next Disruptors — 15 companies that will change the world” list of Business 2.0, a magazine published by global media giant CNN-Time Warner group, which also publishes magazines like Fortune. All the three have an Indian-origin US national as the founder.

SAP opens new facility in Bangalore: German software firm SAP opened a new facility in Bangalore with a capacity to seat over 2,000 employees as part of its future strategy. For SAP, “This new facility is both a sign of SAP’s acknowledgement of the breadth and quality of work being delivered by our colleagues in India, and our commitment to deepen our engagement with Indian engineering talent further.” Is it the recognition of the India’s talent pool?

100mn cell phones to be made in India: According to a recent Gartner research, Mobile phone production in India is expected to reach 107 million units by 2011 from 31 million units in 2006 a compound annual growth rate (CAGR) of 28.3%. Mobile phone production revenue is expected to reach $13.6 billion (Rs 55,760 crore) by 2011 from $ 4.9 billion (Rs 20,090 crore) in 2006, a CAGR of 26.6%. And a better-connected India means prosperous India too. It will mean a mobile phone in every pocket.

Indian Americans better off: In America, the official poverty level for a family of four with two children is $20,444 (over Rs 800,000) per annum, and one in eight Americans is poor. However, Indian American families have an average income of $ 61,322.

Mahindras doing due diligence on Jaguar, Land Rover: Mahindra & Mahindra Ltd is doing due diligence on Ford’s Jaguar and Land Rover units, the Financial Times said on Thursday, citing people close to the situation. Tata Motors also wishes to acquire Ford’s prestigious companies. I don’t know how serious are they.

Tubular, Malaysia’s UMW to form Rs565 crore JV: The promoters of Oil Country Tubular Ltd (OCTL), a specialized Indian pipes and tubes manufacturer for oil and gas industry, are joining hands with UMW Holdings Bhd, a Malaysian oil and gas equipment company, in a Rs565 crore (50:50) joint venture to make so-called “green pipes” that are used to make casings, drill pipes and production tubing.

Emerson sets up design engineering centre in Mohali: Emerson Electric Company inaugurated its Design Engineering Centre at Quark city in Mohali today. This is the second corporate centre of Emerson in India, after the first one set in Pune.

Industrialising India: Last year, Indian manufacturing grew by over 12% and by almost 14% in the last quarter of fiscal 2006-07. Will India make into manufacturing sector as big as in IT/ITeS?

Indian Institute of Space Science & Tech takes off: The Rs 270-crore Indian Institute of Space Science and Technology (IIST) will quietly get going from September 14, according to ISRO Chairman G Madhavan Nair. “IIST is planned to emerge as the world’s biggest space institute.”

PM’s Nuclear Plan: “We have set a modest target of 20,000 MW of nuclear power generation by the year 2020. This can be doubled with the opening up of international cooperation. This cooperation will not be dependent on any one country and we will source supplies from many of the countries in the Nuclear Suppliers Group including the United States, Russia, France and Japan.” I wish the leftists and BJP would agree.

Four more countries to guzzle Kingfisher bear: India’s top-selling beer brand, Kingfisher will be available in markets in France, Finland, Portugal and Canada that is currently available in UK.

Footwear production to touch 1mn pairs: Footwear exports will go up to 300 million pairs in another five years from the present 100 million pairs, thanks to two big investments from Taiwan. Footwear exports increased 16 per cent to $1.2 billion in 2006-07 from $1.04 billion in 2005-06 and has set a target of $4.5 billion in footwear exports from India by 2010-11 when total leather exports are expected to reach about $7 billion.

Praxair to open facility in Coimbatore: Praxair Surface Technologies, which manufactures high-performance industrial coatings for aviation, oil, power generation and printing industries, will establish a facility in Coimbatore by mid-2008 for manufacturing thermal spray coatings for gate valve components used in oil and natural gas production. It will serve the growing high end-manufacturing sector.

Finnish firm plans foray into medical textiles: Ahlstrom Corporation, a Finnish company, is entering India with plans to make medical textiles that provide protection against diseases in operating theatres and external environments and is going to set up a factory at the Mundra SEZ in Gujarat in October. Health care sector is racing forward.

A boom is on: The ISRO launched its latest communication satellite, INSAT-4CR, from Sriharikota and made up for the launch failure of INSAT-4C. Let ISRO be more commercial.

Indian private companies attracting talent from govt establishments: Companies in the steel, oil and gas, telecom, banking, insurance and aviation sectors, in particular, have hired extensively from government-run organizations. Who will be losers?

Air India flies Bangalore-San Francisco direct: Air India will be operating its non-stop silicon route linking Bangalore and San Francisco probably in the first half of 2008, taking off from the new international airport, which is to open at Devanahalli by April next year. When will be a direct flight between Delhi and San Francisco?

Let the Indian industry take some tips from Narayana Murthy and Nandan Nilkeni to keep growing faster than expected and booming under all odds.

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Lee Iacocca’s Nine Cs- Prescriptions for Leaders

Posted on September 1, 2007 by indra

During the early part of my professional career in automotive industry, some names were synonyms of management guru. Lee Iacocca was one. His turnaround of Chrysler with a federal assistance that was the highest in history made him a pioneer. LEE IACOCCA, the former CEO of Chrysler became a legendary figure in his lifetime.

He has preferred nine points – not 10, as he was afraid that people would accuse him of trying to become Moses.

The 9Cs make a leader stand out from the crowd. This appeared in an article in Times of India.

Curiosity A leader has to show Curiosity. He has to listen to people outside the ‘Yes, sir’ crowd. He has to read voraciously. Thomas Jefferson once said,” Were it left to me to decide whether we should have a government without newspapers, or newspapers without a government, I should not hesitate for a moment to prefer the latter.”

Creative A leader has to be Creative, go out on a limb, be willing to try something different. You know, think outside the box. Leadership is all about managing change – whether you’re leading a company or leading a country. Things change, and you get creative. You adapt.

Communicate A leader has to Communicate. Communication has to start with telling the truth, even when it may be painful.

Character A leader has to be a person of Character – knowing the difference between right and wrong and having the guts to do the right thing. Abraham Lincoln once said, ”If you want to test a man’s character, give him power.”

Courage A leader must have Courage. Courage in the twenty-first century doesn’t mean posturing and bravado. Courage is a commitment to sit down at the negotiating table and talk. If you’re a politician, courage means taking a position even when you know it will cost you votes.

Conviction To be a leader you’ve got to have Conviction – a fire in your belly. You’ve got to have passion. You’ve got to really want to get something done.

Charisma A leader should have Charisma. Charisma is the quality that makes people want to follow you. It’s the ability to inspire. People follow a leader because they trust him.

Competent A leader has to be Competent. You’ve got to know what you’re doing. More importantly, you’ve got to surround yourself with people who know what they’re doing.

Common Sense You can’t be a leader if you don’t have Common Sense. I call this Charlie Beacham’s rule. When I was a young guy just starting out in the car business, one of my first jobs was as Ford’s zone manager in Wilkes-Barre, Pennsylvania. My boss was a guy named Charlie Beacham, who was the East Coast regional manager. Charlie used to tell me, ” Remember, Lee, the only thing you’ve got going for you as a human being is your ability to reason and your common sense. If you don’t know a dip of horseshit from a dip of vanilla ice cream, you’ll never make it.”

Is the advice not a good one providing the starting point for all young leaders?

Why do so many of our young MPs- lies dormant and the people who have chosen them hardly get any benefit? They are just waiting for someone to tell what is expected out of them?

Can some young managers/leaders share their experiences for the benefits of the readers at large?

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‘Gandhi- My Father’

Posted on August 31, 2007 by indra

We don’t go to movies very often. Years ago, it was because Noida didn’t have any good cinema hall. A godown-like hall was there, but even that was not air-conditioned for hot summer of Noida. I used to promise Yamuna, “Let a good cinema hall get built, we shall be going for a movie at least once a week.” What a great change has come in Noida! There are already two multiplexes with 6 and 8 screens. Another, the bigger one will become operative soon. The ambience in these multiplexes is excellent. One can spend a wonderful evening, if not the whole day, in shopping and eating out with family.

Since last two weeks, we were thinking to see ‘Gandhi-My Father’ or ‘Chak De India’. So we couldn’t refuse Aroras, when they came for a movie on last Saturday (It is difficult to get tickets on Saturdays). We failed to get tickets in any of the two multiplexes. On Monday, we were with Sirohis. Yamuna proposed to go for movie, particularly ‘Chak De India’ next day. Tuesday being Rakshabandhan, we found Sirohis busy with the social engagements. Both have number of brothers and sisters living in vicinity. They couldn’t accompany us, and promised to come along on Wednesday. However, we decided to go for ‘Gandhi- My Father’ on our own. Sirohis might not have liked the movie. And on Wednesday we might as well go for ‘Chak De India’ with them if they approached again. Priyanka, Yamuna’s aid had also taken an off. And all this made us see ‘Gandhi-My Father’. We went for 5.30PM show and luckily got the right seats.

Surprisingly, the hall had a good crowd unlike we had experienced with other movies that were better rated. I felt excited and happy. Gandhi still remains relevant in our country. The film is well made. The issues raised are highly emotional. The relation of a father and son is very divine that also if the son happens to be the eldest. As a parent, both of us, Yamuna, and myself have experienced that. The storywriter, director and actors have handled the characters very well. To a great extent, the film is based on a true story. The film had nowhere lowered the image of the Father of Nation. What happened to Hari Lal was perhaps because of the destiny or karma of the previous life? Perhaps Gandhi was too busy in his mission. Hari Lal wanted to have a good living. He wanted Gandhi to help, as he was his son. Gandhi was not ready to do that. Hari Lal tried his luck too, but failed because of his humane weaknesses.

After the film, I kept on thinking about the finer moments of the life of Gandhi. What would have happened if the media had been so widespread and responsive as it are today with hundreds of TV news channels and thousands of many types of printed media? Gandhi belonged to the different generation. None of his children could make a great name in politics, though as per the film he too wanted his eldest son to be in the Independence movement with him. One gets reminded of Dr. Rajendra Prasad, Lal Bahadur Shastri and many others too. None of their sons could make their presence felt in public life unlike the clans of Karunanidhi to Mulayam. But let us leave that aspect.

Why does a father keep on treating even the grown up sons so emotionally? Is it the worldly attachment? Why does a son fail to appreciate that a father can’t think of harming or hurting the son? What is wrong if the father wishes to have the son with him to provide the moral support that one needs many a times?

On this Rakshabandhan Day, I feel like asking a question. Whom should these aging old persons tie the rakhis?

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Bihar Suffers from Media Bias

Posted on August 31, 2007 by indra

I had just put on the NDTV-India after my lunch on Tuesday, Rakshabandhan. I was stunned with what was being shown on the small screen. A young man caught for a chain snatching from a woman was being brutally beaten by the crowd in Bhagalpur. It was real mob scarcely dressed but master in punching the boy anywhere and everywhere. In the next frame, an assistant sub inspector of police along with a constable joined the irate mob, tied the man to his motorcycle and dragged him for meters. All these went on when a video kept on recording the event.
The TV channel kept on repeating the horrible scene and the reporter went on narrating the extremely poor condition of law and order in Bihar and the barbaric behaviour of the policeman.
Naturally, the policeman was guilty of colluding with the mob and getting involved in an action that was just inhumane.

Ideally, the sub inspector would have taken the victim to the police station. But let us think for a moment, was it possible for the two policemen to do that against the wishes of infuriated mob. If it had happened, the people in general would have complained of police taking bribe and letting the criminal free.

I think the policeman was emotionally immature. Whatever he did was to perhaps please the crowd and get their support. Mentally he was one in the mob.

But what surprised me most was the next frame on TV where Lalu is giving his opinion about poor law and order condition of Nitish Kumar government and shedding crocodile tears for the poor boy that was assaulted by the policeman.

But let us see the effect of high-tech communication. On the next frame on TV was the home secretary of Bihar announcing that the policeman has been suspended. Is it not a prompt action?
However, the TV channel continued with Bihar. The next news showed Nitish Kumar firing the DM of Saharasa live on TV because DM failed to recognize CM’s voice, when CM called him about a complaint related to assistance to flood victims. Here again, the TV channel brought Lalu in next frame, when as usual Lalu kept on blaming Nitish Kumar for everything. However, the action appeared to be prompt. The DM got transferred.

After seeing the report on the channel. I felt like raising some questions.

How was that incident of Bhagalpur so promptly videoed? Was it by a citizen reporter? Why should the reporter be so negative about Bihar? May I know what would have happened in a town of West Bengal or anywhere in Delhi? How the mob would have behaved with the criminal? Are the West Bengal or Haryana police better, when it comes to deal with even women? Why does the TV channels find only such news from Bihar so hot and spicy to air?

My other question is about the reporter rushing to Lalu for comments. Why should the channels keep on getting so politically loaded comments of Lalu on every incident related to Bihar? Are they getting certain benefits from the railways to do that? Do they not realize and appreciate the damage already done during the rule of Lalu’s family for three decades? Is media colluding with him to perpetuate the misrule by bringing him in? He keeps on vomiting venoms at Nitish. Why don’t the media shun him rather than preferring to make his voice heard? It would have been prudent if media could make Lalu wait till next election. Why should the media drag Nitish Kumar’s name in everything that happens in Bihar?

I have been critically going through the TV channels and print media since the change of the government in Bihar two years ago . The media is obsessed with Bihar. It prefers to show Lalu’s face and his comments with poor jokes. On the other hand, the media keep on digging the bad news from Bihar showing the backwardness and poverty, caste and custom- related issues, dadagiri of bahubalis and kidnappings, huge death tolls of flood. Why should the media not cover some good success stories too? I am sure there are many. I wish it changed its way of reporting Bihar.

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India’s Major Achievements in 60 years

Posted on August 30, 2007 by indra

India has close to a million schools- three times the number in 1947. Around 200 million children go to these schools every day. However, on the half empty side of the glass 40 million or so still don’t make to schools. Some data on India comparing India’s economy as in 2007 with the situation in 1947 (Figure in bracket for 1947) will be interesting reading.

Population today is 1.13 billion (300 million), per capita income is Rs 29, 382 (Rs 255, but a rupee in 1947 would be worth about Rs 32 today), gold price per 10 gm is about Rs 9,000 (Rs 88), total wheat output about 72 million ton (5-6), per capita power consumption in Kwh 606 (15.5), Number of doctors 5.54 lakh (0.5), exports Rs 5,64,000 crore (403.4), import Rs 8,20,000 crore (408), government revenue Rs4, 03,000 crore (171), Government expenses Rs 5,64,000 crore (200), telephones 218 million(1.1), average life expectancy 64 years (31.4) and literacy rate 67% of population(14). The list can be further extended. But I intentionally kept this small. It is great that India has moved ahead ‘from emerging to surging’, still the country has many miles to go.

However, it was courtesy my friend OP Khanna that I received the link of the article of Narayana Murthy that appeared in Forbes. Perhaps it is one of the best summaries prepared by many, including even reputed economists.

According to Narayana Murthy, the major achievements that have transformed the lives of our people in a way we never imagined would happen, are:


Green Revolution
Perhaps, no other Indian initiative has enhanced the national confidence as the Green Revolution initiated by Dr. M.S. Swaminathan. This revolution, which started in 1965, not only transformed India into a food-surplus economy from a food-deficit economy but also triggered the expansion of the rural, non-farm economy. The lives of at least 400 million to 500 million Indians have been uplifted due to this initiative. From being a perennial importer of grains, India became a net exporter of food grains 10 years ago.

White Revolution
Coming from a generation that experienced an acute shortage of milk, it is unimaginable that, today, we have become the largest producer of milk in the world. The credit goes to the extraordinary vision of one person, Dr. Verghese Kurien.

Economic Reforms Of 1991
The economic reforms of 1991–initiated by the late Narasimha Rao, Dr. Manmohan Singh, Shri P. Chidambaram and Dr. Montek Singh Ahluwalia–opened up the minds of Indian corporate leaders to the power of global markets, helped them accept competition at home and abroad, and raised the confidence of consumers. Our hard currency reserves have gone up from a mere $1.5 billion in 1991 to over $220 billion today. The reforms encouraged entrepreneurship and gave confidence to businessmen and entrepreneurs to dream big, create jobs, enhance exports, acquire companies abroad and follow the finest principles of corporate governance.

Independent Media, Brave Journalists
The success of a democracy depends upon certain important values of governance: fairness, transparency and accountability. The freeing of media, particularly television, has laid the foundation for improving these values in our governments. The courage, enthusiasm and zeal to seek truth of scores of idealistic journalists like N. Ram, Arun Shourie, Sekhar Gupta, Sucheta Dalal, Barkha Dutt and Rajdeep Sardesai are what make us feel confident that the future of this country is safe.

Telecom Revolution
No other technology has brought India–the urban and the rural–together so effectively as the 500-line EPABX designed and implemented by the Center for Development of Telematics under the leadership of Sam Pitroda. This program brought fresh confidence to the people, as they could reach out, in a jiffy, to their loved ones, officials and doctors, just to name a few.

Space Technology
Yash Pal’s Satellite Instructional Television Experiment blossomed into a full-scale television facility connecting millions of villages of India. Television has made our political masters realize that their actions and inactions will be seen and judged by every citizen–from the forgotten villages of Assam to the activist villages of Kerala. This technology has given voice to the opinions of a billion people.

Atomic Energy
Dr. Homi Bhabha conceptualized the Indian nuclear program and initiated nuclear science research in India. His program has made possible successful utilization of nuclear energy in defense, power generation, medicine and allied areas. Our peaceful use of nuclear energy has raised India’s prestige as a mature and responsible player in this field.

Software Revolution
N. Vittal’s Software Technology Program, along with the economic reforms of 1991, laid the foundation for this industry’s spectacular progress. India’s information technology exports grew from a mere $150 million in 1991-92 to $31.4 billion in 2006-07, and is projected to reach $60 billion by 2010. The Indian IT industry is unique for several reasons. It focused on exports; benchmarked with the best global companies; followed the finest principles of corporate governance; created the largest number of jobs in the organized sector; and demonstrated that Indians, too, could succeed in the most competitive global markets.

Read Forbes’ India at 60

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