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?

Posted in Uncategorized | Leave a comment

‘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?

Posted in Uncategorized | Leave a comment

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.

Posted in Uncategorized | Leave a comment

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

Posted in economy, industry | Leave a comment

Educating India

Posted on August 29, 2007 by indra

PM announced a dream plan to educate and train India on Independence Day from the rampart of historical Red Fort. I wrote about it. He promised 6,000 new high quality schools – one in every block of the country, new colleges in 370 districts where enrolment levels are low, thirty new Central Universities, one in every state that does not have a central university, five new Indian Institutes of Science Education and Research, eight new Indian Institutes of Technology, seven new Indian Institutes of Management, twenty new Indian Institutes of Information Technology, 1600 new industrial training institutes (ITIs) and polytechnics, 10,000 new vocational schools and 50,000 new Skill Development Centres to ensure over 100 lakh students to get vocational training annually – which is a four-fold increase from today’s level.

At the time of Independence, there were 20 universities and 500 colleges in India. In India after 60 years, there are 369 universities and 18,064 colleges now. According to NKC, at least 1,500 new universities would be needed to increase the gross enrolment rate from 10 per cent to 15 per cent by 2015. In number, only 1.05 crore of India’s youth in the age group of 17 to 23 are enrolled in higher education institutes. The planning commission is working on an ambitious programme, involving Rs 2,77,837 crore during the Eleventh Plan (2007-12), for the education sector.

Recently, I received a mail from Murlidhar from USA. He is of my own batch from IIT, Kharagpur and was in HM (Hindustan Motors) also. He was our neighbour too for some years. He wrote:

For a man who attended a prestigious English school, his “gift” of more IITs, IIMs and IISCs in his Independance Day address (to override Supreme Court’s rejection of OBC quota), is a disgrace. Can you imagine England creating several Oxford’s and Cambridge’s, or US creating several “Ivy League” colleges?

IIT, IIM have established themselves as top class institutions. Why would Manmohan Singh want to degrade these? Is winning the election and allowing his coalition partners make money more important than India’s prestige?

I thought of writing to him in support of Manmohan Singh mission. But then when I think back a little, I find myself with few questions. Why have Britishers not created several Cambridges, Americans several Stanford or MIT? Why are we multiplying IITs and IIMs, and for that matter other institutes too? Are these announcements political? Are all IITs having a similar standard? Are not some who remain inferior also getting the advantage of the brand IIT or IIM? Is it not unethically deceiving? Can all the NITs (the former regional engineering colleges) be of the same standard? We are sure that many are no better than an average college of engineering. It is simply unbelievable that with an IIT and IIM in every state and who knows in every district, we are not harming the brand images of the institutes that has been so painfully created.

In good old days, BE College, Sibpur (Calcutta), Jadavpur University, BHU College of Engineering, BITS (Pilani), and Roorkee University were equally or more reputed institutions. Some even remain till date. Why did some of those fail to come up to the standard of IITs? HRD ministry must facilitate the institutes to become world class by removing all hurdles instead of controlling them. It is unfortunate aspect of education sector that it still remains under the license raj.

It is shocking that hardly four institutes/universities of India are in the top 100 best universities of the world. If each of these prestigious institutes mentioned above become a world class institutes by itself, the number of institutes from India in the list of best 100 educational institutes of the world would be more. India must set a target to bring in at least 20 universities/ institutes in the list of best 100 globally.

Many feel that the quality of higher education will improve by allowing foreign universities to come in the country, as it shall bring competition. But politicians are against it. Surprisingly, only two universities from the UK and one from the US have registered their partnerships with homegrown institutions. But that is the official number. The All-India Council for Technical Education (AICTE) claims that as many as 104 FEIs are actually collaborating with our universities and affiliated colleges but without its approval. Why should it not be free and transparent?

Shockingly, according to the Commerce Ministry estimates, 1,60,000 Indian students leave the country every year for foreign university/college education. In money terms it means an annual outgo of $4 billion or Rs 16,220 crore.

Is not the government control in education and reservation policies responsible for the immigration of so huge a number of Indian students to foreign universities, and not all of them to the best universities? Can’t India become a hub for educating the students from all over the world? Will the English not help here too like IT sector? Will it not help India to become a world power through this route, as a person retains his weakness for the institute and country where he gets education?

Posted in economy, education | Leave a comment

China Quality Story

Posted on August 28, 2007 by indra

China quality story is very much in news these days. Today morning when I was talking with Anand I was trying to caution him for not giving any of those poisonous Chinese toys to Emma, our sweet little grand daughter. He laughed and wanted to know if I really believed the American media story. I said, “Unfortunately, Yes.”

Toys are the latest in the long-list of Chinese exports that have come under intense scrutiny in recent months because of safety concerns. Many a stories have appeared in Western media about the harmful toxic chemicals that have been found in products ranging from toothpaste to seafood and pet food ingredients. Are these knee-jerk media reactions or real concerns about the safety of the citizens, or means to make Americans rise against Chinese goods?

The US announced recalls of tens of thousands of Chinese-made children’s products because of lead hazards. The media is full with the list of damages that it can cause to a child. The exposure to lead can cause learning problems, reduced intelligence, hyperactivity and attention deficit disorder. And who will not believe it and be overcautious?

According to another report, Saudi Arabia has removed from shop shelves seven brands of Chinese toothpaste found to have a poisonous chemical in them. As reported on the website of the ministry of trade and industry, ‘tests had shown traces of diethylene glycol, too toxic for food and medicine.’

Some Chinese may be resorting to some unethical practices assuming that it will not come to the notice of the users. As reported, a Beijing factory recycled used chopsticks and sold up to 100,000 pairs a day without any form of disinfections. Officials raided the factory and seized about half a million pairs of recycled disposable bamboo chopsticks and a packaging machine. The owner had sold the recycled chopsticks for 0.04 yuan a pair and made an average of about 1,000 yuan ($130) a day. He had sold 100,000 pairs a day when business was good. How much of this happens in India and how much of that comes to our knowledge?

China has launched a four-month “war” on tainted food, drugs and exports through campaigns to clean up the country’s battered image. Chinese vice-premier Wu Yi wishes to focus on problem products that has corroded and eroded domestic and foreign consumers’ confidence in the “made in China” label and to protect the reputation of Chinese goods and the national image. While it may appear to some as an autocratic, top-down approach, it is bound to make an impact.

Makers of toys for export in Guangdong province will have to undergo ‘quality licensing’ as part of a new inspection system launched this week. The government agencies will keep a closer watch on not only finished products but also on potentially dangerous chemicals and paints.

In Guangzhou, capital of booming Guangdong province in south China, Mayor Zhang Guangning vowed to bankrupt serious violators of food and product safety. I wish the Chinese could emulate the Japanese.

However, I was shocked to read that a 52-year-old businessman, had apparently committed suicide, just days after Mattel blamed his company, Lee Der Industrial, in Foshan, in southern China, for the recall of one million toys coated in toxic lead paint.

The story further confirms how seriously the Chinese take the responsibility of failures, unlike the owners in India. Perhaps the Chinese have learnt and imbibed some values from Japanese (hara-kiri) unlike Indians who are learning everything from the materialistic west.

The reasons for these failures may be many. One may be the intense pressure from the western retailers who go on lowering the cost targets. The second may be the fierce local competition to meet it. Some blame it to the lack of business ethics and a spiritual vacuum. Money by any and all means has become the main aim of life.

While the official stand by the Chinese are different. On one hand, China is on the defensive over the safety of its products, and lashes out at the United States by claiming that American soybean exports contained pesticides, poisonous weeds and dirt. China still claims that a spate of product recalls has been unfair, biased and politically motivated. It also insists, “No country can guarantee their food to be 100% safe, but if one in 100 or even in 1,000 of our products has quality problems, we will deal with it seriously.”

Perhaps, India has been different with its better exposure to quality control techniques through its interactions with Japanese manufacturing systems that builds the quality in the process rather than inspecting it. India has also gone for some laudable achievement as clearly obvious from the number of Deming Prizes that it has grabbed.

Unfortunately, no report from China talked of establishing a better process quality system. China too must go for building in the quality and learn the finer aspects of quality improvements. Many of the Chinese manufacturers must not be knowing of the consequences of adopting some cost cutting tricks.

There may be many such unscrupulous manufacturers in India too who still take advantages of the ignorance and craze of the consumers. The system must detect them and weed them out. India must not get caught napping on quality issue.

Posted in industry, manufacturing | Leave a comment

Booming and Bubbling India- XV

Posted on August 27, 2007 by indra

Left switched on the ‘red’ signage. India is bubbling politically with prospect of a midterm election or of continuing with an inactive minority government. It affects even the overall confidence of industry. It has made the stock market bubbling too. Terrorists have struck Hyderabad testing the depth of India’s Gandhidom.

However, Japanese PM made it up, and said, “By Japan and India coming together in this way, this ‘broader Asia’ will evolve into an immense network spanning the entirety of the Pacific Ocean, incorporating the United States of America and Australia.”

Anand had visited the famous bookshop of Stanford University with Shannon and Emma. Emma thus starts from Stanford. Anand had bought ‘Think India’ and had a long dialogue on India after going through its first chapter. India is now 60. Many opine India arriving at 60. Business Week, Economist, Forbes, and perhaps many cover the arrival. Approximately one million people each year have been pulled up from under the poverty line, in the past decade. Some call it ‘the largest piece of social engineering ever to have happened in the world’.

India is making a big push into small cars. IBM has become the star of India. India is leapfrogging Brazil in sugar production. Tata Motors are bidding for Jaguar. Toyota is launching small cars in India.

India’s economic reform process may be as good as stalled due to differences between the government and its communist allies, but the economy has gained its own momentum and will keep booming and growing robustly.

Industry all set to sustain high growth momentum this fiscal: the current robust industrial sector trend will continue in the coming financial year as well, with growth expected to remain at a high of 9.5 per cent during 2007-08. The IIP grew by 11.7 per cent during April-May 2007, over and above the 10.8 per cent rise in the same period of the previous year.

India Inc in fast lane: A study undertaken to observe the performance of 20 large business houses in India shows that their net earnings for the first quarter of fiscal 2007-08 have increased an impressive 33.40% (over the same period last year) to touch Rs 14,712 crore.

Insurance outsourcing can hit $10 b: According to global offshoring advisory firm Everest Group, IT OUTSOURCING by insurance companies in India could be an $8-10 billion opportunity over the next five years,. The outsourceable functions include systems integration, reengineering, IT infrastructure management, business intelligence solutions and business process outsourcing (BPO). The domestic insurance sector is expected to grow to $60.5 billion by 2010 from the current $10.2 billion. Over 70 million insurance policies would be sold over the next five years and insurance companies would require over 0.5 million agents, besides several thousand operations staff for tasks like claims processing and customer service.

NRI scientist demonstrates new technology to improve computer chip cooling: Suresh Garimella, professor of mechanical engineering at Purdue University has demonstrated a new technology to dramatically improve computer chip cooling using tiny “ionic wind engines” to increase the “heat-transfer coefficient,” or the cooling rate, in chips by as much as 250 per cent.

Indian-Americans develop paper-thin battery: The team, led by noted nanotechnologist Pulickel Ajayan of Rensselaer Polytechnic Institute (RPI), has developed a battery, which could easily be mistaken for a simple sheet of black paper.

India’s Mighty Movers: The emergence of India’s globally ambitious business outsourcing companies such as Infosys (INFY) and Wipro (WIT) and high-profile cross-border mergers such as Tata Steel’s $11.3 billion deal to buy British steelmaker Corus continue to make the country a fascinating business story.

Posco to begin work in Orissa by Oct: Setting at rest speculation on the fate of its Rs 52,000-crore steel project, South Korean giant Posco has decided to begin work on constructing a 12-million-tonne plant in Orissa by October and is expected to become operational by end of 2011 – however, nearly a year behind the original schedule. (As cost of democracy)

Indian BPO exports touch $4.6bn in FY07: India’s (third-party) business process outsourcing (BPO) exports reached $4.6 billion (Rs 20,890 crore) during 2006-07, registering a growth of 47% says Dataquest’s 20th annual survey of the Indian IT Industry.

Cycle makers see window of opportunity: Indian cycle makers are ramping up their export plans to sell more to Europe, taking advantage of EU’s anti-dumping duties on import of cycles from China and Vietnam, the two major competitors of Indian companies.

JSW Steel set to buy 3 US firms: JSW Steel acquires three US companies for nearly Rs 4,000 crore. Sources close to the development said the target companies would be Jindal Enterprises LLC, Jindal United Steel Corp (JUSC) and SAW Pipes USA.

Blackstone buys Gokaldas Exports: Global private equity giant Blackstone Group is acquiring majority control in Gokaldas Exports for nearly Rs 660 crore, in the country’s largest management buyout in the textiles industry. Gokaldas Exports operates through 46 factories predominantly in Karnataka and supplies to global apparel companies like Nike, Adidas, GAP, Tommy Hilfiger and Abercrombie & Fitch.

India second in global M&A deals ranking: India has been ranked second in the global M&A deals this year so far in the Asia-Pacific region, with a total outbound deal value of $13.5 billion (Rs52, 377 crore). According to data complied by global consultancy firm Dealogic, Australia tops the Asia-Pacific cross-border outflow with over 125 deals worth $30 billion, followed by India with a total of 74 foreign acquisitions in the current year so far.

ArcelorMittal plans to vault into top slot in India: ArcelorMittal, the world’s largest steel maker, is looking to double its planned investment in India and build two large plants: a plant each in Orissa and Jharkhand to produce about 10 million tonnes (mt) of steel annually.

Essar to invest Rs20, 000 cr to raise power capacity: Essar Group plans to invest more than Rs20,000 crore over the next five years to scale up power generation capacity to 6,500 MW from about 1,200 MW at present.

BHEL embarks on expansion: The power plant equipment major is investing around Rs 3,200 crore to enable the corporation to supply power generation equipment for over 75,000 Mw every five years to meet the nation’s capacity addition requirements.

Direct tax collections zoom 44.39%: The government announced a 44.39 per cent jump in collection of direct taxes, including corporate and income tax, to Rs 59,210 crore till August 15 over Rs 41,006 crore a year ago.

World Inc sees India attractive for new operations: More corporates from across the world are keen on setting up operations in India, ranked the top destination for investments and acknowledged as being strategically important to them by global businesses, according to a New York Stock Exchange survey of top business leaders representing companies from 24 countries.

Nissin Brakes spends $58 mn in India plant: Nissin Brakes India Pvt Ltd , the Indian joint venture of Japan’s Nissin Kogyo Co Ltd is investing about 2.4 billion rupees ($58 million) in a manufacturing facility in the western state of Rajasthan to tap the fast-growing auto market with an annual capacity to make 200,000 disc brakes for four-wheelers and 800,000 units for two-wheelers.

Siemens likely to double India business by 2010: German engineering giant Siemens plans to double the size of Indian operations in the next three years, riding on strong demand for infrastructure, medical and communication services in one of the world’s fastest growing economies.

Germany’s precision tool firm Walter plans India unit: The Germany-based tooling major Walter AG, one of the leading corporations worldwide in the field of metal processing that develops, manufactures and markets tools with exchangeable carbide tips for metal-cutting, drilling, milling and turning, is planning to set up a manufacturing facility in India.

Japan to make India its manufacturing hub: The Delhi-Mumbai Industrial Corridor (DMIC) project firmed up between New Delhi and Tokyo during the visit of Japanese Prime Minister Shinzo Abe will pass through Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra. It will entail an investment of around $100 billion on infrastructure. “Whatever doubts Japan had for so long, now India is smelling like roses,” said Jagdish N. Bhagwati, an economist and a professor at Columbia University and a fellow at the Council on Foreign Relations. “They want to get in before it is too late.”

India still way ahead of China: Alhough China’s software and services revenue is projected to reach nearly $28 billion by 2010 ($20.6 billion from domestic market and $7.1 billion from exports) growing at 22 per cent annually, India would still be way ahead at an estimated $74 billion.

Rivalry spurs Ambani brothers to new heights: Mukesh and Anil have been jointly named among the world’s 50 most influential people in business by Fortune group’s 2.O magazine.

Indians most mobile banking savvy: One out of every three people in India is ready to switch to another bank if its offers them free mobile banking, states an Asia Pacific survey on mobile banking opportunities

Indian pharma market to triple in 10 yrs: The projected growth would see India become the 10th biggest pharmaceutical market – from number 14 two years ago – by replacing Brazil, Mexico, South Korea and Turkey. Significant expansion of medical infrastructure will account for 20% of the expected growth, followed by greater penetration of health insurance (15%) and a gradual shift in disease profile and adoption of patented products (10%).

HCL to set up 100 training centers: IT major HCL Infosystems plans to set up around 100 Career Development Centres (CDCs) across the country, to train graduates in IT software, hardware, and networking, and will offer short and long-term courses to around 600 graduates (per centre), annually.

Export forum under Telecom Equipment Manufacturing Association: The Union government has set a target of $10 billion (Rs41, 000 crore) for equipment exports by 2012.

A new growth driver: The study, by Robert Jensen, a Harvard University economist, found that as mobile coverage increased in Kerala, fishermen’s incomes increased by 8%, fish prices fell by 4% on average and less wastage was created.

Nokia plans to make India its global export hub: Nokia Corp. plans to make its manufacturing plant in India, now the second-largest market for its handsets, a global hub for exports.

One in 5 now owns a phone: One in every five persons in India now owns a telephone as the total number of subscribers reached 232.87 million by July, led by an addition of whopping eight million mobile subscribers. The tele-density has increased to 20.52% in July 2007 as compared to 19.86 in June 2007, according to regulator TRAI.

Mitsubishi plant in Haldia to triple production by 2009: Mitsubishi Chemical Corporation’s subsidiary will triple production of a key component used in making polyester and PET bottles at its Haldia plant by 2009.

Strong push for nano technology: The Centre would give a strong push for the growth of nano technology, which has potential to lift the quality of life of the poor and has made a budgetary provision of Rs1,000-crore to promote the sector.

NTPC in coal production: NTPC, which has already been allocated eight domestic coal mining blocks, is looking to invest in either Indonesian or Australian coal mines by as early as next year. NTPC, which produces 27 per cent of the country’s total electricity generation, plans to almost double its generating capacity to 50,000 MW by 2012, from the current 27,904 MW.

Reverse brain drain: According to the study, “Intellectual Property, the Immigration Backlog and a Reverse Brain Drain,” many NRIs are increasingly open to returning to their home country creating “the potential for a sizeable reverse brain-drain from the US.”

Auto companies in R&D drive: R&D expenses of six auto companies of Indian origin increased 70% to Rs1, 384 crore in fiscal 2007 compared with Rs443 crore in fiscal 2004. The average R&D expenditure as a percentage of net sales has increased to 2.34% from 1.47% during this period.

SAP to hold first board meet in India: For the first time in its 35 years of existence, SAP — the technology leader in business software solutions — will hold its board meeting in India (New Delhi) from August 27.

L&T plans SEZs to aid engineering, shipyard: Larsen & Toubro (L&T) plans to develop two special economic zones (SEZs) close to its manufacturing facilities in order to take care of future expansion plans.

India out of ‘truly corrupt’ group: According to Forbes, “A few, most notably India, managed to bootstrap themselves (just barely) out of the truly corrupt group, while others, particularly Iran, dug themselves more firmly into that camp.”

And tthe story goes on.

Posted in economy, industry | Leave a comment

A Letter to CM, Bihar

Posted on August 26, 2007 by indra

Dear CM,

Sub: We need a better promotionl ad.

On the Independence Day, I came across one full-page advertisement from your government in Hindi in English language ‘Times of India’, New Delhi edition. Couldn’t your officers make the ad more presentable and rationally acceptable for whomsoever that was addressed? Why should they keep on copying from the older files or from what other states are doing? Many other programmes of many a states may be emulated for the benefits of the people of Bihar.

The ad must carry two aspects of the governance: Firstly it must let the people know what has been achieved in numbers such as kms of roads constructed, number of villages electrified, number of schools and healthcare centers built, kms of irrigation canals and number of water bodies renovated or dug, and similar data during the two years of your government. The second part woul have given the specific plans for the projects to be undertaken and completed during the balance period of your tenure.

It is very prudently put that the proposals for 91 projects with a total investment of Rs 36,408. 596 crore (Why so accurately?) were placed before and accepted by the state industrial development board up to June 2007. In the same breath, the ad also mentions the government approval for the setting up of 15green-field sugar mills with a total capacity of 80,000 TCD. And that will also produce 332MW of electricity by co-generation and 1070 KLDP ethanol simultaneously generating employment of 90,940 ppersons. I wonder if these sugar mills are also in the list of 91 projects mentioned earlier. Are these additional? Many would love to know that.

However, the people will also like to know the status of these 91 projects that also include many engineering, and medical colleges with hospitals. Is a time lapse of two years that has already gone since the list started bulging, is not good enough to show the progress? Are the promoters serious about the projects or did they submit the proposals to take some other benefits for their existing business in Bihar?

I am sure even with total confidence in your sincerity, the well-wishers are skeptical if those projects would ever see the daylight benefiting the people of Bihar. Please get a website set up that provides the status of the major projects undertaken by the state and even the central government to keep the people informed?
I don’t know if you are already having one. If you have, I shall be obliged to know the link.

I am still confident that Bihar will change fast enough for others to be envy.

Indra

Posted in Uncategorized | Leave a comment

A ‘bloody fool’ did it

Posted on August 25, 2007 by indra

VERGHESE KURIEN ‘MILKMAN OF INDIA’ has narrated an instance from his own professional life recently. That is the way a great man is different. And many in the public sector even today have a lot of such challenges. Why couldn’t HAL with world-class facilities produce LCA or for that matter, any product with a significant global or domestic market till date? Why couldn’t BHEL develop its capacity and globally competitive clean technology to meet even the domestic demands of power equipment? Kurien succeeded and made himself a legendary. India is today the largest producer of milk. And we all know if all the states of the country just emulate his model of milk cooperatives of Gujarat, the life of a lot many people below the poverty line can get improved. Kurien has told this story for TOI.

I remember the time when almost everybody, including experts in the dairy industry, had snubbed our idea of producing milk powder from buffalo milk. Experts, especially from New Zealand, which was selling milk powder in India, held firm that milk powder cannot be produced from buffalo milk. When noted dairyman and director of dairy research in New Zealand Professor William Riddet visited Anand, he told me that he was happy to know that I had made a significant name in the dairy industry at such a young age.

Then he asked me: “But, why are you such a bloody fool? Why are you working on a project that is bound to fail?” I told him that I would make it. He asked me if there was anything on earth that could dissuade me from embarking on a project that was bound to fail and I replied “nothing.”

It was on October 31, 1956 – Sardar Patel’s birthday – that Jawaharlal Nehru came to Anand to inaugurate the Amul dairy. When he was leaving Anand, Morarji Desai told Nehru that many had tried to dissuade me from going ahead with my project to produce milk powder from buffalo milk, for it was never done before. Nehru came towards me, put his hands around me in an embrace and said: “I am glad that India has such people who can get done things that cannot be done.”

We had succeeded in producing milk powder from buffalo milk, just 24 hours before Nehru inaugurated the dairy. It shocked dairy experts in New Zealand. The country did not want India to produce milk powder, as we were a major market for them. Now, India produces 1.65 lakh tonnes of milk powder, much more than what New Zealand produces.

I still remember how I rubbed milk powder on the forehead of dairy expert and my companion HM Dalaya just 24 hours before Nehru’s arrival in Anand.

Posted in Uncategorized | Leave a comment

Indian Public and Cause-based Protests

Posted on August 23, 2007 by indra

The media report and the public opinion about the left placing its ideology above the country’s interest raise some questions about our democracy and our people.

As reported by most of the national newspapers, the majority of the readers from the masses and intellectuals writing in media want the Indo-US Nuclear to go in fast track. But Leftists wish to sabotage the deal and the damage has already been made.

TOI reports that 92% of the netizens on its website are of opinion that ‘Congress should drop left for the nation’s good.’

Opinion polls reported in TOI are interesting. Kolkata and Kochi, both in the states ruled by the Left, are more strongly with the government and against the Left than any other cities. Support for the deal was at 64% in Kolkata and 65% in Kochi, well above the eight-city average.

Surprisingly, some of the old timers in the leftists, such as Subhas Chakroborty have also talked openly against the misadventure of the Karat-Yachuri alliance against the country. Subhas has been reported saying ‘it’ll be “idiotic” to pull the plug over differences on the Indo-US nuclear deal. Those who are in charge of our party talk big. But they don’t have to share the consequences.’

I wonder when the politically active public quite in large number is against the leftists, why don’t it come out to protest on roads or resort to some innovative methods to show its resentment and displeasure about the leftists’ ideological moves that are against the interest of the country? Are they afraid of a bigger counter protests organized by the official groups of leftists, who are masters in organizing that even on the slightest pretext?

Why can’t the media that can take up some cause like Jessica Lal’s case so vociferously and innovated many ways to highlight the issue, come out in the same way for this cause of N-Deal, if it is so critical for the future of the country?

BJP is opposing the deal, as it didn’t get a chance to take the credit of the deal and it is pleased to see the government falling before its due time not because of it but in spite of it. However, its opposition to Indo-US nuclear deal will prove costly on long run. The party has hardly any future with so much of inner fighting. And even its well-wishers, who were having some sympathy or weakness for it, are getting disenchanted. Why is the political class out to play party-pooper?

However, both these parties- CPM and BJP are cadre based ones. And the cadres consist of mostly opportunists and hooligans. Only party that will get the best out of the fall of the government will be BSP. The country and its people must be ready to welcome Mayawati as PM and the queen of this country in near future. And unfortunately, she has only this single agenda for her party of the ignorants. How can a person otherwise think of erecting massive memorials of her mentor Kansiram, shadowing those of even the father of nation in Delhi and in every district headquarters? What is the message she wishes to give to the people of the country?

Why have people in general stopped protesting against unjustified moves of the political parties that I used to see quite often in good old days?

I never thought of coming back on the political issue so often, but today I couldn’t resist myself. Any deficiency in system hurts me. I feel like protesting against that. One such instance that came to my mind is the number of days the Supreme Court’s bail order for Sanjay Dutta has taken to reach Yerwada jail. Have you noticed this? Is it justified today in a country that expects to be a great IT and knowledge power? Should the people not protest this?

Posted in Uncategorized | Leave a comment