Innovation -The Only Winning Way for Manufacturing Sector

Posted on July 5, 2007 by indra

I am quoting below (in Box) a story by Matthew May, a former senior advisor to Toyota University, the author of The Elegant Solution: Toyota’s Formula for Mastering Innovation, and the director of the innovation firm Aevitas. It appears in one article in Strategy-Business, ‘Innovation Agility’. Every one in manufacturing sector must make it a point to go through it.

China and India are having healthy competition to win the world market. China after shadowing the global manufacturing supremacy is trying to get into and capture the automobile sector too. As on today, the Japanese are at the helm in auto sector with some of European automakers. Toyota has become now the largest automobile producer of the world leaving behind the reigning supremo, General Motors.

Indian manufacturing sector too has gone for total revival in last few years. Its auto sector with Tata Motors and M&M as major Indian players, is trying to come in the race. While in volume production, the Chinese are far ahead, many feel the Indian manufacturing sector has followed and assimilated Japanese system of manufacturing better. Indian manufacturers are not copycats, and simultaneously more robust and quality-biased. India is in better position to provide quality products to the global market. Indian players must make the Toyota as its benchmark for its strategy about innovation that can win them the competition.

No one at Toyota was shocked when company president Katsuaki Watanabe announced to Wall Street and the rest of the world in the latter part of 2005 that he had ordered his research chief, Masatami Takimoto, to find a way to cut in half the price difference between Toyota’s hybrid cars and similar gasoline models without compromising any of the current quality standards, features, or performance. Watanabe’s comment: “I assume Mr. Takimoto must be racking his brains about how to do that.”

Toyota has for decades strategically set ambitious objectives in just this way – deliberately pitting seemingly incompatible goals against each other. Why? Because these competing targets cannot all be met without innovative thinking. The artful setting of opposing “stretch goals” builds a creative tension that fuels innovation by requiring a harmonious resolution.

For example, when Lexus Chief Engineer Ichiro Suzuki announced in 1987 that the secret vehicle under development for the U.S. luxury market must best, not match, the iconic BMW 735i in every rated performance category – speed, weight, styling, acceleration, noise, handling, comfort, and fuel efficiency. The army of more than 5,000 designers, engineers, and technicians reacted unanimously: impossible! Greater speed and acceleration conflicted directly with fuel efficiency, noise, and weight, because higher speed and acceleration required a more powerful engine, which in turn is bigger and heavier, thus making more noise and consuming more fuel. A smooth, quiet ride (associated with heavier weight) conflicted directly with better handling at high speed. And at the time, luxury styling didn’t have today’s streamlined look, so refinement and high-speed stability conflicted directly with aerodynamic drag. In short, the targets were thought to be individually attainable, but collectively unachievable.

Yet when the Lexus LS400 made its debut in 1989, it was five decibels quieter, 120 pounds lighter, and 17 miles per hour faster (according to Car and Driver) than its designated rival. It also got four-plus more miles to the gallon, and had better handling, acceleration, and comfort, while retailing for $30,000 less. Suzuki’s willingness to maintain tension among various competing targets, combined with his refusal to compromise, had made a difference.

Similarly, when Toyota began to develop a futuristic gas-electric hybrid vehicle in the early 1990s, senior leaders employed a new and unique internal design strategy: Pit Toyota’s various design centers against one another in a competition for the best design. The winner, as judged by a panel, would be awarded the project. That winner, the Prius, eventually made its production debut at the 1997 Kyoto conference on global warming.

The strategy proved so successful in generating an innovative product that today Toyota’s three major design facilities – located in Tokyo; Newport Beach, Calif. (near Los Angeles); and Brussels – compete to design every new model. Kevin Hunter, who currently heads the Newport Beach-based design studio, a subsidiary called Calty Design Research Inc., confirms the value of the competition: “It sets up a competitive edge. There’s much more of an intense focus and awareness when you know that nothing is being handed to you, that you have to win the business. You have to do your most excellent work. You have no choice: You have to deliver a perfect proposal.”

This stretch goal approach contains its own inherent challenges. Toyota is now developing ways to balance its stretch goal system with its own deliberate and distinctive quality consciousness.
When I read this story, I was reminded of Ratan Tata directive to the designers of ‘Indica car’- a car as roomy and sturdy as Ambassador, and as fuel efficient and cheap as Maruti 800. And they made it happen. Even some of the initial problems were also handled very smartly. Tata Motors are trying to do that again with Rs 1-lakh car after successfully launching its wonderful mini-truck ACE.

Can others in manufacturing sector emulate the Toyota methods to repeat Tata Motors success story with their product innovations?

Posted in industry, management, manufacturing | Leave a comment

Power – Is there a remedy?

Posted on July 4, 2007 by indra

It was 80s. Hindustan Motors (HM) was in better shape. It was coming out with new projects at Pithampur (MP) and Halol (Vadodara). It was trying to push up the production at its parent plant at Uttarpara (Kolkata). But power was the main constraint. It had to make a major investment to install standby power generators for about 20MW. Even at that time it was an unnecessary investment to cover up the failure of the government policy that had kept all power plants in public sector.

The condition of power in West Bengal improved thereafter, perhaps as the requirement reduced because of the closures of many factories due to aggressive unionism. But even today after 30 years, the situation of power has not much changed. In Noida or for that matter in every township of the country, the power situation is one of the major irritants holding people to improve the quality of life.

As reported, the peak hour demand for India is 100715 MW. 86818 MW is met by its generation. Gap is thus 13897 MW i.e. 14%. India has succeeded in reducing just one percentage point of the peak shortage since 1991.

Majority of generation projects are with public sectors. It never gets completed in the scheduled time. Last three Five-year plans (VIII, IX, and X) saw only half of the targeted additions to generation capacity attained.China adds generation capacity of 70000 MW every year. India added 21180 MW IN THE LAST FIVE YEARS. Bihar has not even added 1MW in the last 10 years.

Aggregate technical and commercial (AT&C) losses in states such as Bihar, Maharashtra and Madhya Pradesh amounted to over 50% in. In monetary term, AT&C losses cost Rs 47,000 crore a year that could add 47 IITs every year in India. The amount is equivalent to the UPA’s allocation to poverty alleviation last year. 27% of the electricity produced goes to vote banks in the farm sector free and get to a great extent wasted. If the farmers of Punjab and Tamil Nadu can get it free, why should others not? Governments have the diagnosis right for many years but ducks in providing remedies.

But the country is still growing at the rate of 9% plus with manufacturing touching even 15%. Is it not interesting? Here is one data from the cement industry that is highly power-intensive sector. Cement manufacturers had to go for cost reduction to contain the government pressure to hold he price. It went for captive power, as it provides an alternative to reduce this cost component.

As reported, “on an average, states charge Rs 4-5 per unit, where as, captive power costs between Rs 1.50 to Rs 2.50 per unit, thereby bringing a straight benefit of Rs 2.50 to Rs 3 per unit. Depending on the process (dry and wet), production of one tonne of cement requires 110 to 125 units. This means, if power is sourced from a captive plant, manufacturing one tonne of cement will bring the power cost down by half, from Rs 540 per tonne to Rs 270 per tonne.” According to the Cement Manufacturers Association (CMA) “For maintaining profitability, we are taking measures to ensure better cost efficiency. We have now 100 per cent captive power which reduces our costs.”

Is it to be doubted?

Unfortunately, the private sector has not come in big way to solve this major problem that is holding the country’s growth as well as the quality of life of ‘aam aadami’. Private sector’s share in power generation is only 12.9%. I fail to understand why the associations such as CII are not able to convince the bigger players in industry to go for it as priority, as after all it can never be a losing business with billion plus consumers and entrepreneurs bribing and waiting to get power sanction. I do also can’t digest the lack of initiatives from the town government. Why can’t Noida and many such townships that earn thousands of crore auctioning their land in booming real estate market invest on having the power generation of its own?

Many a times, I wonder should I (at 68) not get satisfied with the many heartening announcements such as ‘The Ministry of Renewable Energy plans to achieve 80,000 MW of electricity generation through renewable sources by 2032′, L&T going to manufacture electrical power equipment’, ‘Seven mega power projects to come’ and ‘Electricity for all by 2012‘, appearing day after day in media.

Posted in economy, industry | Leave a comment

Booming and Bubbling India-VIII

Posted on July 2, 2007 by indra

India will be 60, next month. The entrepreneuring Indians are making news every now and then. The news excites younger generation to have big dreams. And these dreams are pushing the country towards the status of a developed nation.

Today’s rumour may be reality tomorrow: The shares of both Infosys Technologies and Capgemini SA jumped on rumors of India’s IT bellwether acquiring Europe’s largest IT services firm.

India’s chipping in: A leading US-based analyst firm, iSuppli – in a forthcoming report – has pointed out that the integrated circuit design industry will quadruple in revenues from $596 million last year to $2.1 billion by 2010. The report also suggests that within the next three to four years, India will end up doing half the world’s chip design. The story such as one on Mithilesh Jha is clear indicator.

India Rides the VC Wave: As reported in Business week, U.S. venture capital firms are broadening their scope and investing in Indian companies that are helping the country’s poor. Two California VC funds-Walden International and New Enterprise Associates-are considering a $5 million investment in Novatium, a Chennai-based company that has developed a $100 personal computer.

India emerging as third largest banking hub: According to a PricewaterhouseCoopers report, the domestic credit in India would grow to $23 trillion in 2050 from $0.4 trillion in 2004. India is pegged to take the third place as a banking hub after China and the US by 2040.

Faster Urbanisation in India: The urbanisation of India is taking place at a faster rate than in the rest of the world. By 2030, 40.76 per cent of India’s population will be living in urban areas compared to about 28.4 per cent now, according to the United Nations’ ‘State of the World Population 2007’ report.

Indian millionaires: The number of high net worth individuals (HNWI), with a net asset of at least $1 million, increased by 20.5% to 1,00,015 in India last year, second only after 21.2% growth in Singapore, according to the World Wealth Report released by Merrill Lynch and Cap Gemini on June 28,2007.

Red tape smaller problem for India Inc: According to an International Business Report (IBR) by global accounting and consulting firm Grant Thornton International, India seems to have fared much better, with just 37% of the businesses surveyed blaming bureaucratic delays for their woes. That’s a tad lower than the global average of 38%, and way below Brazil’s 60% and Russia’s 59%. Further, only 23% of Indian businesses consider cost of finance to be a significant constraint as against Russia at 40%, Brazil at 36% and China at 35%. The numbers on working capital being a significant constraint to growth are very similar.

India second largest investor in UK: India has been rated as the second largest foreign investor in the UK by consultancy firm Ernst and Young, acknowledging India Inc’s growing competitiveness and willingness to take up global challenges.

Indian M&As to top $100 bn: India Inc is getting bigger by the day in terms of mergers and acquisitions (M&As). Driven by large capital and global liquidity, the M&As, including inbound and outbound deals, are expected to cross the $100-billion figure in calendar 2007, according to leading investment bankers.

4 Indian majors in ‘IT 100’: Indian majors like Bharti Airtel, TCS, Infosys and Satyam Technologies have found place in the Information Technology 100, BusinessWeek’s ranking of the top tech performers in the world. TCS has also been named as the only Indian entity to be listed among the world’s top 10 most profitable firms.

Arun appointed on Biz Council for Britain: NRI entrepreneur and Vodafone CEO Arun Sarin has been appointed as a member of the Business Council for Britain, a high powered body comprising representatives of UK-based businesses by the new Prime Minister Gordon Brown to advise him on issues that affect enterprise, business and competitiveness of the economy.

India-born scientist excels: Indian-born Australian Kuldip Sidhu has won the “2007 Top Invention Prize” for his work on stem cell research that, he says, is of “great relevance for India”.

An Indian as future Nobel candidate: Avinash Kamalakar Dixit, the Princeton professor is one of a trio of Indians who stand on the highest peak of academic economics. Amartya Sen is already a Nobel lauret. The names of the other two-Jagdish Bhagwati and Dixit-are inevitably tossed in the air when the new Nobel season starts every year.

Mukesh Ambani to get ‘Global Vision’ award: The US-India Business Council (USIBC) will confer the ‘Global Vision’ 2007 award for leadership on Reliance Industries Ltd (RIL) Chairman Mukesh Ambani in Washington.

A scientist at IIT-Kharagpur has patented a technique to harvest hydrogen from a commonly found strain of bacteria, providing a possible alternative to current hydrogen extraction techniques, which are expensive.

Tata Power has completed acquisition of 30% stakes in Indonesian thermal coal producers – PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia, and other related coal trading companies owned by PT Bumi Resources Tbk for a consideration of $1.1 billion.

Carlos Ghosn, head of Japan’s Nissan Motor and France’s Renault, said in Bangkok on Wednesday India’s Mahindra would be the “natural” partner if the company decides to produce a $3,000 car there. “If it’s possible to be done, it will be done in India.”

US firm, TN govt ink pact to set up tech campus near Chennai: US electronics manufacturing services (EMS) company, Samnina-SCI Corp., has entered into an agreement with the government of Tamil Nadu to set up a manufacturing technology campus in India at Orgadam, near Chennai that will offer solutions to original equipment manufacturers (OEMs) in the medical, communication, automotive, multimedia, defence and aerospace sectors.

According to managing director and chief executive Heung Soo Lheem, Hyundai Motor India Ltd (HMIL) is India’s largest exporter of fully built passenger vehicles and a manufacturing base for all the parent’s small cars worldwide.

Daimler to assemble trucks in India soon: DaimlerChrysler plans to assemble Mercedes-Benz trucks in India soon, to tap the growing demand to transport freight in Asia’s third-largest economy.

TCS to provide software for Ferrari’s F1 cars: Software major Tata Consultancy Services (TCS) has entered into an agreement with Scuderia Ferrari to provide entire software to the Italian automaker’s Formula-One cars from car electronics to safety, aerodynamics to trouble-shooting, during and between races. TCS engineering software division contributes almost six per cent of its total revenue and almost 18 per cent of that comes from aerospace sector.

India gets entry into elite tech studies club: India was last week made a provisional member of the Washington Accord, a 10-member apex global organisation that determines standards of engineering education.

NHPC to invest Rs 27,000 cr in Arunachal Pradesh: National Hydro Power Corporation (NHPC) would invest Rs27, 000 crore in Arunachal Pradesh in the next 10 years for development of mega hydro projects.

Bajaj plans maiden car in Rs 2-5 lakh range: Bajaj Auto, India’s second-largest two-wheeler maker, plans to price its first car between Rs 2 lakh and Rs 5 lakh. A concept vehicle will be showcased in January 2008 at the annual auto show. The company has earmarked Rs 750 crore for a four-wheel production plant to manufacture 40,000 to 50,000 vehicles annually.

Japan lines up $30 bn for investment in core sector: Japan may announce an investment of $30 billion in infrastructure projects that would include building a high-speed freight railway system between New Delhi and Mumbai, a port in Gujarat, and industrial complexes in Rajasthan.

Shobha De writes in her column in India Today special issue on this anniversary of 60 years, “Whether India is merely poised, shining, glowing or growling, nobody will argue that India is certainly climbing, clambering, clawing its way to the top of the heap. About time, too. The only question worth asking is: what took us so long?”

However, I think the more importsnt is to find how can we expedite it further to go ahead with the competition.

Posted in economy | Leave a comment

Let Bihar Emulate

Posted on July 2, 2007 by indra

Bihar of today is hardly industrialized. Unfortunately, the potentials for industrialization are also limited. It may have one big enough manufacturing unit for agricultural equipment of all sorts including small tractors, as Bihar will provide a ready market too. But the agriculture will remain the mainstay. Except for districts like Rohtas and some more, the state, particularly the north and western regions, still lacks irrigation facilities.

In every monsoon, the north Bihar remains under the threats of devastating floods affecting millions of people, mostly poor in rural areas. Unfortunately, hardly a major task has been taken up during last 60 years of independence. It would have attracted the minds of planners of the nation. Some major innovative projects of water conservation and storage would have been undertaken. But the priority perhaps skipped as Bihar gradually went out of the development politics. Floodwaters come and go; and soon draughts follow in the same regions. Should not the present government take up major projects to avoid the misery forever? It requires a special agency something like DVC that can take up all the necessary measures including all feasible river-interlinkings that has been abandoned by the UPA government at the centre.

Another way-out may be to create thousands of small dams, check dams, and waterbodies in the regions to store the rain and floodwater under all the schemes of the central government in a planned manner.

Gujarat may be taken a model to emulate. Gujarat is today the highest producer of oilseeds in the country. It has enhanced its agricultural production by almost one-and-a-half times in the last five-odd years through a multi-pronged strategy: efficient agro-management based on conservation of surface water, providing scientific information to farmers through the medium of Krishi Rath, and disbursement of a soil health card to every farmer. Under a soil health card policy, the scientists attached to the four agro universities in the state go to every farm and test the soil quality. The card helps the farmer provide the right nutrients to the soil, thus saving on wasteful expenditure. Around 17 lakh farmers in Gujarat have already received such cards. No wonder productivity has gone up. Can’t the universities in Bihar, particularly those having agricultural science department be made to do something on the pattern of Gujarat?

However, the most significant is Gujarat’s achievements in rainwater preservation for bad time of draught. It has happened by building 1.77 lakh farm ponds and 1 lakh check dams in public-private partnership, and deepening 5,000 village lakes, which has sent the water table soaring. Bihar must try to emulate Gujarat so far the creation of irrigation infrastructures are concerned.

Another success story from Gujarat is known world over as white revolution and credited to Kurien. It is something that can be emulated by all Indian states more so by Bihar. Its impact on rural economy will be significant.

Consider the economics: one buffalo gives roughly 5 litres of milk each day; people earn, depending on the fat content, Rs 15 to Rs 25 per litre. Even the poorest – one-buffalo owners – can earn. An infrastructure to collect and distribute the milk from the rural Bihar must get priority. The state must have a dairy in all blocks and collection centers that can cater to all prospective cattle owners all over the state.

There are many other things to emulate from other success stories. But one important change must come in the cultivation priorities of farmers in Bihar. As Punjab and Haryana switched over to high-value farm commodities, such as fruits, vegetables, milk, poultry products, meat and fish, Bihar must also do that.

Bihar must also increase its forest cover and encourage plantation of commercial trees. In good old days, we could see huge mango orchards in every village and even on the both sides of major roads one could see the fruit trees. All have gone. Can’t the state create a situation that can bring back that greenery?

Posted in Uncategorized | Leave a comment

Pratibha Patil-A President I shall not be able to respect

Posted on June 30, 2007 by indra

It was a great thing for the nation to have a woman President for the first time, though many women even in our neighbouring countries with more conservative traditions have already held the top position. However, I will not be able to respect Pratibha Patil even when she becomes President for many reasons.

She doesn’t fall in line with the great men who have occupied the President House after independence starting from Dr. Rajendra Prasad, Dr. Radhakrishanan, Dr. Jakir Hussain, and even the incumbent Dr. Kalam. Dr. Kalam became perhaps the best President because of his unique personality and programme of inspiring the nation to become developed by 2020, and through his contacts with the student community. I wish the media carried out a poll.

It is unfortunate that the politicians, who matter, have decided to have only persons with political background as President of the country. The decision is criminal. It is denying the rest of the excellently qualified nationalist individual intellectuals a democracy’s opportunity that must not make any discrimination.

I don’t like the choice of Pratibha Patil as her name came as a candidate after Sonia Gandhi could not sell her pet and loyal Shivraj Patil to communists. Sonia Gandhi did neither select Shivraj nor Pratibha by a democratic process through her party forum such as CWC or Parliamentary Board. Perhaps both the names must have come up first in her kitchen cabinet or coterie. The whole of my family including myself have been with Congress all along. But making Congress a family business is hardly digestible. Unfortunately for long the Congress became a party of sycophants not that other party are not. I find almost all selection to the posts of significance going to those loyal to the family.

I don’t like Pratibha Patil as she was associated with a co-operative bank in Maharashtra that is reputed for all sorts of scams. Even without going into the specific bank with which Pratibha was attached, it makes one skeptical about her clean image. Cooperative banks, sugar mills, and professional educational institutions in Maharashtra are owned effectively by politicians and have been the dens of unscrupulous business and scams.

I expected Pratibha Patil to come out in media and clear all charges against her forcefully. She has been silent and moving around in public holding the hand of Sonia Gandhi and her sycophant subordinates.

I don’t remember any other candidate of the President position in past have been charged in the way Pratibha Patil is being done. After all what can be the interest of many journalists of repute who have raised questions about her suitability to the highest position of the nation? In Business Standard today TN Ninan has an article where he writes, ‘Though it has lost time, it is still not too late for the UPA to call an emergency meeting and, with Ms Patil out of the way, decide on a new candidate.’

L.K. Advani’s appeal to change the candidate itself is proof enough that even the independent candidate Shekhawat is not the best choice. The Congress would have taken this opportunity and should have listened to its own people at large and not some sycophants. It would have shown its magnanimity to get a consensus candidate on its own. Congress might have lost its face but the nation would have been immensely benefited and got a confidence to face such national crisis (as I call it).

But why wouldn’t Pratibha Patil herself have withdrawn after so much of mud slinging in media? Is she showing her hardcore strength against even her conscience? Is it the way a Gandhian behave? This is another reason I don’t like Pratibha Patil.

Posted in Uncategorized | Leave a comment

Can I work at 68?

Posted on June 29, 2007 by indra

Last Tuesday, we had just returned after handing over some gifts for the kids in US to Alpna’s mother who was leaving for US at around 4.30 PM. The guard next door handed over the card of Brig. Shukla and also informed that Shukla had returned after waiting for some time. Shukla had requested me to call him back. I looked at Yamuna if we knew any Shukla. Her response was in negative. I called Shukla out of courtesy after I got settled. He asked if he could come to my place. I couldn’t have negated him.

Brig. Shukla is now working for a company-in-making that has a great plan on manufacturing cars in Himachal Pradesh. I was amazed, as I think I keep constant watch on the news from auto sector. I have not come across any such news. The promoter is Mr. Sharma, an IITian from Chennai. The promoters located me through Internet searching. They have a lot of information about my background. They want to have my services in getting the plant started. How would have I taken it? I was surprised and excited not as a job had come to me without any effort. I am enjoying my retirement for long many a years now. My excitement was about the unique entrepreneurship spirit that is prevailing in the country. The boom is all around. Shukla informed that the promoter Sharma would like to have a meeting with me. I affirmed that, mainly to know first hand about the project from the horse’s mouth. Shukla left. Pretty soon Mr. Sharma called me and sought a meeting after a day. I agreed.

Wednesday morning I got a call from Mr. Sharma. He wanted to have a meeting in Delhi over some drink. I showed my inability to come to Delhi. He agreed to come to my residence in Noida and meet me over a cup of tea.

A message came from Shukla before they started from Delhi. In the meantime, to my embarrassment Aroras came on a courtesy call. Sharma came with Shukla and his elder son Kartik, a young graduate in economics who appeared to be part of the team that has envisioned the project. Sharmas were very enthusiastic about the project: many models of cars covering entry to luxury ones, 4000 cars a day, with Rs 5000 crore investment arranged through NRIs and other institutions, on 2000 acres of land, powered by a captive 50 MW hydel power plant, flexible manufacturing systems to take care of different models, totally integrated plants from forgings and castings to gears and engine manufacturing, and sheet metal stamping to automated assembly and testing, its own R&D. Sharma has roped the former chairman of a navratna PSU, a former chief executive of Tata Motors, a former secretary of industry of Government of India, and perhaps some more persons. He has also engaged Lotus to develop the models and L&T to install the facilities. Sharma wants me to take care of the setting up the plant and production. However, the discussion went around the selection of manufacturing facilities and other management strategies. Sharma wanted if I could take the responsibility and what would be the financial package that I would be expecting. I naturally expressed my interest in understanding the project before I agree. The meeting ended with an agreement for another one where a presentation will come about the proposed manufacturing strategies and facilities.

Naturally I never imagined that such a proposal would come after I am out from the professional career for almost 6-7 years. I had opted for the total retirement. I never tried for any job thereafter. I don’t know if I am physically fit to carry on with this assignment. Preferably I would have liked to become a technical advisor or consultant. Yamuna also wants me to work only as part-time advisor. Many a times from somewhere inside me I get a wish to take one more plunge. But will it be a right decision at this age, even though many of this age or more are as busy as I would be after taking up the assignment if it comes?

Should I start working again at 68?

Posted in personal | Leave a comment

Shah Jahan’s Passion for Masterpieces

Posted on June 28, 2007 by indra

Shah Jahan’s TajMahal is already doing a hot round in media to get the votes to be in the list of ‘new seven wonders’ through SMSs and e-mails. The news of another masterpiece from Shah Jahan was exhilarating. Perhaps, He was one emperor who had a passion to create something unique for the posterity to become immortal. Taj Mahal, Lal Killa (Red Fort), Jama Masjid, and many other things such as the lost Takhat-e- toush and Kohinoor through which the people will keep on remembering Shah Jahan for years to come even today.

As per a media report, Emperor Shah Jahan got created another masterpiece, a 1.1 kg coin as large as a quarter plate, made of solid gold. It is now the property of the University of Mumbai courtesy stockbroker Dinesh Mody. Mody is donating this coin and 25,000 other heritage coins, currency notes, seals and medals from countries all over the world to the university for use in its new master’s degree in numismatics and archaeology.

The Shah Jahan coin dates back to the era between 1628 and 1658. In the 1980s, it was auctioned in London, when Mody bought it for a small fortune. But it carries a fascinating tale.

According to the story, the massive coin was issued to placate the Khalifa, the head of the Muslim sect. Islamic kings were forbidden from issuing coins with Kalima (aayat from the Koran) or images of humans or other living beings. However, Akbar, Jahangir and Shah Jahan frequently issued coins engraved with birds, animals and their own visages. When the Khalifa, who migrated from Baghdad to Morocco, learnt of this practice, he sent out a stern warning to Shah Jahan that if he continued in this vainglorious manner, he would be excommunicated.

Dilip Rajgor, a scholar and the author of several books on numismatics, says ”He (Shah Jahan) not eat for a day and then one of his advisors came up with a solution, which was to mint a large coin from pure gold and call it Shahenshah.” The coin was sent to the Khalifa with a message that read, ”the Shahenshah (Emperor) is at your feet asking for forgiveness”. On it was inscribed in Persian, ”There is only one God, and he is Allah, and Mohammed is his Prophet.”

The Khalifa’s daughter, who married an Afghan prince, took this coin with her. The couple’s daughter married the prince of Bahawalpur and the coin was sent with her as dowry.

Will the diamonds possessed by Mayawati be one day a similar object of history for the posterity?

Posted in Uncategorized | Leave a comment

Indian Poor and Crorepati Rulers

Posted on June 27, 2007 by indra

People of India has now access of the assets, at least of the white portion, of the rulers of India courtesy the rules of Election Commission. Every candidate for both the houses at the center and the state are to file an affidavit giving one’s asset and its worth, beside his educational qualification and some other details. Since last two days, Mayawati’s wealth is on the front page of a national daily that claims to have the largest circulation. I don’t know the motive of giving importance to the news. . Mayawati, 51, who swept Mulayam Singh Yadav out of power recently had not contested the assembly election. As per the law, she is now seeking a berth in the Upper House, as she is CM and wishes to continue too. And Mayawati’s declaration of her latest assets came in affidavit that is accessible to the people.

According to the affidavit, she does not own a car, agricultural or non-agricultural land. But she owns ”commercial and residential space”. The CM’s assets, are: Cash: Rs 50.27 lakh; Deposits in banks, financial institutions and non-banking financial companies: Rs 12.88 lakh; Jewellery: Rs 50.87 lakh; Diamonds: 380.17 carat: Rs 49.75 lakh; a 18.5-kg silver dinner set costing Rs 1.12 lakh; murals worth Rs 15 lakh; two commercial establishments in Connaught Place, New Delhi, priced at Rs 2.05 crore and Rs 1.27 crore and another commercial establishment at Okhla which is priced at Rs 15.50 crore. Lucknow residence is shown at Nehru Road in the Cantonment priced Rs 97.42 lakh; Delhi residence on Sardar Patel Marg priced Rs 18.02 crore. Mayawati today clarified that all her assets have come from small donations from the thousands of her party members. She has also paid the required taxes, so this is all legal. Is it not a lucrative way of becoming crorepati? Should she become the model for our young Dalit friends and emulated? It will be interesting to now what the top judiciary opines.

For record, the other crorepati politicians, as reported in media based on their affidavits with the Election Commission, are Manmohan Singh (Rs 4 crore), Sarad Pawar (1.3 crore plus 1.6 crore of wife), L. K. Advani (1.1 crore plus 17.7 lakh of wife), Chandrababu Naidu (1.6 crore plus 19.3 crore of wife), O. P. Chautala, the former CM of Haryana (4.8 crore plus 1.32 crore of wife), Vilasrao Deshmukh (Rs. 3.3 crore), M. Karunanidhi (Rs 26.5 crore), and Jayalalithaa (Rs 24.6 crore). Mulayam Yadav is worth only Rs 3 crore plus additional Rs 77 lakh with his wife Sadhana), though Rajat Sharma in his popular ‘Aapki Adalat’ used to talk of very huge amount. As already reported, the present CM of Punjab Barnala’s assets are huge some claiming as high as Rs 1000 crore or more. Surprisingly, Sonia Gandhi (81 Lakh), Lalu Prasad (23.8 lakh plus Rs 37 of wife Rabri Devi plus Rs 29 lakh for children), Atal Bihari Bajpayee are all sort of a crore. Should the figure provided to EC be believed? Will their actual worth be very much more than the figures provided in affidavits? I don’t know what are the value of the assets owned by Nitish Kumar and Budhadev Bhattacharya. Are they the Kamraj and Lal Bahadur Shastri class?

Except for perhaps Manmohan Singh none might have earned through their professional career. Mawayati started her career as a teacher in a Delhi administration school, and then she did her law too, but she has grown rich through politics. Mayawati at least openly confesses. Again hardly, these politicians have inherited the assets that have grown. Mayawati’s father worked in the department of post, and has retired as a senior clerk. The family lives in Inderpuri in Delhi. To be frank, I don’t know about other political leaders. Neither have I researched.

Many TV channels made the news an important one today. But will it carry any negative message to the masses who vote them to power. As some thinkers feel, at least the followers of Mayawati take it as an achievement of a Dalit?

Perhaps, the news will certainly make the others in business of politics greedier and more corrupt.

Posted in economy | Leave a comment

Emerging Entrepreneuring India

Posted on June 26, 2007 by indra

I was watching the award giving function to the winners of CNBC-TV18 ‘Emerging India Awards 2007‘ initiated by ICICI Bank and CNBC TV18. I was amazed to learn that the winners were selected from about 1,25,378 SMEs that made entry. KV Kamath, managing director & CEO of ICICI Bank too hoped the number of entries to reach 5 lakh next year that started with 5,000 in 2005.The winner SMEs had a maximum net worth of Rs 50 crore. The winners are:
IndoAsian Fusegear Limited (auto, ancillaries and engineering), Venus Remedies Limited (pharma & chemicals), Freshtrop Fruits Limited (FMCG, Food & Agri-Business), Kama Jewellery (gems & jewellery), Indus Fila (textiles & apparel), Value Labs (IT, communications and entertainment (ICE), ITES), Techpro Systems Limited (Infrastructure), Diana Hotels Limited (travel & tourism), Today’s Writing Products (retail trade). Speck Systems Limited (non retail), Mother’s Pride Education Persona Private Limited, and S Jhaveri & Co.

And one can see such enthusiastic entrepreneurs in all part of the country. Each story is unique and exciting. The story of SELCO is of one such entrepreneur. Harish Hande 37, an IIT Kharagpur alumnus founded SELCO, India 12 years ago. This solar energy company has recently won the prestigious ‘Green Oscar’ for the second time. And a report in this Sunday Times of India tells how the company is transforming the lives of ordinary people making an auto driver an entrepreneur:

The solar panel installed above R Vijaya Kumar’s small house on the outskirts of Bangalore made the difference. Every day at 4 pm, Vijay Kumar drives to the Bomanahalli market on the outskirts of Bangalore with 50 batteries that he hires out to street vendors for Rs 15 per battery per night. He returns at 11 pm to take them back, having made thrice what he could earn as an auto driver. It gets Kumar enough money to repay the loan he took to buy the SELCO’s solar panels with which he recharges the batteries everyday.’ In Gujarat, SELCO has helped midwives to deliver children with the aid of a solar lighting kits, and in Karnataka, SELCO has given rose-pickers outside Bangalore solar-powered headlamps so that they can work in the pre-dawn darkness with their hands free. This customized design has made the difference. But Harish went step further and convinced banks to come out with a product for the poor. Initially, it was still difficult to convince the poor to shell out anywhere between Rs 18,000 and Rs 20,000 for a standard 40-watt solar light system that can light several 7-watt bulbs and charge batteries which can be used after dark. For daily wagers, that’s a stiff financial commitment. It is possible through micro finance. Initially most banks were reluctant to lend money to those who earned less than Rs 100 pm. Harish suggested the innovative financing. ”While some found repaying Rs 300 a month difficult, they found it easy to put away Rs 10 a day.” The answer lay in ensuring a collection mechanism that would work on a daily rather than monthly basis.

Kearala’s Biotech and Karnataka’s SKG Sangha also won the ‘Green Oscar’ awards. Biotech won it for developing and installing biogas plants in Kerala that use food waste to generate gas for cooking. SKG Sangha has bagged the second prize for improving the lives of rural communities in the state by supplying them with both dung-based biogas plants for cooking and a specially-designed unit that turns the slurry from the biogas plant into high quality fertiliser.Why can’t the states such as Bihar and Orissa emulate it?

And what has it meant. The vendors give up their polluting lamps for a cleaner and cheaper energy alternative. A few extra hours of work after sundown, less fumes from lamps and more study time for kids – it’s all these things that make a difference to people hampered by electricity outages and the reliance on a few expensive litres of kerosene. Many entrepreneurs can take some lessons from the stories above. And this can be the only way to win the race with China that many think we should not even dream because of our democratic system and corrupt politicians and bureaucrats.

Posted in Uncategorized | Leave a comment

Emerging Entrepreneuring India

Posted on June 26, 2007 by indra

I was watching the award giving function to the winners of CNBC-TV18 ‘Emerging India Awards 2007‘ initiated by ICICI Bank and CNBC TV18. I was amazed to learn that the winners were selected from about 1,25,378 SMEs that made entry. KV Kamath, managing director & CEO of ICICI Bank too hoped the number of entries to reach 5 lakh next year that started with 5,000 in 2005.The winner SMEs had a maximum net worth of Rs 50 crore. The winners are:
IndoAsian Fusegear Limited (auto, ancillaries and engineering), Venus Remedies Limited (pharma & chemicals), Freshtrop Fruits Limited (FMCG, Food & Agri-Business), Kama Jewellery (gems & jewellery), Indus Fila (textiles & apparel), Value Labs (IT, communications and entertainment (ICE), ITES), Techpro Systems Limited (Infrastructure), Diana Hotels Limited (travel & tourism), Today’s Writing Products (retail trade). Speck Systems Limited (non retail), Mother’s Pride Education Persona Private Limited, and S Jhaveri & Co.

And one can see such enthusiastic entrepreneurs in all part of the country. Each story is unique and exciting. The story of SELCO is of one such entrepreneur. Harish Hande 37, an IIT Kharagpur alumnus founded SELCO, India 12 years ago. This solar energy company has recently won the prestigious ‘Green Oscar’ for the second time. And a report in this Sunday Times of India tells how the company is transforming the lives of ordinary people making an auto driver an entrepreneur:

The solar panel installed above R Vijaya Kumar’s small house on the outskirts of Bangalore made the difference. Every day at 4 pm, Vijay Kumar drives to the Bomanahalli market on the outskirts of Bangalore with 50 batteries that he hires out to street vendors for Rs 15 per battery per night. He returns at 11 pm to take them back, having made thrice what he could earn as an auto driver. It gets Kumar enough money to repay the loan he took to buy the SELCO’s solar panels with which he recharges the batteries everyday.’ In Gujarat, SELCO has helped midwives to deliver children with the aid of a solar lighting kits, and in Karnataka, SELCO has given rose-pickers outside Bangalore solar-powered headlamps so that they can work in the pre-dawn darkness with their hands free. This customized design has made the difference. But Harish went step further and convinced banks to come out with a product for the poor. Initially, it was still difficult to convince the poor to shell out anywhere between Rs 18,000 and Rs 20,000 for a standard 40-watt solar light system that can light several 7-watt bulbs and charge batteries which can be used after dark. For daily wagers, that’s a stiff financial commitment. It is possible through micro finance. Initially most banks were reluctant to lend money to those who earned less than Rs 100 pm. Harish suggested the innovative financing. ”While some found repaying Rs 300 a month difficult, they found it easy to put away Rs 10 a day.” The answer lay in ensuring a collection mechanism that would work on a daily rather than monthly basis.

Kearala’s Biotech and Karnataka’s SKG Sangha also won the ‘Green Oscar’ awards. Biotech won it for developing and installing biogas plants in Kerala that use food waste to generate gas for cooking. SKG Sangha has bagged the second prize for improving the lives of rural communities in the state by supplying them with both dung-based biogas plants for cooking and a specially-designed unit that turns the slurry from the biogas plant into high quality fertiliser.Why can’t the states such as Bihar and Orissa emulate it?

And what has it meant. The vendors give up their polluting lamps for a cleaner and cheaper energy alternative. A few extra hours of work after sundown, less fumes from lamps and more study time for kids – it’s all these things that make a difference to people hampered by electricity outages and the reliance on a few expensive litres of kerosene. Many entrepreneurs can take some lessons from the stories above. And this can be the only way to win the race with China that many think we should not even dream because of our democratic system and corrupt politicians and bureaucrats.

PS: PM gave away the awards, and in his speech he said, “The winners of these awards will be viewed as the new icons of Indian industry. I am sure they will inspire others to better effort. We need national icons in all walks of life. The icons of big industry who have become symbols of creativity and enterprise in India are inspiring others to greater effort. Similarly, the new heroes in the SME sector some of who are present here must inspire professionalism and enterprise by their solid example. They should be symbols of good corporate governance. They should emerge, and it is my prayer, as respected leaders and members of society. I hope these awards will help in contributing to that process. I wish you all success in your noble endeavour..”

Posted in economy | Leave a comment