IIPM-Infrastructure: March 2013

Thursday, March 28, 2013

The Potential of Water Market

The world bank Forecasts that by 2025, two-thirds of the World’s Population will run short of Drinking Water. The World Health Organisation, in its vision 21 report, Estimates that $47 billion per year over the next 25 years will be required for Universal Water access. B&E analyses The Global Water Market.

The looming water stress

In the 20th century, the world’s population tripled while the use of renewable water resources grew six folds. The World Water Council estimates that in the next fifty years, the global population will increase by another 40-50%; and this population growth, coupled with industrialisation and urbanisation will result in an increasing demand for water. Globally, 10% of water flow into domestic use, 70% into agriculture and 20%into industrial production. UN forecasts that by 2030, almost 60% of the world’s population will be living in urban areas. In contrast to agriculture and urban water management, where consumption is steadily rising, the situation is slightly positive for industrial water use. It is unlikely that water can be made available for all application in the future at the same low cost.

Growing Health Awareness

The Global Bottled Water Market 2010 report by Beverage Market Corporation states that North America leads the world in bottled water use accounting for 29.8% share by volume. In case of the developed countries, water, apart from being a basic commodity, is also a lifestyle product. According to IDM, Germany, consumers can choose from about 500 different domestic water brands – all of which are different in terms of taste and origin, apart from mineral water imported from abroad. However, in many other countries, people rely on bottled water driven by contaminated and unsafe drinking water. Other factors influencing the growth of bottled water are availability of convenience packaging and inability of the governments to provide safe drinking water.

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Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
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IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
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Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
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IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Monday, March 25, 2013

“Our Company has Grown over 10 Fold Since 1995”

Julien Mininberg, President & CEO of Kaz Inc., one of the leading Producers and Marketers of High Quality Branded Consumer and Healthcare devices Globally talks about the Company’s Growth, R&D and Strategic Importance of India as a Market, to B&E’s
Issue Date - 03/03/2011

B&E: Kaz has been selling healthcare devices for over 90 years now. How does its current product portfolio look like and how much do you sell globally?
Julien Mininberg (JM): Kaz is a worldwide leader in healthcare products and small domestic appliances, with annual revenues of over $500 million and is today operating in more than 65 countries. Our healthcare products portfolio primarily comprises of Vicks and Braun thermometers, Vicks humidifiers and Vicks vapourisers. Kaz is not just the market leader in these product categories in North America, Europe, Middle East and Asia, but also a #1 worldwide in thermometers with its patented Braun infrared ear thermometers. The small domestic appliances are primarily Honeywell air purifiers, heaters and fans, and are sold all over the world.

B&E: So, how many brands are you exactly associated with?
JM: Kaz licences four world-class brands globally. This includes Vicks, which it had licensed from the Procter & Gamble way back in 1995. The Vicks name has been trusted by moms and families across the globe for over 100 years and sells products worth more than $1 billion annually. India is a very important part of Vicks’ global equity. In order to compliment the existing line of Vicks products in India, such as Vicks Vaporub (which consumers already know and trust), we plan to bring high quality, reliable products to this strategically important market under the Vicks brand name. Kaz also licences products under the Braun brand name from P&G for thermometers and blood pressure monitors. Kaz’s Braun Thermoscan ear thermometers are preferred by medical professionals worldwide and are the #1 consumer ear thermometer in most countries where they are sold. We also have brand licences for Febreze and Honeywell. We are the oldest, largest and most global licensee for both P&G and Honeywell. In the last three years, Kaz has been recognised by P&G twice and has been awarded for excellence. Honeywell too has consistently featured Kaz as their best licensee.

B&E: What do you think will work best for you in India – cost leadership or product differentiation?
JM: Our strategy is to bring the world’ best technology and quality to the Indian consumers under the Vicks brand name at a value that is relevant for a task as serious as that of taking care of the health of a human being. In fact, we plan to introduce an increasingly broad line of Vicks thermometers, vapourisers, vapour inhalants & humidifiers, all designed to improve the lives and well being of Indian consumers. In addition, we will also be launching our Braun infrared ear thermometers in India.

B&E: What about your future strategies and growth plans?
JM: The company has grown over 10 fold since 1995. All this has been possible through a combination of organic and inorganic growth which we plan to continue with in the near future. Today, more than half of the Kaz total revenue comes from the sales of healthcare products such as Vicks and Braun (we sell over $100 million worth of products every year under each of these brand names) and as such will continue to focus on these two brands in the near future as well. We have just started in India, and are aiming at a 500% growth in the next three years.

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Sunday, March 17, 2013

“Business Dynamics have Changed”

Chairman and CEO, ITC Ltd, in an Exclusive Conversation with B&E’s Bhuvnesh Talwar & Ashutosh Harbola reveals the Path to Sustainability

After the economic liberalisation in 1992, almost everything changed – right from the attractiveness of the Indian market to the business dynamics. Competition is now so intense that it’s becoming difficult to keep a tab on India’s growth story. But one thing that has remained unchanged is the unfazed growth of ITC. In an exclusive interaction with B&E, Y. C. Deveshwar, the man who has been central to this growth saga, emphasises on the need for India Inc. to move on the path of CSR and calls for policies focusing on inclusive growth in order to achieve growth & long-term sustainability.

B&E: Do you think being based out of Kolkata has been a disadvantage for ITC Group?
Y. C. Deveshwar (YCD): There is no disadvantage of being in Kolkata because we are a national company. We have a national footprint and great brand recognition. So, it does not matter where we are based.

B&E: How challenging has it been to sustain and lead in a vibrant and dynamic market like India?
YCD: It has been an eventful journey and, in fact, ITC has strengthened in India. As a company we have been able to understand the consumer mindset, and the processes which we have laid down have enabled us to analyse the customers’ psyche and come up with valuable consumer insights. It is because of these insights that we have been able to compete with multinational players.

B&E: So, which key marketing strategies has ITC focussed on to understand the market better?
YCD: Marketing strategies are not constant. They are dynamic in nature and change as the market evolves. Understanding what a consumer wants is a tough job. But figuring out what the consumer would want in the future is a more challenging task. However, we have been successful in precisely achieving this and it lies in the heart of our every strategy.

B&E: FDI in retail has been creating waves in the political and business circles. What are your views on the relaxations given to foreign players in this sector?
YCD: We are not in the business of retail so these relaxations do not affect us directly. But we need retailers anyway and therefore healthy competition is always good. With this, the government has provided a fair business environment to thrive on.

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Monday, March 11, 2013

Karachi Undergoing Metamorphosis

How ‘The City of Lights’ lost its Sparkle, and how Karachiites are Fighting For a Brighter Tomorrow...

Karachi is undergoing metamorphosis. The “City of Lights” of yesteryear has been brutalised and “target killing” has become order of the day. With an estimated population of 18 million, the megalopolis Karachi is now controlled by mafias.

There was a time when Burqa-clad women with all their jewellery would return from marriages late in the night all alone without any fear, and children would play in the lanes up till 2am and doors remained open for them. The boundary walls of bungalows were also not more than four feet in height, and one could have a glimpse of lawns while walking on the pavement.

Then things started changing. But these changes have a history. The capital of Pakistan, Karachi, witnessed a great upheaval in 1953, when peaceful students were fired upon because they brought a procession to demand for better education facilities. Seven students and a passerby lost their lives, but the establishment was eventually forced to accept students’ demands.

In fact, the 1953 movement, led by left-wing Democratic Students Federation (DSF), was a turning point in Pakistan’s chequered history. The establishment decided to shift the capital to Islamabad.

Again in 1964, it was Karachi and Dhaka from where the opposition leader Mohtarama Fatima Jinnah won the elections despite the notorious ‘Basic Democracy’ system, in which only 80,000 BD members were allowed to cast their votes in presidential elections.

The democratic upsurge of 1968-69 that forced military dictator General Ayub Khan to announce that he would not take part in next elections, shook the corridors of power. There was euphoria in the air, and students, industrial workers, teachers, doctors, lawyers and intellectuals and writers felt as if a revolution was in the making.

However, another military dictator General Yahya Khan staged a coup and took hold of the reins of power. Perhaps it was in 1968-69 that the civil and military establishment decided to break the will of Karachiites.

The break-away of Eastern wing in 1971 after genocide of Bengalis and establishment of Bangladesh as an independent state too weakened the democratic movement in the financial hub of Pakistan. This was because the politically conscious leadership of Pakistan’s Eastern wing had always given a lead to the rest of Pakistan, including Karachi.

Thus began a process of de-politicising of Karachiites. Ethnicity and parochialism was promoted by the State, and industrial workers were fired upon in Landhi’s industrial area of Karachi. Political activists were disillusioned, what they thought was a revolution was only a mirage.

Brutalisation of society reached its peak when the democratically-elected government of Prime Minister Zulfikar Ali Bhutto was overthrown in July 1977 by despot General Ziaul Haq, and Bhutto was sent to the gallows.

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Wednesday, March 6, 2013

‘Slym’ing down is no more a priority for the ‘Beast’

GM has long realised that it cannot wish away India if it plans to stay in the Asian reckoning. But while it has been a leader in China, the intensely competitive Indian market is yet to take off for GM. Pawan Chabra drills and grills GM’s MD Karl Slym for a deeper look into how the company plans to change that orientation

Barack Obama’s entourage to India will include a whopping representation from 215 large and mid-sized American companies, who will seek to further the blooming American business interests in the country. Taking him around during his three day visit will be the Beast, a fortress that is disguised as a Cadillac, which is America’s First Limo. It is regarded as the world’s most advanced vehicle in terms of security, one whose myriad features are a closely guarded secret – held by its manufacturer and the US Secret Service.

As the Beast rumbles into India with the world’s most powerful man as its occupant, it carries a symbolic appeal for GM as well; being one of the many American businesses that have sought and attained welcome respite from their diving fortunes in the Indian market. And just like Barack Obama, GM’s expectations from its India connection are now reaching unprecedented heights, as Karl Slym, MD & President, GM India, would excitedly tell me.

In fact, the past three years that Slym has been in the Indian market have been full of action, both in India and back home in US. In his tenure, the parent company back in Detroit made its way to Chapter 11 reconstruction. For GM India – and for Slym personally – that time was perchance the worst as a significant number of prospective GM customers, worrying whether GM India would continue if GM global collapsed, either delayed their purchases or simply shifted their preferences. Slym smiles wryly as he reminisces to me the tough decisions he took to ensure that the business in India did not take a hit because of the problems back in the US. Be it the decision to be himself the brand ambassador of the company in the ‘There for you – There for India’ campaign or the host of other activities that the company carried out, Slym tells me he’s very much confident that Chevrolet now stands as one of the most promising brands in the Indian automobile circuit. Now that the bankruptcy woes are almost over and GM has made a comeback in both India and back home, the company is focused on larger objectives. After the company got the third cousin in the small car segment in January this year in the name of Beat, the battle for a much larger market share in India is very much on.

Numbers seem to flowing well for Slym. As per the J.D. Power Asia Pacific 2010 India Vehicle Dependability Study, the Spark and U-VA model of the company have topped the vehicle dependability index in their respective segments. As compared to the total sales of 87,000 that the company made in the financial year of April-March 2010, GM India has sold close over 51,000 vehicles in the first six months of this financial year. Slym is seemingly confident of the fact that he will be able to break the one lakh tag this fiscal year. “We expect to sell 2,00,000 units by the end of 2012 and 300,000 units by the end of 2013,” says Slym.

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Tuesday, March 5, 2013

There will be no trouble

UPA hopes there will be no trouble once the verdict is out but is leaving little to chance, says B&E’s Pramod Kumar

UP Congress has cautioned the party High Command about the political tactics that might be adopted by the BJP to cash in on this emotive issue. The BJP might try to polarise voters in ensuing election in Bihar.

Pressure is mounting on the government to act in a decisive manner. The Congress is of the view that if peace is disturbed, the BJP will try to derive political mileage. The ruling coalition is already worried over alleged failure of the government in tackling inflation and it does not want to concede any more political ground to the Opposition. The onus now rests on Chidambaram. Intelligence chiefs have warned that Azamgarh, Mathura, Kashi, Bhopal, Indore, Raipur, Delhi, Nagpur, Gorakhpur and Ranchi are among the more sensitive areas. The Prime Minister wanted to know about preparations of the Home Ministry regarding UP's demand for 400 battalions of paramilitary forces.

The Home Ministry, in its reply, has said that it is ready to send 40 battalions of paramilitary forces and 15 units of Rapid Action Force. The government has also sought reports from home secretaries of different states. They have been told to remain vigilant and be ready to handle any situation.

Amid all this, the RSS has already started chanting Hanuman Chalisa in temples across India. The chanting will reach a crescendo on September 16. The BJP has called off its planned Jammu conference.

However, the apex body of the BJP is not in favour of a direct confrontation on the issue of building a temple at the disputed site in Ayodhya. It has even advised its front organisations such as VHP and Bajrang Dal to maintain peace even if the court delivers a verdict in favour of the Waqf Board and allots Hindus a piece of land near the disputed site. They have also sent overtures to Muslim groups to consider giving up their claims on Mathura and Kashi.

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B-SCHOOL SURVEY PANEL MEET, 2010

August 12, 2010, saw Planman Media and Business & Economy magazine play host to eminent corporate personalities of India, in a Panel Meet discussion, for Business & Economy magazine’s highly coveted annual issue – India’s Best B-Schools Special Issue 2010. The most unique element about the B&E B-school ranking is that in this particular ranking, the B-schools are ranked by renowned industry leaders (please refer to ‘List of 20 Panel Members’ section for the names of panelists). The final list of 30 B-schools, which is handed over to the panelists for their individual ratings, is chosen from an initial list of 150 B-schools (the initial ratings are obtained from 5,000 respondents across the cities of Delhi, Mumbai, Kolkata, Bangalore, Chennai, Pune, Hyderabad and Ahmedabad, using a structured questionnaire). Considering the importance of the meet, four distinguished industry leaders – Dr. Wilfried Aulbur (CEO, Mercedes-Benz India), Mr. Michael Boneham (MD, Ford Motor Co. India), Mr. Naresh Gupta (MD, Adobe India) and Mr. Brian Tempest (Former CEO, Ranbaxy and presently, Independent Director, Religare Hichens Harrison) – sent their comments and discussions through the audio/visual format. The round-table discussion revolved about the parameters on which B-schools are judged today, and means by which such ranking can be made more transparent and just. Professor Arindam Chaudhuri, Editor-In-Chief of Planman Media expressed his views on how “faculty and course contents” are the two most important elements to deliver overall knowledge in B-schools. He also stressed upon a need for a constant focus on personality development and communication skills. Mr. Sandeep Aneja, MD of Kaizen PE, elaborated on why a “right student base and world-class faculty” is mandatory for any B-school, adding that his most valuable learning during his Stanford days was from a course that prompted students to question who they were, sociologically. Mr. Girish Vaidya. Former Director, Infosys Leadership Institute spoke about why B-Schools should be ranked on the basis of “curriculum, global exposure and cultural stability, along with the extent to which entrepreneurial programs” are encouraged. Mr. Dhiraj Mathur, Exec. Director, PwC gave a strong argument on why “a strong orientation towards ethics” is important for a B-school. While K. M. Nanaiah, MD, Pitney Bowes India, also highlighted the need for a “globalised curriculum and industry interface”, Mr. Sumeet Nair, Chairperson of Fashion Foundation of India justified the need for “encouraging an entrepreneurial zeal” amongst the B-school students. The event was a huge success and all the participants concluded that much more needs to be done to arrive at the ideal B-school of tomorrow. [The aggregate of ratings given by the 20 panelists will be released in print in the November 26, 2010 B-school Special Issue of B&E.]

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Saturday, March 2, 2013

“There is a need of innovative wrappers around existing products”

Jaideep Bhattacharya, Chief Marketing Officer of UTI AMC in an exclusive interaction with B&E

Following growth in the MF industry, UTI AMC has outlined vision to simplify innovation for investors and to further augment equity assets, which is predominantly retail. Jaideep Bhattacharya, CMO of UTI AMC spoke to Mona Mehta on the ‘realistic investment’ challenges the AMC would want to overcome with an aim to enable retail investors reap the benefits of diversification. Excerpts:

How critical is innovation for the Indian mutual fund industry and how is UTI AMC dealing with it?
UTI AMC has various products catering to varied risk-return profiles. Regulations allow MFs to invest in assets viz equity, debt and Gold ETFs. There have been various permutation combination when it comes to MFs using these assets. What is required now is to narrow down on the existing products and help investors to invest in focussed products to enable them to achieve their financial goals. There is a need of innovative wrapper around existing products for various life stages of an individual.

What is UTI’s investor education initiative all about?
UTI AMC has launched the largest investor education initiative called “Swatantra” for creating awareness about the concepts of financial planning and benefits of investing in MFs. As a part of this initiative three UTI Knowledge Caravans will travel through the length and breadth of the country for spreading financial literacy. ‘Swatantra’ is the largest investor campaign in the country which will cover over 300 cities in 100 days. In fact, the initiative will be conducted in 10 languages. During the journey investors meets along with training through online platform, street plays, puppet show, et al (which are being used for the first time in India) will be held in various centres for spreading financial awareness.

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