IIPM-Infrastructure: April 2013

Tuesday, April 30, 2013

HPV; worse than HIV!

If you’re reading this, there is an 80% possibility that you may have already contracted or will contract the deadly Human Papilloma Virus, which is the root cause for many fatal cancers in both sexes. Spreading awareness should be the top priority in the HPV saga!

In the mainstream medical fraternity, HIV (the virus that causes AIDS) is widely considered as the most threatening among all Sexually Transmitted Infections (STIs); as a consequence, there’s little dramatics given to the alarming rise in incidence of the Human Papilloma Virus (HPV), which can match the former in scale, intensity and fatality.

Gabrielle Doewney, a consultant gynecologist at BMI, the Priory Hospital in US, opined, “Around 30% of the female population is HPV positive at any one time, and 80% of all women will contract strains 16 or 18 (the ones that can/lead to cervical cancer) at some point over their sexual life.” In 90% of the cases, the immune system fights off the fatal strains of the virus naturally and normalises its effect in around two years. However, in cases when the immune system fails to clear the virus naturally – mostly due to continued exposure to HPV – the same can then lead to diseases like genital warts and more alarmingly, cervical and some other types of cancer.

A general estimate is that a woman can be infected seven times in her lifetime starting from the year after she starts to have sex. Prof. Sean Kehoe, gynecological cancer specialist for UK Charity Well being of Women, has stated that HPV infects men as well and “[the infection rate] is more than likely equivalent between the genders.” There are over 100 subtypes of HPV, but the ones that are causes for concern are subtypes 6 and 11 that cause genital lumps and 16 and 18 that cause cervical cancer in women and many other types of cancer in both sexes.

Unlike HIV or Syphilis, HPV can be contracted even with the use of condoms as it spreads through any form of genital skin-to-skin contact! Even though it has not yet been accorded epidemic stature, certain estimates say that around 288,000 women are likely to die because of the disease by this year end. As per Center for Disease Control and Prevention figures, around 20 million people in America carry this virus (2005 figures) with another 6 million people getting infected each year. The incubation period for HPV ranges from a few weeks to a full year. What is even more ominous is that the strains of HPV that cause cancer do not get detected early, as the symptoms are not visible until advanced stages. Worse, there is no general test for men or women to check their ‘HPV status’. This fact makes HPV even deadlier than perceived.

According to the American Society for Colposcopy and Cervical Pathology, more than 5,000 women in US die due to HPV infection every year. Further, HPV is the cause for not just almost all kinds of cervical cancers, but also an overwhelming majority (80%) of vaginal cancers and anal cancers. And that’s not all. Dr. Nigel Carter from the British Dental Health Foundation opines that HPV will cause more oral cancer deaths than smoking in the next decade!

A vaccine has been developed for girls and medical practitioners are extensively advising boys to also take the shot too, as one of the main reasons women contract HPV is because men living with HPV have no qualms in having unprotected sex.

Read more....

Source : IIPM Editorial, 2013.
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
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
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….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face

Saturday, April 27, 2013

Classifications

Business & Economy presents an in-depth analysis of India’s 100 most profitable companies for the financial year 2012

The ruling trio
Combined together, three sectors – BFSI, Metal & Mining and Engineering – represent 60% of India’s most profitable companies in FY2012. Engineering corporations have made the most of growth opportunities. Their sectoral share increased from a paltry 3% to a substantial 14% within just one financial year.

Changing equations
As of now, the Indian economy is experiencing significant pressure. But with last year’s recovery, the B&E Power 100 list has seen some change, and most of it for the better. As compared to 30 companies last year, 58 companies have moved up in the list during FY2012, while only 27 have gone down compared to 49 last year.

Read more.....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

Wednesday, April 24, 2013

India’s sorrow: Crony socialism & crony secularism

There is a chilling story in our sister publication The Sunday Indian from Srinagar that tells a lot about how Indian intellectuals, journalists and pundits practice secularism. Kaiser Bhatt runs a school for kids called Orange International Playschool in the outskirts of Srinagar. In April, 2012, he invited some Muslim friends from Malaysia to visit his school. They sipped tea, exchanged pleasantries and soon left. Within minutes, the playschool was surrounded by an angry mob that had gathered in response to a rumour that the playschool was actually a ‘Christian’ outfit and that the visiting Malaysians were Christian missionaries. Scared stiff, Kaiser desperately pleaded with his Malaysian friends to come back to scotch the rumours. The Malaysians returned and were forced by the mob to ‘prove’ that they were Muslims. Only then did the violent mob disperse. But Kaiser’s troubles were not over as worried parents wanted to withdraw their kids. Worse, school staff were reluctant to come to the school since they were scared a mob will pounce on them.

Sensing financial ruin, Kaiser pleaded with Hurriyat leader Mirwaiz Umar Farooq to come to his rescue. The separatist leader ‘pronounced’ that the playschool is Muslim enough for parents and the staff not to be worried. After assuring angry Muslims of the neighbourhood that Orange International Playschool (meanwhile, the playschool plastered its walls with Quranic verses) was not a Christian conspiracy, the ‘separatist’ and ‘spiritual’ leader told The Sunday Indian, “We have strong evidence to suggest that Christian missionaries are working to convert Kashmiri Muslims using unfair means”. In November, 2011, a Christian priest Chandar Mani Khanna was accused of proselytizing. Someone called the Grand Mufti of Kashmir ‘summoned’ the priest for interrogation and ordered him to cease and desist. The priest was arrested and allegedly beaten up and tortured and remained locked up for about 20 days. Of course, he was then ‘banished’ from the valley. The so-called Grand Mufti now routinely ‘summons’ alleged offenders to his Sharia court.

In case you don’t know or have deliberately chosen to forget, the Kashmir valley is overwhelmingly Muslim majority (most Kashmiri Hindus were forced out of the valley in the 1990s and now live in wretched refugee camps) with Hindus, Christians and Sikhs being insignificant minorities. In case you have chosen to forget, India’s secular warriors ceaselessly cry themselves hoarse – while raving and ranting against all things and symbols Hindu – that it is the duty of the majority Hindus of India to protect its secular identity and Constitution. Very unpalatable question that even those who have not been blinded by Marxism and secular fundamentalism feel uncomfortable about asking: where are the loud ‘secular’ voices when Christians are being so ruthlessly targeted in the only Muslim majority state in India? What happened to the vocal chords of Jholawala Leftists who never give up an opportunity of pointing out how intolerant, obscurantist and ‘fascist’ Hindus are when it comes to dealing with minorities? Would they have adopted a self imposed vow of silence if Christian priests were similarly harassed in Gujarat?

Read more.....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

Saturday, April 20, 2013

“India is the single-most important defence partner for US”

William H. Avery, who served in the US diplomatic service as an Economic Officer, is a master at trade development and commercial advocacy, and is a three-time recipient of the US State Department's Meritorious Honour Award. A prolific writer on international affairs, Avery tells Mayank Singh how India needs to start thinking beyond just Pakistan and China and take interest in building a strong military base in the Asian region. India has the potential, he says!

B&E: Asia is constantly represented on the international fora and its position is factored-in by different countries in their policy making. Your assessment?
William H. Avery (WAH): All the action is in this part of the World. We are seeing a shift of economic activity, which will be followed by military activity and military strength from the trans-Atlantic to the Pacific region, including China and India and all the regions that fall in-between. With regard to the subcontinent, principally, India and China are the places that are going to be significant. US also because it is a continent with 300 million people. So I think a new structure is emerging where there are three potential centres of power – US, India and China.

B&E: You have been talking of India becoming a superpower. Yet, you say that it will have to ‘achieve’ this position. What shortcomings on India’s part do you observe here?
WAH: I think India has many natural advantages. It has a demographic advantage. It has skill base, which is not just a technological skill base. What is missing in India is a recognition of how you build power in this World which requires military and economic strength, not just at home but overseas. And it requires a willingness to use power. If you look at India’s experience with Sri Lanka, it is very instructive. I think Rajiv Gandhi knew that for India to get to the next level, it had to be willing to play a strong regional role. But the problem is that when the LTTE assassinated Rajiv, India withdrew. So what you had for the past 20 years was not only India not becoming a global power but also failing to become a regional power! Another element is a kind of obsession with Pakistan. Pakistan, a barely functioning State, is quite clever in a way to bring India down to its level. India fell into that trap. And it was with the advent of the Indo-US Nuclear deal that India began to rise above it and perhaps only because of India’s economic growth was it was able to pull away from Pakistan. So some things are beginning to happen. But India needs to take a more activist approach to becoming a strong military power.

B&E: You have called the withdrawl of the Indian Peace Keeping Force (IPKF) from Sri Lanka as India's mistake. Also, you say that it should have been redeployed after the unfortunate assassination of Rajiv Gandhi. Your thoughts...
WAH: I do feel it was a mistake. I understand why it was made. And it is always easy to go back 20 years and look at it in retrospect, but the fact that a country allowed a former prime minister to be assassinated on its own soil and then nearly asked for the extradition of the assassins is pretty amateurish. And there’s nothing we can do to change that. However, it should serve a lesson. We should look at it critically and make sure that India does not make the same mistake again. I think the IPKF episode was one that pushed back India’s emergence as a global power by many years. However, it should be acknowledged that India did recover by 1998 – the series of nuclear tests was a huge step forward. So where India has been conventional in defence matters or rather meek, its nuclear diplomacy and its nuclear policy have been much stronger.

B&E: Do you see a bigger ploy of China in keeping India busy with Pakistan while increasing its arsenal and technological knowhow and economic opportunities, and then using them as pressure tactics?
WAH: It could be a Chinese strategy. I don’t know whether it is a conscious strategy or not. Having said this, I believe that India should not remain busy with Pakistan because there is a much wider world out there. The cross-border terrorism issue is significant and has to be monitored by India. At the same time however, India’s emergence as a global power will not come true if the Indo-Pak equation remains the key agenda on the diaries of India’s foreign policy agents for ever.

Read more....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

Friday, April 19, 2013

Where’s your online arm?

The growth of online business is ushering in a quiet revolution in the retail industry in India as young consumers are adopting it in large numbers, drawn by the convenience and other advantages it offers.

Even as India Inc. keeps its fingers crossed on the eventual outcome of foreign direct investment in retail, a quiet revolution is already brewing in the sector. With FDI in retail still on tenterhooks, foreign mega retailers such as Wal-Mart, Tesco and Carrefour are still waiting in the wings. On the other hand, things aren’t exactly hunky-dory for domestic retail giants like Future Group, Spencer’s and Shoppers Stop. Other than having to constantly juggle around to maintain healthy bottom lines, these players are also beset with rising commodity costs, high rentals and squeezed profit margins. But away from the glare and glitz of Big Retail, the likes of Ebay, GroupOn and Amazon, not to mention a host of homegrown online shopping portals like Flipkart and Snapdeal, have been slowly and steadily upping their business stakes in the flourishing Indian Retail Bazaar.

Desi e-commerce sites like homeshop18.com, snapdeal.com, Mydala & futurebazaar.com are all mopping up significant growth in sync with the growing trend towards online retail in India, which is clocking over 40% growth yoy. Already, flipkart.com has achieved a billion dollar valuation, and is registering 15,000 units in daily sales. In fact, the popularity of online shopping sites in India reflects international trends. In America, during the annual shopping spree prior to the Thanksgiving season in November, a study revealed that 39% of consumers bought goods online compared with 44% who visited local stores and hypermarkets. Clearly, online retail has emerged as a huge disruptive force for retail worldwide.

According to various reports by industry bodies like Assocham and IAMAI, the market size of the Indian e-commerce industry is expected to be around $10.3 billion by December 2011 (of this online retail is still a small part at around $800 million, and predicted to reach roughly $1.5 billion by 2015). The size of e-commerce globally is well over $700 billion. The online retail market is worth over $240 billion in Europe, over $170 billion in the US (expected to touch $250 billion by 2014), and roughly around $76 billion in China.

In India, the share of online retail is currently modest in comparison to the roughly $520 billion Indian retail space - the largest contributing sector to the Indian GDP with over 15% share. But as 3G mobile and broadband penetration grows, and people’s (especially youths) shopping behaviour evolves, consumers will increasingly opt for online shopping to save time and convenience. A further allure in the form of good discounts adds to the attraction. Already India’s internet penetration has crossed 120 million or about 10% of the population, though in-home Internet usage is still low.

Read more.....

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

“We see a significant potential in India’s supercar market”

The niche luxury car category is now becoming the new battleground in the Indian auto story. Over the past year, super premium sports cars like Bugatti Veyron, Ferrari, Aston Martin, Bentley, Jaguar, BMW, Porsche, Koenigsegg and Lamborghini have all hit the Indian roads.

This past November, Italian marquee Automobili Lamborghini launched its latest supercar Aventador LP 700-4 in India, priced at 36.9 million rupees ($750,000) and available at outlets of Exclusive Motors, the sole partner for selling the Italian supercar brand in India. James Page, Marketing Manager at Lamborghini SPA of South East Asia and Pacific, talks to B&E’s Deepanshu Taumar about how he sees the market for super luxury sports cars growing in India and the completely new level of performance and sets of standards that the Lamborghini Aventador offers in the sports car category.

B&E: What kind of strategy are you putting in place for selling a super expensive car like the Lamborghini Aventador LP-700-4 in India?
James Page (JP): Our strategy in India will definitely be aggressive and we will expand our network and ramp up our marketing. Our relations with Exclusive Motors have been good and Satya Bagla (MD of Exclusive Motors) has been a great partner. We believe the alliance will pay off handsomely and show up good numbers in terms of unit sales. Exclusive Motors has already got us 20 bookings of the car within days of its launch in the country.

B&E: How do you plan to create a market for a mega expensive sports car in the country? What kind of sales numbers are you looking at in India?
JP: We will do it step by step. We have already started delivering to our initial customers. From research and development at Lamborghini Houston (service centre) to bringing the car to market - it’s been pretty tiring so far but we are going about it in a surefooted manner. Right now getting the first few units out for our early customers is the company’s main priority. We will continue to deliver the units and take more orders on a year-on-year basis. Exclusive Motors has recorded 20 bookings of Aventador and new customers will have to wait for 18 months for the delivery of the car. Since March onwards – when Aventador LP700-4 was introduced to the world – 1500 cars have been booked worldwide. We are aiming to sell 100 cars annually in India.

B&E: Every country is different and unique in terms of consumer buying behaviour. What do you think Lamborghini has to offer that will win it potential customers in India?
JP: We want to meet the expectations of our prospective customers from different parts of the world. Basically our strategy is to be aggressive but in a good way. Our first step is to show the people our car. We get them on the wheels to experience the emotions that comes while driving the car. This makes them feel and experience the Lamborghini brand values. We are an Italian car brand with extreme and uncompromising value propositions. The design of the car is really aggressive and is based on aeronautics. This has been done so that our customers get to feel that owning a Lamborghini brings with it a whole lot of emotions that are different from owning any other supercar. This unique emotional bonding and identification with the brand is what Lamborghini is all about.

B&E: How has Lamborghini been performing in the Asian markets as compared to the developed markets?
JP: China is becoming the No.1 market for us in the world. Five years ago, we were able to sell only a handful of cars (five cars maybe). Now by this year-end, we are on course to sell more than 300 cars. So you can see the ground we have covered and the kind of growth we have been able to achieve in China. India may not grow that fast but we still see a significant potential in the country. This is evident from the success of Formula One and the kind of response we are getting from the market here.

Read more......

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

Tuesday, April 16, 2013

International

PATRICIA DUNN DIES

In what seems to be an instance of the world losing one of the most influential woman in corporate America of her time, Patricia Dunn, former Chairwoman of hardware giant Hewlett Packard passed away at her home in Orinda California, after a brave fight with ovarian cancer. She was described by her husband as a tenacious cancer patient, outliving the three-year life expectancy for her type of ovarian cancer by nearly five years. Dunn was also CEO of Barclays Global Investors from 1995 until 2002. After serving on the board of HP for several years, she was named Chairwoman in 2005. As chairman of HP, Dunn helped lead a CEO search that recruited Mark Hurd from NCR Corp. to replace Carly Fiorina, his ousted predecessor. Dunn had good intentions for HP but the act of hiring spies to find out which board member was leaking information to the press eventually backfired on her. She had to step down within months on September 22, 2005. The California State Attorney General’s office brought charges against her for fraudulent tapping of wire communications, misuse of a computer, identity theft, and conspiracy on October 04, 2006. The charges were later dismissed after declaring Dunn’s behaviour a misdemeanour. Dunn had earlier suffered and survived breast cancer and skin cancer.

Global BANKs’ Woes

The Volcker Rule of the Dodd Frank Act, which limits banks from betting their own capital in the market seems to have taken a toll over major banks in the US. After Bank of America announced its plans to slash 30,000 and cut $5 billion in spending earlier this year, the Vikram Pandit-led Citigoup has also announced its plan to cut 4500 jobs by the end of Q3, 2011. The move would cost the bank $400 million in severance expenses. According to data compiled by Bloomberg, major banks around the world have cut a total of 200,000 jobs in the wake of difficult financial conditions prevailing in the global economy. So far this year, Citibank has saved $1.4 billion from its cost cutting initiatives. The ones who get to keep their jobs aren’t happy either.

Read more....

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

Monday, April 15, 2013

B&E Indicators

A bumpy road ahead?

The world economy is set to slow down in 2011, as government and central bank policies are tightened and key developed markets go through a deleveraging process. While both US & Europe are trying to avert a financial collapse, Japan has already lapsed back into recession after a devastating natural disaster. Considering this, IMF projects the world growth at around 4% in both 2011 and 2012, down from over 5% in 2010.

The Japanese effect pulls down averages

World trade has come under pressure in recent months, due to the tightening of interest rates in emerging markets and the disruption to production experienced as a result of the Japanese earthquake. The disaster disrupted supply chains not only within Japan but also internationally, particularly in the automotive sector. However, economists expect this to be a temporary blip, as opposed to a long term drawn out affair.

Read more....

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

Saturday, April 13, 2013

B&E This Fortnight

INTERNATIONAL
BUSINESS, ECONOMY & FINANCE
Hello moto!

In a move that will instigate its full fledged entry into the telecommunications hardware business, the global search giant Google is set to buy Motorola Mobility for a staggering $12.5 billion. If approved, this will be Google’s most expensive acquisition ever. The deal will boost Google’s mobile OS – Android. Since its launch in 2007, Android has been installed in 150 million devices. Further, more than 550,000 devices join the Android ecosystem daily through a wide network of 39 manufacturers and 231 carriers spread over 123 countries. It’s an all cash deal where in Google will be paying $40 a share – a 63% premium. The deal will put Google in the competition zone with Apple, Nokia and Research in Motion, resulting in significant competitive advantage. The deal is supposed to close by end of this year or early 2012 subject to regulatory approvals in the US and EU. Even after the deal, the Android platform will remain open source as Google plans to operate Motorola Mobility as a separate business entity. The mobile major currently holds around 17,000 patents and the deal will enable Google to better protect Android from anti-competitive attacks from Microsoft, Apple, and other companies. The development will create phenomenal synergies that would enhance the Android ecosystem.

AIG sues BofA
American International Group (AIG) has filed a $10.5 billion lawsuit against Bank Of America (BofA) over the sale of residential mortgage backed securities that are allegedly marred by fraud, misrepresentation and omission. The claim, which is one of the largest to raise its head in the aftermath of the 2008 financial crisis, blames BofA and its subsidiaries to have issued defective mortgages to borrowers who were not in position to repay, packaged them into supposedly low risk securities and sold $28 billion worth to AIG using offering documents that misrepresented the quality of the loans. Despite the huge losses incurred from the collapse of the mortgage market, very few claims have been filed over the past three years. Last year, Goldman Sachs paid $550 million to settle allegations from Securities and Exchange Commission (SEC) for its alleged fraud in marketing of mortgage backed securities called Abacus, which the company did not admit doing.

Read more.....

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

Friday, April 12, 2013

“There’s Need for a Trust Based Taxation Regime”

Nishith Desai, International Tax & Corporate Lawyer

‘Trust’ seems to have become a rare commodity today. While the developments surrounding the Lok Pal Bill and corruption have created quite a stir nationwide, the Direct Taxes Code (DTC) Bill also provokes one to contemplate on the declining standards of trust in the world’s largest democracy. The DTC, proposed to be implemented from April 1, 2012, is currently being scrutinised by the Parliamentary Standing Committee chaired by Yashwant Sinha. Once enacted by Parliament, it would completely replace India’s existing direct taxes framework.

Before delving into some of the provisions of the proposed DTC, it is necessary to first understand the relevance and importance of trust. Trust is a valuable social asset and forms the basis of democracy. The theory of trusteeship espoused by Mahatma Gandhi has application in all facets of governance, whether in corporate management or the tax administration system. Trust demands respect for the inherent value and rights of a human being. Policy framers and decision makers are regarded as trustees of the power vested upon them by the people and are bound by the strictest norms of transparency and accountability in the exercise of such powers. Such accountability emanates from India’s constitutional fabric which imposes numerous checks and balances on the functioning of the three organs of governance – executive, legislature and the judiciary.

A number of proposals in the DTC are antithetical to a trust based regime. Of these, the proposed General Anti-Avoidance Rules (GAAR) are likely to have the most critical impact on not only the sophisticated taxpayer, but the common man as well. GAAR provides wide discretionary powers to the Commissioner of Income Tax to tax impermissible avoidance arrangements lacking commercial substance. While some developed countries have introduced some form of a GAAR to curb tax evasion, the GAAR framework proposed in the DTC is vague and does not have sufficient checks to check abuse of power. Unfettered discretion may result in harassment of the average taxpayer. In fact, the proposed GAAR regime marks a shift from the long standing principle that taxpayers are allowed to legitimately minimise taxes within the four corners of law.

Contrary to principles of natural justice, the taxpayer is required to bear the primary burden of proving that he has not undertaken an impermissible avoidance arrangement. There seems to be an unfair presumption that a taxpayer is guilty of tax avoidance, which has been equated to evasion. The DTC also does not impose any time limit within which the tax authorities may invoke their sweeping powers under GAAR. The GAAR provisions also override India’s tax treaties, which is against the Government’s constitutional commitments and is not in sync with principles of international law. The application of GAAR is thus bound to give rise to unnecessary litigation and would create high uncertainty and hardship for taxpayers.

Read more....

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

Monday, April 8, 2013

Fishing in troubled waters

Labour unrest across the country is seriously damaging India’s Economy & Reputation. B&E brings a nose-to-the ground report on longstanding issues and how they can be resolved

As you approach Gate No. 3 of Maruti Suzuki’s plant at Manesar, a series of recorded messages played over a public address system rise above the surrounding din. Knots of striking workers can be seen milling around the gate, some holding protest banners and shouting agitatedly. But their chorus is drowned by the exhortations played over the loudspeaker, asking protesting workers to sign the “good conduct bond” and get back to work. Out of the 1200-1400 workers on strike, about 300-500 workers can be seen around Gate No. 3; many of them openly derisive of Maruti’s condition to allow only those workers into the plant who sign the “good conduct bond”.

It’s not the first time that the Maruti or other major automakers in Haryana’s Gurgaon-Manesar auto belt are having to confront labour issues. Players like Honda Motorcycle & Scooter India, Hero MotoCorp and Rico Industries have all faced labour disputes in recent years. For Maruti alone, it’s the third time in as many months that prickly labour issues have come to a boil. The company has been facing labour problems at the Manesar plant since June, when workers struck work for 13 days demanding the recognition of the Maruti Suzuki Employees Union. The disruption led to a production loss of around 12,000 cars. The latest impasse, which was triggered after Maruti sacked some of its workers over quality issues, has once again hit the production of its popular models. Over 10,000 cars is the estimated loss in production due to the latest imbroglio. In order to service the growing demand for the recently launched new Swift Hatchback, of which the company is said to have received over 90,000 bookings, Maruti has shifted production to its Gurgaon plant from the trouble-ridden Manesar plant.

In recent times, like the management-union standoff at Maruti Suzuki’s Manesar unit, a rash of industrial disputes has broken out in other parts of the country leading to loss in productivity, profits and lost man-days. In West Bengal, many factories in the prominent industrial belts of the state — Hooghly, North 24 Parganas, Durgapur and Asansol have closed down in recent years, either due to industrial sickness or because of strident trade unionism and labour troubles. The 2003 industrial census of the state revealed that around 26,000 units had closed down, putting 500,000 workers out of their jobs. According to a source in the West Bengal Labour Department, the total number of people affected by the closure of these industries comes to about three million if the number of dependents is included. “Trade union leaders often provoke workers to start agitations against the owners when their financial dues including provident fund, gratuity, bonus and even wages are not paid,” says social activist and General Secretary of Nagarik Manch, Naba Dutta. Factory owners have not deposited Rs.5.5 billion in provident fund dues. The backlog is around Rs.3.5 billion in the jute mill sector alone. Such financial irregularities on the part of the owners provoke workers to participate in strikes willingly or unwillingly. “Union leaders often assure us that if we participate in the strike, the government would call a tripartite meeting to solve our problems,” says Biswanath Dutta, a jute mill worker in Hooghly district. But in reality, trade unions often fail to keep their promises and problems remain unresolved. Workers can’t go against the decision of union leaders who generally maintain good relations with the owners. On the other hand, workers face a sack if they defy the trade unions. Anupam Boral, Managing Director of Kolkata-based Geetanjali Solar Enterprise, opines that trade union leaders often resist owners’ actions against errant workers. As a result, the cost of production increases and it creates severe problems for factory owners to compete in the market.

Read more...

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

Tuesday, April 2, 2013

Time to unleash the green growth

Be it climate change, water scarcity, biodiversity loss, or ecosystem degradation; green economics can weave together these strands. According to ‘TEEB’ report, ecosystem delivers essential services worth $21 to $72 trillion a year while the commercial opportunities in natural resource sector alone could be between $2.1-6.3 trillion by 2050. The implication: green and growth can go hand in hand.

Seeking Competitive Gains
Given the prevailing environmental and economic challenges, countries and corporations have come up with policies and strategies in order to shift towards cleaner and greener business practices along with green innovation. The International Energy Agency (IEA) is of the view that greener business practices will have important economic pay-offs in terms of resource efficiency. IEA estimates that 17% (approximately $46 trillion) increase in energy investment is required globally between 2010 and 2050 to deliver low-carbon energy systems, which will consequently yield a cumulative fuel savings worth $112 trillion. As a competitive factor, companies are seeking competitiveness gains through clean and green technology investment.

Environmetnal Challenges

OECD, in its recent report, states that the impact of economic activity on environmental systems are creating imbalances which are putting economic growth and development at risk. As a matter of fact, existing loss of biodiversity and degradation has already had dramatic consequences for business; soil erosion in Europe is estimated to cost 53 euro per hectare per annum. A 2007 report of the World Bank estimated that the cost of excessive use of groundwater in China was in the range of 0.3% of GDP (the cost fell largely on the agriculture sector). The TEEB 2010 report estimates the annual economic loss caused by introduction of agricultural pests in the US, UK, India, Brazil et al to be more than $100 billion.

Read more....

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