Showing posts with label IIPM Think Tank. Show all posts
Showing posts with label IIPM Think Tank. Show all posts

Friday, May 31, 2013

Omar Abdullah ko gussa kyon aata hai?

By questioning his state’s accession to India, the Jammu and Kashmir CM is only continuing with a time-tested family formula, reports Haroon Reshi 

The Abdullahs of Kashmir have a long and distinguished history of issuing intriguing statements and adopt seemingly contradictory postures. The great Sheikh Abdullah, reigning Chief Minister Omar’s grandfather and the state’s first head of government, kept New Delhi guessing about his true intentions. A patriotic statement issued in the Indian capital, a not-too-subtle statement underlining the disputed status of Kashmir in the valley and at another time, an unilateral discussion with Chinese Premier Chou en Lai in a third country on an independent status for Kashmir. So which was the true Sheikh?

Farooq Abdullah toed his father’s line. Loyalty to India was balanced by some pretty anti-Indian statements when the need arose – and there were plenty of those occasions. Omar Abdullah, therefore, is just following a hoary family tradition. Two weeks after Parliament unanimously passed a resolution affirming Jammu and Kashmir, including Pakistan-Occupied Kashmir (POK), as an integral part of India, Omar Abdullah argued that the state's accession to India was conditional. On March 25, he told the state assembly said, “Those who repeatedly claim that Jammu and Kashmir is ‘atoot ang’ (integral part) of India forget that the accession was only on three subjects; communication/currency, defence and foreign affairs.” Without naming New Delhi, the young CM alleged that the state’s special status had been eroded by successive Indian governments.

Omar Abdullah’s assembly sermon was delivered in the backdrop of the controversial arrest of former Kashmiri militant Syed Liyaqat Ali by the Delhi Police, which claimed that Ali had hatched a conspiracy to carry out a suicide attack in Delhi on the eve of Holi to avenge the hanging Afzal Guru. Omar Abdullah’s government has refuted Delhi Police claims, saying that the former militant was living in POK for the last 16 years and he along with his wife and children were heading to his native place under the government-backed surrender and rehabilitation policy.

 Be that as it may, the CM has a track record of questioning the state’s accession to India – particularly when his chips are down. In 2010 when people were protesting alleged killings by security agencies, Omar told the state assembly that ``Kashmir acceded to India, unlike Hyderabad and Junagadh it did not merge with India.”  On March 5, when a youth was reportedly killed by the Army in north Kashmir’s Baramullah District, Omar hit back, ``What answer will I give to the people. Have we held the Indian flag in our hands for this?”

In his moment of agony, Omar uttered the ultimate truism:`` Somebody (Afzal Guru) is hanged somewhere. The decision is taken by someone else (Government of India) and the mercy petition is rejected somewhere else. And the incident comes knocking to my house as if I have hanged him.”

Why is Omar Abdullah getting desperate? Kashmir watchers believe it has deep roots. ``National Conference (NC) and the Abdullahs, unlike other mainstream parties, are deeply rooted in Kashmiri nationalism. It goes back to the Sheikh’s Quit Kashmir moment and the autonomy resolution passed by a two-third NC majority in the assembly in 2006,’’ Noor Baba, head of the Political Science department, Kashmir University, told TSI.

Baba’s argument seems legitimate. Omar’s father Farooq Abdullah, currently a union minister, is a former member of the Jammu and Kashmir Liberation front (JKLF). Nearly 26 years after the accession, Farooq had formally joined the JKLF, when he had visited POK in 1973.

Mustufa Kamal, Sheikh Abdulla's nephew and Omar’s uncle, told TSI: ``You may or may not like it but Kashmir is an unsolved dispute. When Omar Abdullah says that Kashmir had acceded to India only on three counts, he is reminding you of an undeniable historical fact. What is wrong ? Truth should prevail. Kashmir is not an integral part of India like the other states.''

It would appear that public opinion is on his side. Says Sheikh Abdullah's biographer and well known scholar Muhammad Yusuf Teng, ``The NC has never accepted J&K as an integral part of India and I believe this is the only reason why it is the only grassroot-level cadre-based regional political party in the state. Omar wants to refresh the party’s basic position by challenging the ideology of the Indian state.''He should know.

However, some other political observers attribute more than just nationalism to this Abdullahspeak – more specifically the 2014 assembly elections. ``The fact is Omar Abdullah and his party are going to face a tough situation in the 2014 elections. To convince the people, NC seems to have nothing in its hand to sell. It has lost its ground in Jammu to the BJP and in Kashmir to the PDP. Now their leaders are trying to allure Kashmir’s Muslim sentiment by questioning the accession to India,” Zareef Ahmad Zareef, author and President, Valley Citizens Council, told TSI, adding, ``The ground reality is that Omar Abdullah has failed to deliver. He could not even fulfill the promises he had made to the people in terms of the revocation of the Armed Forces Special Powers Act (AFSPA) and the implementation of the recommendations of the working group on centre-state relation headed by Justice (retd) Sagir Ahmed, who has recommended more autonomy for the state.”

Apart from the mysterious deaths at Shopian in 2009 and the killing of 100 people during the stone pelting agitation next year, Omar's tenure has been marked by relative calm until the Afzal Guru hanging this year. That has been a signal for another round of curfews, arrests, an unofficial media gag and detention of popular separatists. Concurrently, militants appeared to be beginning to reassert. Half-a-dozen panchayat members have been killed in the past six months. There have been frequent skirmishes and casualties between militants and Indian security forces.


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

Tuesday, May 7, 2013

Is Wal-Mart Losing The Plot?

The US retailer has turned soft on its initial aggressive plans for India. Are infrastructure bottlenecks and a far-from-ideal FDI policy in retail thwarting its growth ambition?

The government’s decision to allow 51% FDI in multi-brand retail and 100% FDI in single-brand retailing, though subject to riders, have brought good tidings for large international retailers eagerly waiting to tap into the estimated $500 billion Indian retail market. But even three months after the announcement of the policy, the Bentonville, US-based Wal-Mart, which has been plying wholesale retail in India since 2009, has not disclosed any concrete plans about how it intends to move forward on capitalising on the new retail regime. The company currently operates only wholesale stores in India via its joint venture with Bharti Enterprises, but it has so far been the most aggressive foreign supermarket operator in India, operating 18 cash-and-carry stores, selling to smaller retailers such as vegetable vendors, hospitals, restaurants and other firms.

The company expects to open its first consumer retail store selling directly to the public in 12-18 months, aiming to turn a profit in 10 years, something it could manage in China only after 12 years, where it operates over 350 stores. As of December 31, 2011, the overall losses of Bharti Walmart totalled Rs 7.65 billion. During the year, it posted over 140% increase in sales y-o-y at Rs 18.76 billion, but its net loss rose 66% to Rs 2.77 billion. The company is targeting $1 billion in sales in India by 2013-14.

According to the Investment Commission of India, the retail sector is expected to reach almost $660 billion by 2015. But instead of seizing on this consumer retail opportunity, the American retail giant finds itself entangled in an unsavoury controversy related to alleged payment of bribes in the country, which is a violation of US anti-bribery laws. The payments involve forking out “facilitation payments”, or “speed money” – or bribes – to advance the process to obtain 40 to 50 government licenses to set up retail stores. The US Foreign Corrupt Practices Act makes it a crime for US corporations and their subsidiaries to bribe foreign officials to win or retain business abroad.

With allegations flying thick and fast, and to avoid getting sucked into this vortex deeper, the company instituted a probe, which has led to the suspension of its chief financial officer as well as its entire legal team in the country. The development comes at a challenging time for Wal-Mart in the country, with political pressure mounting against the Congress-party’s drive to open up the retail sector to foreign investment.

To compound Wal-Mart’s woes, its investment of $100 million in a domestic unit owned by its wholesale joint-venture partner Bharti Retail is also being investigated by India’s Enforcement Directorate for possible infraction of the country’s foreign exchange rules. Wal-Mart’s investment in Bharti Retail has come under the scanner amid allegations that the former may have entered India’s front-end multi-brand retail business surreptitiously two-and-a-half years before the government actually permitted foreign investors in the sector.
 

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
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

ExecutiveMBA

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.
 

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 

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.


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


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


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
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.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
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.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
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

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.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
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.


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

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.


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, 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.
 

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

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.


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