A question that has been in the media for quite some time now. After some study and introspection, this is what I think about it:
FDI must be allowed in all forms of retail in India:
1. Single-brand retail : 51% should be hiked to 100%
2. Cash-and-carry : 100% FDI status quo be maintained
3. Multi brand retail : No FDI currently, initially 49% should be allowed. Later depending on the expansion and macro environment factors, it can gradually go up to 74% and finally 100%.
FDI in multi brand retail should be opened up gradually. The government should allow 49% initially so that large MNC retail giants can forge tie ups with big local players in India. This would help in technology transfer, strengthening of supply chain systems and bring fresh capital that is badly needed for expansion. Between 30-40% of post-harvest produce goes to waste in a country where nearly half the people are malnourished. This would help tame double-digit food inflation that pushed the central bank to raise rates five times since March. A more organised retail sector, which currently is only around 5% of total retail, would also improve tax receipts. The move could generate huge employment in the multi-brand retail sector and, while fears of job losses for smaller outlets are real, analysts have often played down the impact. Farmers may also benefit because they could sell direct rather than relying on middle men. Political unrest would be near-inevitable. Manmohan's government has grappled with huge strikes and protests over soaring food prices and fuel reforms. Even if he pushed the reform through, huge upheaval could force the government to backtrack.Like insurance, retail is a capital-intensive business and hence FDI is a must.
However, the govt. needs to realize that allowing FDI in multi brand retail is not going to be the PANACEA. The rural agricultural infrastructure is far from acceptable standards in India. Expecting retailers to turn around everything is not realistic. Hence significant investments should go into improving the rural agricultural infrastructure. Only then will the farm-to-fork model of modern retail yield its benefits fully and rein in the spectre of inflation.
A platform where I will share my views on topics and issues that interest me deeply (with a strong business bias, of course)and chronicle the major events in my life beginning 2010.
Sunday, December 26, 2010
Friday, December 17, 2010
The Big "P" and more...
Hello readers!
It has been a long time since I posted anything. The Big "P" stands for PLACEMENT in all B-schools. Thanks to Nitish who coined this term (as if we needed one more P after the 8 Ps in services marketing! ). The term-5 of PGDM (MBA) has come to an end and I am cooling off my heels for a day before the final term sessions get underway.This term has been the most eventful and exciting for me and most of my friends would concur with this as well. I have got a job offer from Pantaloon Retail India Limited, the flagship company of Future Group, India's largest retailer in terms of number of stores and revenues (over $ 2.1 billion in FY 2010). Most of my friends here at SDMIMD have bagged jobs and that's one more reason to rejoice. Very soon, India Inc. will get a new set of high potential-high performing (STAR) managers!
The whole placement process taught me that one needs to be patient, well prepared and a little lucky to get the offer from a company. The process involves multiple trade-offs between conflicting parameters like salary, profile, location, company brand, CGPA and industry dynamics. A lot depends on the schedule of companies coming to campus (as we follow rolling placement system here at SDMIMD) and the risk appetite of the student.Also a few of my batchmates are determined to start their own ventures or expand their parent's businesses which is a welcome sign as India needs such wealth creators more than corporate managers.
The whole concept of putting students on HOLD by recruiters really sucks. It puts undue pressure on the young students and speaks poorly of a company's recruitment policies.
The annual management fest of SDMIMD is going to be conducted from January 6 to 8, 2011 here at SDMIMD campus in Mysore. Loads of events are on the anvil. Preparations are on and I will update you all on this soon.
Cheers!
It has been a long time since I posted anything. The Big "P" stands for PLACEMENT in all B-schools. Thanks to Nitish who coined this term (as if we needed one more P after the 8 Ps in services marketing! ). The term-5 of PGDM (MBA) has come to an end and I am cooling off my heels for a day before the final term sessions get underway.This term has been the most eventful and exciting for me and most of my friends would concur with this as well. I have got a job offer from Pantaloon Retail India Limited, the flagship company of Future Group, India's largest retailer in terms of number of stores and revenues (over $ 2.1 billion in FY 2010). Most of my friends here at SDMIMD have bagged jobs and that's one more reason to rejoice. Very soon, India Inc. will get a new set of high potential-high performing (STAR) managers!
The whole placement process taught me that one needs to be patient, well prepared and a little lucky to get the offer from a company. The process involves multiple trade-offs between conflicting parameters like salary, profile, location, company brand, CGPA and industry dynamics. A lot depends on the schedule of companies coming to campus (as we follow rolling placement system here at SDMIMD) and the risk appetite of the student.Also a few of my batchmates are determined to start their own ventures or expand their parent's businesses which is a welcome sign as India needs such wealth creators more than corporate managers.
The whole concept of putting students on HOLD by recruiters really sucks. It puts undue pressure on the young students and speaks poorly of a company's recruitment policies.
The annual management fest of SDMIMD is going to be conducted from January 6 to 8, 2011 here at SDMIMD campus in Mysore. Loads of events are on the anvil. Preparations are on and I will update you all on this soon.
Cheers!
Thursday, November 25, 2010
Management Gyaan!!!
Dear friends, in the words of my friend Anupam, we are the "future" managers of our country. So let me share some management lessons that we never get in MBA classrooms....in an entertaining fashion....all the credit or discredit goes to the copyright owner Mr. Anupam Niyogi!
ENJOYYYYYYY !!!!!!!
* Lesson Number One*
A crow was sitting on a tree, doing nothing all day. A small rabbitsaw the crow, and asked him, "Can I also sit like you and do nothingall day long?" The crow answered: "Sure, why not." So, the rabbit sat on the ground below the crow, and rested. All of a sudden, a fox appeared, jumped on the rabbit and ate it.
Management Lesson: To be sitting and doing nothing, you must besitting very, very high up. .
* Lesson Number Two *
A turkey was chatting with a bull.
"I would love to be able to get to the top of that tree," sighed the turkey, "but I haven't got the energy. "Well, why don't you nibble on some of my droppings?" replied the bull. "They're packed with nutrients."The turkey pecked at a lump of dung and found that it actually gave him enough strength to reach the first branch of the tree. The nextday, after eating some more dung, he reached the second branch. Finally after a fortnight, there he was proudly perched at the top ofthe tree. Soon he was promptly spotted by a farmer, who shot the turkey out of the tree.
Management Lesson: Bullshit might get you to the top, but it won'tkeep you there.
* Lesson Number Three *
When the body was first made, all the parts wanted to be Boss. Thebrain said, "I should be Boss because I control the whole body'sresponses and functions."
The feet said, "We should be Boss as we carry the brain about and gethim to where he wants to go." The hands said, "We should be the Bossbecause we do all the work and earn all the money." And so it went onand on with the heart, the lungs and the eyes until finally theasshole spoke up. All the parts laughed at the idea of the asshole being the Boss. Sothe asshole went on strike, blocked itself up and refused to work.Within a short time the eyes became crossed, the hands clenched, thefeet twitched, the heart and lungs began to panic and the brain fevered. Eventually they all decided that the asshole should be theBoss, so the motion was passed.
All the other parts did all the work while the Boss just sat andpassed out the shit!
Management Lesson: You don't need brains to be Boss, any asshole will do! You just need to screw people at the right moment.
* Lesson Number Four *
A little bird was flying south for the winter. It was so cold, thebird froze and fell to the ground in a large field. While it was lyingthere, a cow came by and dropped some dung on it. As the frozen birdlay there in the pile of cow dung, it began to realize how warm itwas. The dung was actually thawing him out!
He lay there all warm and happy, and soon began to sing for joy. A passing cat heard he bird singing and came to investigate. Following the sound, the cat discovered the bird under the pile of cow dung, and promptly dug him out of the shit and ate him!
Management Lessons
A) Not everyone who drops shit on you is your enemy.
B) Not everyone who gets you out of shit is your friend.
C) When you're in deep shit, you better keep your mouth shut!
PS: THESE ARE PROVEN FACTS AND SHOULD BE KNOWN TO EVERY MANAGER.....
ENJOYYYYYYY !!!!!!!
* Lesson Number One*
A crow was sitting on a tree, doing nothing all day. A small rabbitsaw the crow, and asked him, "Can I also sit like you and do nothingall day long?" The crow answered: "Sure, why not." So, the rabbit sat on the ground below the crow, and rested. All of a sudden, a fox appeared, jumped on the rabbit and ate it.
Management Lesson: To be sitting and doing nothing, you must besitting very, very high up. .
* Lesson Number Two *
A turkey was chatting with a bull.
"I would love to be able to get to the top of that tree," sighed the turkey, "but I haven't got the energy. "Well, why don't you nibble on some of my droppings?" replied the bull. "They're packed with nutrients."The turkey pecked at a lump of dung and found that it actually gave him enough strength to reach the first branch of the tree. The nextday, after eating some more dung, he reached the second branch. Finally after a fortnight, there he was proudly perched at the top ofthe tree. Soon he was promptly spotted by a farmer, who shot the turkey out of the tree.
Management Lesson: Bullshit might get you to the top, but it won'tkeep you there.
* Lesson Number Three *
When the body was first made, all the parts wanted to be Boss. Thebrain said, "I should be Boss because I control the whole body'sresponses and functions."
The feet said, "We should be Boss as we carry the brain about and gethim to where he wants to go." The hands said, "We should be the Bossbecause we do all the work and earn all the money." And so it went onand on with the heart, the lungs and the eyes until finally theasshole spoke up. All the parts laughed at the idea of the asshole being the Boss. Sothe asshole went on strike, blocked itself up and refused to work.Within a short time the eyes became crossed, the hands clenched, thefeet twitched, the heart and lungs began to panic and the brain fevered. Eventually they all decided that the asshole should be theBoss, so the motion was passed.
All the other parts did all the work while the Boss just sat andpassed out the shit!
Management Lesson: You don't need brains to be Boss, any asshole will do! You just need to screw people at the right moment.
* Lesson Number Four *
A little bird was flying south for the winter. It was so cold, thebird froze and fell to the ground in a large field. While it was lyingthere, a cow came by and dropped some dung on it. As the frozen birdlay there in the pile of cow dung, it began to realize how warm itwas. The dung was actually thawing him out!
He lay there all warm and happy, and soon began to sing for joy. A passing cat heard he bird singing and came to investigate. Following the sound, the cat discovered the bird under the pile of cow dung, and promptly dug him out of the shit and ate him!
Management Lessons
A) Not everyone who drops shit on you is your enemy.
B) Not everyone who gets you out of shit is your friend.
C) When you're in deep shit, you better keep your mouth shut!
PS: THESE ARE PROVEN FACTS AND SHOULD BE KNOWN TO EVERY MANAGER.....
Wednesday, November 10, 2010
My favourite poems
Two poems that have influenced and touched me to the core are posted below. Hope these will do my readers some good.Looking forward to your comments and suggestions.
INVICTUS
---William E. Henley
Out of the night that covers me,
Black as the pit from pole to pole,
I thank whatever gods may be
For my unconquerable soul.
In the fell clutch of circumstance
I have not winced nor cried aloud.
Under the bludgeonings of chance
My head is bloody, but unbowed.
Beyond this place of wrath and tears
Looms but the Horror of the shade,
And yet the menace of the years
Finds and shall find me unafraid.
It matters not how strait the gate,
How charged with punishments the scroll,
I am the master of my fate:
I am the captain of my soul.
Don't Quit!
-Anonymous
When things go wrong, as they sometimes will,
when the road you're trudging seems all uphill,
When the funds are low and the debts are high,
And you want to smile, but you have to sigh,
When care is pressing you down a bit,
Rest, if you must, but do not quit.
Life is queer with its twists and turns,
As every one of us sometimes learns,
And many a failure turns about,
When he might have won had he stuck it out;
Don't give up though the pace seems slow-
You may succeed with another blow.
Often the goal is nearer than,
It seems to a faint and faltering man,
Often the struggler has given up,
When he might have captured the victor's cup,
And he learned too late when the night slipped down,
How close he was to the golden crown.
Success is failure turned inside out-
The silver tint of the clouds of doubt,
And you never can tell how close you are,
It may be near when it seems so far,
So stick to the fight when you're hardest hit-
It's when things seem worst that you must not quit.
INVICTUS
---William E. Henley
Out of the night that covers me,
Black as the pit from pole to pole,
I thank whatever gods may be
For my unconquerable soul.
In the fell clutch of circumstance
I have not winced nor cried aloud.
Under the bludgeonings of chance
My head is bloody, but unbowed.
Beyond this place of wrath and tears
Looms but the Horror of the shade,
And yet the menace of the years
Finds and shall find me unafraid.
It matters not how strait the gate,
How charged with punishments the scroll,
I am the master of my fate:
I am the captain of my soul.
Don't Quit!
-Anonymous
When things go wrong, as they sometimes will,
when the road you're trudging seems all uphill,
When the funds are low and the debts are high,
And you want to smile, but you have to sigh,
When care is pressing you down a bit,
Rest, if you must, but do not quit.
Life is queer with its twists and turns,
As every one of us sometimes learns,
And many a failure turns about,
When he might have won had he stuck it out;
Don't give up though the pace seems slow-
You may succeed with another blow.
Often the goal is nearer than,
It seems to a faint and faltering man,
Often the struggler has given up,
When he might have captured the victor's cup,
And he learned too late when the night slipped down,
How close he was to the golden crown.
Success is failure turned inside out-
The silver tint of the clouds of doubt,
And you never can tell how close you are,
It may be near when it seems so far,
So stick to the fight when you're hardest hit-
It's when things seem worst that you must not quit.
Saturday, October 30, 2010
Perspectives on key issues- I
I am back again after a long time.Its the Diwali break at school. Happy Diwali to all my readers.
Tried to figure out answers to a few key issues being raised in Indian business media lately. There are no easy answers considering the scale and complexity of the problems. However, the idea was to crystallize thoughts in my mind. Comments are MOST welcome.
1. Impact of rising rupee on IT/ITeS companies:
Excessive speculative FII inflows as developed economies still not out of recession fully and emerging markets fetch attractive ROI.Could spell trouble for small and medium software companies in India. According to analysts, every 1% rise in the rupee could have 30-40 basis points impact on operating margins.With Coal India IPO on the anvil, we might witness further appreciation in the rupee.RBI has to intervene by buying out the dollars through the public sector banks to rein in the rupee to maintain India’s export competitiveness.Companies need to diversify their clientele across geographies and hedge their forex reserves better.
2. Was it right to award the Nobel Peace Prize to Liu Xiaobo?
Xiaobo was awarded this year’s Nobel Peace Prize for his long and non-violent struggle for fundamental human rights in the world’s second largest economy.Many Chinese dissidents within the establishment and the intelligentsia are working for incremental political reform, greater economic and social equality and a negotiated compromise between the conflicting interests in the complex and stratified Chinese society.Chinese govt. perceives this award as another act of the West to derail its progress by promoting internal strife and has made its displeasure public.It was right. His selection can be justified on the premise that more people around the world and inside China will know what the Chinese dissidents like him stand for, and for a time will remember them and their cause a little better.
3. Commonwealth Games- Lessons for India
Major loopholes were improper planning, huge cost overruns and ramapant corruption besides problems in ticket vending and hygiene in the CWG Village.International sports events like the CWG have become branding events for emerging economic superpowers.Lessons need to be learnt in plugging the loopholes if India wants to host the Olympics in the near future.Proper utilisation of the sports infrastructure created for the CWG to enhance the standards of sports in India is crucial. More players should be able to access the facilities created to improve their game.The Games have prevented any major embarassment or disaster since their opening. All the nations participated. India’s best CWG performance till date. But a lot of things remain to be learnt.
Tried to figure out answers to a few key issues being raised in Indian business media lately. There are no easy answers considering the scale and complexity of the problems. However, the idea was to crystallize thoughts in my mind. Comments are MOST welcome.
1. Impact of rising rupee on IT/ITeS companies:
Excessive speculative FII inflows as developed economies still not out of recession fully and emerging markets fetch attractive ROI.Could spell trouble for small and medium software companies in India. According to analysts, every 1% rise in the rupee could have 30-40 basis points impact on operating margins.With Coal India IPO on the anvil, we might witness further appreciation in the rupee.RBI has to intervene by buying out the dollars through the public sector banks to rein in the rupee to maintain India’s export competitiveness.Companies need to diversify their clientele across geographies and hedge their forex reserves better.
2. Was it right to award the Nobel Peace Prize to Liu Xiaobo?
Xiaobo was awarded this year’s Nobel Peace Prize for his long and non-violent struggle for fundamental human rights in the world’s second largest economy.Many Chinese dissidents within the establishment and the intelligentsia are working for incremental political reform, greater economic and social equality and a negotiated compromise between the conflicting interests in the complex and stratified Chinese society.Chinese govt. perceives this award as another act of the West to derail its progress by promoting internal strife and has made its displeasure public.It was right. His selection can be justified on the premise that more people around the world and inside China will know what the Chinese dissidents like him stand for, and for a time will remember them and their cause a little better.
3. Commonwealth Games- Lessons for India
Major loopholes were improper planning, huge cost overruns and ramapant corruption besides problems in ticket vending and hygiene in the CWG Village.International sports events like the CWG have become branding events for emerging economic superpowers.Lessons need to be learnt in plugging the loopholes if India wants to host the Olympics in the near future.Proper utilisation of the sports infrastructure created for the CWG to enhance the standards of sports in India is crucial. More players should be able to access the facilities created to improve their game.The Games have prevented any major embarassment or disaster since their opening. All the nations participated. India’s best CWG performance till date. But a lot of things remain to be learnt.
Saturday, October 9, 2010
Vital Stats! (Vol-I)
Compiled a few vital statistics from various sources to aid my memory.Happy reading and please add to the figures with your comments.
Indian Economy (Eco.Survey FY10 and e-newspapers)
1. GDP growth rate in India in FY10: 7.4%
2. GDP growth rate projected for FY11: >8.5%
3. Fiscal deficit of FY10 : 6.9% of GDP (budget estimate, according to new series)
4. Global rank in terms of nominal GDP ($1.25 trillion,FY09): 11th
5. Global rank in terms of PPP: 4th
6. FDI inflow in FY10 : $ 49.30 billion (RBI)
Business India
7. Interest rate on Employees Provident Fund (EPF) for FY11 : 9.5% (+1%)
8. Number of EPF subscribers : almost 5 crores
9. Interest rate on Senior Citizens’ Savings Scheme : 9%
10. Bank deposits offer up to 7.5%
11. Total size of the workforce in India: 38 crore
12. Organized workers in India constitute around 15% of the total workforce : 5.7 crores
Business Line
13. Wireless subscriber base in India as of August 2010 : 67.06 crore
14. Wireless teledensity stands as of August 2010: 56.61%
15. Bharti Airtel market share as of August 2010 : over 20%
16. Total broadband subscriber base as of August 2010: over 1 crore
Income Tax rates FY 11:
17. Rs. 160,001/- to Rs. 500,000/- 10%
18. Rs. 500,001/- to Rs. 800,000/- 20%
19. Above Rs. 8 Lacs 30%
Indian Economy (Eco.Survey FY10 and e-newspapers)
1. GDP growth rate in India in FY10: 7.4%
2. GDP growth rate projected for FY11: >8.5%
3. Fiscal deficit of FY10 : 6.9% of GDP (budget estimate, according to new series)
4. Global rank in terms of nominal GDP ($1.25 trillion,FY09): 11th
5. Global rank in terms of PPP: 4th
6. FDI inflow in FY10 : $ 49.30 billion (RBI)
Business India
7. Interest rate on Employees Provident Fund (EPF) for FY11 : 9.5% (+1%)
8. Number of EPF subscribers : almost 5 crores
9. Interest rate on Senior Citizens’ Savings Scheme : 9%
10. Bank deposits offer up to 7.5%
11. Total size of the workforce in India: 38 crore
12. Organized workers in India constitute around 15% of the total workforce : 5.7 crores
Business Line
13. Wireless subscriber base in India as of August 2010 : 67.06 crore
14. Wireless teledensity stands as of August 2010: 56.61%
15. Bharti Airtel market share as of August 2010 : over 20%
16. Total broadband subscriber base as of August 2010: over 1 crore
Income Tax rates FY 11:
17. Rs. 160,001/- to Rs. 500,000/- 10%
18. Rs. 500,001/- to Rs. 800,000/- 20%
19. Above Rs. 8 Lacs 30%
Wednesday, September 22, 2010
India and Global Financial Crisis- Evaluation of Policy Responses and Lessons
I and Nitish (a close friend and batch mate at SDMIMD) are currently working on a student paper to be presented at Institute of Management, Nirma University during Nirma International Conference on Management (NICOM 2011) at Ahmedabad.Here's the abstract of that paper:
The US and other major European economies like the UK are gradually emerging out of the recession, although at a snail’s pace, despite some critics predicting a double-dip recession in the near future. It would take a few more years to completely regain the growth momentum. India has by now emerged from the global financial crisis and is on its way to report strong economic growth over the next fiscal. The greatest economic calamity since the Great Depression of the 1930s has thrown up several issues like regulatory oversight, fiscal misprudence, unbridled corporate greed etc. along with unforgettable lessons for policymakers, regulators and enterprises worldwide .
In this paper, we seek to evaluate the various fiscal and monetary policy responses to the financial crisis by the major global economies, right from the unfolding of the crisis till date, with a special emphasis on India.The varying impact of these responses on inflation, unemployment ,fiscal health and economic growth of India has been examined. Protectionist measures in the developed economies have been analysed. The key lessons to be learnt from the crisis have been dealt with. The conclusion and our inferences have been included at the end.
I will post the entire paper for those who want to read it after we finish it.
Cheers!!
The US and other major European economies like the UK are gradually emerging out of the recession, although at a snail’s pace, despite some critics predicting a double-dip recession in the near future. It would take a few more years to completely regain the growth momentum. India has by now emerged from the global financial crisis and is on its way to report strong economic growth over the next fiscal. The greatest economic calamity since the Great Depression of the 1930s has thrown up several issues like regulatory oversight, fiscal misprudence, unbridled corporate greed etc. along with unforgettable lessons for policymakers, regulators and enterprises worldwide .
In this paper, we seek to evaluate the various fiscal and monetary policy responses to the financial crisis by the major global economies, right from the unfolding of the crisis till date, with a special emphasis on India.The varying impact of these responses on inflation, unemployment ,fiscal health and economic growth of India has been examined. Protectionist measures in the developed economies have been analysed. The key lessons to be learnt from the crisis have been dealt with. The conclusion and our inferences have been included at the end.
I will post the entire paper for those who want to read it after we finish it.
Cheers!!
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