Thursday, July 31, 2008

Home Shop

Another instance is that of Home Shop 18, which actually happens to be the brain child of SAIF and, therefore, calling it an investee company won’t be right. It’s a JV between SAIF and Network 18, and an example of an idea that the Fund was sure about. The reason: SAIF had already successfully invested in Acorn, China’s largest home shopping firm, which recently got listed on NASDAQ. If one looked at the enablers for home shopping – like TV penetration, telecom penetration and spending power – it seemed the right and opportune time to tap the Indian market. India has approximately 105 million TV households, and mobile penetration of 281 million.

“SAIF partnered with Network 18, one of India’s most reputed media houses, to launch a home shopping channel with our learning and knowledge that we had in China. We knew how to source, what kind of product to sell, how to package it, and so on and so forth. We gained traction by partnering with TV-18, and we targeted TV, which had all the ingredients of success. This company is doing phenomenally well and the rate at which it is growing, it will emerge as one of the largest retail company in India in couple of years across categories, even accounting for offline players,” boasts Vibhor.

However, like all PE/VCs, Vibhor is hesitant and apprehensive to disclose SAIF’s average returns from India investments. “We are the best kept secret in India, both in terms of our returns as well as the size of our non-sponsored fund,” he says. But sources contend that the portfolio that Vibhor has been associated with has appreciated 2.5-5 times in a span of less than two years.

Entering high-growth markets like China & India is a dream for every company. The GDPs of both China & India have risen 120% in the past five years (according to IMF data). With dedicated local offices in China, India and South Korea, SAIF currently manages over $2 billion of portfolio. And as far as India is concerned, SAIF is all poised to be the next big thing, or rather, the biggest PE/VC player. Beware Blackstone and Temasek!

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus



Wednesday, July 30, 2008

Investee: India Cements Ltd.

Investor: Fidelity, ABN Amro, HSBC, et al

Investment Value: $137.67 mn


The capital raised through this deal will give the much-needed impetus to ICL’s expansion plans. Substantiates V. M. Mohan, ICL, Joint President (Corporate Finance), “We are in the process of raising capital to fund a Rs.1,450 crore expansion plan that would double its cement production capacity to 18 million tonnes over the next two years, and to set up a 40-50 MW captive power project and buy two ships for coal transport. The QIB issue is a part of that.” The company may also reduce their debt balance through these issues.

Qualified Institutional Buyers (QIBs) – Fidelity, HSBC, ABN Amro, among others – in a deal worth Rs.592 crores bought 7.5% stake in India’s third largest cement firm, India Cements Ltd. (ICL) in December last year. Considered to be the largest cement player in South India, the company boasts of seven manufacturing locations, spread over Andhra Pradesh and Tamil Nadu. ICL issued 20.78 million shares at Rs.285 per share, including premium, to these QIBs. With an objective to become a pan India cement manufacturer (and plans to increase capacity to 18 MTPA by December 2010), the company wants to use the net proceeds of the issue primarily for capital expenditure and other expenditure support. They also plan to finance new projects through this issue. The cement maker is setting up two plants in Rajasthan and Himachal Pradesh, besides having several mining leases in these two states. Considering the boom in the domestic infrastructure and real estate market, the demand for cement has been going up for some time; and ICL is poised to benefit from this latent potential.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Tuesday, July 29, 2008

Number of designs

But we wanted more dope; and dope was what we got when we found that it was J Walter Thompson that was the agency credited to have coordinated with Bobby Kooka to create the Maharaja! We scurried out Ivan Arthur, former National Creative Director, JWT and current Vice Chairman, Aicar, who gave some eye-openers, “One day, simply looking for an interesting letterhead, Bobby Kooka phoned the agency and promptly received a number of designs, all done by this talented young JWT Art Director named Umesh Rao. One of these designs had a neat line-drawing of some Maharaja bowing in a gracious welcome. Kooka liked it a lot and the letterhead was finalised.”

But remaining confined to the letterheads wasn’t supposed to be the fate of our prince, there was more to come Initially introduced merely to ornament the Air India letterhead. As Arthur reveals, “Sometime later, the ever-inventive mind of Bobby Kooka asked why that cute little drawing could not step out of the letterhead and be used in the advertising as an add-on. ‘But of course, it could’, said the agency and the next advertisement had the little bowing Maharaja signing off above the Air-India International logo. (The airline was called Air-India International then). Kooka was pleased. And the Maharaja continued to sign off on some of Air-India International’s advertisements, till on another inventive day, Kooka asked why the little fellow could not grow bigger and actually take centerstage? He did. And so was born the Maharaja as mascot.”

Soon the Maharaja won many hearts and became one of the most important members of the Air India family. And since then, he was seen in all their advertisement campaigns; and for over sixty years, he continued to remain Air-India’s surrogate salesman, selling tickets not by hawking but by being charming. Rohit Manchanda, CEO, Planman Life, comments to 4Ps B&M, “The Maharaja usage was the first example of non-advertising icons used as advertising, in the Indian ad industry. A breakthrough!”

Could anyone have then imagined that this royal ad-king would subsequently gel not only with Indians, but most brilliantly with foreigners as well? Ergo, it seems more surprising that such an emblazoned iconic creation’s dominance has now ended, and that too because of competition. Bharghav diplomatically explains, “No doubt, Air India has been a conservative advertiser in the past; but now, as the environment has changed to become much more competitive... the need of the hour is to move on...”

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Tuesday, July 22, 2008

Peer-to-Peer

Despite initial hiccups in its plans, who symbolises peer-to-peer marketing better than Amway in India

As a multilevel marketer, we’ve4psbusinessandmarketingalways focused on expanding our membership & not just the consumer base. It’s all about connecting people who share common goals & aspirations. So, introducing world-class products at competitive prices and adequately training our distributors is what drives the organisation. As all Amway products are concentrates, we literally have to ‘train’ our distributors ‘how’ to use these products. All this is to ensure that they are armed with adequate product knowledge when they go out in the field. Because at the end of the day it’s a people business – it relies on the most important personal touch as its main promotional tool – word of mouth.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Monday, July 21, 2008

Tailoring to perfection


When IIPM comes to education, never compromise

Saville Row is still miles away from the indian sub-continent. But here’s a man who’s taken it upon himself to create space for his brand on the global stage


Sparkling lights, dazzling crystals, glamorous dresses and pulsating beats… one just cannot desire for more from spectacular models walking the ramp with unique fits and royal cuts. And who deserves credit for all this? Well, it’s none other than the Indian Textile industry which is currently upbeat and all enthusiastic about its much exaggerated novel innovations and celebrity endorsements. So there we were, all set for an encounter with S. Krishnamoorthy, President & Head of Textiles Unit, Grasim Industries Ltd, a flagship of the Rs.175 crore Aditya Birla Groupwhich has been synonymous to urbane chic fashion and classy apparels for ages now.

We entered his office and the sight that greeted us made us believe that in the midst of this glitz and shimmer surrounding the word fashion and apparels, there still exists ‘simplicity’! We shook hands with a man whose impeccable simple charm and efficacy has enabled him to roll aside the biggest boulder on his path to success. Krish, as his business card pronounces his name (and not the fantasy Indian Super Hero) was somewhere in his sixties, simply dressed and was taking his brunch bites off his plate. He was done with it in a while and then began our chat session with a man whose friendly approach and warm smile was unbelievable considering the industry to which he belonged.

He earned a bachelor’s degree in Science (in 1973) and has further completed a Diploma in Wet Processing of Textiles from City & Guilds, London. His industry ride started in 1974 with a stint at Madura Fabrics and later on joined Arvind Mills in 1995. There, he laid down a plant which later proved to be a marvel as it turned into a shopping place for all the premium brands in the world, currently producing about 34 million meters of high value shirting. On being asked about his alliance with Grasim for 8 long years, he humbly asserts, “The experience with the Birla group has been awesome. We have certain values like integrity, commitment, speed, passion et al.” Crowned as one of the most dynamic Sales & Marketing personnel in the Indian textile industry and credited with the growth of Grasim Brand in the domestic arena, he claims that, “To dominate in Indian market you need to have a strong brand image. And that’s what I have done with Grasim. I made it a Grasim Brand; the brand from then to now. And today, we command a huge 15% market share!”

Taking key consumer insights into consideration, Grasim earns many applauds for its fabulous product range which includes sub-brands nurturing a whole array of choices such as Freedom (the softest fabric currently available), Ice Touch (a fabric which keep body temperature at 5 degrees cooler), Venetia (the latest line of Italian stripes and checks), Medova (international fabric launched for the first time with Modal), Caramel (soft, smooth and light weight fabric) and many other exclusive showroom products. Today the Grasim group has forty-five exclusive brand stores under its umbrella and plans to add thirty more by next year. And what about its global operations? Well, it is fast spreading its wings across continents and is foraying into European and many other markets explaining which he adds, “In our case, 50% of our total revenues come from the domestic market and the rest comes from exports. And that is because we have focused on both the markets.” Grasim is also belligerent about increasing its pan-India presence through its strategy of establishing itself in the tier two and tier three cities as well. And apart from roping-in Akshay Kumar as its brand endorser, it has also tied up with Godrej Aadhar and ITC’s eChoupal to tap the ever growing demand and revenues in the rural and rurban markets. “I think the overall industry has grown phenomenally during the past two years. Globally speaking, the reason for this forward march is the abolition of quota systems and in the domestic market the prime reasons are an increase in purchasing power and of course, the retail revolution,” asserts Krishnamoorthy who is also an active participant in the Indian textile industry and a member of CII for textiles.

But while there’s prosperity for one, the others are not deprived of the furious pace at which the industry (both in India and globally) is marching ahead at; and that’s precisely where competition creeps in. When asked about the same, he calmly responds, “We might not have created a strong brand name and though we are invisible in the global markets, yet our revenues are equally distributed geographically...” Confidence for sure in his tone, something most expected from a veteran who has had his share of experience in domestic & global sales, marketing and exports as the President of Grasim Industries.

With an ode to the enormous amount of success attained so far, we couldn’t help but wonder about his next agenda. “We are also looking at the JV route; we are talking with some European markets together for technology & design for womenwear...” Sure enough, this man exuded confidence that would ratle his competitors and please his customers. Meet this leader and you’d believe us when we say that Krish is indeed a “self made man”!

Edit bureau: Neha Saraiya

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!


Friday, July 18, 2008

Prudence

When rivals in the banking sector are aggressively wooing numbers, HDFC is moving with characteristic caution. Their prudence may well pay off

The target audience for HDFC Bank is unique as it’s targeting the youth. Besides, since the focus is on the retail market, HDFC’s sturdy brand name helps. The bank has segmented its services according to the customers, where I think it has a competitive advantage over others. Though, the pace of deposits at HDFC have slowed down in the recent past, yet I think it will improve in the future. The bank’s current strategy is thus prudent enough.

By Nilesh Parikh, Banking Analyst, SSKI Research


Punctuality
Remember how your door-bell rang within 30 minutes, the last time you ordered a pizza? And what about the assurance that the brand gives you? All that has been built through hard-to-erase action, and is always on your mind. Think about it – 30 minutes is all that it takes!. Hungry Kya?

Punctuality is something that has helped us to create a strong brand image for Domino’s and undoubtedly it has also helped us to create a clear-cut distinguisher. Punctuality in delivery has been our USP and our positioning has revolved around it. To maintain such punctuality, whenever we decide to open a new outlet, we first find out whether we can deliver the product within 30 minutes to cutomers in the vicinity. Our team members personally go there and visit each and every corner of that locality by scooter and find out the feasibility of delivering the product in 30 minutes in all circumstances. That’s how we have been sustaining our punctuality! We have 4,400 delivery boys, and in places where there’s heavy traffic, we have introduced delivery by cycles. All this is done to enhance the brand image created by Domino’s and it is helping us to become the fastest growing pizza company in the delivery segment.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Saturday, July 12, 2008

“Stooges of modern retail behemoths”

The apprehensions continue despite a slew of reports from PricewaterHouse Coopers, KSA Technopak, ICRIER, CII et al, all stating that modern organised retail is an idea whose time has come. Irrespective whether you call these organisations “stooges of modern retail behemoths”, the fact is that most of them conclusively opine that modern retail will, in fact, not harm the 12 million mom & pop stores and hawkers that the protestors are routinely brandishing. “In fact, most of this 12 million small retailers affected are in small town and rural India, while the $35 billion proposed modern retail investments are specifically targeted at bigger cities and towns, as of now,” explains Sen, adding that even in these cities, a modern retail outlet will at best displace only the mom & pop stores in the vicinity and not all of them operating of them. “KSA Technopak believes that, in effect, only about 3,00,000 grocery stores across the country will be effected and certainly not all 12 million.” The buzz is that even the still un-tabled ICRIER report, commissioned by the government of India to study the impact of organised retail on grocery stores and vendors has ruled out any major negative impact on them, although an e-mail to ICRIER expectedly went unanswered.

What’s more, most reports go to great lengths to explain the benefits of modern organised retail on the economy. A CII-PwC joint study titled The Rising Elephant forecasts more than eight million additional jobs; increased investment in the economy by both domestic and foreign retailers; organisation of the last mile distribution and supply chain for Indian agriculture, reducing wastage due to the present fragmented supply chain; farmers benefiting from rising productivity and better prices; enhancing sourcing and exports from India, among others. As of now, a fragmented and ill-equipped supply chain causes over 40% of India’s farm produce to go waste. The only organised sourcing by domestic companies is being done by Bharti FieldFresh and ITC, most of it is for export market.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

Friday, July 11, 2008

“...But can a minority really make a difference,” asks adman Prahlad Kakkar


IIPM - Admission Procedure

There4ps Business and Marketing were times when social causes or issues were picked in advertising only with the purpose to add some creative awards to your kitty. Very few ads involving social messages were made by mainstream brands. The reason was simple: clients were not willing to take the risk. They are always scared of entering into any sort of controversy that such ads may lead to. For example, if a brand started addressing the issue of reservations and says that reservations should be abolished, it becomes controversial and the brand may have to face some opposition from a certain set of people in the society.

However, in the recent past there have been numerous changes in the advertising landscape. Marketers are now ready to take a little risk and they are picking up realities of Indian society and incorporating them in their communication. This is a huge step and a very welcome change that the advertising fraternity is taking. I believe that marketers and advertisers should incorporate social message in their communication, instead of restricting it to a plain vanilla selling exercise. However, ads like this have a risk of eliminating certain set of people from the usage of the brand. Take the recent Idea commercial (featuring Abhishek Bachchan) for that matter. There is a risk of alienating sections of society, especially fundamentalists. However, gradually a minority of clients are waking up and incorporating such issues in their commercials. But it’s a silent minority. What we should do is that we should create a forum where we can discuss issues like this. Once we start discussing such issues as planting trees, education, corruption, we will surely go a long way.

Another reason why marketers usually shy away from incorporating social issues in their ads is that advertising is something that is used to sell a product or service. So people might get the impression that you are using a social cause to sell your product. It may give the consumer a feeling of being conned, which can prove fatal for the brand. But, if treated correctly, such ads have the potential to generate immense goodwill for the brand and for their marketers!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
IIPM, GURGAON
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!