Corporate citizen fourth issue by Corporate Citizen

Ernst & Young & Kotak Bank survey:

T he Co ol Side Of Bu sine ss

Spending Trends of rich indians

Volume 1, Issue No. 4 / January 16-31, 2015 / Rs. 50

Corporate leader Mohandas Pai on layoffs at TCS McDonald’s

Love it, hate it, you can’t ignore it

Dynamic Duo 4

Stunning Symphony Meher and Pheroz Pudumjee

Cradle of Leadership

St Mary’s School: A 150-Year Long Legacy

Successful Startups

World’s first ever Hindi scrabble by three IIT graduates

From the desk of Editor-In-Chief

My Bharat Ratna Award

he date was 29th December, 2014. I was in Chennai to attend the Kanakabhishekan of a dear friend’s father. This religious ceremony is an auspicious event, carried out to celebrate the completion of 100 years of age of a person. On this sacred occasion, he is said to attain the status of Maharishi. Of late, I have been going through stress, though mild in nature, so I decided to fly down to Chennai to witness the ceremony which was sure to brighten up my spirits and also give me an opportunity to seek his blessings. My coin-laws, my daughter-in-law and grandchildren accompanied me. My heart was filled with a lot of happiness. Although, I am much younger than the centenarian star of that day, I walked with some difficulty and needed someone’s hand as a crutch, but nevertheless made it to the ceremony, considered a most auspicious event, what with Gods and Saints supposedly coming down from heaven to bless the lucky Maharishi who had achieved such an enviable longevity. The function had a divine aura and I thanked my friend because of whose invitation my family members and I received blessings. In a strange coincidence, as I was walking out of the Kanakabhishekan function, I got a call saying that another friend, Raghavachariyar, who I treat as a brother and is 99 years old had come to Chennai for cancer treatment. I was told that the doctor was not keen on the treatment but his son R Narayanan, who is a senior corporate leader, insisted that he take the 1% chance. Fortunately, he recovered dramatically. His son has been looking after his parents now for decades. I share a thick bond of friendship with Raghavachariyar since the past 55 years. My pilgrimage to his home every year has given me strength and wisdom. It was sheer Luck that I had come down to Chennai and could meet Raghavachariyar. I felt fortunate to have got the darshan of two rishis on the same day. My relationship with this 99-year-old ‘Sir’ goes back to more than five decades, when I had found shelter in an orphanage called Sethu Bhava Sathram in Mannargudi, a small town in Tamilnadu. I had run away from home as my parents could not afford education beyond the village school. Hence, I was pursuing my IX and X Standard here. Since the orphanage was crowded, we were all required to sleep in a verandah and a small hall. The study environment was not favourable. I therefore put up a request to ‘Sir’ who was the owner of Jayalakshimi Villas Higher Elementary School which was near the orphanage. In fact, the school was enroute to the National High School where I was studying. “Sir, can I read and sleep in the school at night, as in any case it is vacant during those hours?” I had asked one day. He agreed, and thus began a relationship which blossomed so fragrantly that I was looked upon as a family member. The school premises was a haven for me, flanked as it was by banana and coconut plantations, with a small Ganesh Temple in a corner, amidst the lush surroundings. I was often treated with coffee, idli and medu wada by his wife and daughters. What’s more, I became `Balu’ to my ‘Sir” and to his six children – three daughters and three sons. As I was waiting in the car to meet him, I was praying for his good health. The moment he saw me he jumped very excitedly and said, “Balu, God has sent you here; I desperately wanted to see you.” Here’s where I say, his faith in me is overwhelming. There is an issue involving property worth around Rs 20 crore. He insisted on making me one of the stakeholders. When he had told me about his plan a few months previously, I had resisted and had quietly returned to Pune. “You are the Mama (uncle) to my children. You should be with Narayanan to do justice to all. I have become old so I would like to distribute my property,” he reiterated. I looked at him and said, “Sir, why are you worried, you are going to live for 125 years.” At this came a repartee, which seemed like a rebuke: “Take him then to your home. Who is going to look after him for so long?” I was stunned, I felt hurt that the old man seemed like a burden to others around him. The immense faith that he reposed in me made me feel like I was crowned with the title of `Bharat Ratna’. However, I am now caught in a Catch 22 situation. On the one hand, the emotions of the grand old man, his trust and faith overwhelmed me. On the other, the sudden rift that has come about due to his wish to make me a part of the share (which I’ve refused time and again and continue to do so) has created uneasiness in a relationship that was otherwise flawless. Such is life! Money can be a real spoiler!

Dr (Col.) A. Balasubramanian editor-in-chief January 16-31, 2015 / Corporate Citizen / 1

Contents Volume 1 Issue No. 4 January 16-31, 2015

consumer calling Veeresh Malik on his in-flight experience en-route from Kolkata

collywood Chatpata Chatter from the Corporate World

wax eloquent Who said what and why

interview Former Infosys Executive, Mohandas Pai on layoffs at TCS

Tête-à-Tête Every corporate is drawing a path to India

ernst & young llp survey Spending trends of India’s Super Rich

successful startups World’s first ever Hindi Scrabble by three IIT graduates

St Mary’s School A 150- year long legacy

Environment Fix Corporate Liability

2 / Corporate Citizen / January 16-31, 2015

Dynamic Duo 4 Coverstory

STUNNING SYMPHONY

Meher Pudumjee, chairperson of Thermax is passionate about western classical music. Her husband Pheroz is director, Thermax. Their marriage is a classic duet

39 42

debate Men and Women-Are their brains wired differently

corporate history McDonalds -Love it, Hate it, You can’t ignore it!

investment How to invest for your cherub

aam aadmi A chat with 48-year-old Security Guard, Mahadev Marooti Jadhav

46 21

Health Medical Reasons For Putting On Weight

my campus placement experience Iv Yash Pasekar on his first break

ganesh gyaan ‘Being Positive’ by Ganesh Natarajan, CEO at Zensar Technologies

pearls of wisdom Swami Parthasarathy on Intellect versus Intelligence

food for thought Smell Your Way to Productivity

manage money Good financial management - a prerequisite for businesses to succeed

featherlite Tweets by Saina Nehwal

January 16-31, 2015 / Corporate Citizen / 3

Editor-In-Chief Dr (Col.) A. Balasubramanian Editor Dr Suresh Chandra Padhy Consulting Editor Vinita Deshmukh

mobile apps New Use For WhatsApp: Crime Detection!

citizen claps & slaps Our bouquets and brickbats for the fortnight

Assistant Editor Joe Williams Chief Marketing Officer Subash Krishnan Design & Art Direction Kiyan Gupta, The Purple Stroke Graphic Designer Anil Walunj Senior Business Writer Mahalakshmi Hariharan Senior Sub-Editor Neeraj Varty Writers Delhi Bureau Anuradha Shukla Pradeep Mathur / Swati Kumari Mumbai Bureau Vidyut Kumar Ta Bangalore Bureau Priyadarshini Nandy Geeta Rao Pune Bureau Suchismita Pai Sangeeta Ghosh Dastidar Kalyani Sardesai / Anand Karwa Arun Prabhudesai / Muzammil Khan

Be A Corporate Citizen

How do you like this issue of Corporate Citizen - The Cool Side of Business? Send in your views, news, suggestions and contributions to corporatecitizenwriters@gmail.com We would love to hear from you! 4 / Corporate Citizen / January 16-31, 2015

Photographers Yusuf Khan (Cover Pic), Ahmed Sheikh / Prithviraj Mallick For Advertising and Marketing queries Email: subash.krishnan@corporatecitizen.in (Corporate Citizen does not accept responsibility for returning unsolicited manuscripts and photographs. All unsolicited material should be accompanied by self-addressed envelopes and sufficient postage) Tel. (020) 30631075 / 30631076

Consumer Calling

Looted - In The Air, And On Ground Airlines and terminal operators in India make passengers pay exorbitant prices for products and services, far above street prices. This is highway robbery in the skies and aerial theft on the ground, which consumers need to fight

generating option. But on everything else, not just with airlines, but also with terminal operators, it appears to be highway robbery in the skies and aerial theft on the ground. Leave alone the nefarious â&#x20AC;&#x153;user development feesâ&#x20AC;? for both departure and arrival, passengers are forced to pay spectacularly high prices for every service and product at airports in India and on airlines too now. Even when it is part of the ticket cost, one tends to get garbage, nothing close to what is shown in advertisements and inflight magazines. It was so bad that once, on an Alliance Air flight from Pune to Delhi, I presented everybody with Joshi vada-pav bought from FC Road, having purchased 120 packets in advance. To be fair, the airline ground and cabin crew took it very sportingly, and helped me distribute it. Matters, however, have now gone past being funny. Globally, airports and airlines in India are being recognised as looters in disguise, and that is putting it mildly. In other countries, airports will have at least one if not

I paid ` 200 for a packet of cup noodles on a flight from Kolkata to Delhi. The same packet is sold at an MRP of ` 40 in shops all over the country

By Veeresh Malik

few weeks ago I paid ` 200 for a packet of cup noodles on an Indigo flight from Kolkata to Delhi. The same packet is sold at an MRP of ` 40 in shops all over the country, and on asking a shopkeeper, I was told that bulk supplies could be arranged from the manufacturers for as low as ` 25. On an earlier flight with GoAir, I had prebooked a meal and once onboard, after take-off, was told that my name was not on their list, so

I would have to pay for the same meal again. This also was a sandwich and a 200 ml bottle of some coloured sweetened liquid, which would have cost me a total of anything between ` 25 and ` 40 in a good shop in any city of India, and for which I paid over ` 200. Thankfully, airlines now provide drinking water onboard without charge, though they did give it a good try at one time not too many years ago. Luckily, fine print in safe operation of passenger aircraft on scheduled flights specifies provision and availability of ample potable drinking water onboard as a condition, so that took care of airlines trying to make it a revenue

more department stores, selling all sorts of items at MRP or High Street prices. Airports will provide hot water so that people can prepare their own tea, coffee or packaged ready-to-eat food like noodles. Public transport at standard rates is another aspect in which airports in India lag far behind, forcing people to use personal transport or taxis. It is high time we, as customers and consumers, did something about this. The Ministry of Civil Aviation appears to have no teeth, the DGCA appears to be firmly in the grip of the airlines and terminal operators, and the passengers appear to be too fatigued to battle it out. Me, Iâ&#x20AC;&#x2122;m going to track down how my packet of cup noodles magically achieved an MRP of ` 200, and at what MRP the excise duty was paid, to start with. (Veeresh Malik was a seafarer and technology person who has now returned to his first love - travelling and writing). veereshmalik@gmail.com

January 16-31, 2015 / Corporate Citizen / 5

collywood

People in the news

Big grosser!

Aamir is only turning ‘Amir’- His blockbuster PK outshines KICK If you thought that KICK was the biggest blockbuster of 2014, you are wrong. Aamir Khan’s PK has beaten Salman Khan at the box office. His latest film PK has apparently minted ` 620 crore worldwide, even as calls for a ban on the social satire grew louder. Made on a budget of ` 100 crore, PK collected ` 236.24 crore within 10 days of its release, while Salman Khan’s Kick collected ` 233 crore at the box office, in India. Despite the brouhaha over the theme, the film is able to attract the crowd to the theaters, and has gone on to become the highest grossing film in bollywood history. The Christmas season has once again proved lucky for Aamir after giving hits like Dhoom 3 and 3 Idiots in the past.

Celebrating in style! Cyrus Mistry’s son Firoz is definitely celebrating in style! Firoz is blessed with a “Jazzy” Jaguar this Christmas. The chairman of Tata Group is reportedly a big fan of British carmaker Jaguar, which is a subsidiary of Tata Motors. The buzz is that he has recently set his eyes on a 1971 Jaguar E-Type, in red, as a present for his son. Mistry even got the vehicle installed with an automatic gearbox (which is rare) keeping in mind that it would have to run on Indian roads. Senior Mistry has definitely earned himself a ‘World’s Best Dad’ mug for this one. Well, this could be the best gift ever… 6 / Corporate Citizen / January 16-31, 2015

So much gold! Did you know that three gold loan companies in Kerala have more precious metal in their vaults than the gold reserves of some of the richest nations? Interestingly, Muthoot Finance, Manappuram Finance and Muthoot Fincorp jointly hold 195 tonnes of gold jewellery, which is higher than the gold reserves of Singapore, Sweden or Australia. India accounts for approximately 30% of the global demand for gold, a true-and-tested source of insurance for millions of families that have little access to other forms of social security. What is true for India is even more so for Kerala, where lakhs of people are employed in the gold industry. Muthoot Finance holds 116 tonnes of gold as security for its loans, Manappuram Finance has 40 tonnes and Muthoot Fincorp, 39 tonnes. The trio’s combined holdings are 195 tonnes, which is higher than Singapore’s gold reserves at 127 tonnes, Sweden’s at 126 tonnes, South Africa’s 125 tonnes and Mexico’s 123 tonnes. India is truly shining!

Congratulations!

Yamaha Motor Co Ltd, Japan (YMC) has announced the appointment of Hiroaki Fujita as the new Chairman of all group companies in India with

effect from January 1, 2015. The group companies include Yamaha Motor Pvt. Ltd. (YMI), Yamaha Motor India Sales Pvt. Ltd. (YMIS) and Yamaha Motor

Research & Development India Pvt. Ltd. (YMRI). Fujita takes over from Hiroyuki Suzuki. He will also hold the position of President and CEO of YMI. Fujita has been associated with Yamaha for over 32 years. He was the Executive General Manager, Intelligent Machinery (IM) Operations, YMC earlier. He has also been an Executive Officer at YMC since 2011. Fujita said his focus would be on achieving synergies through teamwork among the Yamaha Motor group companies in India. India is the most exciting and the fastest growing two-wheeler market in the world and hence, a key market for YMC, he noted. All the very best for your future endeavours, Sir!

Reviving efforts One of the many things in the government’s agenda is to remove entry barriers to business and ensure a competitive tax regime to push manufacturing growth under its ‘Make in India’ programme, even as it blamed high interest rate for slowdown. The programme aims at manufacturing low-cost quality products both for the domestic as well as export market, Finance Minister Arun Jaitley has said. Criticising the monetary policy of RBI Governor Raghuram Rajan, he said high interest rate is the “singular factor” which is responsible for the slowdown in the manufacturing sector. He further said there is a need to ensure liquidity in the markets. “We need to en-

sure capital is available, we need to ensure we are in a position to provide adequate capital for those sectors which are starving,” The bankers’ retreat with Prime Minister Narendra Modi and the ‘Make In India’ campaign were held to give a fillip to manufacturing. Let’s hope the economy revives soon...

Quitting?

R K Shevgaonkar, Director, IIT Delhi put in his papers because of `` some unforeseen situations...’’ However, at the insistence of his colleagues he joined back on January 13th but it is still a guessing game as to whether he will continue or not. Apparently, he was under pressure regarding the issue of clearing Subramanian Swamy’s “salary dues” between 1972 and 1991 and more importantly, to allocate a piece of land of the IIT premises allegedly to Sachin Tendulkar for his cricket academy, which the star cricketer has vehemently denied, through his tweets. Top ministry officials recently told Vijay P Bhatkar, chairperson, board of governors, IIT-Delhi, that Shevgaonkar was director till his resignation was accepted.

January 16-31, 2015 / Corporate Citizen / 7

collywood Modi, Rekha for PeTA awards Did you know that People for Ethical Treatment of Animals (PETA) India has named Indian Prime Minister Narendra Modi and yesteryear Bollywood actress, Rekha as India’s hottest vegetarian celebrities for the year 2014? The winners competed against strong contenders like Amitabh Bachchan, Kangana Ranaut, Shahid Kapoor, Vidya Balan, Hema Malini, Vidyut Jammwal and R Madhavan. Rekha, who has always maintained a healthy vegetarian diet, also practices yoga for fitness. “I’ve been a vegetarian for most of my life and can endorse the fact that it affects the way you think and perceive life,” Rekha said, according to IANS. Prime Minister Narendra Modi also practices yoga and eats vegetarian food, even when he dines with his international counterparts. “Rekha and Prime Minister Modi have inspired caring people everywhere to ditch meat in favour of vegetarian foods. Both of PETA India’s winners prove that nothing is hotter than kindness, which they show every time they sit down for a meal,” said Poorva Joshipura, chief executive officer of PETA India. Heartiest congratulations to our man and the Diva!

Speeding up

Hiring spree!

Satya Nadella, Global CEO of Microsoft has too many things on his plate. Nadella, who was in the country on Christmas holidays happened to meet various top ministers here. He has urged telecom minister Ravi Shankar Prasad to allow the US software major to pilot its ‘White-Fi’ technology to provide Internet connectivity in remote villages in the country. Microsoft’s White-Fi, or television White-Space technology, works like Wi-Fi on a bigger scale to provide wireless connectivity across a 10 km radius at a speed of up to 16 mbps, by using chunks of airwaves lying between spectrum kept untouched by broadcasters to avoid interference or disturbance between transmissions. Nadella also met Prime Minister Narendra Modi and Finance Minister Arun Jaitley. The White-Fi technology has already been successfully implemented in the US and Singapore and is being tested in Kenya, the Philippines, South Africa and Tanzania, among others. Let’s wait for the next mission!

Good news for all you management graduates out there! Vodafone India, the country’s second-largest telecom operator, will recruit over 130 students as management trainees in 2015 through its ‘Discover’ campus programme. Since the programme’s launch in 2010, the Indian arm of UK-based Vodafone Group has hired 292 students under it from some of the top business and technology institutes in the country. “We expect our ideal Discover trainees to be shapers of the world around them and the business that they work in. They should be driven, entrepreneurial, competitive people who will live by the Vodafone way and be willing to travel and relocate to challenging markets,”

8 / Corporate Citizen / January 16-31, 2015

Ashok Ramchandran, director of HR, Vodafone India has said. Vodafone said its year-long Discover campus programme offers exposure across B2B, B2C, technology and financial services like M-Pesa. Under it, trainees do stints in different functions and markets, depending on their ability. About 38% of those recruited through the programme are now part of mid and senior-level management, the company said, adding that the top 5-10% of Discover graduates are put through international assignments under ‘Columbus’, Vodafone’s graduate international mobility programme. Well it’s time to look forward to the new year –2015 definitely looks promising.

New U S Ambassador to India Richard Verma has been appointed U S Ambassador to India. Upon arrival on 2nd January, he stated, ``I am honoured to serve as U.S. Ambassador to India at such an exciting time in our bilateral relationship. I look forward to meeting the Indian people and working together with the Indian government on our shared goals of security, development, and prosperity.” Verma is a former Assistant Secretary of State

for Legislative Affairs and served as a principal advisor to Secretary Clinton between 2009 and 2011. He most recently served as a senior counselor at both Steptoe & Johnson and the Albright Stonebridge Group, where his practice focused on international law and global regulatory compliance. Verma has also been a soldier, having been on active duty in the U.S. Air Force from 1994 to 1998.

Influential NITI as Planning Commission thinkers of 2014 The New Year began with the establishment of NITI Aayog (National Institution for Transforming India) in place of the Planning Commission by PM Narendra Modi, who will be heading this institution. Originally termed as a Planning Commission, NITI’s objective is to formulate policies for the government with a `deesi’ tadka Arvind Pangariya, economist

and former CEO, Asia Development Bank, is set to NITI’s first vice chairperson. He has also worked for theWorld Bank, International Monetary Fund, World Trade Organization, and the United Nations Conference on Trade and Development (UNCTAD) in various capacities. He holds a Ph.D. degree in Economics from Princeton University.

Chugging in good speed? Thinkers50 India, joint initiative of Institute for Competitiveness, India and Thinkers50, a global ranking firm recently announced the most outstanding management thinkers of India in 2014. Nirmalya Kumar, member of the Group Executive Council of Tata Sons has been ranked no.1 for his marketing strategy. Prof Ashsh Nanda, Director of IIM, Ahmedabad, has been ranked 2nd for his notable contribution in management research and academics. Ravi Venkatesan, co-founder and chairman of Social Venture Partners ranked third for his social reforms through venture philanthropy. Others included Gurucharan Das, Kiran Karnik and Nandan Nilekani. Indeed, India has no dearth of management thinkers.

Minister for Railways, Suresh Prabhu, who has a colossal task in front of him to rejuvenate the Indian Railways in many areas, has now got into real action by establishing several committees and looking forward to international firms helping in the upgradation of the railways. Modi’s dream project of introducing bullet trains has apparently received favourable response from China and Japan which are ready to provide their expertise. Similarly, the promise of increasing speed on nine prime rail routes is set to soon become a reality and building rail network in North-East and Jammu and Kashmir is being seriously worked upon by Prabhu. What about the basic services like clean coaches and toilets, hygienic food and sparkling railway stations? These, by the way, form the main areas of hope for citizens. January 16-31, 2015 / Corporate Citizen / 9

wax eloquent

India in perspective New Year expectations from businesses on India’s growth and economic factors in 2015

Hear it from industry leaders as they ‘crystal gaze’ on India’s business growth and policy parameters to strike the key balance in 2015. Compiled by Sangeeta Ghosh Dastidar

“The auto industry is still looking for a strong demand revival; lower interest rates would have helped the cause….The policy (RBI) promises a cut this year, depending on some economic variables, and we hope this will be sooner than later, as it will also give the much-needed thrust to the “Make in India” initiative…” V S Parthasarathy, Chief Financial Officer, Mahindra & Mahindra (M&M), on CEOs expecting RBI to cut rates by Feb 2015 on the backdrop of falling sales of automobile companies, especially two-wheeler manufacturers.

“…The two things we are very positive on with a three-year view are India as an economy and the US dollar as a currency. Therefore, companies that are export-oriented are more likely to benefit in this scenario. Also, the recent correction in technology offers an opportunity to invest in the sector... “ Nimesh Shah MD & CEO, ICICI Prudential AMC.

…”The operating economics of [the 787] make this service feasible. This service will appeal both to customers visiting and doing business in Delhi, the capital region of India and the fourth most populous urban area in the world, and to those customers making onward connections within India and throughout Southeast Asia on our Star Alliance partner, Air India, or other interline partners…”

Calin Rovinescu, CEO, Air Canada, on India as one of the largest international market and a potential entry point for the air carrier.

“If the Insurance Amendment Bill comes through, the industry will be re-energised in 2015 with the infusion of capital and we can look forward to a 5-10 per cent growth rate. The investments will be done in product innovations and to increase market penetration which is currently pegged at 4 per cent of GDP (gross domestic product).” Tarun Chugh, MD and CEO, PNB MetLife.

10 / Corporate Citizen / January 16-31, 2015

“In 2015, India will shine. Valuations are not that expensive…Further, capital earmarked for emerging markets and BRICs in 2015 is likely to flow aggressively into India given its relative attractiveness.”

K Sandeep Nayak, Executive Director and CEO, Centrum Stock Broking, on expectations of the government’s proposed additional economic reforms and the RBI interest rate cuts expected in 2015.

“With large scale global investments, growth of niche category eCommerce firms and the entry of global competitors/ brands, eCommerce landscape in India looks very promising…”

2015

Sachin Bansal,Flipkart Co-founder and CEO, on the fund inflows to the sector that is expected to continue and get stronger in 2015.

“… We see a rise of 20 per cent to 40 per cent in salaries for high quality talent (in 2015). The same is driven by very high insatiable demand of high quality talent with high end skills…”

Himanshu Aggarwal, CEO and Cofounder, Aspiring Minds- an employability assessment company.

“Over the past two years we focused intensely on becoming gender balanced and moved from having 14% women in our workforce to 20% today. This focus will continue in 2015…” Ashok Ramchandran, Director, HR, Vodafone India, on gender diversity on the backdrop of the mandated new Company Law and Sebi’s directive to have at least one woman on board and build a pipeline of women at senior levels.

“…2015 will see a deeper marriage between offline and online in terms of collecting payments. Many small merchants like brick and mortar shops, mom and pop shops, individuals etc will start collecting payments online…”

Nitin Gupta, Co-Founder and CEO, PayU, on online payments and collections via mobile devices.

‘‘...There is tremendous potential in vernacular content and MakeMyTrip is also investing in creating vernacular travel-booking services. In October, we introduced India’s first flightbooking service in Hindi on our mobile site and we will extend these vernacular services to other languages such as Gujarati, Telugu, Tamil and Malayalam in 2015.’’ Rajesh Magow, Co-founder & CEO-India, MakeMyTrip, on travel technology trends.

sangeetagd2010@gmail.com January 16-31, 2015 / Corporate Citizen / 11

interview

bollywood biz

Former Infosys executive

Mohandas Pai on layoffs at TCS Attrition, layoffs, new business models - as India’s Information Technology (IT) industry matures, it is encountering issues which may appear abnormal to some while others say restructuring and work-force. Optimisation is a natural process all companies must undertake in their growth trajectory to remain agile and relevant. Blood-letting good for IT industry says Mohan Pai. Excerpts of the interview. by thenewsminute team

ata Consultancy Services (TCS) India’s largest IT company seems to be the latest to undertake such changes as it makes it’s way through changing business environments in India and abroad. Predictably, mysterious lists of employees been shown the door have emerged, causing anxiety among the company’s work-force in Chennai, Bangalore, Lucknow, Kolkata and a few other sites. In a statement, TCS has said the employees are regularly briefed about the evolving situation, but that has not prevented groups claiming to represent TCS employees from approaching local governments, giving what is an internal matter of a company a political touch. The News Minute (TNM) spoke to industry veteran and former Infosys executive Mohandas Pai on some of these issues. Excerpts: There seems to be a malaise in the India IT industry. There’s talk of hiring and firing. Is this normal or is the industry shifting to a new business model? This is a function of growth rates. The model is built on a pyramid at a particular angle. The ratio of developers to analyst to managers determines their efficiency and profitability. People get promoted very fast often at the cost of capability and maturity because of the fear of attrition. With growth rates down, in the teens, obviously the model needs to change. Many in the middle in the 10-15 year experience band would be redun-

dant and very high cost. So what you see is an adjustment to lower growth and a rearrangement of the cost structure. Also much of the so called high value work needing more experienced people has been down valued because of better process and automation. Today a senior developer often does the work of a junior consultant. The general view is that companies are top heavy on the one hand and on the other have what is crudely called “software coolies” in the west with no career prospects. Does this still hold true? Companies are middle heavy, maybe a bit top heavy on compensation not on capability or expertise. Using terms like software coolies is derogatory and people who use such terms lack respect for others. It is these people who by their hard work earned respect for India globally across the board and made sure that our very large trade deficit is financed. Those and those who criticise them and use such terms have no such performance to boast of. People do have good careers but will not have fast tracked promotions as earlier. The focus will be on higher skill and productivity. You have spoken and written publicly about the importance of mentoring middle-management in IT companies and how avenues for their growth are few and far between. What is the way forward?

12 / Corporate Citizen / January 16-31, 2015

Garnering Support A petition has been started by the Forum for IT Employees (FITE) on Change.org, an online petition website, against proposed layoffs of Tata Consultancy Services employees. While media reports recently have hinted at the possibility of layoffs targetting TCS’s mid-level managers having around seven years’ experience, rumours of layoffs in many cities like Ernakulam, Chennai and Bengaluru have done the rounds. The organisation however has maintained that the move was part of ‘workforce restructuring’. Another reason provided to The News Minute over the alleged layoffs has been ‘involuntary attrition’. The petition has two main demands on the web page. one being “to immediately stop the indiscriminate job termination of employees in TCS” and urge the TCS management “to reinstate all those employees terminated in the ‘restructuring’ drive back to payrolls of TCS with immediate effect”.

Well I think this blood-letting is good for the industry. It will release talent for the rest of the economy, for the smaller companies. For instance our financial institutions need a large number of IT managers, so does defence, research institutions and these folks will be easily hired. It happened the last time too. The pink slip is very common in the United States (US). Why do we emulate and complain about the US labour market at the same time? The people who complain are people who do not understand how a modern competitive economy works. Economic growth can only come if there is a constant re-balancing of talent. People need to be productive and efficient to earn the money they are paid because the consumer ultimately pays for the inefficiency. Very often because of good times people get paid much more than they deserve for the value they create. Those who live by the sword should be prepared to die by the sword. If you want very high salaries, great perks then when times go bad or business shifts and you are not adding value you pay the price. What are the big changes you see in this sector in the small to medium term? Commoditisation of much of the business, automation, higher productivity, greater use of tools will drive business. Marginal players will fall due to increased consolidation. A few big global players will fall, the signs are there. The

middle level players unless they become more competitive will be hurt. But the Indian IT industry will do well though the champions may change, the huge breadth and depth of talent here is unparalleled. The Silicon Valley (US) grew because business houses in the region took risks, invested in science and technology, education, roads, public health. In comparison, how does Bangalore’s claim as India’s Silicon Valley match up? Well Bangalore is doing very well. About 3000 companies are started every year here across all areas. Very large sums are raised and invested. Innovation is rapid. Most people in India are unaware of the start-ups here. Bangalore is increasingly having more connections and affiliation to

Seeking Help  Knocking on Labour Commissioner’s door  A group of employees of the country’s largest IT company Tata Consultancy Services (TCS) met the Deputy Labour Commissioner in Bengaluru on Wednesday seeking action against the mass sacking of employees.  The employees will soon file a formal complaint after which appropriate action will be taken by the Labour Commission.

the Valley than to New Delhi. It’s ecosystem for innovation ranks very high The biggest challenge is our civic and political leaders. They do not have a clue what is happening. As for companies investing in the areas you stated, even in the valley they are marginal players. The State invests much and tax collections from these companies are high. Bangalore pays more than ` 70000 crore of corporate and personal income tax, the third highest in India despite not being the Headquarters of large companies. Personal income tax is the second highest. Compliance is high. The city absorbs the largest quantum of residential space, more than the National Capital Region (NCR) in Delhi. It has the highest commercial grade A office space in the world, has the third highest quantum of deposits and the fourth highest lending mostly residential. The list goes on. But we are a society which does not believe in data but in making sweeping judgments on others. (www.thenewsminute.com) CC Tadka

dubai’s real estate boom Dubai’s real estate is growing so fast, that 24% of the the cranes on Earth are located in Dubai. One out of every 4 cranes on Earth is located in Dubai.

January 16-31, 2015 / Corporate Citizen / 13

Tête-à-Tête

Every corporate is drawing a path to India Parag Saigaonkar, Regional Managing Director, Deloitte and author of the book ‘The Perfect Storm’ talks about his success in the industry, why he thinks India’s future is bright and the responsibilities on the youth today By Muzammil Khan

n today’s time and age, you will not come across many people who choose to stay with the company they began their career with for too long. Meet Parag Saigaonkar, Regional Managing Director, Deloitte, who is with the same company for the past 25 years and has no plans to move out. Parag joined Deloitte in 1990 and has had “multiple different roles”. He says there are several more “as my boss tells me that I have lots to do before I retire.” Sitting with his beautiful wife Vandana, Parag spoke to Corporate Citizen about his journey up the success ladder. Parag was born in Pune but moved to Canada with his parents when he was quite young. He lived there for 25 years and graduated in Mathematics. He then completed his MBA from the IB Business School. Ask him what brought him back to India and he says, “I had a liking for Asia and wanted to come back, especially to India. I began to see where business was going. That time it was all about Hong Kong and China, between 1995 and 1998. We moved to Hong Kong for some time and then to Beijing,

14 / Corporate Citizen / January 16-31, 2015

China. In 2005, I came to India.” Success didn’t come easy to Parag. Sharing an interesting anecdote, he tells us, “I got scolded on the fourth day of my job. The partner I was working with asked me what I was doing in this profession.” Ask him what his reaction was and he says smilingly, “My manager did support me on that. But I would say I learnt a lot from day one of my job. This was a lesson too. Also, not just about consulting or telecom business but how to structure ideas, how to write, how to connect with people, how to understand the audience, and how to not look at the job as not just a job. It was all part of my learning experience. This sort of professional skills you only learn in

I was scolded on the fourth day of my job. The partner I was working with asked me what I was doing in this profession. Ask him what his reaction was and he says smilingly, My manager did support me on that. But I would say I learnt a lot from day one of my job. This was a lesson too

certain professions.” Parag believes that India has a lot to offer in terms of opportunities to today’s youth. He says, “I am an optimist. It’s amazing to see the number opportunities available here. Students are on the tip of the demographic dividend with the best of schooling, best of education that India offers today. It is no longer about India’s growth; they have responsibility on their shoulders now. It’s not about choices anymore. It’s not about India success alone; it’s about global success because if you see the amount of labour that India is going to produce, it will supply 30-40 per cent of world’s labour.” “I don’t think that students here really understand that. They have won the parental lottery, they are born at the right place, to the right parents, at the right time, the right generations, they are in the thick of things and I want them to see the bigger picture here,” he says.

ointing out the problems with the youth today, he says, “It is surprising how lives are short today and careers run really long. I have a long way to go myself before I retire. Students, children and all these people, the problem today with them is that they have never failed in their lives. They have been prepped up by their parents, they have gone to the best schools, received the best of education, they have medals in their showcases, but by the time they are 35 years old, they hit rock bottom. The reason could be a failed assignment, a failed promotion, a broken household or a failed relationship and they don’t know how to deal with it. This affects the professional life but the expectations are huge.” “I am not here to preach or say what’s right or what’s worse. All I am pointing out is that wrong people are being approached for professional advice. There is too much to lose here. Wrong people are making choices for the youngsters. But look at the enthusiasm in these children today. It’s unbelievable. And I think this enthusiasm will be able to navigate the storm. They have to make it through since they have people behind them to take care of. “ Parag is optimistic about India’s growth and says, “India’s future is bright as the international market is making its way to India. Everybody is building a path to India. They are. Every corporate is drawing a path here and the Indian corporate are expanding abroad.” Parag has also penned a book called ‘The Perfect Storm’, which talks about the corporate world, its ups and downs and its demands. Talking about the book, he says, “The book

came to light only after seeing that there were clearly several opportunities. That was the time when the “dotcom was on steroids” kind of environment.” “I see a cultural social overhang among the people today. There is a lot of confusion today among the youth as there are many career options available to them. It wasn’t the case earlier,” he adds.

sk him the inspiration behind writing the book and he tells us, “I began writing a blog called ‘ParagOn’ to connect with the people. It was a blog that I used to write on couple of times in a month but I didn’t want to give ‘gyaan’. There are several books on how to do things but do you really relate to them? No you don’t. Because those are not the kind of books that the youth want to read today and such books will not help them in their career. There should be stories from day to day lives to pick up from.” His word of advice to the youth: “Learn Spanish, German, Mandarin, any of the languages. And by the way, 40 per cent of the labour is produced by India. It’s amazing. All I want to tell the youth is that failure is not an option. There are people here to help. Find the right people. Ask the right question and to the right people. Also, don’t lose your cultural identity. Don’t try to ape the West for all the wrong reasons.” So what does he do when he is not working? Parag tells us that he has two sons and enjoys playing golf with them. “Four of us also like travelling. So we pick up a destination every year and visit the place. My children do the itinerary,” he tells us. And how did his wife Vandana and he meet? Vandana, an engineering graduate, vividly recalls that the two met “the traditional way.” She says, “We both were registered at the sameplace and his father called up my father. And we met and things started rolling. And within a month, we were married.” muzammik.12@gmail.com

CC Tadka

india’s gigantic road network India’s road network totals 4.7 million kilometers and is the second largest in the world. Earth has a circumference of 40,075 km. Indian Railways has total ` 14 lakh employees which is equivalent to the entire population of many countries such as Trinidad and Tobago, Estonia, Mauritius, Bahrain, Cyprus, Luxembourg, Iceland, Liechtenstein, Monaco, Vatican City and more.

January 16-31, 2015 / Corporate Citizen / 15

Ernst & Young LLP Survey

Spending Trends of India’s super Rich

The 2014 ‘Top of the Pyramid’ report developed by Ernst & Young LLP (EY) and commissioned by Kotak Mahindra Bank’s Kotak Wealth Management arm has captured trends on the spending habits of High Net Worth Indians that go beyond the metros to smaller towns and cities, and from the good things in life to quirky indulgences to PE and philanthropy By Mohan Sinha

uxury has a new address in India – emerging cities and small towns. Far from the glitzy malls and duty-free shops of big metros, global heritage and luxury brands are finding new patrons who have both money as well as taste. The current edition of ‘Top of the Pyramid’ report brought out by Ernst & Young LLP (EY), the market research firm and commissioned by Kotak Wealth Management, the private banking arm of Kotak Mahindra Bank Limited, has captured this positive sentiment pretty exhaustively. From Hyderabad to Ludhiana, Surat to Coimbatore and Indore to Chandigarh, non-metro destinations are turning into new hotspots for luxury retail. Japanese writer Murakami once said, “Spend your money on the things money can buy. Spend your time on the things money can’t buy.” This principle seems to have been aptly adopted by ultra High Net worth Indians (HNIs) who ensure that money is rightly spent on the luxuries of life. Be it an investment in a plush skyscraper or an estate replete with helipad, manmade lakes and Zen gardens or the zeal to accelerate in a Bugatti Veyron or admire the craftsmanship of an Ulysse Nardin or savour the richness of a cup of Hacienda La Esmeralda, ultra HNIs are beginning to indulge. The number of ultra High Net worth Households (HNHs) in India has grown by 16 per cent this year, albeit at a slower pace compared to the last three years. The total net worth of ultra HNHs has also increased to ` 104 trillion, reflecting this positive sentiment. Wealthy families from small towns would earlier spend on high-end brands by shopping in bigger cities or during their visits abroad. But with the proliferation of the nouveau riche in small towns and the increase in their spending pow-

16 / Corporate Citizen / January 16-31, 2015

The total number of Indian ultra HNHs is estimated at 117,000 with an accumulated net worth of ` 104 trillion

“Top of the Pyramid 2014 has been prepared with survey results and analysis of more than 150 UHNIs across 10 Indian cities and interviews with luxury service providers. The optimism of the changing environment is reflected in the aspirations of UHNIs as their spend get more luxurious and investment more exotic. We expect a continued momentum in the positive trend and even further acceleration, with UHNIs being an ever alluring segment.” - Murali Balaraman, Partner – Advisory Services, Ernst & Young

er, luxury brands now want to set up shops at their doorstep. All in all, ultra HNI trends still seem slightly cautious, perhaps due to the fact that the global economy is yet to springboard to earlier levels. Ultra HNIs in India have also been watchful of their investment decisions with the volatile market movements still fresh in their memory. The emergence of non-metro cities has also been a key trend as the tier now includes 45 per cent of India’s ultra HNIs. In the long-term, the share of non-metros is expected to increase gradually. There is a sense of renewed optimism in the economy, which has picked up particularly in the second half of 2013, with indicators getting strongly visible in western economies and India as well. India’s ultra HNH population has witnessed a strong growth, rising to 117,000 in 2013-14 (estimated) from 100,900 in 2012-13. These ultra HNIs seem to have pushed cautiousness away and are now spending more than last year. Discretionary and non-discretionary spends have risen from 30 per cent of total income allocation to 45 per cent this year. Gold and jewellery, also doubling up as investments, have been the single largest area of spend, followed by apparel and accessories, and then by luxury holidays. The emerging trend is the increasing number of shorter trips taken by the ultra-rich, indicating a need to take frequent breaks from work. Ultra HNIs are also looking for larger-than-life travel experiences, with many stating interests in polar expeditions and even space travel. Besides spending on themselves, they also believe in giving back to the society. Nearly two-thirds of ultra HNIs interviewed attached a high sense of importance to philanthropy, with professionals being the most concerned. There is a sense of satisfaction derived from contributing positively to society, with education being the most common area of contribution. All in all, there has been a positive change in the outlook of the ultra-rich, encouraged largely by the improved economy. This trend is expected to continue and even accelerate further reflecting a strong sense of confidence in the resurgence of the economy in general and the ultra HNI lifestyle in particular. Five years following the global financial crisis, the world economy is showing signs of recovery, brought on by a recovery in developed economies. The improving growth scenario in developed countries signals progress across economic sectors, ushering in a healing effect post the financial crisis. This improvement has buoyed the overall growth in

Expenses are expected to continue rising as ultra HNIs explore their passions for designer jewellery, luxury watches and travel to exotic locations

wealth globally. While there has been a sharp increase in both the number of global billionaires and their wealth, it is evident that the growth has seen a greater acceleration this year, which can be attributed to the improving global economy. There is an increasing optimism that the economy will improve, with the World Bank projecting an increasing GDP growth of over 6 per cent for the next three years. From a sector-wise perspective, the Indian economy has seen a positive growth in the services sector, including finance, insurance, real estate and business services, while manufacturing, mining and quarrying have largely shown a lacklustre performance. This growth is also reflected in the emergence of new Indian billionaires. Between 2011 and 2013, one witnessed the emergence of new billionaires in sectors such as cement, paints, automobiles, construction, jewellery, education and soft drinks.

Ultra High Net worth Household

A household has been considered as an ultra high net worth January 16-31, 2015 / Corporate Citizen / 17

Quirks of the HNIs  A luxury events firm recently ordered nine cases of Japanese whiskey costing over ` 50,000 a bottle to be served at a pre-wedding function. Part of the deal was to ensure that no one who attended and got a taste of the whiskey should know how to source the same in India.  Similarly, an ultra HNI fan of Louis Vuitton bought identical Louis Vuitton bags, one of which is used as a bag, while the other is cut to design her fabrics to match the bag.  Another ultra HNI was more than eager to shell out Rs 48 lakh to play golf for a day at the Augusta Golf Course, Georgia – considered one of the finest golf courses in the world.  The wife of a Delhi-based ultra HNI had a novel idea to express her regret at not being able to attend a high profile wedding. She imported three Birkin handbags to be sent to the bride’s family as a note of apology.  A Noida-based real estate tycoon ordered 60 Rolex watches to be sent out with invitation cards for his daughter’s wedding.

Source: Top of the Pyramid 2014, Kotak Wealth Management

The ultra HNH population in India is expected to touch 343,000 by 2018-19 (P) with a net worth of ` 408 trillion

household if it has a minimum net worth of ` 250 million, mapped over 10 years. The number of ultra HNHs has grown to 117,000 in 2013-14 (estimated), accounting for about 0.05 per cent of Indian households. This in turn reflects an accumulated net worth of ` 104 trillion. While the number of ultra high net worth households grew by 24 per cent over the last four years, the accumulated wealth of these households grew by a whopping 32 per cent year-on-year during this period. Likewise, the number of ultra HNHs is projected to nearly triple to 343,000 with net worth of ` 408 trillion by 2018-19.

Increasing their luxury expenditure

Ultra HNIs often expect value for money from what they

18 / Corporate Citizen / January 16-31, 2015

spend on and are cautious of the movements in the market. Given the market confidence of last year, there was a restraining effect on overall spend. In comparison, market confidence seems to have improved this year, particularly during the latter half. A strong rupee, a new RBI governor, the hope of a friendly government and a promising revival of western economies are some of the primary factors that have triggered this change. This has, in particular, helped ultra HNIs break their ‘shackles of caution’, and indulge in the ‘good life’. The survey reveals that there has been a significant increase in spends, growing from about 30 per cent of total income last year to about 44 per cent this year.

The luxury market in India has touched ` 51,000 crore in 2013 as against ` 36,000 crore in 2012. This is estimated to cross ` 84,000 crore over the next three years, reflecting the ever-rising demand of super luxury consumption in India.

Investments and savings

Among the ultra HNI segments, one finds varying traits characterising entrepreneurs, inheritors and professionals. Entrepreneurs and inheritors allocated more of their income in discretionary expenses, non-discretionary expenses and reinvestments into primary businesses. Professionals, on the other hand, preferred more of savings and personal investments, reflecting a more conservative outlook. Professionals also looked at investments in alternate businesses to augment their income from regular work. While about 50 per cent of both entrepreneurs and Inheritors interviewed displayed an increase in expenses over last year, only 30 per cent of professionals have shown a similar increase. The trend is reflected in leisure expenditure as well, where nearly a third of all entrepreneurs and Inheritors increased their spending, while only 13 per cent of professionals did so.

HNI Aspirations  Villa in Amsterdam  Private Jet  Luxury seaside villa in Italy  Private island with a state-of-the-art yacht  A resort in an island outside India

“This year’s report aptly captures the mood and behaviour of the super-rich against the backdrop of allround emerging optimism in the economy. India’s super rich are moving out of their comfort zones to put more monies in the rare and the risky – exotic food, private equity and even space travel. While exclusivity is the mantra for personal and family expenditures, they are equally interested in giving back to the society. UHNIs are supporting a variety of social causes.” — C. Jayaram, Joint MD, Kotak Mahindra Bank Limited

Where they splurge

While ultra HNIs are conscious of value for money, they seek exclusivity in all their purchases – the more exclusive the purchase, the greater the psychological satisfaction. Shopping is also one of the key drivers for luxury trips to Singapore and Dubai, where the rich buy the latest jewellery designs and apparel. Jewellery: While jewellery displays the ultra HNI’s interest in exclusivity and exquisite craftsmanship, it is also a useful mode of investment. Besides gold, there is a great deal of interest in precious stones as well, due to their high returns. According to a luxury jeweller based in Mumbai, the cost of high-quality emerald has increased ten-fold since 2009,

January 16-31, 2015 / Corporate Citizen / 19

Key Findings:  The number of Ultra High Net Worth Households (UHNHs) increased by 16 per cent to 117,000 in FY 2013-2014 from 100,900 in FY 2012-2013  Metros dominate the geographic chart for UHNH distribution at 55 per cent and the next top six cities (Bengaluru, Pune, Ahmedabad, Nagpur, Hyderabad and Ludhiana) account for 16 per cent share  An optimistic economic environment and hope for a stable political environment triggers increase in expenses from 30 per cent in 2012 to 44 per cent in 2013  Equity and Real Estate investments overtake debt  26 per cent of Ultra High Net Worth Individuals (UHNIs) surveyed include Private Equity (PE) investments in their portfolios; Real Estate and IT emerge as top two sectors and e-commerce is a new favourite on the PE investment block for UHNIs  Over 60 per cent of the UHNIs surveyed consider philanthropy while planning annual expenditure: education (86 per cent), followed by ‘food for poor’ (79 per cent) get preference

Source: Top of the Pyramid 2014, Kotak Wealth Management

thereby attracting the interest of the wealthy populace. Apparel: Ultra HNIs have always had apparel as one of the key categories of spending but one of the newer trends is designer clothing for children. This has been further boosted by the launch of designer lines for children, such as Young Versace and Baby Gucci, leading to high spends on the apparel category. On many occasions, ultra HNIs travel abroad to shopping destinations to buy the best brands for themselves and their family, thereby increasing their spends on ‘holidays’. Luxury cars: Luxury car makers are riding the wave of ultra HNI buyers who want to announce their wealth and success. Undaunted by the slowing economy, the luxury car market has seen healthy demand in 2013-14, encouraging companies to work on new launch plans and further expansion. Cuisine: Ultra HNIs today are much more aware of international cuisines due to their extensive travel and increasingly adventurous nature. Today we are also witnessing the use of international ingredients in Indian dishes and vice versa – in both cases, the effort is helping ultra HNIs try out newer cuisines. Luxury travel: As for the ultra HNIs, luxury travel is just the welcome break they look for – or better still, it ushers in a sense of exclusivity. While ultra HNIs love to visit the mega malls of Dubai and Singapore, they are also keen on vacationing in the exotic Mediterranean or the azure Ca20 / Corporate Citizen / January 16-31, 2015

This year the percentage of ultra HNIs increasing their year-on-year luxury spends has been significantly higher than those with a reduction in the same

ribbean. Some have even grander travel aspirations, such as going into space. According to the survey, nearly 50 per cent of all ultra HNIs make at least three luxury trips in a year. In terms of the segments, a greater percentage of Inheritors made at least five trips annually, owing to a greater availability of time. Ultra HNIs spend at least ` 1.2 lakh per couple per night on an average, according to a leading luxury service provider. Gifting luxury watches, jewellery: Ultra HNIs love to spend on their friends and relatives through gifts. The survey shows an inclination towards luxury watches, followed by jewellery and accessories, while mobile phones continue to increasingly feature in the list. Though ultra HNIs prefer to buy luxury watches for themselves from abroad, they are quite willing to buy a Rolex or a Hublot in India as a gift for a friend or relative. 25Real estate, IT, pharma and financial services preferred sectors for PE investments: Traditionally, ultra HNIs have invested in real estate by working closely with developers to fund acquisition or construction of a project. They have found favour in real estate Private Equity funds as they partner with developers with a track record and have execution capabilities while evaluating an investment. In 2013, real estate private equity funds raised ` 5,000 – ` 6,000 crore from investors in the Indian market. This flurry of capital is driven by the expected positive change in the infrastructure development with the new government in place. Reflecting the positive investor sentiment, 53 per cent of ultra HNIs prefer exposure to the real estate sector whereas 43 per cent prefer Information Technology through PE investments, followed closely by the pharmaceutical sector. With signs of a buoyant economy emerging with the change in the investment outlook and the advent of the new government, the ‘acche din’ barb might well soon be on the NDA’s government’s detractors. sinha.mohan@gmail.com

go getter

Beyond the Boardroom Suparna Singh, Head-Minerals, VP Corporate Planning at Essar Group is one of the top leaders of the corporate world. With over 24 years of experience working with leading corporates like the Steel Authority of India Ltd (SAIL), Tata Steel and Essar group, Suparna’s professional career has ranged across different roles from the shop-floor to the boardroom. by Mahalakshmi Hariharan

Success Mantra: Do Your Best. Let Destiny Do The Rest.

uparna Singh’s initial task at Essar was to evolve the Governance and Risk Management framework of the group and anchor the group think tank comprising its promoters and CEOs. Currently, she is focused on the Minerals business facilitation for Essar, covering India, USA and Africa. Ms Singh shared glimpses of her professional journey, achievements, her employer-friendly organisation, even some advice to Gen Y. Ms Singh is the younger of two siblings, her father is a chartered accountant and mother, a former school teacher. She completed her schooling from Vizag and Kolkata. An

electrical engineer from Jadavpur University with a Masters in marketing from IIM Calcutta, Ms Singh is one of those rare women who shunned offers from the likes of Siemens and Phillips, preferring instead to join core-industry SAIL, which was her first stint on the shop-floor. “I worked at the factory then. I decided to take it up as a challenge, choosing the tough path so that it would enable me to learn more,” she recollects. Ms Singh has been successful in turning around a monolithic Telecommunications department into a thriving, state of the art technology centre, working with senior man-

agement personnel at Tata Steel, to creating corporate governance framework and risk management practices in the Essar group, facilitating decisions on strategy, target setting and policy. Most of us today believe this is a male dominated world, that more opportunities are available to men than women. Ms Singh begs to differ. “Effective management of office and home is all about planning, managing time and resources optimally and delegating responsibilities to the support system that one needs to build and nurture. It is not about being a male or a female -- one is just a professional.” An ardent music lover and mother of two, Ms Singh has been successful in managing both home and work, effectively. She gives full credit to her husband, parents and in-laws who have been very supportive. “A lot of support and encouragement from my husband helped me stick steadfastly to my career,” she adds. Dwelling on the corporate culture in India she says, “The Essar group is an open, merit-based organisation. We have regular employee engagement programs like mentor-mentee programs, grievance handling processes and other benefits.” Singh notes that while the group is not worried about attrition levels, they do believe that good people should not leave the organisation. To Gen Y just about to enter the corporate world, she advises, “Do your homework, ask the right questions, take up challenges, never say ‘no’ to opportunities, carry a positive attitude and be presentable. Money will follow. Just keep doing your best.” Mahalakshmi.H@corporatecitizen.in

January 16-31, 2015 / Corporate Citizen / 21

cover story

Pics: Yusuf Khan

22 / Corporate Citizen / January 16-31, 2015

cover story

Dynamic Duo 4

Meher and Pheroz Pudumjee

The ` 5000 crore plus Thermax Ltd, headquartered in Pune and with offices in 19 locations across the globe provides a range of engineering solutions in the energy and environment sectors. Its Chairperson, Meher Pudumjee, a Chemical Engineer, is passionate about music, especially Western Classical. Her husband Pheroz, an MBA and Director of Thermax, oversees the company’s international initiatives. He too has a talent for singing but prefers to keep it a secret; he is a lot more eloquent about his love for automobiles. What makes their marital journey a classic duet is their mutual respect and friendship and their ability to keep their feet on the ground and be human.

by Vinita Deshmukh

f music be the food of love, play on…“ said Shakespeare, and Pheroz Pudumjee, for sure, continues to have an overdose of it, thanks to his wife Meher, who loves western classical music. Meher never misses her weekly rendezvous with `The Chamber Singers’ choir where she mellifluously practices works of Bach, Brahms, Schubert, Debussy, Bernstein and so on. Every Tuesday, between 6.30 and 8 p.m., she reserves time for her passion and heads to Gulati Hall in Pune. When concerts are scheduled, her rehearsals carry on well past her class hours, her voice resonating the corridors of the house, until late night. She proudly says, ”Even if I am travelling, I try and work around my being in Pune on Tuesdays and if I have a meeting then I ensure I finish it in good time to be able to make it for the choir.” ''No, it is not just her love, she is simply obsessed when she catches onto a tune,'' says Pheroz with a mix of appreciation and exasperation. “I respect her passion and all the effort she puts into music, but she has

the tendency to overdo things. Passion overtakes to such an extent that she gets obsessive, I get her to be temperate.“ Then he affectionately complains that he is compelled to hear the songs that she would be rendering at the concert, several times, well before the concert day! Meher smiles and adds with a twinkle in her eyes, ''You know, he is a brilliant vocalist; he sings so well, but refuses to do so. I wish he would also sing in the choir – we need more male voices. “Pheroz intervenes, ''No I have no intention of joining any choir, thank you; I am happy being a bathroom singer,” and confesses that they have friendly arguments once a week, over music, and that’s quite enough! Meher’s passion surfaces when she says, ''My enjoyment is far greater than what my voice brings to the choir. I thoroughly enjoy meeting our eclectic group every Tuesday for the past 15 years, who come together for the love of music. Our conductor, Veronica Krishnayya is phenomenal in the way she weaves together different and very unusual pieces of music.’’ January 16-31, 2015 / Corporate Citizen / 23

cover story Music indeed runs in the family. Meher says, “Both our children are very musical – I guess it is something that has come to them through the genes. When I was expecting each of my kids, I played a lot on the piano, hoping that something would rub off!! Our son, Zahaan, is a very good guitarist and enjoys playing the piano. Our daughter, Lea, is very good at the drums, plays the piano and sings. Pheroz does not agree that music during pregnancy can translate into a child’s passion for the same but adds, “They are certainly musical, but prefer different kinds of music, like Rock.’’

a perfect marriage, both say in chorus, with a laugh, “No, no, we have had lots of ups and downs.’’ Meher and Pheroz believe that they are finding each other now, more than before when they were newly married. Says Meher, who is the more bubbly of the two, “When the children were young, as a mother, a lot of my time was dedicated to them and I felt my poor husband got my leftover time. Whereas now that the children are away, pursuing their education, we are genuinely rediscovering each other’’.

Play to express, not impress

Meher and Pheroz’s parents were family friends. Says Pheroz, “We have always known each other since a long time, we were a bunch of kids who used to meet whenever our parents met for dinners and parties. Meher and I were just friends and no, there was no spark between us as such. The spark was ignited when I returned to Pune from the US in 1986 after completing my education in automobile technology.’’ Meher quickly adds, ”He agreed to teach me how to play squash’’ and that’s how they spent time together during that summer. Pheroz says, “I liked her smile very much and the fact that she came across as such a happy and positive person. I am more of a cynic and can be negative sometimes.’’ Meher then left for the UK to pursue her chemical engineering at Imperial College, while Pheroz was in Pune. Says Pheroz, “We dated on and off for six years. I would go to London sometimes to meet her and she would be back in India during college vacations.’’ So, was it a hunky

Interestingly, Meher’s philosophy of life is also inspired by music. Recalling a concert in London when she was a schoolgirl, she reminisces, “I was practicing Beethoven’s 'Moonlight Sonata' for a concert in London. My father always believed that one should give one’s best in whatever one does. So for my rehearsal, he hired a room in London and made me practice for hours on end till he thought the piece was perfect. Just before the concert, he whispered into my ear, 'Now darling, play to express, rather than impress.' I have used these words as my philosophy in life, in whatever I do.” While Pheroz’s singing talent was confined to his school days, Meher says, “My love for music started when I was very young. My parents were passionate about music and played it continuously at home. My dad was particularly fond of western classical music and was also an excellent whistler. My mom also likes Indian music, besides western classical. At night before going to bed, I had to hear a record before sleeping. My parents were also part of the Poona Music Society which used to invite a lot of international artistes to Pune. In those days, instead of putting them up in hotels, our families used to volunteer to host them. So, we used to have a lot of interaction with them and this helped me develop some knowledge in music. I took to the piano when I was eight years old and was Ms Krishnayya’s first student in Pune. Even though I had the best innate talent for music that my boarding school in the UK had ever had, it is only through sheer practice and hard dedicated work that one can convert this talent into something useful’’.

How they met

Re-dating each other

The freshness and child-like enthusiasm of both Meher and Pheroz emerges when they speak about their marriage. Says Meher, “Marriage to me is friendship; love; deep respect for each other; a huge amount of trust between two people; fun doing things together, yet having your own space; bringing up children together; chatting, discussing, arguing…. I would genuinely say it gets better over the years.’’ Pheroz agrees and adds that besides friendship, trust, fun and bringing up children together, “in marriage, both partners should have a good sense of humour and it should be an attached, yet detached relationship. I should not pressurize her to do what I want and vice versa.’’ When I quip that theirs seems like such

In India, wealth is made out to be larger than life. People are shocked when they see us in a rickshaw, a Santro or travelling on the Deccan Queen. - Pheroz Pudumjee

24 / Corporate Citizen / January 16-31, 2015

cover story dory courtship? “No,’’ they both chorus, “We broke off twice in the five years.’’ Why? Says Meher cheekily, “Being separated by a few thousand miles led to some misunderstanding and there were other distractions.’’ They got married on 18th March 1991. Love continues to blossom, maintaining its fragrance and freshness.

Wealth should become larger than life

What strikes you about Meher and Pheroz is their humility despite being stalwart corporate leaders of the country. What makes them so humble? Quips Pheroz jokingly, “My wife gives me a lecture once a day on remaining humble,’’ and then adds seriously, “both families had had a good standing in society for a very long time. We have always been taught to be down to earth people and we love to be with our family friends who come from middle class backgrounds. We are happy to be in their company and do not feel the urge to socialize with the who’s who for the sake of so-called status. Money has been around but we don’t find the need to flaunt it. We lead a balanced life, we like the good things of life but do not take it to extremes.’’ Meher expresses her belief on this issue, stating, “My biggest role models are my parents. I just feel that being grounded is important in life. Wealth, like Pheroz mentioned, is here today, gone tomorrow – it is enough for your need and not for your greed’ moreover, how much you need is a very subjective issue in itself! Having said that, we are also trustees of our wealth. It is a legacy; we are lucky and priviledged to be born into our families and therefore feel it is our responsibility to help many others who are marginalized and left behind.’’ Both say that in India, wealth is made out to be larger than life. “People get shocked when they see us in a rickshaw, a Santro or travelling on the Deccan Queen.’’ Adds Pheroz, “You are no different just because you have wealth. I enjoy my cars, but if I go to M G Road, I will use my Santro.’’

For us, work is fulfilling a sense of purpose. A good work environment is to have the right people around you; people who could be far better than you and yet being able to motivate them and manage them as a team. - Meher Pudumjee

Made for each other

Their natures may be contradictory but they complement each other. Says Meher, “I sulk for a long time when we have our differences, but Pheroz is the person who makes up immediately. That has been a huge learning for me. It has taught me that, to keep a relationship going, you need to make up and move on. Any time that we have a fight, he insists that it should be resolved before we go to bed.’’ Pheroz adds with a smile, “I have also taught her to be decisive. I listen for a while and quickly decide.’’ “I am a typical Libran,’’ says Meher, ”I will weigh the pros and cons, deliberate, cogitate, digest and then probably come to the same decision”.

On bringing up children

Says Meher, ”Both of us feel inculcating the right values, educating and

encouraging them to put in their best no matter what the outcome, being good human beings, keeping the channels of communication, openness and trust between us, have helped maintain a very warm and caring relationship. We try and understand their thoughts and opinions – we’d like to believe that they openly express whatever they feel, with us. We always take them at face value – we do not believe in policing.’’ Both believe in walking the talk and not preaching, which they say has helped in shaping their children into good individuals. Says Pheroz, ”both our children value money as they know that wealth is not meant for frittering away’’.

Parents as role models

Both Meher and Pheroz believe that their parents taught them the right ways and attitude to life, enriched with honesty and a sound set of values. Says Meher, ”My dad was a very patient perfectionist. He was a phenomenal teacher, who would invest hours teaching me Mathematics and English. He would say that my essays began like a piece of cloth, but by the time I finish, he wanted to see it transform into a beautiful dress”. “Another example of his patience was seen when he suffered a stroke. Due to the clot in his brain, he had forgotten to read and write. He had to practice his alphabets and numbers from scratch. He also had to re-learn the identification of colours. It was so distressing for us to see such a brilJanuary 16-31, 2015 / Corporate Citizen / 25

cover story liant man having lost everything overnight! I remember he was very keen to tie his shoe laces but was unable to do so since he had lost grip on his right hand. The physiotherapist asked him to practice tying a bow on his thigh so that eventually, within a month, he would be able to tie his shoe laces. That night, he stayed awake, practicing tying the bow on his thigh and the next morning when the physiotherapist came, he could actually tie his shoe laces! After he recovered, he wrote his book, `Changing The Mindset.’’ It is this patience, hard work and perseverence that made her father Rohinton Aga and his team, take Thermax to such great heights, she says. Regarding Anu Aga, Meher says, “My mother has tremendous wisdom. The way she has handled life - from being the girl in the house, who was never encouraged to study or be part of the family business; to have suddenly taken over Thermax after my dad passed away! She was able to rally the team and pull Thermax out of very difficult times. She has taken many major decisions, which my father was unable to take. A very assertive and spontaneous person, who says exactly what she thinks. She does not mince her words, though sometimes I feel she must practice diplomacy.’’ “When I was asked to take over as Chairperson of the Board, I was not at all comfortable and had many self doubts, especially when I compared myself to my two stalwart parents”. My mom convinced me saying that Six years of courtship translates in marriage I should not expect to be like either of them. She said, “You have your own strengths. Just like the apple tree that cannot give oranges, you are your own person and will be different and effective, if you utilise those strengths. That pepped me up.’’ Meher says “Anu - the person you see is the person you get – no heirs and graces, very down to earth, very much in touch with her strengths and areas of development; very passionate about giving the economically underpriviledged a good quality of education, so that more than talk,” but adds, “at some point, after you have listened, they can make choices in life, just as we are priviledged to do so. Anyyou must make up your mind and take a decision. Indecision can thing she takes on, she gives it her very best and is willing to challenge lead to chaos in the system. Let your experience also play its part herself and continuously enhance the bar of learning’’ says Meher. – what you have learnt from lots of examples in the past, gives you Pheroz’s great, great great grandfather, Khan Bahadur Pestonjee an idea of how to do things better. One must keep the long term Sorabjee had pioneered India’s first ever Horse Mail Services, in British picture in mind. It is easier to take a short term decision, but one India. He hailed from Gujarat but settled in Pune. He also built two fire must visualize as to how it would pan out in the long term. Your temples in Pune. His father, Nusly Pudumjee was the CEO of the Mumapproach should be holistic; you need to be in communication bai and Pune Race Course (Royal Western India Turf Club). Pheroz with people all the time. You should keep abreast of what is going says, “My dad was a no nonsense person and was extremely direct, yet on in best practices in processes and systems – be it technology or very compassionate. He was very fair to the children, be it a girl or boy. the next big business. Most important for a corporate leader, is to My mother was quick tempered, but would calm down just as quickly. balance discipline and compassion.” She had a lot of wisdom and was also the binding force of our entire Agrees Meher. “I agree with Pheroz and for us, work is achieving a family. She was the nucleus of all family functions and kept in touch sense of purpose in whatever we do. Secondly, a good work environwith friends and relatives from both sides of our families. I would say, ment is to have the right people around you, people who could be far my wife Meher, had a wonderful relationship with my mother.” better than you and yet being able to manage them as a team. Motivating them, helping them give out their best, keeping open lines of communication especially when things are not going right and making On corporate leadership qualities timely decisions is very important.” Says Pheroz, “To be a good corporate leader one needs to listen

Now that children are away for the pursuit of their education, we are genuinely rediscovering each other. It is also like we are dating each other once again

26 / Corporate Citizen / January 16-31, 2015

cover story

Working together helped them share the responsibilities amiably at workplace and home

Taking a break: Travelling around the world

Working together

“We got used to working together when we were thrown into the deep end” say Meher and Pheroz. In 1992, a year after marriage, both of them were sent to the UK to turn around a fledgling company. Says Pheroz, “We had a very small office of about 350 sq.ft. We were a small team of five; although we each had to do everything that was needed to be done, we had our own specific roles.’’ Meher states, “We were very lucky to have our then Director Dr Joshi come with us and mentor us for a year. This is the wonderful culture of Thermax, wherein people have always come forward to help this organisation. Initially, it was difficult and being so far away, we did not have our parents or friends to bank on for moral support, so we were forced to sort out our own issues’’. “What I must admire about Meher,’’ reminisces Pheroz, “is that she cooked fresh food every day, apart from managing a full day at work. She is an excellent cook.’’ Meher and Pheroz like to travel and have at least one family holiday in a year. In between they visit their children. They also like to visit restaurants. Says Meher in a light hearted manner, “Pheroz likes to eat good food and I like to eat any food. We work out together with a personal trainer three times a week; when Pheroz is not there, I really miss him.’’

Involvement in social activities

Earlier, Meher had been involved with the Confederation of Indian Industry (CII) wing called Pune City Connect, that worked on Pune’s

traffic. Several corporates including Thermax had sponsored traffic wardens and white markers / zebra crossings. Says Meher, “You just have to drive down the road to see how chaotic it is. There is no respect for rules, not even for your own safety. I lost my own brother in a car accident, so for me, discipline on the road means a lot. I am very happy to see the constant focus Sakal newspaper has been giving to the issue of helmets.’’ “My mother’s passion of education for economically underprivileged children through the Thermax Foundation, the NGO’s Akanksha and Teach For India, have certainly trickled down to me. Thermax Foundation has adopted 6 municipal schools in partnership with Akanksha and the municipal corporations (PMC / PCMC). We are supporters of Teach For India – helping Fellows during their 2 year internship with TFI as also alums, who would like to pursue a career in education. Two years ago, the Foundation started an in-service teacher training programme, to help and support teachers in English medium municipal schools across Pune – the response has been overwhelming and so we will seed it in Marathi medium schools from next year. Over and above all this, Anu is keen that in her lifetime, Pune is able to offer all kids a quality education – a dream that we are all working to fulfill”. Meher and Pheroz represent a rare combination of having achieved not only in the corporate world through hard work, passion and ethics; they have also excelled at community building through their down-toearth and human approach to the cause of the underprivileged. vinita.deshmukh@corporatecitizen.in January 16-31, 2015 / Corporate Citizen / 27

Real Estate

Roads and Rail Networks helped expand Mumbai Over the years, real estate rates have risen astronomically in the original core parts of Mumbai city. Since the pricing trough of 2009, in a period of less than five years, prices have grown in excess of 80%. The growth in the Navi Mumbai and Thane region has been even greater. By Arvind Jain

umbai city was originally reclaimed from the sea by joining seven islands, with the intention of creating a shipping and trading hub for the British. However, the city that resulted from this exercise attracted a magnitude of population which was very disproportionate to that in any of the surrounding regions. The MMR was notified in 1967, in an effort to address the rising problems that the existing inhabitants were facing. Many more areas were included within the region; today, the Mumbai Metropolitan Region includes Greater Mumbai, Thane, Kalyan and Navi Mumbai in addition to many additional towns and villages.

28 / Corporate Citizen / January 16-31, 2015

Due to Mumbai’s unique geographical positioning, the growth of urban sprawl in the Mumbai Metropolitan Region has been very lopsided. Until the early ’70s, most of the MMR’s urban built-up area was concentrated in the Island city and its immediate suburbs, so the expansion of real estate development was more or less constrained within this region. About 3/4th of the population was residing within this relatively small area. However, the city’s road and rail networks expanded remarkably quickly beyond Greater Mumbai, which resulted in growth being driven toward Vashi, Thane, Panvel and Kalyan. Over the years, this trend has been maintained and accelerated. Today, with available land at an extremely high premium in the

primary city, even the furthest suburbs like Khalapur, Uran and Karjat have seen the consumption of their agricultural and forest lands to make way for real estate development. In the current times, the Mumbai Metropolitan Region is extremely curtailed in its scope for unilateral growth and Mumbai’s resident population has exploded beyond all bounds. Any kind of explosion required a sufficiently large area for its fallout to spread; Mumbai’s population explosion and the real estate development pattern that has resulted is very much akin to the firing of a bullet, with the path being directed by the barrel’s constraints. In the years to come, we are likely to see a steady thinning-out of the urban population in Mumbai’s central areas and increasing densification of these new growth areas. Meanwhile, the city’s wealthiest inhabitants continue to stay put within the rarefied spectrum of MMR’s ultra-expensive central areas. What we are witnessing today is an accelerated process of social stratification that has been underway in the city for a fairly long period of time. Over the years, real estate rates have risen astronomically in the original core parts of Mumbai city. Since the pricing trough of 2009, in a period of less than five years, prices have grown in excess of 80%. The growth in the Navi Mumbai and Thane region has been even greater. Development is now extending into the newer, outer regions. Most of the growth in Mumbai’s residential real estate sector growth has been the result of the increased supply in these regions, and there has been a corre-

Because of the generation of jobs that has ensued, many of these extended markets are now coming into strength as independent economic catchments that have their own workplace hubs generating local demand for real estate sponding population shift from the original MMR to these newly developed locations. This is the trend that will prevail over the next couple of decades, and will result in a significant outward migration from the MMR. This phenomenon is not solely on account of the ever-rising property prices and escalating infrastructure deficit within the Mumbai Metropolitan Region, but also because these new regions are attracting national and international manufacturing companies. Because of the generation of jobs that has ensued, many of these extended markets are now coming into strength as independent economic catchments that have their own workplace hubs generating local demand for real estate.However, the main city is now also striving to improve by adding infrastructure to accommodate and deal within the constant inward migration. This is having a positive impact on the primary influence zone of Mumbai City and its immediately neighbouring locations. These infrastructure projects are basically operating as retention magnets for the limited

but, at a market level, significant population segment whose economic lives are linked to the primary business activities in the city, and who can afford the real estate prices involved in owning homes in Mumbai’s most expensive locations. (Arvind Jain is Managing Director of The Pride Group, a world-class property development conglomerate that is changing the cityscapes of Pune, Mumbai and Bangalore)

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this film had a 25 week run in cinemas Sholay is arguably one of the best known Hindi films ever made. It was launched 40 years ago, way back in October of 1973. However two producer/director teams rejected the idea before it found favour with Ramesh Sippy. The screenplay of Sholay was originally a four line snippet created by writers Salim-Javed.The film was the first to enjoy a 25-week run in over 100 cinemas.

January 16-31, 2015 / Corporate Citizen / 29

Successful Startups

World’s first ever Hindi Scrabble The world’s first interactive Hindi Board game on the lines of Scrabble has been pioneered by three IIT graduates – Rajat Dhariwal, Madhumati Halder and Manuj Dhariwal. The game is called ‘Aksharit’ and their startup company, Madrat has been ranked as the one of the top 10 innovators by the Government of India. An interview with Rajat Dhariwal. By Arjita Kulshreshtha

adrat Games is a pioneer in interactive learning through games and has to its credit, the World’s First Hindi Board Game – Aksharit. Three IIT graduates – Rajat Dhariwal and Madhumita Halder from IIT Bombay and Manuj Dhariwal from IIT Guwahati co-founded it in the year 2009 and since then, their flagship product Aksharit (basically Hindi Scrabble) has reached 3000 schools and is being used by more than 3 Lakh children. Nokia, Intel and Google have partnered with Madrat to launch digital versions of Aksharit and their other innovative games. The startup recently had the distinction of featuring in the list of India’s most promising start-ups by NextBigWhat. It was also ranked in the top 10 innovators list among the likes of Tata Motors, Redbus, Phillips, etc. by the Government of India.

a double bed. We must have played the game hundreds of time to come up with a workable design of Aksharit. After designing the first prototype, we registered for a business-plan competition at IIM Calcutta and to our surprise; we won that competition which gave us the push to pursue this further. The investors told us that Aksharit had the potential of becoming the game of masses in India.

Your company manufactures board games for learning and entertainment of people of all ages. Where did the

What is the story behind Madrat Games?

Rajat: So my brother Manuj got this idea while travelling as the best way to pass time when you are in a train is by playing board games. It made him ponder as to why there were so few Indian board games when popular board games like Scrabble and Boggle existed in at least 30 other languages. He shared this idea of creating a Hindi Scrabble with Madhumita, (who is my wife now) and we were extremely fascinated by it! But at the same time the task was very challenging because the Hindi language has over 600 sounds, half letter, compound letters, matras, all of which had to be taken into account. If we had blindly copied Scrabble then we would have ended up having 4,000 tiles and using a board the size of 30 / Corporate Citizen / January 16-31, 2015

Star Achievers: Madhumita Halder with Rajat Dhariwal

inspiration to do such a different venture come from?

You see, when we were in IIT, we used to discuss the flaws in the primary education system of India and how few children had exposure to an all-rounded education, which included extra-curricular activities and inculcation of life skills which are essential for holistic development of children. At that time we thought that we will do something about this, may be open up a private school, sometime later in life. After I graduated from IIT, I went to CMU to pursue a master’s degree and also did a job for 3

What were the challenges that you faced as a startup?

Through our products we wanted to teach subjects like Science, Maths and our native language Hindi interesting for kids. The kind of impact we were looking forward to, could be achieved only by approaching Government schools. Unfortunately, bureaucracy takes its own time. It took two years to pass one order! We were a startup and our investors suggested that we needed recurring revenue channels to scale up the brand. So we then shared the game with Nokia, Google, Apple, Chrome webstore, who then launched the digital version of the game. So changing our market strategies from the government initially, to digital and eventually to retail, has been the biggest challenge.

How are you expanding in terms of business and team?

months at Amazon but I was never happy doing that! So I came back to India and Madhumita and I visited all of the different schools with varied teaching styles across India. Rishi Valley was one school that we found, which was very different in its approach towards teaching. On our visit to Rishi Valley School the principal suggested that we take up teaching at Rishi Valley School to understand the learning process better. We spent four years there. Rishi Valley being a boarding school, we saw the children both inside and outside the classroom. We observed how kids could learn by making and breaking toys. That’s when we realised the very nature of games, which have a powerful role to play in learning. Even the socalled weak students would come and tell us that they had began to love science as it began to be taught through games; that opened a door to their learning. So that was an intriguing experience and it proved very valuable in founding MadRat Games.

Actually games build a very enthusiastic positive environment. A kid tends to think ‘If I do this, I’ll win this game - Manuj Dhariwal

What was the impact of the game when you initially launched Aksharit?

For introducing our product, we went to Chhattisgarh to demonstrate Aksharit to the teachers of government schools and their response was extremely encouraging. They gave us an order of 6000 games for 1000 schools across Chhattisgarh. We were really nervous about the product going out in the market for the very first time. So to test the effectiveness of the product, we gave a postcard with our Bangalore address to teachers of the 1000 schools who were going to use Aksharit with a simple objective questionnaire asking them the utility of the game. After 5 months we got 750 postcards with their responses and we were thrilled to read the reviews. They had given us a positive feedback expressing that ‘Hindi bhasha me baccho ki ruchi me atyadhik sudhar hai’. Subsequently 3 other governments installed their belief in us – government of Madhya Pradesh ordered for 600 schools, Rajasthan ordered for 400 schools and Bengal for 300 schools. The initial impact was huge!

How do these games that you design improve the learning experience?

Actually games build a very enthusiastic positive environment. A kid tends to think ‘If I do this, I’ll win this game’. So the game becomes engaging and once you win a reward for learning something you never tend to forget it. In the game you have small goals, small rewards and then you win eventually. A basic thing in designing the game that we’ve followed is that we put the reward at that particular step where learning is involved. We want them to solve five equations in their head for which they get rewarded.

We started with a seven-member team that has now grown into a 50-member team. We achieved a milestone in September ‘13 when we sold 1-lakh units reaching around 1.5 lakh families in India. Initially our company worked on a Business-to-Business (B2B) model with three main distribution channels: the government schools for physical board games, webspace for Intel’s netbooks and app stores, and the mobile with a partnership with Nokia where our signature game ‘Aksharit’ was pre-bundled on Nokia touch phones. Now we have switched to a Business-to-Consumer (B2C) model focusing solely on retail stores. Our next expansion plan is exports and we will launch our products in Middle East and Sri Lanka by next year.

What entrepreneurial qualities did you develop at IIT?

IIT gives you the confidence of doing challenging problems day in and day out. When I graduated with a Computer Science degree from IIT Bombay, where I was competing in class with some of the brightest minds of India, I knew that if I can do this, I can solve any problem that comes across and that confidence has really been the foundation of my success. (Story courtesy: E-Cell, IIT Bombay, the largest entrepreneurship promoting student body of its kind (www.ecell.in))

CC Tadka

Eat at Mcdonalds, take a toy home McDonalds distributes 1.5 billion toys annually around the world. That is more than what the top toy company, Toys R’ Us’ sells! In the U.S. nine out of ten kids between the ages of 3 and 9 eat at McDonalds at least once a month.

January 16-31, 2015 / Corporate Citizen / 31

Cradle of Leadership-3

A 150-Year

Long Legacy A hundred and fifty years is a long time for a school to have honed and distilled its traditions and value systems. As St. Mary’s School in Pune turns 150 next year, Corporate Citizen catches up with Sujata Mallic Kumar, Principal, in a free-wheeling interview on a range of subjects: What are the challenges a modern-day school management faces? How does the school meet the problem of too many student aspirants chasing too few seats? How does it address issues of discipline, maintaining quality standards in education? With new mores and values in a fast moving, career driven environment? When value systems both among children and parents are at logger heads with school rules? With shifting ambition horizons, parental pressures, fears of sexual abuse, new-age scars of parental separation? With differently-designed academic systems, marks-oriented curricula, leisure, life goals? These and many more…. By Vinita Deshmukh

Corporate Citizen: Principals of prestigious schools -- you are one of them -- are called ‘seasonal VIPs’ particularly during the admission season. What are the challenges/demands you face in terms of political pressures /parents/ex-students and so on?

Sujata Mallic Kumar: The admission season is definitely a challenge as so many people approach us and it is not possible to satisfy everyone. When we get these requests, we are aware that we need to support them but it is difficult to accommodate all of them. We have a certain process of admission we have been following that helps us. Being a minority school, we definitely give priority to Christian candidates but the school is open to all communities. There are other criteria too, like giving preference to children who reside near the school. However, times have changed and so has the face of the city and we admit children who stay far away, too. We also have children of our old boys and girls as well as siblings. But all said and done, it is mostly, the striking contrast between the number of applications and the number of seats that makes the admission season a difficult time for us.

St Mary’s School is renowned for its high educational standards and discipline. Could you elaborate on the history and tradition of the school that has made it so reputed? 32 / Corporate Citizen / January 16-31, 2015

After the school was started in 1866, the Sisters of the Community of St. Mary the Virgin, laid a very strong foundation in terms of code of conduct and discipline. This was continued by the Late Mrs Elizabeth Matthew who took over from the nuns. The members of the governing board have played an integral role in maintaining the standard and traditions of the school. Though times have changed, we still firmly adhere to this age-old code of discipline. Perhaps it is this value system, discipline and reverence for knowledge that has gained a stronghold through the years and made St Mary’s the school it is now. The school believes in a good balance of academics and extracurricular activities. Since its inception, the school has encouraged dramatics, elocution and sports. Coming to the present, the school has produced national toppers in the ICSE Board examinations for the last three years and national players in both basketball and football.

Earlier, looking after a girls’ school was easier as education merely meant another qualification for a matrimonial alliance. How is the atmosphere different now? Children these days are more focused on what careers they wish to pursue whereas earlier parents wanted to educate the girls and get them married.

Pics: Yusuf Khan

January 16-31, 2015 / Corporate Citizen / 33

Now it is the children who set their goals and follow them. They have a clear vision of what they want to do 10 years hence. It is an admirable turn for girls to be able to give meaning to their education and apply it in following their dreams.

You had been the Programme Coordinator in Mercedes Benz International School which pursued the IB curriculum while now as the Principal of St. Mary’s School you pursue the ICSE board. Which among them is better for the child? Both IB and ICSE are structured and delivered in different ways. My vision has always been to blend both the programmes. While it is impossible to choose one over the other, ideally, elements from the IB, incorporated into the ICSE would be most beneficial to the child.

Earlier, girls who came to your school were largely from well-educated but conservative families. Now with an ‘open’ society, how difficult/challenging is it to bring in discipline?

St. Mary’s started as a girls’ school and then of course we began the boys’ section in 1992. Our junior college is co-ed. If you see the children who are in junior college, you will find that there is a healthy interaction between the girls and boys; students respect each other. We need to make our children understand that there is a right and wrong to everything and that they need to be responsible for their actions. We have two kinds of children – those who come from conservative families where girls and boys don’t mix easily and those from more progressive families. So there is a cultural mix and there is a need to approach the issue with care and understanding. We have a very strong student counselling unit. We also take precautions by restricting gadgets in the campus and ensuring a guided use of technology.

With nuclear families and rising case of divorces, do children suffer from psychological problems? Is there a need for counselling?

Earlier, the position of the Principal was like a guru but now the Principal is a mentor to teachers and children and needs to be an integral part of the community

I think a counselling department is of essence in all schools. With changing family structures, and more and more parents holding full time jobs, children are unable to get the kind of attention that they require. Neglect bears consequences such as indiscipline and rebellion. The rising issue of divorce also reflects in the child’s mental well-being and consequently, his or her performance in school. This is where the school counselling unit steps in, trying to work with families and hand holding the child through difficult times.

Earlier, parents believed in the discipline laid down by schools, the Principals and teachers. How different are parents today?

What do you think of school security that has become a major issue? Your school is almost like a fortress.

Do you think the position of a Principal has been diluted?

St Mary’s might seem like a fortress in the sense that no one is allowed entry into the school unless they have a good reason for being there. We have to be very careful and take all necessary precautions. However, in the light of the recent massacre at the Army School in Peshawar, one thing is clear. Security goes beyond building higher walls. It has a lot to do with people maintaining their moral compass and showing kindness to fellow human beings. We need to teach our children to love and respect all God’s creatures - no matter what one’s caste, colour or creed. Every religion teaches us this.

What about the problems of sexual abuse which seem to be rampant in today’s society?

Right from the primary section, we do make children aware of the good touch and bad touch. Since it is also a question of not making them awkward by having any formal session, we have created an environment that encourages children to talk to teachers and counsellors, without any hesitation. While the term `sex education’ is not pleasing to parents, we do not label it as such. We explain clearly instead, the right and wrong involved. Many of our parents are doctors and they visit the school to give talks in this sensitive subject. On their part, children need to listen to their conscience and lean on the values that they are growing up with. 34 / Corporate Citizen / January 16-31, 2015

Earlier, parents would listen to the Principal and teachers; now they question them. We need to work together. Perhaps it would help to remember that we are all ultimately on the same side, working for the benefit of our children. It is only when parents and teachers are partners that the children’s upbringing becomes smoother.

Earlier the position of the Principal was like a guru but now the Principal is a mentor to teachers and children and needs to be an integral part of the community. Also, the Principal has more hats to wear. Besides academics, a Principal needs to look into administration, safety and compliance to various statutory regulations.

The foundation of a child’s development is laid at the elementary school level. How do you see parental involvement in shaping their children?

It is a proven fact that parental involvement in a child’s education, right from a very early age has a significant impact, on educational achievement. It enhances reading, writing and number skills in the early years that could help set a positive trend in the later years. The result of this attention is reflected also, in the child’s confidence. Therefore it is imperative that parents spend time with their little ones. In this regard, I feel that the foundation of a child’s development is laid, not just at elementary school but also at home. In the current day scenario, work commitments seem to be a common barrier to greater involvement with children. Parents want to live their dreams through their children and put pressure on them to perform, sometimes beyond their capabilities. However, children require quality time with their parents, just as much as they require it with teachers at school, and this should not be denied to them.

St Mary’s School: Terrific Timeline 1866

The School is founded. Archbishop Leigh-Lye issues a circular to the residents of Poona stating that “a day school for girls is desired to fulfill the same purpose as the Bishop School for boys…..“An appeal for Rs. 500/- is made, and a headmistress, Mrs. Woods, is engaged.

1872

The name of the School is officially changed from the Bishop’s School for Girls, to St. Mary’s School.

1878

The School is handed over to the Sisters of the Community of St. Mary the Virgin. They had come from England the year before.

1895

The foundation stone of St. Lucy’s dorm is laid.

1924

A special holiday is given to mark the fact that the number had reached 250 !

1926

The Preparatory School is built. Sister Doreen was the Superior.

1950

Dr President Rajendra Prasad visits the School.

President Dr Rajendra Prasad’s visit to school on 7th November 1950

‘Parents are very proud about the fact that their children are exposed to mobiles, video games and other gadgets. Technology is good if used prudently

1955-58 Beginning of the large expansion in buildings, that were required to keep pace with the rapid growth of the School. Sister May was the driving force. 1966

Sister Mary Frideswide presides over the Centenary Celebrations. “She Stoops to Conquer” is staged.

1977

The end of an era. Sister Mary Frideswide was the Last Sister Superior and Sister Christine Yeshoda is the Last Sister Principal. Mrs. Elizabeth Matthew takes over as Principal.

1991

125th Anniversary Celebrations. Sister Mary Frideswide is the Guest of Honour.

1992

A new section for boys is started in St. Lucy’s Building.

1998

The New Boys’ School Building becomes functional.

2006-09 Mrs. Elizabeth Matthew retires as Principal and is appointed Executive Director of the School. Miss Jessica Simoes takes her place as Principal on 15th March 2006. 2006

Mrs Elizabeth Matthew was appointed Executive Director till her passing away in April 2009. The post of Executive Director has been abolished since then.

2010

Mrs. Sujata Mallic Kumar is appointed as the new principal after Ms. Jessica Simoes resigns.

What are your suggestions for children for utilising their spare time? Do you think parents push them too much?

Parents, in their enthusiasm to give the best to their children, send them for various classes and aspire too much for their child. While extra knowledge and skill is never a bad thing, the child’s interests and talents need to be kept in mind too, while choosing these classes, and marking progress in them. Children must also be encouraged to spend time with others their own age. The social skills learnt at play go a long way in building character and must not be thought of as a waste of time.

What do you think children should do during holidays?

This is where discipline comes in. If they are travelling, they should keep a diary and note down what they do every day. This will help in their language skills. They should click photographs to develop their photography skills. At home they should utilise their time effectively by playing as well as brushing up on their studies. Holidays are meant for enjoyment so studies should be done in a very stress free manner.

You are an authority in child development. What do you think of allowing children to play with mobiles and other gadgets?

St. Mary’s School 1883

Parents are very proud about the fact that their children are exposed to mobiles, video games and other gadgets. Technology is good if used prudently. In our school, we insist on neat handwriting, language and communication skills and we also expose them to the Internet. I feel technology should be used to enhance the child’s knowledge; it should not be the master. However, once outside the school gates, parents give these devices freely to their children. I think parental supervision is important. For example, parents often give their mobile to the child so that he or she is engaged but what about human relationships? They need to ensure that their child interacts socially and their indulgence in gadgets is controlled and under supervision. January 16-31, 2015 / Corporate Citizen / 35

What do you think children should do during holidays?

The same discipline that binds a child during school time, should be maintained during the holidays as well. This might translate to keeping a diary, clicking photographs or observing new cultures during travel. This would be a fun way to enhance language and writing skills, photography skills and increasing awareness about the way others live. At home, children should utilise their time effectively by playing as well as brushing up on their studies. Holidays are meant for enjoyment so studies should be done in a very stress free manner. An introduction to the world of craft, cooking and home projects are a good way to keep children busy and entertained.

What is your advice to parents?

Children are always watching their parents, learning from them, imitating them. So first and foremost, they should teach by example. No matter what the age group, parents need to strike a balance in whatever they say and do. They should learn to say `no’ to the child to enforce discipline. They need to be their guide, give them their time and have a close bonding with them. And while they are friendly towards their children, they also need to set boundaries in order to instill discipline in them so that they can grow into healthy adults. Parents should most of all, provide a secure, happy home, one in which child will flourish. Sujata Mallic Kumar, Principal, St Mary’s School with Dr (Col) A. Balasubramanian, noted educationist and Editor-In-Chief of Corporate Citizen during his recent visit to the school

Why did you get into the teaching profession? Was it your childhood dream?

When you find out from youngsters that the teaching profession is at the bottom of the ladder, you know the level of respect they have for this profession

My father was an IFS officer and it was my childhood dream to become one too. However, due to the tradition in Indian families of giving priority to marriage after college, that dream remained unfulfilled. I entered the teaching profession soon after my daughter was born and I am glad I did, as teaching is such a wonderful profession, filled with creativity and interaction with children. The young ones come with fantastic ideas and have a different perspective on just everything. They are not afraid of expressing their ideas. They have so much talent – indeed they are a great gift of God.

Should there be different school boards in the country?

Do you see your teachers responsive in implementing your directives?

It would be good to have one board for the entire country but we need to make sure that we maintain the certain minimum standard. Before that, we need to come together on the same platform. I think it needs a lot of brainstorming between various stakeholders before the objective is achieved.

The future course of a child is related to the marks he or she gets at the board examination. Please comment.

At present, unfortunately, the course of a child is related to the marks he or she gets at the board examinations. Hopefully, this will change in the future as we make progress towards bringing about uniformity in evaluation across the different boards.

What do you think of the quality of teachers? How do you retain the good ones?

Teaching is indeed a noble profession. However, when you find out from youngsters that the teaching profession is at the bottom of the ladder, you know the level of respect they have for this profession. We need to change this mind set, and to rectify practical aspects like a teacher’s salary. We need to pay teachers well, provide them better training programmes in order that they can face the challenges of the new generation, and respect them for their contribution to society. A good teacher is remembered life-long. In the words of Jacques Barzun, a philosopher of education, ‘‘in teaching, you cannot see the fruits of a day’s work. It is invisible and remains so maybe for 20 years.’’ It is true that teachers who aspire are a dwindling number and it is really difficult to get good teachers. Also, there is a lot of poaching due to the sprouting of so many schools. Teachers who are loyal to the institution cannot be bought! 36 / Corporate Citizen / January 16-31, 2015

‘‘Continuity gives us roots; change gives us branches; letting us stretch and grow and reach new heights.’’ - Pauline R. Kezer (legislator and teacher). For any school, the teaching staff is very important - it is the backbone of a school. And it is with the invaluable help of this dedicated team of teachers that we have been able to make improvements and changes that are steering the school forward, giving our children the edge they need for a successful life.

What is the importance of money in life?

There was a time I thought money was very important. However, when you enter a certain stage of life, you find that human values and ideals are more important and cannot be fulfilled materially. I feel you do not have to become old to realise this. Children need to realise this at a young age so that they make the right choices.

Parents still want their children to be engineers, doctors. Please comment.

Traditionally, most parents in India want their child to be an engineer or a doctor. Perhaps it is the respect and remuneration that the job commands. Today, parents are becoming more tolerant to other careers although there may always remain some who will insist on steering their children towards careers that they have handpicked for them. Parents would do well to encourage their child to pursue their interests, talents and aspirations, and follow a line of work that they will enjoy and therefore, shine in. Confucius had quite rightly said, ‘‘choose a job you love, and you will never have to work a day in your life.’’ vinita.deshmukh@corporatecitizen.in

introspection

Its high-time we respect our security forces Raising uninformed doubt or one driven by half knowledge is a type of cynicism India can ill afford By Chitra Subramaniam

omething is seriously wrong here. The same people in India who defended Italian marines for killing Indian fisherman off the coast of Kerala in 2012 (our fishermen may have strayed too far) are now questioning Indian coast guard action on December 31st 2014 which resulted in a Pakistani boat blowing up on the high seas killing four of its occupants. Someone said video tapes – did we ask the Italians to do the same? Indeed two wrongs don’t make one right but the assumption that India always gets it security issues wrong is a reflection of our faith in us. Why was the navy not informed? Maybe it was not necessary. What was the chain of command? Who should know it better than people who form the chain. Terrorists, bootleggers, bandits – whatever their business, the boat from Pakistan they had no business being where it was, and not responding to identify and submit calls. Worst case scenario – fishermen were killed in cold blood. Another scenario – perhaps many lives were saved. Not knowing is not an option for security officers and the armed forces. It gets worse in

the high seas or glaciers where temperatures are minus 50 degrees C. There is a price to be paid for not knowing, giving the benefit of doubt, plausible deniability and that price can be very heavy. How easy it is to sit in the warmth of our homes and television studios waxing eloquent about what could be, should be, was not and is, possible and plausible. Take two: In less than three weeks, the world’ most powerful politician President Barack Obama of the United States (US) will be in Delhi as the country’s chief guest for the 26th January Republic Day celebrations. January has a host of events in Gujarat that will bring business and political leaders to for investments and high level talks. Press reports and private briefings suggest that the Obama visit is being preceded by the most elaborate security cover to date to ensure all goes well. Famously said and often repeated, terrorists have to succeed only once, while governments have to succeed every time – every time, always, everywhere. People in New York probably feel the presence and pressure of security measures, but that must reassure them that a 9/11 will not happen again. Do Mumbaikars live with the

same degree of comfort, post 26/11? India is nestled in a dangerous neighbourhood. Our borders are porous; our seas are open to attacks but our conversations and media are accommodative of all voices. Most nations around us as well as India have lost leaders to terrorists whose resolve seems unabated. The recent Peshawar school attack last December which killed 145 people including 132 children is a cold reminder of the type of cynicism that fires the Taliban in Pakistan. Further west is a country in full disarray as US troops leave Afghanistan. India is the only democracy in its region and with democratic rights the first of which is freedom of speech and expression, come responsibilities. There is a price to pay for freedom and that price is to respect government action, a healthy respect and robust questioning – not wild accusations without evidence. Raising uninformed doubt or one driven by half knowledge is a type of cynicism India can ill afford. (Chitra Subramaniam is an internationally acclaimed journalist and the Editor-in-Chief of www.thenewsminute.com, from where this article has been taken with permission)

January 16-31, 2015 / Corporate Citizen / 37

book review

The nri perspective

In the book, `The Perfect Storm’ the author draws parallels between running a company, being a manager to the art of flying a kite

f you’re an Indian who has lived all his life in India and has spent all his working life here too, there are times as you read The Perfect Storm, you might wonder “So, what’s new?” and then there are other times you might end up smiling as you recognise a character in the book as the colleague at the work station next to yours, or that insufferable manager that you encountered in your last job. Parag Saigaonkar’s The Perfect Storm is his Discovery of India or rather his discovery of the Corporate India. A Punekar, from a traditional Maharashtrian extended family, who left India as a four-year old with his parents who migrated to Canada in 1970, he returned to India in 2005 to set up base. Personally, India is not that much of a shock to him because he keeps returning to India during the holidays to stay with his cousins and other relatives. It is the professional part that gives him a real shock, as he goes about setting up office in Mumbai. Like any ‘desi’ who returns to India, the chaos and the general ‘chalta hai’ attitude is what gets to him. Is this what he came back to? He is in Mumbai in 2005 when the city is hit by the worst floods the city has seen in a century. He is left marvelling at the resilience of the city and its people who go through those nightmarish days with a smile and an attitude that seems to imply, “we’ll get over it, what’s the big deal?” “It was a cruel but ironic backdrop to what was going on in my mind about this perfect storm brewing in India. While there was great suffering in the city, the resilient spirit of the Mumbaikars was incredible to witness. It was through those tense couple of days that I realised there was something special about this place...more than

I had ever imagined before. One of my first conclusions came about that day – the ‘blue collar’ roots and the resilience in the face of adversity of any kind is what keeps India going in the face of ay storm.” Saigonkar describes his first hurdle – that of hiring people and meeting not just the employee but his parents. A completely new experience for him, but don’t we so completely identify with that? The dad landing up with the son to give his stamp of approval or disapproval at the place where junior is going to be cutting his teeth! But, for someone who lands up from outside it is quite a culture shock! There is a delightful bit about mentors where he defines each one of those he encountered in his life

38 / Corporate Citizen / January 16-31, 2015

The Perfect Storm Author: Parag Saigonkar Publishers: Westland Ltd Pages: 235 Price: Rs 295 Book Review: Mohan Sinha – the slave driver, the intellectual, the army general and the diplomat and the role they played in his life. In the book, Saigonkar draws parallels between running a company, being a manager and the art

of flying a kite. Right from the time you get the ‘manjha’ (thread) ready (getting your tools ready) to being on the roof to check out the competition (know your opponents and clients), to understanding how you need to give the right push that will send the kite up (sharpen your skills); once the kite is in the sky how do you ensure it stays there (formulate our strategy to beat the competition) to having the right people who can guide you on which kite you need to tackle first (create the right team) and finally making sure your kite is the only one remaining up there (develop the killer spirit). Saigonkar captures the essence of present day corporate India perfectly from the eyes of a non-resident Indian. He describes the aspirations of the future leaders, one of whom he quotes as saying, “Leadership is still about getting the corner office, nothing has changed really since the time of our dads.” He dwells on the desire of the next generation to demonstrate their leadership skills. How often, have we seen this in our workplace when that 20-something kid dares to tell his manager that he has a better way than what his manager has suggested to get the job done. It is the confidence of the youth in present day India to make a change, and more so believing that they can make that change, that Saigonkar describes vividly in The perfect Storm. Like the kite flying experiment, Saigonkar draws parallels to every aspect of his life, both professional and personal and how they have changed his outlook to India, how he has employed those experiences at his workplace and the myriad ways in which he discovers an India that works in the midst of the seeming chaos. But as they say, sometimes even in disorder there is order! sinha.mohan@gmail.com

environment

Fix Corporate Liability When the massive oil spill happened in the Gulf of Mexico a couple of years ago, President Barack Obama made sure that British Petroleum had to pay full damages (about $30 billion) for criminal negligence and liability. Now, 30 years after the world’s biggest industrial tragedy, India’s top environmental activist says we must urgently establish the issue of criminal liability for big corporates wanting to operate in India and it must be based on full costs. After the shame of Bhopal, asserts Sunita Narain, nothing less is acceptable. By Pradeep Mathur

ith Prime Minister Narendra Modi is attracting world’s top MNCs to come over and be part of his Make in India campaign to transform India into a global manufacturing hub, most people go ecstatic about its prospects for our growing economy. But some think differently. One such is Sunita Narain, who’s become a rock star in India’s battle for justice for the victims of the Bhopal gas tragedy which claimed thousands of lives on the fateful night of December 2, 1984. “If the government of India, even 30 years after the world’s biggest industrial disaster, is still struggling to establish the liability of Union Carbide India Ltd (UCIL) and its buyer, Dow Chemicals,” then, says she, “it’s time to ponder seriously about the lessons India must learn from the tragedy.” Sunita, who is the Director General of the Centre for Science and Environment (CSE), a not-for-profit public research and advocacy NGO, feels rather strongly that unless India puts “a strict corporate liability regime” in place, it just cannot prevent such disasters in future. Pradeep Mathur talked to her after she released the CSE’s book “Bhopal Gas Tragedy: After 30 Years” Excerpts of the interview:

Thirty years ago when you and CSE’s founder Anil Aggarwal visited Bhopal soon after the gas tragedy shocked the world, you were the few voices questioning the global power of multi-national corporations and their corporate liability. That was December 1984. Now, it’s December 2014, what has happened in the last 30 years? Have we learnt any lessons?

Yes, environmental legislation has changed. But compliance is a big concern. Several laws came up post-Bhopal to enable the government to have better control on the environment, on hazardous waste, 39 / Corporate Citizen / January 16-31, 2015

January 16-31, 2015 / Corporate Citizen / 39

We need to fix corporate liability and what is broken. But we must avoid making new institutions; otherwise it would add to multiplicity and confusion. We need to strengthen our existing institutions. The institutions should monitor compliance of the corporates and enforce their directions. There is a need to improve the tools for compliance and enforcement. Penalties on corporates need to be increased and processes made transparent. Importantly, we also need to increase the participation of local people in governance. This could be done through transparent public hearings and more public data dissemination. There has to be a strong environmental liability regime for victims of environmental crimes. With newer technologies such as GM foods and nuclear energy, systems of corporate liability cannot remain inadequate as high-risk and unknown technologies pose new challenges. If we are to continue to use high-risk technologies then we must take

BHOPAL GAS TRAGEDY AFTER 30 YEARS

The response of the Indian judiciary and political establishment had been rather pathetic to this monumental tragedy at Bhopal. What is the broad picture of corporate liability legislation that you have in mind?

to first fix criminal liability clauses for such corporates before they start operations in India?

DownToEarth

and to ensure the safety of the worker. For example, the Environment (Protection) Act (EPA) of 1986 gave authority to the Centre to issue direct orders to close, prohibit or regulate any industry. In 1987, amendments were made in the Factories Act, which empowered states to appoint site appraisal committees to advise on the location of factories using hazardous processes. It also set up systems for the safety of workers and residents nearby and specifies emergency disaster control plans. By 1989, the country got the Hazardous Waste (Management and Handling) Rules. And in 1991, the Public Liability Insurance Act was enacted to provide immediate relief to persons affected by accidents while handling hazardous substances. Under the Act, an environment relief fund was also set up to compensate affected people. But, despite all these legislations, India is fast losing the battle of environmental protection and management of hazardous waste. Industrial accidents continue to happen frequently and many are unreported. On the other hand, contamination of land and water is a growing problem. Institutional management provisions of legislation remain only on paper. Clearances to mitigate environmental damage have been reduced to procedures without any outcome. The rejection rate is near-zero. Fixing corporate criminal liability is still a big dream.

Our stand is quite clear. Bhopal is all about our collective shame. Even 30 years after the tragedy, India’s systems of corporate liability remain grossly inadequate in a world where technology is high-risk and unknown. Hence corporate liability is a must. Our stand is clear and clearly enunciated in the book. BHOPAL GAS TRAGEDY

AFTER

30 YEARS

B H O PA L G A S TR AG E DY A FTE R 3 0 YE A R S |1 |

“We also believe in globalisation. But that does not mean the corporates can play havoc with the environment or with public health, and our fight is against that” on expensive safeguards, even if it makes technology uncompetitive. In the post-Bhopal age, all technologies must pay the real cost of their present and future dangers.

In your recently released book, ‘Bhopal Gas Tragedy: After 30 Years’ , you have also raised concerns about the Mini Bhopals / Slow Bhopals that are about to hit the country anytime. What needs to be done to check them in time?

In 2010, the Union Ministry of Environment and Forests (MoEF) launched a project for the remediation of sites contaminated by hazardous waste with much fanfare. A total of 10 toxic sites were identified. Consultants were hired to plan for remediation. The matter has stopped there. These sites, like Bhopal’s UCIL factory, hold thousands of tonnes of highly toxic waste. Our institutions need to timely address this issue before we see similar disasters. Some of these sites are Eloor-Edyar area, Kochi; Ranipet chromium-contaminated area, Tamil Nadu; Ratlam Industrial area, Ratlam, Madhya Pradesh.

With PM Modi going full steam for his ‘Make in India campaign’, inviting all big MNCs of the world to come to manufacture their products in India, what worries you the most? Would you approach PM Modi

40 / Corporate Citizen / January 16-31, 2015

When the question for framing rules for corporates comes, many legal luminaries and politicians get very uneasy as they feel that we should not demonize them but go for an inclusive approach. How do you respond to their concerns? What problems would not be solved if we fail to respond to the issues of corporate liability? If we fail to set up a system that can fix corporate liability, it would clearly make us more prone to environmental and human health disasters of varying degrees. The current system provides no deterrence. Powerful companies will not be concerned about the implications of their actions on tomorrow’s generations. This is most critical for unknown risks with newer technologies. We can learn how the 2009 oil leak case of British Petroleum was addressed by American President Barack Obama. His government held those responsible to pay for the damage and reversed the earlier decision to cap liability in such cases. It established criminal liability to people and the environment.

You have been a front-runner in fighting against big corporates all these years. Some say your approach is utopian because in today’s world, you can’t live without globalisation and global corporates. So, why don’t you also accept it and learn to live with it?

We also believe in globalisation. But that does not mean the corporates can play havoc with the environment or with public health, and our fight is against that. mathurpradeep1@gmail.com CC Tadka

How Amazon got its name Why is the most successful e-commerce site named after a river? Here’s an interesting tale: Jeff Bezos (founder, Amazon) wanted a name that began with ‘A’ so that it would appear early in online search. He began looking through the dictionary and settled on ‘Amazon’ because it was a river he considered the biggest in the world, as he hoped his company would be too!

January 16-31, 2015 / Corporate Citizen / 40

nostalgia

Being a Carbider, Then... Even as 30 years of the Bhopal Gas Tragedy perpetrated by Union Carbide pass us by with several tough lessons in their wake, here’s a take on the company by a former employee who started her career with Union Carbide. Renuka Lazarus, now educational administrator, looks back on those early days when Union Carbide was a promise—not a disaster—waiting to live to its potential. Kalyani Sardesai listens in Pic Credit: Ravindra Joshi

joined Union Carbide in the summer of 1974, at age 21—even as I was pursuing my MA in English literature. It was a hugely prestigious company—and to get into Carbide was a big deal indeed. Please note, this was pre-liberalRenuka Lazarus ization, pre-internet India, and the MNC culture was something very unique. I joined as a telex operator at a salary of Rs 350, a princely sum for my age and stage in life. Imagine—a teacher then would make about Rs. 200, and here I was, a young girl, earning so much more than that. In my free time, out of sheer curiosity, I learnt “The office itself was a revelation, plush, to work it. centrally air-conditioned and tastefully car“One day Asma fell ill—but work was peted. The cubicles were lovely, the stationery not affected as I stepped into her shoes and natty and elegant. They had Kwality, the best managed the board. For this, my probation restaurant in town catering at meal times, and was shortened, straightaway. They liked my like they said anyone who was a ‘Carbider’ had initiative and they let me know. it made. “A few months later I got engaged to be “In that culture, I got my first taste of married—and had to leave. My bosses wanted work life. The atmosphere was friendly and my fiancé to join them, so I wouldn’t have to democratic—most unlike the boss culture go. However, that was not possible. that prevailed those days. All my seniors were “Though I had not completed a full year courteous, friendly and thoughtful—somewith them, they found out my new postal adthing that came as a surprise to a young girl dress and sent me a bonus cheque at the end like me. What was especially surprising was of the financial year. that our boss himself stood in line for lunch at “It was in instances like these that the the cafeteria during meal times. company proved itself to be a thoughtful and “If you did something right they would be winsome employer. appreciative of it. For instance, the telephone “Imagine my shock when the tragedy board used to be managed by my friend Asma. unfurled that disastrous night between Dec 2

“It was the classic Greek Tragedy... look how the mighty have fallen.” and 3, 1984. “My father who lived in Bhopal had a narrow escape, but my sister-in-law continues to suffer in various ways because of the deadly gas. “As far as I was concerned, it was the classic Greek tragedy. Here was a company where I had spent the halcyon days of my life, and look at what it had done to my people and home-town. The plant was located in a low-lying, densely populated area, and the results of the leak were catastrophic. “In retrospect, I do believe that all the stringent checks and balances that are in place today for industrial safety are a product of that disastrous night. If only they had been more careful and respectful of procedures, how differently it may all have ended. Indeed, things may not have ended at all.” kalyanisardesai@gmail.com

January 16-31, 2015 / Corporate Citizen / 41

Debate

Men and Women

Are their brains wired differently? Women are from Venus and men are from Mars. This statement, often quoted in jest, may be more correct than you think. This was a topic that was vociferously discussed at a recent panel discussion at the 18th National HRD Conference in Mumbai. Studies have conclusively shown that men’s and women’s brains are wired differently and their responses to the same stimuli may be drastically different. Corporate Citizen takes a closer look By Neeraj Varty

Oxytocin vs Testosterone If you have a closer look at a man’s brain and a woman’s brain, it would look different. A woman’s brain releases higher quantities of oxytocin, which is a bonding chemical. This is the reason women tend to make friends and bond more quickly than men, who usually take their time with bonding. On the other hand, a man’s brain gives out more of testosterone, which is the competition and aggression chemical. This doesn’t mean that men can’t bond or

that women can’t compete. It just means that one comes more naturally to the other. Language vs Logic According to another study, the blood flow to a woman’s brain is about 20% more, and that both the left side and right side are connected to language. For men, only the left side of the brain is connected to language. The conclusion is not that women’s brains are more superior than men’s, just that women may sometimes be more active, and have a tendency to use

42 / Corporate Citizen / January 16-31, 2015

more words than men do. On an average, women tend to use 60% more words than men do daily. The neurons on a man’s brain are connected from Point A to Point B to Point C, in a systematic way. In a woman’s brain, the pathways are more zig zagged, and not linear. This means that women are more capable of multi-tasking than men. Men can of course, do the same tasks just as efficiently, but they tend to finish one task before attempting the next, whereas women can better juggle tasks simultaneously. Men, due to the nature of the

So what does the corporate world have to say about the topic? Lets find out

Aparna Sharma

Country Head-HR, Lafarge India Pvt. Ltd. Yes, men and women are wired differently and respond very differently in work situations. While women are more visibly committed and sensitive, men are not always sure how to deal with women subordinates, peers or bosses. Simply having diversity as a goal in the organization is not enough. From an HR point of view, women expect more empathy and understanding, however for men, it is not essential unless they face a particular situation professionally or personally.

Women are good at using small talk to bond. On the other hand, men prefer to get straight to the point. They bond over a common interest neuron connections in their brain, are more logic minded. Zoning out A man’s brain can go into rest mode, and it frequently does during the course of the day. A man can completely zone out and literally not think of anything, during this rest mode. When women ask men what they are thinking of, they sometimes reply ‘nothing’; they are not lying at all.

Roshini Bakshi

Vice-President and MD (Consumer Products and Retail Marketing), Walt Disney Company India The corporate world has been created and designed by men for men “and only men had lived there for a long time.” Women had been late entrants to this world. Hence, there is a need to reconstruct a new world in which gender is not a determinant in anything that is done in that world, where men and women will be happy. Small Talk When bonding with a woman, you can speak about the weather, the color of the dress she is wearing, and pretty much anything under the sun. Women are good at using small talk to bond. On the other hand, men prefer to get straight to the point. They bond over a common interest, and the process is usually never rushed.

neeraj.varty@corporatecitizen.com

Bindu Narayanan

Independent Soft Skills and Behavioral Trainer for Corporate and Student Professionals. “I do not find any particular difference between men and women from the training perspective. of course, a notable fact is that though the gender ratio is reasonably good for company induction and fresher training programs, the same weans out to a greater degree when it comes to lateral or middle management training with more male participation. This behavioral aspect needs further investigation as part of an entire career span in women.”

Ranjini Manian

Founder CEO, Global Adjustments Men and women most certainly have different brains. By understanding each other’s strengths and limitations, we can learn to be more understanding and more supportive of each other, and can virtually overcome any obstacle.

CC Tadka

Indian Railway earns in billions The total approximate earnings of Indian Railways during April 1, 2014 to October 31, 2014 was ` 86,595.04 crore (US$ 14.01 billion) which is an increase of 12.06 per cent compared to the same period last year

January 16-31, 2015 / Corporate Citizen / 43

corporate history

With over 35,000 restaurants in 118 countries, and 1.7 million employees, the trademark McDonald’s need no introduction

Love it, hate it,

By Kalyani Sardesai

rom a humble burger stand to the greatest global fast-food chain, the Big Mac and large fries have traversed continents and diverse palates to emerge a lasting symbol of all that is good and fine about globalization. So much so, columnist and author Thomas Friedman once remarked that no countries with McDonald’s have gone to war with each other! If that’s not success—King-size—what is? With over 35,000 restaurants in 118 countries, and 1.7 million employees, the trademark Golden Arches need no introduction. Why, The Economist even publishes a

ranking of a country’s currency based on the prices charged at the local McDonald’s, dubbed the Big Mac Index.

The trail in a nutshell

The McDonald’s restaurant concept was introduced in California by Richard and Maurice McDonald of Manchester, New Hampshire. It was expanded by their business partner Ray Kroc, a former one-time milkshake-mixer salesman, who ensured the McDonald’s franchises almost beat the speed of light: by the beginning of the seventies there were more than a 1,000 across the US. The first international franchise opened in 1967 in British Columbia, and was followed by another in

44 / Corporate Citizen / January 16-31, 2015

Costa Rica later that year. From there, the chain spread steadily: over a six-month period in 1971, Golden Arches popped up on three new continents, and now there was just no stopping them. Critics—especially those in European countries—complained loud and long that McDonald’s is unhealthy, a threat to local cuisines and nothing but a pretty face to American hegemony. A French farmer, Jose Bove, became something of a national hero in 1999 after he and a band of activists destroyed a McDonald’s under construction to protest globalization and “bad food.”

Each time there is a wave of antiAmericanism, the local McDonald’s is the first target of all that is ‘evil’ about the US and its policies

From hamburgers, cheeseburgers, French fries, shakes, soft drinks, and apple pie to the pioneering breakfast food egg Muffin, most items on the menu were a hit. The simple but likable menu, coupled with super-fast assembly line service, and relentless marketing ensured a whole new generation grew up on fast food. Eating out slowly became a culture in the US. During the 1980s, McDonald’s further diversified its menu. Chicken McNuggets were invented by Rene Arend in 1979. They were so good that every franchise wanted them. However, there wasn’t a system to supply enough chicken products. The supply problem was solved in 1983, when the McNuggets were made available nationwide. Slowly, ready to eat salads were also made available for the health conscious.

you can’t ignore it Glo-cally yours

Marketing the Big Mac

The advertising has been spiffy, clever and on the ball. The ‘Look for the Golden Arches’ campaign from 1960 raked in the moolah. Kroc was not one to grudge ad budgets; indeed, he believed the investment would only multiply. And he was right. Indeed, McDonald’s ads have been some of the most identifiable, and talked about affairs, over the years. In 1962, the McDonald’s advertising campaign “Look for the Golden Arches” gave sales a big boost. A year later, the company sold its billionth hamburger and introduced Ronald Mc Donald, a red-haired clown designed to appeal to children. The growth in U.S. automobile use that came with suburbanization contributed big time to McDonald’s success. The busy seventies decade was great for business too. Americans demanded fast-service and driveins. McDonald’s didn’t fail to deliver.

Every nation has variations in the menu depending upon its eating habits and cultural practices. From the mustard-topped burger of France, to veggie burgers and paneer wraps in India, to fried shrimp in South-East Asian countries and banana pies for Brazil, Mc Donald’s has it all.

A fat lot of trouble

Over the years, customers and health activists have complained about the unhealthy, fattening food and enormous portions. It reached a point to where the company could no longer ignore the voices, and gradually started introducing low-calorie options and switching to healthier oil for its fries. But each time there is a wave of anti-Americanism, the local McDonald’s is the first target of all that is ‘evil’ about the US and its policies. Perhaps it’s a price you pay when you’re Mc Donald’s. Despite the backlash, the company continues to go from strength to strength, and reported a sales of $27 billion dollars in Jan 2012. A happy meal anyone? kalyanisardesai@gmail.com

The big Mac in India

India, the brand is managed by two business houses  Connaught Plaza Restaurants Private Limited, led by.Vikram Bakshi, JV Partner and Managing Director, North & East India  Hardcastle Restaurants Private Limited, led by Smita Jatia, Managing Director, South & West India  On Oct 13th, 1996 the first outlet of MacDonald’s opened in New Delhi—the first ever of its kind which deleted beef and pork based products from it’s menu. As of today, there are over 300 outlets in India.Over 70% of the menu has been locally developed with segregation of vegetarian and non-vegetarian products right from the food processing plants to the point of serving the customers. Even the sauces and mayonnaise are egg-less.  The Indian menu stars specials like McAloo Tikki, Filet-O-Fish, Spicy Range, Chicken McGrill, McVeggie, Veg Pizza McPuffs, apart from sundaes, soft serve and refreshing beverages such as Ice Tea & Cold Coffee. The Happy Price Meal starting at ` 25 only got things off to a good start.  Soon, the Big Mac took off in different regions of the country, with drive ins and breakfast deals featuring in a big way.  Several awards in its kitty including the Food Service Retailer of the year by Star Retailer Awards in 2011 and 2012, as well as the Best Family Restaurant for 3 consecutive years in 2009, 2010 and 2011 by Reader’s Digest, attest to its popularity. It even won the Most Preferred Fast Food Outlet, 2006 & 2007 - Awaaz Consumer Award hosted by CNBC.  Despite the slowdown of the Indian economy over the last 6 years, MacDonald’s has grown at a steady pace of over 25 per cent, with a turnover of well over ` 1300 crores and still counting.

CC Tadka

Kumbh Mela visible from space The 2011 Kumbh Mela was the largest gathering of people with over 75 million pilgrims. The gathering was so huge that the crowd was visible from space.

January 16-31, 2015 / Corporate Citizen / 45

Investment

How To Invest For Your Cherub In today’s time, where inflation has touched the roof, education costs have become an equally expensive affair. As a parent, start investing early so that you are able to achieve your goal. Corporate Citizen chalks out a detailed plan on how you can wisely invest for your child’s education, right from today By Mahalakshmi Hariharan

aving a child is a blessing for any parent. It is truly overwhelming for any parent when a child is born. However, with this happiness, additional responsibilities also set in. One of the major changes that occurs is the financial responsibility which also determines future savings behaviour. Saving for your child’s future is one of the top priority goals and as this goal is time bound, it cannot be postponed. Having said that, as a young parent you will also be in a better position to save for your child’s education, as you have enough time. Thus, it is crucial that

you budget education expenses for your child into your monthly cash flow, along with other expenses. “Planning for child’s education is one of the most important goals for any parent and every parent should plan for it well ahead of the time. It should start as soon as the child is born because investing early gives a good time horizon to spread across different asset classes. When you start early, you can optimize risk much better and take advantage of those aggressive investment options like equity which have the potential to generate best returns. Even if you start small, you can still manage to generate a bigger corpus because of the power of compounding,” said CA Rishabh Parakh, Director at Money Plant Consulting, a Financial Planning firm.

Right time to start

Parents should start investing early, in a disciplined manner, say when

46 / Corporate Citizen / January 16-31, 2015

the child is 3 or 4 years old so that you get at least 15 to 20 years of time. It is important to have a mix of both debt and equity in your portfolio. Parakh adds that in case you have missed the bus while planning for these investments, and if your child is in the age bracket of 8-13, the time horizon you have is hardly 5 to 10 years. In that case, you should follow a more balanced approach by investing 40-50 per cent in equities and remaining in debt. Debt funds would typically give you a return of 8-9 per cent and are low risk products as compared to equity which will give you returns in the range of 9-15 per cent, but are riskier. Let us look at some of the instruments you can consider while saving for your child’s future: Usually parents are unsure as to which instruments they should opt for investing and which are the high yielding ones. Your portfolio should

have an entire gamut of instruments such as insurance, provident fund, fixed deposits, SIPs and stocks.

Insurance

The future is always uncertain. Hence, it is important for you as parents to have adequate life insurance, health cover and an accident cover, in case of any emergency. It does not make sense to have too many policies if you do not have enough insurance cover. Adds Parakh, “One should always refrain from investing in typical life insurance plans which are mostly driven by agent commissions and do not add value, but in India many people get lured by agents or banks to buy complex insurance plans which only benefit the agents and not them.” As a parent, it is important that you are adequately insured by a good amount, say a crore, so that the child stays protected until he/ she turns 23, or becomes financial-

Desired wealth & amount to be invested per month Target for years

5 lakhs

10 lakhs

20 lakhs

50 lakhs

1 crore

5645

11290

22580

56450

112899

1817

3633

7267

18167

36335

334

668

1336

3339

6679

144

289

722

1444

Courtesy: Money Plant Consulting

Investment Option

Returns

8.5% to 9.5% As per income slab

6%-6.5%**

Public Provident Fund

8.70%

Tax Free

8.70%

Child Plans

5%-7%

Tax Free

5%-7%

Mutual Funds

12%-18%*

Equity Funds are tax free. The rest are taxable under capital gain

12%-18%

Real Estate

10%-12%*

Taxable as capital gain

8%-10%

the time they are 18.

Mutual funds

ly independent.

Term, Recurring Deposits

Fixed deposits and recurring deposits are among the most popular methods of investing offered by banks, post offices and private financial companies. The maturity period ranges from as low as six months to a maximum of ten years. While the pre-tax returns are slightly above inflation rate, post-tax returns may be lower. You will also be penalised if you withdraw your money before the maturity date. Nitin Vyakaranam, Founder & CEO, ArthaYantra, an online financial planning firm says that a lot of investors treat it as an avenue

to park their excess money as they provide better returns than the savings account. These instruments offer returns of about 8.5-9.5 per cent, annually.

Public Provident Fund

PPFs are long term investments, offered by banks that are tax free in nature. The maturity period is fixed at 15 years. The minimum one could contribute is ` 500 per annum and the maximum limit is ` 1.5 lakh. Here, investors can avail returns above inflation rate and the investments are secure. Vyakaranam notes that if parents invest in PPFs for their children right from the time they are born, there will be a corpus built by

Post Tax Returns

Fixed Deposits / RD

*Returns based on historical performances **Tax slab taken as 30%.

Parakh advises that one should invest at least ` 1444/- per month, assuming that it will generate a return of 15% in mutual funds/SIPs, for the next 30 years

Taxation

Mutual funds allow investors to earn higher returns and take the appropriate risk suitable to them, unlike other fixed income instruments. The choice of multiple sectors helps in proper diversification to minimize market risk. Returns on a long term investment can range from 12% to 18% per annum (based on the risk profile), although not guaranteed. Market factors can also depreciate the value of the investments.

An expensive affair

Let’s take an example. Assume that the cost of an MBA/engineering course today is ` 10 lakhs (college fees, food, mobile bills, hostel fees, pocket money, transportation costs). With inflation hovering at 8 per cent, one would need a corpus of ` 80 lakh for the same, after 30 years. Education fees are soaring but with advance planning one needs to create this corpus without much difficulty. Parakh advises that one should invest at least ` 1444/- per month, assuming that it will generate a return of 15% in mutual funds/ SIPs, for the next 30 years, which will give a total corpus of ` 1

Courtesy: http://www.arthayantra.com

crore. Take a look at the chart below to understand how ` 1444 per month invested in a product such as mutual fund equity SIP can generate ` 1 crore, assuming a return of @15%. Vyakaranam says that although all investment avenues provide future returns, the selection depends largely on the individual requirement of future amount, risk appetite and the amount available for investment. “One should be careful while selecting the right investment option as some of them may not be liquid in nature and hence if any change is to be made in the future, it may get hampered.” Hence, it is always better to start early as it will give you a good time horizon to spread across different asset classes. Sooner the better... Mahalakshmi.H@corporatecitizen.in CC Tadka

can you believe this? China goes through 80 billion pairs of disposable chopsticks a year. The chopsticks are 1cm-by-0.5 centimeters (cms) and 20 cms long and can cover Tiananmen Square over 360 times. The trees that are cut for it are around 20 years old.

January 16-31, 2015 / Corporate Citizen / 47

aam aadmi

Guarded Kargil Now, Krupp He’s served in the army during the Kargil war and now he guards the premises of the ThyssenKrupp plant at Pimpri, Pune. Few notice him— just as they don’t, the presence of several security personnel who provide this vital, but often under-rated service. Presenting 48-year-old Mahadev Marooti Jadhav—and his take on life and duty. Oh, and a few dreams too By Kalyani Sardesai

am not very educated. Std VI is all I could manage coming from a small village in Sangli. But I’ve always been fit, alert and athletic—perfect qualities for a stint in the army, followed by a job as a security guard in a big corporate set up like ThyssenKrupp. My work is not as easy as some would think—and yet, I would recommend it to several youths who are willing to commit to routine and discipline. There is dignity in this job, and it’s a good feeling to be able to protect something. It’s been over 11 years since I started work in this line, and my experience has taught me that a cool head and a pleasant voice gets a lot of things done. Like most security guards I am asked every now and then by some big saheblog : “Don’t you know who I am? How can you check me?” I humbly respond that I am only doing my duty. I don’t argue—it’s a waste of time, whether we are checking visitors’ belongings or requesting employees to maintain orderliness in the parking lot. Being a unit dedicated to heavy engineering, and plant making capabilities, there’s not much people can carry away easily from the factory premises. Nevertheless, we guards have to make a note of the laptops, mobiles and pen drives

that people carry. Every vendor whose tempo/ truck goes in and out is checked, without exception. In these difficult times, everyone has to be careful. Lately everyone has had to upgrade their computer skills---security personnel like me included. I don’t mind. Learning new things is fun. My duty hours are between 7 am and 3:30 pm; we report a half-hour early to our supervisor. Whatever the season- summer, monsoon or winter—we have to be neatly turned out, hair cut, nails trimmed, shoes polished. We have two sets of uniforms and they have to be neatly washed and freshly ironed—sans excuse. Summers are a particularly tough time, but then we have lovely green spaces inside the factory. It’s a joy to simply look at the garden, even though one does not have the time to sit there! Yes, my work entails long hours of standing apart from exposure to the weather. But I am used to it. When your senior tells you that you have done a good job, it’s nice. Like anyone else, I often think of how life would have been different for me if I had studied. Perhaps I would have been a police officer! But then, I have no deep regrets really. My job—with a salary of ` 12,000 per month along with my army pension—has paid for the

48 / Corporate Citizen / January 16-31, 2015

Pic: bhanudas hiwrale

For all three of my kids, education is a priority. I am not particularly worried about saving for their weddings. If they study well, everything else will work out. They have all studied in English medium schools—from Std VIII onwards. It is costly, but knowing English, is the need of the hour. It is the language of newspapers, books and the Internet education of my three children—two boys and a girl. My eldest son who is 19 is studying for a BCS degree, while my daughter is pursuing commerce. My youngest boy is in Std. IX. All three are bright. For all three of my kids, education is a priority. I am not particularly worried about saving for their wedding. If they study well, everything else will work out. They have all studied in English medium schools—from Std VIII onwards. It is costly, but knowing English is the need of the hour. It is the language of newspapers, books and the Internet. As of now, no one has shown an inclination for either the Army or security services, but I am sure they can make up their minds themselves. I will support them whatever they choose. In the evenings, I sit with them while they open their text-books. I cannot help them with their studies, but I have made them understand that education is the one way to move ahead. I have done this from the time they were in KG. I believe the discipline has helped. My job may not have the kind of opportunities for growth like others do in the corporate world. But it has its moments. Often, a guard who does well is made a supervisor. My team and I are a family. Coming from the army, I respect the value of team work. With team-work you can do anything: from reporting to duty in bad weather, or handling heavy crowds when there is some occasion in the factory. My days in the army taught me to deal with people from different backgrounds. It also taught me that you can cope in any extreme weather—from the heat of Jaisalmer, the constant rains of Arunachal or the cold of Kargil. I was an artillery man, and our regiment was always on the move. We learnt to make do in any kind of circumstance: indeed, where there is fellow-feeling you can laugh and smile your way through everything. Unfortunately, that bhaichara (brotherhood) can exist only in the

army. I have not seen it in the civil world. I don’t expect to either. But I tell my children about it, and I want them to imbibe those values: that of accepting different people. But then, we were married to a higher cause. The country. I made it to the rank of a Naik, but unfortunately did not get further promotion. So I thought of coming to Pune and making a living in the security line. I may not be a police officer taking important decisions, but the work I am doing is decent. People trust you, and it feels good. You have to come before everyone else, stay back after everyone’s left. At all times you have to be vigilant. Actually, that’s not tough. It’s second nature to most security guards after a point. Truth be told, we do feel a bit left out, even as everyone else participates in a celebratory or awards function, but then it is our responsibility to ensure things go off smoothly. Someone needs to do this---so why not me? ThyssenKrupp Industries India Pvt. Ltd. (TKII) is a trusted name in the fields of Sugar Plants & Machinery, Open Cast Mining & Bulk Material Handling Systems, Cement Plants & Machinery and Industrial Boilers & Power plants. Today with strong foundations and access to world-class technology TKII’s plant-making capabilities are known to everyone in the industry. The factory and office are spread over a whopping 20 acres in the industrial town of Pimpri-Chinchwad. kalyanisardesai@gmail.com CC Tadka

hats off to walmart! Each week, Walmart serves more than 200 million customers at more than 10,400 stores in 27 countries.

January 16-31, 2015 / Corporate Citizen / 49

Health

Medical Reasons For Putting On Weight

According to a study by National Health Services (NHS) UK, most people put on weight because they eat and drink more calories than they burn through everyday movement and body functions. But in some cases, your weight gain may be due to an underlying health condition. Here are nine medical reasons that can cause weight gain

 Underactive thyroid

An underactive thyroid (hypothyroidism) means that your thyroid gland is not producing enough thyroid hormones, which play a central role in regulating your metabolism. Although an underactive thyroid can occur at any age and in either sex, it is most common in older women. “Without enough thyroid hormone, the body’s metabolism slows down, which can lead to weight gain,” says dietitian Catherine Collins. The condition is usually treated with daily hormone-replacement tablets, called levothyroxine.

 Diabetes treatment

Weight gain is a common side effect for people who take insulin to manage their diabetes. Insulin helps to control your blood sugar level. It’s not uncommon for people with longstanding diabetes to eat a diet that “matches” their insulin dose, which can mean they’re eating more than they need to in order to prevent low blood sugar – also known as hypoglycaemia or “hypo” – from developing. “Excessive snacking to prevent a hypo contributes to an excessive calorie intake and overall weight gain,” says Collins, who recommends becoming an “expert patient” by attending a diabetes education course such as DESMOND for people with type 2 diabetes or DAFNE for type 1 diabetes, to help make your diabetes fit your lifestyle – not the other way round.

50 / Corporate Citizen / January 16-31, 2015



Ageing

People begin to lose modest amounts of muscle as they get older, largely because they become less active. Muscles are an efficient calorie burner, so a loss of muscle mass can mean you burn fewer calories. If you’re eating and drinking the same amount as you always have and are less physically active, this can lead to weight gain. “To reduce muscle loss, you should stay active and try to do regular musclestrengthening exercises,” says Collins.



Fluid retention

Fluid retention (oedema) causes parts of the body to become swollen, which translates into weight gain. This gain is caused by fluid accumulating in the body. Some types of fluid retention are not uncommon – for example, if you’re standing for long periods or are pre-menstrual. The swelling can occur in one particular part of the body, such as the ankles, or it can be more general. “More severe fluid retention can also cause breathlessness,” says Collins. “If you notice that you have swollen ankles during the day, have to get up to pee overnight, and have to sleep on a few pillows to avoid breathlessness, you should see your GP, as these examples of fluid retention can indicate heart or kidney problems that need assessment.”

 Steroid treatment

Steroids, also known as corticosteroids, are used to treat a variety of conditions, including asthma and arthritis. Long-term use of corticosteroid tablets seems to increase appetite in some people, leading to weight gain. “The higher the dose and the longer you are on steroids, the more weight you are likely to put on,” says Collins. “This is because steroids make you feel hungry, affecting the areas in the brain that control feelings of hunger and satiety.”

She says that being extra careful about what you eat during your steroid course will help you not to eat more than you normally do. It’s not a good idea to reduce or stop your steroid treatment. If you’re worried about weight gain, chat to your GP about help to control your weight.

ovary  Polycystic syndrome (PCOS) PCOS is a common condition that affects how a woman’s ovaries work. Symptoms can include irregular periods, trouble getting pregnant, excess hair and weight gain. The exact cause of PCOS is unknown, but it’s thought to be hormone-related, including too much insulin and testosterone. “Women with PCOS typically put on weight around their waist,” says Collins. “The more weight you put on, the more insulin you produce, which causes further weight gain.” Weight loss through dietary changes and exercise, and in some cases medication such as orlistat, will help to break the cycle.”

 Stress and low mood

People respond differently to stress, anxiety and depressed mood. Some people may lose weight, while others may gain weight. “People can turn to food as a coping mechanism,” says Collins. “It can lead to a vicious circle. Weight gain from depression can make you more depressed, which can lead to further weight gain. If you know you’re an emotional eater, you need to find other forms of distraction, such as exercise or a hobby, calling a friend, going for a walk or having a soothing bath.”

 Tiredness

Some studies have shown that people who sleep less than seven hours a day may be more likely to be overweight than those who get nine hours of sleep or more. It’s not clear why, but one theory suggests that sleep-deprived people have reduced levels of leptin, the chemical that makes you feel

full, and higher levels of ghrelin, the hungerstimulating hormone. “If you’re always feeling tired, you are more likely to reach for high-calorie snacks to keep your energy levels up throughout the day and do less physical activity, which means you burn fewer calories,” says Collins.

 Cushing’s

syndrome Cushing’s syndrome is very rare, affecting around one in 50,000 people, and is caused by high levels of the hormone cortisol. It can develop as a side effect of long-term steroid treatment (iatogenic Cushing’s syndrome) or as a result of a tumour (endogenous Cushing’s syndrome). Weight gain is a common symptom, particularly on the chest, face and stomach. It occurs because cortisol causes fat to be redistributed to these areas. Depending on the cause, treatment typically involves either reducing or withdrawing the use of steroids, or surgery to remove the tumour. ( Courtesy: http://www.nhs.uk) CC Tadka

Moustache is equal to pay rise Police officers in Madhya Pradesh are given a slight pay upgrade for having a moustache. The police chief in the Jhabua district of Madhya Pradesh devised the new moustache-growing initiative under the assumption that moustaches makes the cops command more respect. The bottom line: ` 30 rupee per month raise for each moustache. However, the chief also has to inspect the moustaches himself, to make sure they’re not TOO intimidating. and that sure must be a pain for him.

January 16-31, 2015 / Corporate Citizen / 51

my campus placement experience : 4

See the Opportunity, Seize the Opportunity Yash Pasekar talks about the process of placement that he went through at his B-school and how it culminated in getting his first break

recall the day when we had all assembled in front of the Ganesh temple in the lush green college campus of our college. Yes! It was the inception of our post graduate course in management. 800 aspirants of a corporate career in the future had this at the back of their mind at that moment that their life was going to change for good. What they were unaware of was that, to witness the good change in life they will have to go through a roller coaster ride during these enriching and â&#x20AC;&#x153;adventurousâ&#x20AC;? two years. Our course kicked off with induction classes till evening, followed by lectures by corporate stalwarts. Those initial days were exhausting but it taught us a lot. Evening lectures by eminent corporate personalities brainstormed our buzzing minds, made us to contemplate, introspect on what we had been doing, what should we do and what

should we target in our lives. The induction days, though tiring, left an impression on us like a wet clay and prepared the runway for our future takeoff. Further the induction journey went through events like BAM presentations (sheer fun!!), cultural programs and a much awaited party for freshly baked future managers. Then began the serious academic era of all day long lectures which was flooded with pleasant and concentrated learning, all thanks to our distinguished faculties who enlightened us with their knowledge. In the second semester itself I got a chance to opt for a specialization. I opted for OPERATIONS stream for which I meant serious business. Being a techie operations management fascinated me and allowed me to get in the intricacies of managing a technical/technology based business. As I was in my comfort zone now, the 2nd semester sailed through smoothly. The college provided me with a once in a

52 / Corporate Citizen / January 16-31, 2015

life opportunity to intern with an esteemed organization in the nation. Where I worked on implementation of Total Quality Management and went ahead and won a cash prize for best project presentation in the society. The lessons I learnt during the internship were how to get in the intricacies of problems and device solutions for them and importance of relations in the corporate world. Also the Discipline, Determination & Dedication inculcated in me by the college helped me sail through my first corporate exposure smoothly. With the end of summer internship began our 3rd semester and thus began the whispers and murmurs regarding campus placements. This crescendo tuned up to the level of sheer anxiety and anxiousness in the students. I had no other feelings but the same. Initially I put forth my candidature for the process of a logistics company but the response of which turned

The third semester began with whispers about campus placements, making me anxious. I put up my candidature for a logistics company, unsuccessfully

Pics: Prithviraj mallick

Yash with his friends

out to be a heart breaking one. Later I was not eligible for process of 2 big brands of the nation in the IT world due to my past academic record. As time passed by the anxiety started taking its toll. But through all this I believed in my ability and waited for MY DAY to come. I knew that on that day I will definitely break the ice and no one can take away my chance. I had only one thing in mind as said by one of my faculty “See the opportunity and seize the opportunity”. And the opportunity knocked on my door. This pioneer in technology business and among the top 5 computer makers in the world came to our campus for the first time. Since we were the first students from the campus that were being presented to such a huge brand name, there was an added responsibility on our shoulders. The process comprised of: l Group Discussion.

l Technical Personal Interview. l HR Personal Interview. I cleared the group discussion the topic for which was “Is selection process of IIM’s fair enough?” Later the HR personal interview was a bit of a stress interview and bit of a relieving one (thanks to the friendly HR sir). Questions were like: l Tell me about yourself and family. l Are you outgoing? l Why should I hire you? After HR personal interview I appeared for the Technical interview with some amount of nervousness. That is because the interviewer had tons of domain knowledge. Interview questions were like: l Introduce yourself. l Tell something about inventory management and ABC analysis. l How would you apply your newly acquired supply chain knowledge in your past company? l Would you mind coding for first 6 months? (To check flexibility) I tried to answer as many questions possible through my past work experience as I could provide a practical insight in that case and speak

on my strong points. One more key to cracking a PI is to match your abilities to the desired job description and convince them to the interviewer. This is the basic mandate required for being hired. After waiting for a while the results were declared and my name in the final list fell like a deafening thunder on my ears. I could not believe it for a moment but my friend helped it sink in me with a hug. This is how I landed up with this wonderful brand, profile and package. All in all - everything that I craved for. Hence I would like to put forth a heart filled thanks to my college for providing such a wonderful opportunity, my parents for what I am, my faculties for bringing out the best in me and my friends and operations batch for that never ending support. CC Tadka

did you know? Hindustan Unilever Limited (HUL) is India’s largest Fast Moving Consumer Goods Company with a heritage of over 80 years in India and touches the lives of two out of three Indians.The Company has over 16,000 employees and has an annual turnover of ` 27408 crores (financial year 2013 - 2014).

January 16-31, 2015 / Corporate Citizen / 53

Ganesh Gyaan

Being Positive

The argumentative nature of Indians has been captured in a celebrated book in recent years but the unwillingness to think positive and stay positive is what gives me the most concern by Ganesh Natarajan

54 / Corporate Citizen / January 16-31, 2015

here is a lot to be said for being Indian and many of those positive characteristics – intellect, innovation and adaptability etc have led to Indian managers making their mark all over the world and Indian companies competing on even terms with their global counterparts in many sectors. However, there are a few negative traits that we need to watch out for as well. The argumentative nature of Indians has been captured in a celebrated book in recent years but the unwillingness to think positive and stay positive is what gives me the most concern. “What is there to be positive about” is the comment I have heard from many colleagues and even some young students every time I have made this argument. The newspapers are mainly full of negativism and the acrimonious nature of TV debates which often degenerate into shouting matches on prime time would make us believe that India is a dismal place, full of natural and man-made calamities. The corporate sector too, often accused of poor governance and bad practices, has come in for its share of criticism and cynicism. All this leads to a souring of the atmosphere and a perception among some in recent years that an opportunity to fly away to greener pastures is the best solution. For people like me, who have been born and raised in India and chose to pursue most of my academics and corporate life in this country, nothing could be further from the truth. Growing up in the little village of Tatisilwai, one of the poorest parts of the state of Jharkhand (then Bihar), my sister and I still found many sources of enjoyment and happiness, probably fortunate not to have the distractions of the big city or television to make us feel deprived. Studying in BIT Mesra and then NITIE and IIT Bombay, I always found islands of teaching excellence even amidst oceans of mediocrity and revelled in the Indian academic system. And through thirty years plus of starting off as a trainee in Crompton Greaves and eventually leading two companies APTECH and Zensar to significant global success, the passion and commitment of many co-workers and the support of other stakeholders has always served as an inspiration to do more and excel. India through the years has also evolved in many ways, most of which have been positive. A case in point is telephony and communications. Many of us in India have seen times, in the words of a famous Harvard Professor, where we spent years waiting for a telephone and then months waiting for a dial tone. Today, a conversation is just a few touches away on a hand phone and even the quality of digital communications has improved substantially with the National Broadband Mission promising to deliver the last mile communications that will enable a truly “digital

“The newspapers are mainly full of negativism and the acrimonious nature of TV debates which often degenerate into shouting matches on prime time would make us believe that India is a dismal place, full of natural and man-made calamities” India” to emerge. Successive Governments at the Centre and States though often riddled by their own contradictions, have all done their bit to take overall development forward and while we may still lag many countries, notably China, in physical infrastructure, the open nature of our democracy and the ability to speak freely and do our bit to participate in the development of the country should surely be a source of pride and joy for all Indians. I enjoy every bit of my life in India, in my corporate role, the work I do for CII and NASSCOM and the leadership I provide to many social initiatives. There is much to be happy about and a lot to look forward to. Stay positive and watch the world become a better place! Dr Ganesh Natarajan is Vice Chairman & CEO of Zensar Technologies & Chairman of NASSCOM Foundation

CC Tadka

Medical tourism in India Medical tourism in India is centered on orthopedics and cardiology. “India is the world’s medical travel thrift destination with savings of 60-90% on an array of procedures. ). For example, the cost of a heart valve is about 15,000 dollars in India as against 150,000 dollars in USA

January 16-31, 2015 / Corporate Citizen / 55

Pearls of Wisdom

Intellect

versus

Intelligence Intelligence is built by gaining information, knowledge from external agencies, from schools and universities, from teachers and textbooks. The intellect is developed through your individual effort by exercising the faculty of questioning, thinking and reasoning By Swami Parthasarathy

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umans round the world blunder in engaging all their time in merely acquiring intelligence at the expense of developing the all-important intellect. A serious lapse stemming from the failure to realise the distinction between intellect and intelligence. Intelligence is built by gaining information, knowledge from external agencies, from schools and universities, from teachers and textbooks. Distinct and different from intelligence is the intellect. The intellect is developed through your individual effort by exercising the faculty of questioning, thinking, reasoning. Not accepting anything that does not admit logic or reason. You must realise the difference between the two. And that any amount of intelligence gained cannot per se build your intellect. The intelligence acquired from external agencies is much like the data fed into a computer. Consider, a computer charged with a complete knowledge of fire extinguishers, firefighting and fire escapes. All the knowledge stored in its memory cannot help the computer act on its own. If the room catches fire, it cannot escape. It will perish in the flames. Likewise, all the knowledge you acquire is of no use to you without an intellect. In truth, you need a powerful intellect to put the knowledge, intelligence gained to practical use in life. That explains why among millions of doctors graduating from medical schools only a few have discovered lifesaving drugs and surgeries; have found the remedy for terminal diseases like tuberculosis or kidney failures through transplant. So too, millions of engineers have passed out of engineering schools but a rare few designed the Panama Canal or the Eurotunnel. It is the intellect in them that renders their performance outstanding. On the contrary, all intelligence sans intellect, besides lacking success and progress ends up destroying peace and happiness in the world. Not realising the importance of the intellect in human life people make no attempt to develop their own. Instead, they merely indulge in acquiring intelligence through surface reading of othersâ&#x20AC;&#x2122; periodicals and publications. Few go into the depth of any literature. Education has lost its meaning and purpose. For generations human beings have turned

into intelligent robots. And traversed through life without awaring, much less enquiring into the meaning and purpose of life in the world. Herbert Spencer, a profound thinker and writer, was a rare luminary. Someone had asked him if he was a voracious reader. He instantly quipped: No sir, if I were as big a reader as others, I would have been as big an ignoramus as others. The world today is in a state of chaos due to the perversion in human development â&#x2C6;&#x2019; all intelligence and no intellect. That explains why even highly educated businesspersons, professionals and scholars become alcoholics, rave with foul temper, succumb to worry and anxiety. It is the mind that craves for alcohol. The mind that loses its temper. Again, the mind that constantly harbours worry of the past and anxiety for the future. When the intellect remains undeveloped and weak, it is unable to control the vagaries of the mind. The frail intellect looks on helplessly as the mind devastates the person. In such a condition the business, profession and even family relationship run into shambles. On the contrary those having developed a powerful intellect, with or without academic distinction, can hold the mind under perfect control and direct action to spell success and peace in life. The educational systems the world over must be held responsible for the debacle of the intellect. It is their primary responsibility to strike an equable balance between acquiring intelligence and developing the intellect. Only by maintaining this essential equation can governments be run, businesses conducted, professions practised and families live in peace and prosperity. The lack of intellectual sovereignty in humans has led the world to a terrible state. Nations indulge in hot and cold wars. Business houses, following sporadic views spluttered by management gurus with frail intellects, stagger and collapse. Families are torn apart with differences and divorces. Children with no direction are at sea. Confusion and chaos reigns everywhere. (An Extract from Governing Business and Relationships by Swami Parthasarathy. For details about Swami Parthasarathyâ&#x20AC;&#x2122;s corporate seminars and retreats email corporateseminars@vedantaworld.org. For more information visit www.vedantaworld.org )

January 16-31, 2015 / Corporate Citizen / 57

food for thought

Aromas for Success

People working in pleasant smelling spaces work better and are more productive, say scientists. By Suchismita Pai

ooking for ways to improve productivity? Just simmer some rajma-chawal and fill your air vents with the aroma. Waft some vanilla bake aroma all over your office or let that spicy tang of the Rasam take over your work place. You do not even have to provide the food. Just the smell!

But how does it work?

Smells, explain scientists, work on us through the experiences associated with them. Ever wondered why the smell of Rajma chawal takes you back to your grandmotherâ&#x20AC;&#x2122;s kitchen in Amritsar and a carefree childhood, or the tangy scent of Rasam transports you to the streets of Chennai, or the waft of Vanilla makes you go all warm and fuzzy? It is because our olfactory receptors are directly linked to the limbic system, the most ancient and primitive part of the brain, which is thought to be the seat of emotion and associative learning. Simply put, we learn to associate events with odours and then those

odours eventually conjure up the same feelings that those events evoked. No other sensory system has this sort of a link with emotions. Interestingly, a number of studies have demonstrated that these learnings begin well before birth. Infants whose mothers had consumed strongly flavoured substances like garlic, alcohol or other distinctive smelling substances during pregnancy, showed a marked preference for those smells. These preferences even seemed to influence food preferences in life. So, how can you increase productivity with smell preferences that most likely got formed during childhood? The feelings associated with smells continue through our life and many enhance our moods. Exposing people to odours that they like, (who does not like cake and cookies?) has, in many studies, elevated their creativity and problem solving skills, leading to enhanced productivity. People working in pleasant smelling spaces have demonstrated higher efficiency and even

58 / Corporate Citizen / January 16-31, 2015

set themselves higher goals while people who experienced malodorous conditions have displayed lower efficiency and less tolerance or frustration. The next time you feel frustrated about a business problem, just take a deep breath and smell in those mood enhancers. Go on, take a whiff and see the frustration vanish into thin air! paisuchi@gmail.com

CC Tadka

The full form of Adidas Some of us may pride ourselves for knowing the full form of Adidas: â&#x20AC;&#x2DC;All Day I Dream About Sportsâ&#x20AC;&#x2122;. But this is not how the brand got its name. The name is taken from its founder, Adolf (Adi) Dassler, whose first name was shortened to the nickname Adi. Together with the first three letters of his surname, the famous name Adidas was coined.

manage money In the previous issue we had discussed what a Profit & Loss Account is, what it contains. In this article let me dwell a bit on the Balance Sheet. By Dr Anil Lamba

Good financial management – a pre-requisite for businesses to succeed What many people don’t realise is that it is good financial management that can mean the difference between success and failure. This happens due to a widely-held belief that managing Finance is the job of the Finance Department. The truth is that what happens in the so-called Finance Department is largely accounting related. Financial management, on the other hand, is the job of every individual in the organization. I am certainly not trying to suggest that good financial management alone can make organizations successful. Without a good product and effective marketing skills, without a committed and capable team, you are unlikely to enjoy great success. Good financial management, by itself, cannot lead to success, but bad financial management can single-handedly spell doom for any business.

So what exactly is good financial management?

Let me give you a short and succinct formula for what, in my opinion, comprises good financial management. These are my two golden rules, which can protect you from the majority of financial mismanagement related problems that others face. Ensure that you never violate either of these two rules and you will not only be able to optimize your organization’s bottom line but you will also ensure continuous stability. To appreciate the relevance and depth of these rules, you must think like an entrepreneur. So, before you read any further, put on your entrepreneur hat! If you are an employee in an organization, you must be an entrepreneurial employee. If you are an owner – encourage and empower your employees to think like owners. Remember – the best decisions are made when everyone thinks and behaves like an owner.

without ensuring that the assets you invest in can generate a return which is at least equal to the cost of your capital. Let me explain what I mean by this. To apply and understand the two golden rules of good financial management, you will need to refer to a Balance Sheet. You already know that the Liabilities’ side of a Balance Sheet represents sources of money, and the Assets’ side represents uses of money. The sources from which organizations borrow are many. What you must remember is that of all the sources, none is free. The money that an organization raises comes at a cost. Very often we lose sight of this cost, and then pay a price that is far too high. Don’t forget, there are no free lunches in this world. How do organizations use their financial resources? They are deployed to purchase assets. These assets are, hopefully, productive assets with an ability to earn. The first golden rule urges us to always know how much the money is costing us, and then to ensure that whatever use we put it to, it brings a return that is at least equal to, and preferably greater than, the cost. This means that in order to take any investment decision, you must be acutely aware of your cost of capital and also the return that can be generated by this deployment of the funds. Never make any

Without a good product and effective marketing skills, without a committed and capable team, you are unlikely to enjoy great success

The first rule of Good Financial Management: Never invest your money

59 / Corporate Citizen / January 16-31, 2015

investment decision unless you are aware of these two numbers. If I ask you to lend me some money and offer to pay you 10 percent interest, should you say “yes” or “no” to this investment opportunity? The answer depends on your cost of capital. You need to know how much the money you are contemplating lending is costing you. If it costs you less than 10 percent you can say yes. But if it costs more than 10 per cent you must say no.

The second rule

Invest your money in such a way that the assets will generate an inflow of funds before the liabilities demand an outflow. In a business organization, all sources of funds are liabilities and not gifts. Money raised today will have to be repaid tomorrow. While these are just common-sense rules, you will be surprised how many large organizations run by competent professionals are guilty of violating them. My experience is that there are plenty of organizations who don’t have an inkling of what their funds cost them. Being aware of the cost of your capital will also make you more sensitive to the viability of every new business opportunity, and every financial decision that you need to make. Similarly, being constantly aware of the need to be able to return the money when it becomes due will make you alert to putting it to the best possible use. In the next article I will discuss Rule 1 at length. Dr Anil Lamba is a practising Chartered Accountant, financial literacy activist, a corporate trainer and author of the bestselling book Romancing the Balance Sheet. He can be contacted at anil@lamconschool.com

January 16-31, 2015 / Corporate Citizen / 59

featherlite

Corporate Twitterati

Sports ministry responds positively to Saina Nehwal’s tweets on her Padma Bhushan request that Sushil Kumar name is recommended by the Saina Nehwal @NSaina Sports ministry and he is not completed 5 years as a special case but even i won the Olympic bronze medal in 2012 and won many titles in 2014

Saina Nehwal @NSaina I saw the news in Times of india about the Padma awards and I was really sad to see that my name was not sent to Ministry of home affairs by sports ministry of india . Saina Nehwal @NSaina I got the Padma Shri in 2010 and there is a policy that u can get the next Padma award only after 5 years and this year I completed my five Years . Saina Nehwal @NSaina When I sent my file in 2014 for the Padma Bhushan award the ministry said u have to follow the rules and submit the application after 5 Saina Nehwal @NSaina Years so my file got rejected last year and I again applied this year for the award . I read

Saina Nehwal @NSaina I hope sports ministry look up to this and I will be more than happy if both me and Sushil gets the award as we both won medals in 2012 Saina Nehwal @NSaina Olympics . But I think rule is rule for me they said u have to wait for 5 years to get the award. Saina Nehwal @NSaina Friends I m not demanding for the award my question was why my name was not sent to the home ministry and then of course the panel will Decide the awards Saina Nehwal @NSaina I am very hurt and sad that I have still not received the cash award from my state for the Olympic bronze medal that I won for my country. (compiled by www. thene4wsminute.com)

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Laugh Aloud The phone bill was exceptionally high and the man of the house called a family meeting...on a Saturday morning...after breakfast... Dad: People this is unacceptable. You have to limit the use of the phone I do not use this phone, I use the one at the office. Mum: Same here, I hardly use this home telephone as I use my work telephone Son: Me too, I never use the home phone. I always use my company mobile Maid: So - what is the problem? We all use our work telephones !!!!!!!!!! A young boy enters a barber shop and the barber whispers to his customer, “This is the dumbest kid in the world. Watch while I prove it to you.” The barber puts a dollar bill in one hand and two quarters in the other, then calls the boy over and asks, “Which do you want, son?” The boy takes the quarters and leaves. “What did I tell you?” said the barber. “That kid never learns!” Later, when the customer leaves, he sees the same young boy coming out of the ice cream store. “Hey, son! May I ask you a question? Why did you take the quarters instead of the dollar bill?” The boy licked his cone and replied, “Because the day I take the dollar, the game is over!”

Then and Now... There are always speculations, I am very strongly public, but I am not political. There is a difference between being public and political. I deny reports of joining the BJP. When did I say I would become a member of any political party? I have never said that I am joining BJP. - Kiran Bedi to Zee News in November 2014 ‘‘BJP has given me an opportunity to return back everything I got, to the nation, I’m in mission mode now... Delhi needs a strong clear-headed, stable government...I want to turn Delhi into the world’s best capital. - Kiran Bedi as quoted in Times of India in January 2015

mobile apps

WhatsApp is finding its use in administrative work too. Many government departments in Uttar Pradesh have started using it as an effective tool to bring offenders to book

ght en fi o m t pp st wo A s n t a ai Wh es ag s e e us d crim c i l an po UP ffence co ffi a r t

This idea of using WhatsApp against traffic offenders was the brain-child of Deputy Inspector General (DIG) of Lucknow, Navneit Sikera. “The response has been tremendous and within a few weeks we’ve been able to pinpoint those who break traffic rules and act against them,” he said. More than 3363 challans have been issued by the Lucknow Traffic Police till date using images and videos sent through WhatsApp as evidence to penalize traffic offenders. Impressed by the results, Lucknow police has also decided to combine their WhatsApp complaint tool with women security personnel and helpline number 1090 to put a check on eve-teasing, molestation, and crime against the women. The D.I.G. also mentions that all 43 key police stations across Lucknow have been instructed to promote the WhatsApp complaint tool so that more and more offenders are brought to justice.

WhatsApp Fights Crime

WhatsApp, the most popular messaging tool, has now a different role. The Uttar Pradesh police use it as a tool to fight traffic offence and crimes against women. Other government departments are enlisting people’s participation through WhatsApp to fight petty crime and anti-social elements. By Anand Karwa

lmost every phone comes with WhatsApp pre-installed these days. Gone are the days when people used to share thoughts and jokes via SMS. They now share jokes, information, images, and videos via the most popular IM client, WhatsApp. Uttar Pradesh (UP.) is not just one of the hottest tourist destinations in India; it is also notorious as the crime capital state of the country. Criminals run free on the streets of Uttar Pradesh due to lack of evidence and eye witnesses to corroborate the incident. The UP police have gone modern and released a new tool to report traffic offenders via the highly popular instant messaging platform, WhatsApp. This

allows the normal public to report traffic violations directly to the concerned authorities so that quick actions can be taken. How Does It Work? Functionality wise, traffic violation detection via WhatsApp requires no special or extra app. All you have to do is report the traffic offenders directly to the traffic police by sending a WhatsApp message along with the required proof (photo or video) to the given number. So if a person watches someone jumping a signal, or some car has dark glass, or someone is over-speeding in a crowded area, then he or she can report this to the police by sending photos and recorded video as evidence. The Results Are Amazing...

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Others Follow Suit Impressed by the response the traffic police got from their WhatsApp complaint tool, other government departments too have begun to incorporate WhatsApp as a crime fighting tool in their arsenal. The G.R.P. (Government Railway Police) has begun nabbing ticket-less travellers, thieves, and other anti-social elements who harass passengers in trains. Mukesh Meshram, MD at U.P. State Roadways Transport Corporation (UPSRTC) has also initiated a WhatsApp campaign to keep buses and bus stands clean and to apprehend criminals. This state-wide campaign is being promoted to encourage passengers to take photographs and record videos of poor amenities, torn seats, broken windows, and any other nuisance in the bus and forward them to the concerned authorities via WhatsApp. This is really a very novel approach as it allows the general public to be a part of the crime fighting scene without risking their lives while making their surroundings safer. karwa.anand@outlook.com

January 16-31, 2015 / Corporate Citizen / 61

astroturf

Fortune favours the bold and the lucky

Your attitude is your altitude says Dolly Mangat our renowned Astrological Expert and believes she helps people create their own prophecies rather than live predictions

Aries

Mar 21- April 20 The year 2015 is sure going to be a year of power for you. This applies to all the areas of your life, be it personal or professional. Your relationships strengthen and people appreciate you more than ever before. With all the bravery that you possess inside you there seems to be a lot of anger, which you need to deliberately cultivate and channelize it constructively. Health remains robust , occasionally you will be dissatisfied with what you have accomplished so far in life.

TAURUS

April 21 - May 20 Your paths of greatest fulfillment this year will be home & family. Be careful and ensure that everything is under your control then you can sail through life comfortably in the year 2015. Though over all the year remains calm yet you need to be attentive to your social front. Most of the year you will be occupied with matters of finance and family issues. You will virtually be able to control any situation and bring to your advantage successfully.

GEMINI

May 21 - June 21 Whatever knowledge or perspectives you have gained in the past needs to be disseminated now. You need to be confident in laying down your plans through your communications or the written word. Time for executing your plans. You could expect some developments in your relationships. Express your passion and affection in a positive manner.

CANCER

Jun 22 - July 23 You could expect a general improvement and advancement the year around. Health remains good, finances will be on the upsurge and you will find plenty of situations where you can showcase or utilize your intellect. Do not think of changing or switching careers, until and unless there is an absolute need for it. Arguments with individuals are best avoided or best retain your calm and listen them out before giving in to your judgment.

LEO

July 24 - Aug 23 Â The year starts in an aggressive manner with a lot of action on

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the career front. Friendships started last year can turn into business relationships, which will be lucrative. Give vent to your creativity and let your inventiveness gain new heights. Believe in the power of your brains and have conviction of your thoughts. Get in sync with your ideologies and ambitions. Spiritualism also takes on new heights, and you will want to explore the unknown.

SAGITTARIUS

Nov 23 - Dec 22 The year 2015 brings in both beneficial and detrimental results. There are new beginnings in your life; all the limitations and obstacles of the previous years will be replaced by success. You will receive stability in life not only for yourself but also those around you. Private and joint ventures are most likely to develop.

VIRGO

Aug 24 - Sept 23 2015 may not be as significant as you expect, for very few feathers are ruffled. Personally there could be few significant issues to be resolved. Tentatively you can expect a year of peace and harmony around. Matters that surround joint finances or connected to wills and inheritances need to be sorted out in a calm and clear mind.

LIBRA

Sept 24 - Oct 22 You could look ahead in life with confidence and a positive approach this 2015. Right mix of personal and professional happiness is foreseen especially if you have put in the correct kind of hard work last year. Be alert and ready for major adjustments in your home atmosphere. If you are planning any kind of shift or a move whether at job or home then this is the correct time for you.

SCORPIO

Oct 23 - Nov 22 The year 2015 marks new beginnings, making you feel more energetic and optimistic. The past two years have been challenging but now you can forget the past and look into the bright present and future. If you have had health problems then now is the time to be happy for you would be geared up to accomplish your long term goals.

CAPRICORN

Dec 23 - Jan 20 The year 2015 forecasts a simple life style for the coming months. You will be fortunate to experience many expansions and experiences in all spheres of life. You will look at life from a different angle in 2015. It is important that you make some new alterations to your way of living.

AQUARIUS

Jan 21 - Feb19 2015 sees substantial opportunities for you. This is an year of abundance of finances with vast development possibilities for the foreseeable future. Avoid any kind of hasty decisions and impulsive actions. Hone your communication skills as your oratory skills and confidence are bound to bring in the desired results. Do not be reluctant to show your abilities to the world.

PISCES

Feb 20 - Mar 20 You could expect a gradual progress in all spheres of your life. Look forward to good transformations in 2015. You will have the grit and determination to face all situations in life and come out a winner. Fight against your mood swings and be sure to live up to your abilities, be motivated to live up to your ideologies. This is the right time for you to be active and overcome your laziness.

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January 16-31, 2015 / Corporate Citizen / 63

Claps & Slaps Corporate Citizen gives a thunderous clap to Azim Premji, Chairman of IT major, Wipro, who has been named as the Most Generous Indian of 2014. The list of India’s biggest givers in 2014 is out—and the man on top remains unchanged. Azim Premji has been named the “Most Generous Indian,” according to China’s Hurun Research Institute’s ranking of India’s biggest philanthropists. He was also at the top of the list in 2013. Between April 2013 and October 2014, Premji, chairman of information technology major Wipro, donated Rs 12, 316 crore ($1.9 billion)—or 14.3 per cent of his personal wealth— to charity. Much of this went to the Azim Premji Foundation, which he helped establish in 2001. The foundation primarily focuses on education. And Premji is far more generous than any of his peers. Anil Agarwal, the mining baron who is the country’s second biggest philanthropist, spent about Rs 1,796 crore ($283 million) during the same period—about seven times lesser than Premji’s contributions. India’s richest man, Mukesh Ambani spent 0.4% of his wealth on philanthropy, while Shiv Nadar, India’s seventh richest man, gave away 1.66% of his wealth. The estimates were calculated by comparing their donations listed on Harun’s rankings with their net worth according to Forbes. With two out of the top 10 richest Indians finding a spot in the top 10 philanthropists of the year, the future of the underprivileged in India will continue to be brighter.

Corporate Citizen slaps the alleged big defaulters to the tune of ` 84,580 crore, which include leading banks and industries and the Government’s inaction in tackling the same. A bank union in Maharashtra released a list of wilful defaulters of loans over ` one crore each that totalled ` 84,579.72 crore. Maharashtra State Bank Employees Federation released the list with names and amount outstanding as on March 30th, 2014. The union’s general secretary Vishwas Utagi claimed the list had been prepared by the Reserve Bank of India (RBI). While the central bank tracks wilful defaulters closely and maintains a list, it is not available to the public. It is, however, circulated among banks to prevent further lending to such firms and individuals. According to the list released by the Maharashtra State Bank Employees Federation, the total number of wilful defaulter accounts stands at 4,387. Maharashtra tops the list of states with most wilful defaulters. In Maharashtra, 1,145 accounts, amounting to ` 34, 585.43 crore, have wilfully defaulted on repayments. This is followed by Delhi, with 423 accounts defaulting on ` 8,367.05 crore and West Bengal, with 526 accounts defaulting to the tune of ` 6,635.08 crore. The list doesn’t have all-India details of banks and the defaulters, but in Maharashtra the highest outstanding wilful default was seen at Life Insurance Corporation of India (LIC). LIC’s wilful default outstanding as on March 2014 was at ` 10,109.59 crore, followed by Central Bank of India at ` 3,430.19 crore and State Bank of India at ` 2,876.55 crore.

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