The month of June has yet again set off a debate about the monetary policy needed for India due to the RBI’s second bi-monthly monetary policy statement for 2015-16 released on June 2nd. To summarize the highlights, the repo rate was cut by 25 basis points to 7.25% while the CRR and SLR remained unchanged at 4% and 21.5% respectively. The growth forecast was lowered to 7.6% for 2015-16 from the 7.8% projected in April and inflation was projected to reach 6% by January 2016. With this statement, it is the third time that the rates have been cut in 2015, each time by 0.25%. While the rate cut is welcome, it is unfortunately not in line with the industry expectations. Further, there are indications that there may be no further rate cuts this year owing to the prediction of deficient monsoons and consequently, rise in food prices and inflation. Any discussion on monetary policy, however, should be seen from two perspectives – the short term and the long term. On the short term, there is consensus across the board in India Inc. that these incremental cuts of 25 basis points are not sufficient to see the kind of growth that we want. Higher rate cuts will ensure that the benefits are passed on by the banks sooner. This would be aided further, if there are cuts in the CRR and SLR too, but this does not seem to be the route that the RBI wants to take and going by indications, it is not likely to in the immediate future either. The hawkish stance, as experts agree, is hurting the growth figures and is counter-intuitive to schemes like the Make in India and to the growth and flexibility of businesses in general. Coming to the long term implications of monetary policy, the RBI as we all know has adopted inflationtargeting as the thrust of its monetary policy. The official monetary policy states the following
In India, subsequent to the recommendations of the Dr. Urjit Patel Committee Report, the Reserve Bank has formally announced a “glide path” for disinflation that sets an objective of below 8 per cent CPI inflation by January 2015 and below 6 per cent CPI inflation by January 2016.” “The agreement on Monetary Policy Framework between the Government and the Reserve Bank of India dated February 20, 2015 defines the price stability objective explicitly in terms of the target for inflation – as measured by the consumer price index-combined (CPI-C) – in the near to mediumterm, i.e., (a) below 6 per cent by January 2016, and (b) 4 per cent (+/-) 2 per cent for the financial year 2016-17 and all subsequent years.” This brings up the question as to whether an inflationtargeting monetary policy is the best course for India to take right now. While inflation is a concern that is definitely to be addressed, it would have been better to first reform the food management in the country by taking measures like reforming the PDS and implementing the JAM trinity on a war-footing. Unless these are done, it is highly unlikely that the policy will manage to lower inflation, especially in light of the deficient monsoon predictions. Hence, the real concern is that the adoption of this policy could be delaying investments without making any substantial contribution to the inflation figures. In addition, as experts point out, there is no evidence that countries with an inflation-targeting policy have performed better economically. It is hoped that the RBI will take on board the concerns of the industry and we will hopefully witness a turn of events in the third bi-monthly statement on August 4th.
From the President’s desk
“Primarily price stability, while keeping in mind the objective of growth.” SG.Prabhakharan President
sowing the seeds
7th April 2015
Discussion on “The Union Budget 2015: Reform Challenges – Lessons from International Experience” with Mr.Subra Ramamurthy
he Chamber organized an interactive Discussion on Union Budget 2015- Reform Challenges – Lessons from Inter national Experience with Mr. Subra Ramamurthy, Economist on April 7, 2015 at the Chamber. Mr. Subra Ramamurthy made a detailed presentation on the similarities between 2005 budget and 2015 budget and explained the four aspects of
Mr. Subra Ramamurthy interacting with select members in the Conference room of the Chamber.
the Fiscal Management Reforms. His perspectives were unique and his experiences in various Countries, added value to the discussion. A copy of his book on “ Public Finance – How to fix weak governance and obsolete systems” was shared with the delegates who attended the program.
18th April 2015
Follow up Session on Finance for Women Directors Forum
he Chamber organized the first follow up Session on Finance on Saturday, April 18th 2015 at the Chamber’s Conference room for the Women Directors Forum This session was arranged based on the feedback received during the Advanced Training program for Aspiring Women Directors held in the month of
February 2015. This was a practical session working ‘hands on’ with mock financial statements and learning to interpret and understand the financial statements through this exercise. This session was conducted by Dr. Suresh Srinivasan, Visiting Professor – Great Lakes Institute of Management and attended by 12 Participants. The feedback was excellent.
Dr. Suresh Srinivasan facilitating a session on Finance to the Women Directors Forum
23rd April 2015
Consultative Meeting with State Government Officials on Labour Laws/Factories Act
he Chamber released the Study on Manufacturing in Tamil Nadu â€“ A Regulatory Ro a d m a p, i n Fe b r u a r y 2014 and followed it up with presentation to the various departments of the Government of Tamil Nadu. The Study has been done in great detail, looking at various regulations such as Labour laws, Environment Laws and Taxation laws and at how these regulations and procedures impact the growth of manufacturing sector. The study has also outlined Mr.Anand Gopalan, Chairman, MCCI Legal Affairs Committee making a presentation to the State Government Officials and other Stakeholders on the suggested reforms of Labour Laws/Factories Act specific recommendations and suggestions as to what the Central and State Governments can do to improve Mr.Anand Gopalan, Chairman of HR & Legal MCCI the system. After the Study release, presentations Expert Committee made a detailed presentation listing were made to the concerned officials of the State out the procedural and substantial changes required Government. The Chamber has currently taken up in the labour Laws pertaining to the State. an extended study exclusively on the Labour Laws Ms Amutha, Commissioner of Labour appreciated reforms. The Department of Labour, Government the efforts taken by the Madras Chamber in listing of Tamil Nadu has proactively called for meetings out useful & possible suggestions with respect to with the Chamber and Industry representatives to State Labour Laws. She responded to all the points discuss about simplifying labour laws. The Chamber and suggestions given by the Chamber in a positive had organised an interactive meeting with Officials note. The Senior HR executives representing different from the Labour Department and the Directorate industries shared their views and interacted with the of Industrial Safety & Health along with EFSI on officials. 23rd April 2015, to present the industry views and highlight the immediate solutions for the Labour Law Ms. Amudha and her team of officials pointed out areas where they might be able to take action, and reforms. where they needed to study further and requested the Ms. P. Amudha, IAS, Commissioner of Labour Chamber to proactively help the Labour department in and the Senior officials of the Labour Department, areas where amendments are required in the laws. Mr.Gnanasekara Babu Rao, Director, Directorate of Industrial Safety & Health & other Officials from Based on the feedback received, the Chamber is in DISH participated in the interactive meeting. Senior the process of preparing a detailed study on reforms Corporate Executives in HR & IR from MCCI & EFSI of Labour Laws. The study will also cover the issues and suggestions for Centre. fold also participated at the meeting.
Chamberâ€™s Activities 23rd April 2015
In-house Training Program on Attitude Building for Professional Growth
he Chamber, as part of its regular Trainings, organized a workshop on Attitude Building for Professional Growth, exclusively for the HR Personnel in Industries. Mr.Akbar a renowned Trainer on HR Skills conducted the program. Around 19 participants took an active part in the training program and the feedback was positive.
Mr. Akbar, Trainer interacting with the participants during the training.
13th May 2015
MCCI Vocational Training and Skill Development Centre @ Tiruvallur
he Data entry operators training was held in the Vocational Training and Skill Development Centre in Tiruvallur. The Valedictory function of the Data Entry Operators was held on May 13, 2015. Certificates were distributed to the Participants after the completion of the Course. 30 participants enrolled for this training.
Ms. K.Saraswathi, Secretary General, MCCI addressing the batch of participants of the Data Entry Course
After this training, the Skill development Centre has another batch of 30 participants for the Tally training.
Participants of the Data Entry Operators course offered by SDC
14th May 2015
Interactive meeting with Mr. Damodaran Retd. IAS., Former Chairperson – SEBI he Chamber arranged an interactive meeting with Mr. M. Damodaran, Retd. IAS, Former Chairperson –SEBI at the Chamber’s premises on 14th May 2015.
Mr. Damodaran’s interpretation of certain provisions of Companies Act 2013, particularly Corporate Governance with amusing anecdotes made the interaction session very lively.
Mr.N.Srinivasan, Member, General Committee welcomed Mr. Damodaran and Ms. Divyani Garg. VP, Excellence Enables Pvt Ltd., and set the tone by elaborating on the concerns expressed by the Chamber on behalf of the Industries with regard to the Companies Act 2013.
He requested the Chamber, to take up 4 or 5 critical issues in the Companies Act 2013 and give suggestions based on practical difficulties, to the Ministry of Corporate Affairs, for consideration. The participants enthusiastically clarified their queries relating to Companies Act 2013.
Mr. M. Damodaran, interacting with select members of the Chamber on Companies Act 2013 and Corporate Governance
21st May 2015
Inhouse Training Program on “Business Changes and Challenges, Role of Shop Floor/Managers/ Supervisors
he Chamber, as part of its regular Trainings, organized a training program on Business Changes and Challenges, Role of Shop Floor/ Managers/Supervisors exclusively for the shop floor personnel Mr.Aravamudan, a renowned Trainer conducted the program. Around 17 participants took active part in the training program and the feedback was positive.
Mr. A. Aravamudan, Trainer with the participants during the training session
together we grow
7th April 2015
Program on SAP Ambition Express with SAP India and HTC Global Service
h e M a d r a s C h a m b e r, i n association with SAP India and HTC Global Services, organized a Program on “SAP Ambition Express” on 7th April, 2015 at Hotel Hyatt Regency. This program was exclusively for manufacturing Industries, as SAP India and HTC Global Services provide Industry Specific Solutions to various manufacturing Industries across India. In the Inaugural Session, Mr. P. Kaniappan, MD, Wabco India Ltd., and Member, General Committee gave the welcome address on behalf of MCCI. He explained about the advantages of using SAP, and how his office is connected globally using SAP solutions. The Inaugural was followed by technical sessions, wherein the general advantages of SAP for SMEs were elaborated. After the technical sessions, the participants were given a live demo in the “The SAP Ambition Express”. The SAP Ambition Express is an innovative concept, wherein a specially designed bus, fully equipped with their latest software, with multiple screens is used as a tool, to showcase their
Mr. P. Kaniappan, MD, Wabco India Ltd., and Member, General Committee gave the welcome address on behalf of MCCI.
Live Demo in the SAP Ambition Express
products through a live demo to the delegates. The bus had till then travelled 10000 kms covering different cities in the country, including cities like Madurai and Tirupur. The program was well attended by 70 participants
16th April 2015
3rd Trade Meet
he Chamber, in association with Kamarajar Port Ltd (KPL), organized the 3rd Annual Trade Meet on April 16th, 2015. Keeping in line with the success of the previous Trade Meets, this event too saw good participation from the various stakeholders. Mr. SG. Prabhakaran, President, MCCI, welcomed the gathering and outlined the proactive efforts taken by the Chamber towards ports development. Mr.M.A. Bhaskarachar, CMD, KPL, began his address with an assurance that by the 4th Trade Meet, most of the proposed projects will be functioning. In particular, the multi-cargo terminal and the cargo container will be completed by next year. He added that, we can expect KPL to become a $200 million cargo port in the future and that both the State and Central Governments are being supportive. He concluded by mentioning that the KPL management is open to suggestions and grievance redressals. Mr.Hidehiro Ishiura, Director General JETRO, elaborated on Indo-Japan business relations and highlighted the role of JETRO in promoting it. He made a special request to KPL to resolve the space constraints and congestion problems. Mr. PK. Behra, IRS, Commissioner of Customs, Chennai pointed out that trade facilitation has not caught up with growth in trade. He proceeded to highlight some of the recent measures taken by customs to facilitate trade including the accredited planned program, use of digital signatures and the authorised economic operators. He concluded with a list of suggestions as to how the stakeholders can help the customs perform better. Mr. Anantharaman, IRTS, Chief Operating Officer, Southern Railways, provided the
Mr. S.G. Prabhakharan welcoming Mr. S.Anantharaman, IRTS, Chief Operating Officer, Southern Railways with a bouquet of flowers. Mr. M.A. Bhaskarachar, CMD, Kamarajar Port Limited joins in welcoming the guest
A view of the Audience
Mr. M.A. Bhaskarachar addressing the audience. Other Speakers in the Panel Discussion Mr. S Pradeep, Puyvast Maritime, Mr. N S Vijay, Toyota Kirloskar, Mr. Sridhar, NTC, Mr. J.Krishnan, Chairman, MCCI Logistics Committee, Moderator, Mr. G R Balakrishnan, OGPL & Mr. U.Udayabaskar Reddy, Co â€“ Chairman, MCCI Logistics Committee
Chamber’s Activities perspective of Southern railways which is a critical component of the EXIM trade. He mentioned that the Ennore port is a positive development towards reaching global standards. The last part of the inaugural had the following presentations
The technical session was moderated by Mr.J.Krishnan, Chairman, Logistics Committee, and had the following presentations •
Mr. G R Balakrishnan, OGPL on the Indian windmill scenario
Mr. G. Sridhar, NTC, in break bulk in India
Mr.Senthil Kumar, KPL, on the features and achievements of KPL
Captain Ramnath, APSEZ, on the Ennore Container Terminal
Mr. S Pradeep, Puyvast Maritime, on break bulk vessels in India
Mr.N.Suresh on the Chettinad Bulk Terminal
Mr. N S Vijay, Toyota Kirloskar, on the car manufacturer perspective
The inaugural session of the trade meet concluded with Mr Sanjay Kumar, Director (Operations), KPL, proposing vote of thanks.
The event concluded with a Q&A session with representatives from KPL and the vote of thanks was proposed by Mr.Udhayabhaskar Reddy, CoChairman, MCCI Logistics Committee.
16th April 2015
Workshop on Green Freight
he Chamber, under the Sustainable C h e n n a i Fo r u m , o r g a n i s e d a workshop on Green Freight, in collaboration with Clean Air Asia and Indian Institute of Technology, Madras. The welcome address was delivered by Mr.SG.Prabhakaran, President of the MCCI. The special address for the inaugural session was by Mr.K. Skandan, IAS, Chairman, TNPCB, Government of Tamilnadu. In his address, he emphasized on the need for a paradigm shift in urban growth and added that solutions need to be out-of-the-box, innovative and above all, sustainable in the long-run. He also added that the canals of Chennai need to be revived as a means of goods shipment as they are a clean alternative. Mr.J.Krishnan, Chair man, MCCI Logistics Committee, presented the vote of thanks for the inaugural session. The technical session witnessed three highly interesting presentations by
Mr. S.G.Prabhakharan, President, MCCI greeting the Chief Guest Mr. K. Skandan, IAS, Chairman, TNPCB with Mr.J Krishnan, Chairman, MCCI Logistics Committee
Mr.Gitakrishnan, Associate Professor, IIT- M making a presentation
Mr. Sameera Kumar, Transport Researcher, Clean Air Asia, India Office, answering a query
A view of the audience
Dr.Gitakrishnan(IITM), Dr. Shiv Nagendra(IITM) and Mr. Sameera Kumar(Clean Air Asia). Some of the topics covered include green logistics, eco-driving, urban freight, AQ monitoring and online brokerage platform, with global examples.
Association), Mr.Kumar (TNPCB) and the technical session speakers. This session saw a very active exchange of ideas on green freight and also on other related topics such as drivers training and transport policy.
This was followed by a panel discussion with panellists Mr.Sugumar Rajendran (President, Transport Owners
The workshop concluded with a lively Q&A session between the audience and the panellists.
18th April 2015
Workshop on Foreign Trade Policy with FIEO
he Chamber and the Federation of Indian Export Organizations (FIEO) jointly organized a Workshop on Understanding Foreign Trade Policy 2015-2020 on 18th April 2015. Mr.J.Krishnan, Chairman, Logistics Committee, welcomed the gathering. Mr. Rafeeque Ahmed, Immediate Past President, FIEO, in his special address, stated that the recent export figures were shocking. He added that the decrease in trade deficit has been due to external factors and not because of increase in exports and this is cause for concern. With respect to the new FTP, he mentioned that it had no consultation processes during its formulation and this must be corrected in the future by more consultations with the exporters. He concluded by reiterating
Mr. Rafeeque Ahmed, Immediate Past President, FIEO addressing the audience.
FIEOâ€™s long-standing demand for a Market Development Fund. In his Special Address, Mr.JV Patil Joint Director General of Foreign Trade, Ministry of Commerce, Chennai, gave an overview of the new FTP by highlighting the new provisions. He further elaborated on the changes with respect to MEIS and discussed other aspects such as status certificates, SEZs and quality complaints. He concluded by mentioning that there are proposals
Chamber’s Activities to encourage new exporters into trade and assured that concerns of exporters will be taken into account. This was followed by a brief interactive session with Mr.JV Patil, wherein he answered queries relating to FTP. The inaugural session concluded with Mr.K.Unnikrishnan, Joint Deputy Director General, FIEO, proposing the vote of thanks.
Panelists answering in the Q & A Session. ( l to r : Mr.J.Krishnan, Chairman, MCCI Expert Committee on Logistics, Mr.B.Sriram, Partner, Ernst & Young, Mr.S.Murugappan, Advocate & Exim Consultant and Mr.K.Unnikrishnan, Joint Director General, FIEO)
The technical session consisted of presentations by •
Mr.B.Sriram, Partner, Ernst & Young, Chennai, on the Export Incentive Schemes
Mr. S.Murugappan, Advocate and EXIM consultant, on the various procedural changes and compliance with laws in respect of EXIM
The event concluded with a Q&A session
A view of the audience
28th April 2015
Indo Indonesian Business Seminar jointly with Consulate General of Indonesia
ndia and Indonesia have had long standing historical, cultural and economic linkages. Indonesia is India’s second biggest trading partner in ASEAN. Bilateral trade has increased from US$ 6.9 billion in 2007-08 to US$ 20 billion in 2013-14. The two sides have set the trade target of US$ 25 billion by end of 2015. India is the biggest buyer of Indonesia’s prime products: palm oil, coal and rubber. Indian companies have made significant investments in infrastructure, power, textiles, steel, automotive, mining machinery, banking and consumer goods sectors.
Mr. Saut Siringoringo, Consul General of the Republic of Indonesia, Mumbai making a presentation to the participants
Prominent Indian groups/companies such as Tata Power, Reliance, Adani, L&T, GMR, GVK, Trimex, Videocon, Punj Lloyd, CG Power, Madhucon, Spice, Aditya Birla, Bombay Dyeing, Jindal Stainless
Steel, ESSAR, TVS, Bajaj, BEML, Godrej, Balmer & Lawrie, SBI, Bank of India, etc. have established fullyowned subsidiaries/joint ventures in Indonesia. There are around 10,000 Indian nationals living in Indonesia including engineers, consultants, chartered accountants, bankers and other professionals. Robust trade relations between India and Indonesia encourage Indonesian companies also to invest in India under the ‘Make in India’ initiative,
A view of the audience
The Indonesian Trade Expo 2015, a flagship annual event of Indonesia will be organised in Jakarta during October 2015, wherein around 2000 exhibitors representing a cross section of sectors are expected to participate. This event is supported by the Ministry of Trade of the Republic of Mr S G Prabhakharan and Ms.K.Saraswathi with Consul General of Indonesia and other officials Indonesia. This provides an excellent of Indonesian Trade Promotion Centre opportunity to the industrial visitors to understand the product capabilities of Indonesia and explore business and investment that this will further strengthen our relationship. He opportunities. invited the Delegation from Indonesia to attend the Global Investors Meet 2015 to be held on 9th and 10th It is in this background that the Chamber joined September 2015. hands with the Consulate General of the Republic of Indonesia, Mumbai, Embassy of the Republic Mr. Saut Siringoringo, Consul General of the of Indonesia, New Delhi and the Indonesian Trade Republic of Indonesia, Mumbai while addressing Promotion Centre (ITPC), Chennai, in organising the participants, expressed his appreciation for the a Seminar on “Doing Business with Indonesia & Chamber’s efforts in organising this meeting. He gave Trade Expo, Indonesia ” on April 28, 2015 at Hotel an overview of the opportunities available in Indonesia Rain Tree. through a video presentation. He then proceeded to make a detailed presentation on “Doing Business with Mr. S.G. Prabhakharan gave the welcome address and Indonesia”. He also invited the Chamber to take a compared India and Indonesia’s GDP with relevant delegation to Indonesia to visit the Trade Expo. statistics and stated that both the country’s economic growth matched with one another. He informed that Mr. R. Anand, General Committee Member proposed in the recent years, the trade relations between the two the vote of thanks. countries have been increasing at a faster pace than The program was well attended by 60 participants. A what was anticipated. few participants shared their experiences of working The Trade Expo Indonesia which is due to be held with Indonesia. The queries raised with respect to in Jakarta in October is a big event and he urged the import and export procedures, were answered by the participants to take advantage of this Expo and hoped Consul General and, his team of officers.
Chamber’s Activities 16th May 2015
Diploma in Global Trade Management
he Madras Chamber and the University of Madras had extensive discussions regarding a C o u r s e o n G l o b a l Tr a d e Management to enable participants to get employment in companies in the supply chain, either Importer/ Exporter or service providers. The curriculum was prepared and the Syndicate of the University of Madras gave its approval to offer a Diploma Course in Global Trade Management under the University Industry Community Interaction Centre, University of Madras. Applications were called for and 17 persons had applied for the course which has commenced in May 2015. The Chamber, jointly with University of Madras (UNOM) launched the
The first class being conducted on May 16, 2015 for the participants
Diploma course in Global Trade Management formally at a function on 16th May, 2015. The course will be for 145 hours and would cover 4 Modules. Each Module will be for 28 hours. The courses will be on Saturday between 2.00 pm and 5.00 pm and Sunday 9.30 am to 1.00 pm at Department of Commerce, University of Madras. This course provides a unique opportunity for the members to train their executives, update their skills & practice and obtain a University Certificate that would add value and advantage for the working professionals as well as the sponsoring organisations.
18th May 2015
Conference on Make in India – Indo French Collaboration jointly with IFCCI, Chennai
he Chamber joined hands with Indo French Chamber of Commerce in organising a Seminar on “Make in India – Business opportunities between India & France” on 18th May 2015 at Hotel ITC Chola. The main objective of the Seminar was to have the French and Indian Companies share their views with regard to doing business in Tamil Nadu, the business strategies, the bilateral opportunities, infrastructure facilities and the skills available. Ms. K.Saraswathi gave the welcome address wherein she quoted the White
Mr.Atul Chaturvedi, Joint Secretary, DIPP, New Delhi, addressing the audience
Paper on French Companies in India, prepared by the French Embassy which states that “there are now 1051 establishments or French
entities in India which are linked to 394 major French conglomerates.” Mr. Philipe Janvier-Kamiyama, Consul General of France gave the inaugural address wherein he briefed about the French Companies setting up business in India, especially in Tamil Nadu and Pondicherry. He added that with the Make in India initiative, the business relations between the two countries would flourish. He expressed his appreciation for a first of its kind program in Chennai. Mr.Atul Chaturvedi, Joint Secretary, DIPP, New Delhi, in his address covered the various schemes of the Government which has paved way for the Make in India Initiative to attract more investments for the growth of the Economy. He added that the main objective of this initiative is to become job creators and not job seekers and it is targeted to domestic and foreign investors to invest in India in not only manufacturing sector, but also in services. He elaborated on the 4 pillars of Make in India, namely, Processes, Infrastructure, Investments and Mindset. Mr.C.V. Sankar , IAS., Additional Chief Secretary, Industries Department, GoTN made a detailed presentation on Tamil Nadu – An Opportunity beckons. He detailed the various e-measures taken by the State Government for the ease of doing business. Further, he gave statistics of Tamil Nadu’s strength in various sectors and explained the scope of business. He invited the Delegation from France to attend the Global Investors Meet 2015 to be held on Sept 9th and 10th, 2015. Ms. Laura Prasad, Secretary General, IFCCI felicitated the Chief Guests and thanked the Chamber for its support.
Mr.C.V. Sankar , IAS., Additional Chief Secretary, Industries Department, GoTN making a presentation. Others in the picture – L to R : Ms. K. Saraswathi, Secretary General, MCCI, Mr. Philipe Janvier-Kamiyama, Consul General of France, Mr.Atul Chaturvedi, Joint Secretary, DIPP, New Delhi, Ms. Laura Prasad, Secretary General, IFCCI and Ms. Merlin Simon, Regional Director, Southern Chapter, Indo-French Chamber of Commerce and Industry
Panel Discussion Speakers – L to R - . Mr. Nitin Seth - President (LCV & Defence), Ashok Leyland, Mr. Atul Renavikar - Site Director, Michelin Tyres Tamil Nadu Ltd., Mr. Arun Subramanian, Moderator, Mr. Bharat Salhotra - Managing Director, Alstom Transport India Ltd., Mr. S. Chandramouli, Business Head – International Business, TAFE Ltd. Mr. Denis Bauer - Managing Director, Areva Renewable Energies India P. Ltd.
The inaugural was followed by a Panel Discussion on Infrastructure, skill/manpower, Governance framework, Collaborations, case studies. Senior officials from French based Companies and Indian Companies shared their experiences with the participants. 1. Mr. Atul Renavikar - Site Director, Michelin Tyres Tamil Nadu Ltd. 2. Mr. Bharat Salhotra - Managing Director, Alstom Transport India Ltd. 3. Mr. Denis Bauer - Managing Director, Areva Renewable Energies India P. Ltd. 4. Mr. Nitin Seth - President (LCV & Defence), Ashok Leyland 5. Mr. S. Chandramouli, Business Head – International Business, TAFE Ltd. The Seminar was attended by 70 participants. There was a good interactive session after the panel discussion.
The Committee held its monthly meetings in April and May 2015 and discussed the following issues among other issues. The Committee’s guidance was sought for taking Vocational Training and Skill Development forward the activities of the Skill Development Centre Centre. he Committee was informed about the activities of the Vocational Training and Skill Development Suggestions were made to look into different workable Centre set up during the 175th year celebrations. The models to understand and develop an appropriate action plan is to offer Short Term technical Courses model for our Centre. One suggestion was to look at and Customized programs for the member industries this as a business model and have a credible partner and also vocational courses for different skills like to take forward the activities of the SDC, to make it welding, plumbing, electrical, tool and die, etc., for self-sustainable.
the youth. In addition, employability training for fresh graduates / students would also be offered under the Skill Development Project.
he Energy Committee had a meeting on 9th April and discussed about the future plan of action which includes promoting energy efficiency among member industries. Exploring possibility of providing solar training for 10th and 12th students drop outs, arranging for a field visit to Grundfos at their invitation to understand the Green Building Concepts were among the activities discussed under the Energy Committee.
flAsh nEws Intro: New Members
“We congratulate Mr. N. Srinivasan, Vice-Chairman & MD, The India Cements Ltd for the Company’s house Journal, COMPASS winning the first Runner- up award in the best coverage category in ICE Awards 2015 ( In house Communication Excellence) from Shailaja Nair Foundation, Mumbai, which instituted the award seven years ago”. Name of the Company
Sofgen India Private Limited
Skanda IT Consulting Pvt. Ltd T A Taylor Pvt. Ltd Shiloh Industries Pvt. Ltd Foress Impex Pvt. Ltd Valeth Hightech Composites (P) Ltd
IT/ITES Investment Portfolio Co. Trading & Consulting Trading Aerospace / Defence Products
Carvalho Associates LLP CIG Asia Business Services Pvt Ltd
Management Consultants Consultant – Management & Business
Udwadia Udeshi & Argus Partners. Argus Partners
Swap : (change in company’s name)
Polaris Financial Polaris Consulting & Services Technology Limited Mitsubishi Elevator Mitsubishi Elevator India ETA India Pvt Ltd. Pvt. Ltd.
Expert's Corner Expert Committees The Chamber has 14 Expert Committees with domain experts on varied subjects. They act as think tanks and assist the Chamber in proactively lobbying for business friendly policies both with the State and Central Governments, periodically discuss new policies and their impact on industries and commerce and prepare suitable representations, if needed to redress the grievances of the members. They also help in organizing seminars/workshops/round tables/conferences for the benefit of the members. The Committees also counsel and advise members on their specific issues.
this space for articles from these Experts in this feature Experts’ Corner.
Prof. Sriram, Chairman, Expert Committee – Education
A strong and a supportive set of investor bodies can nurture the startup hub a great deal and goes a long way in attaining success. We see a similar trend in Chennai where quite a lot of academic institutions are thriving with some of the brightest minds as faculty, and an equally good number of startups leveraging these strengths. The investor ecosystem is evolving too and the chances of re-creating the Silicon Valley story are quite likely.
Philosophy of Business Chennai and the Silicon Valley The startup scenario in Chennai has never been better. Time is ripe for us to take the leap and try and re-create the success of the Silicon Valley. It isn’t necessarily a first-in-the-history-ever attempt as several cities in the United States and certain other parts of the World have already tried to emulate the model and kissed failure. The problem is trying to emulate the model without a deep understanding of what caused Silicon Valley to what it is today. So what does it take to create a similar success story? What are the factors that facilitate a congenial startup ecosystem, and let it thrive and grow?
Overlapping Associations: Academic institutions played a key role in the initial stages of the Silicon valley. Two Stanford students named Bill and Dave were not only funded by their Professor Frederick Terman but also mentored by them. What started during the Great Depression as a little venture stands today as a global giant bearing the last names of its founders Hewlett and Packard. Another major association that is the lifeline for success in establishing a startup hub is the investors.
Another major pillar for the Silicon valley is the perfect mix of different elements affecting its operating philosophy. 8 major aspects that were revolutionary at that point, and that continues to make a profound impact in the startup ecosystem are: Openness: Openness and transparency breed trust among peers and at an organization level. This acts as a catalyst for motivation and improves productivity cutting all unnecessary issues arising out of lack of communication. Learning: Even to merely survive in the dynamic world of the technology, continuous learning is the only way. Learnings from ones own mistakes are the most beneficial to oneself and sometimes even others. Sharing Info: In the knowledge era, sharing is everything. What one shares, grows. It is evident from the Silicon Valley startups that firmly adopt this as part of their business philosophy. Co-evaluation of ideas: It’s all about ideas in the startup scenario. Brainstorming and co-evaluation of ideas goes a long way in translating them into products that make revenue. Flexibility: One of the key drivers of startups is the flexibility at an overall level. This enables them to adapt
Expert's Corner quickly to change and be dynamic as an organization. It also helps solve a lot of operational level challenges thereby nurturing a positive environment that is dynamic as well. Mutual feedback: Feedback isnâ€™t necessarily topdown, contrary to popular belief in the startup scenario. Often times, bottom-up feedback has set course in startups and given new direction to avenues they might have otherwise missed out. Fast reflexes: In a limitlessly changing environment, those who look for challenges and convert them into opportunities survive and the rest perish. The knack of turning a challenge into an opportunity is extremely important in this ecosystem. Speed and edge in sensing and pursuing new ideas: A constant approach to look for new ideas and opportunities and jumping in first to exploit it to its fullest extent is one of the key elements constituting success. Companies that impatiently pursue new ideas always gain an edge.
Culture and Vision Culture forms the DNA of a startup and largely determines its success. Some aspects of the Silicon Valley culture that make it what it is and can be emulated by an upcoming ecosystem like ours are: Knowledge Intensity: Breeding an inquisitive culture that is constantly in the quest for knowledge and stays affront helps a great deal in startup success. Workplace Mobility: It is very difficult to determine the growth rate of startups and it is hence very important to have a high-quality mobile workplace. This facilitates easy relocation depending on the growth of the organization.
Result-Orientation: Unlike established companies, the runway for startups is very less and it is hence important to achieve results in the shortest time possible. Building a highly focussed, result-oriented team is a sure shot way to achieve startup success. Rewards risk-taking and idea failure: Disruptive innovations happen in a clime of high risks. To mitigate the fear of failure and encourage taking calculated risks, rewarding risk-taking with a commensurate incentive helps a great deal. As a culture, it needs to be imbibed in the organization in order to create things that change the world which is practically what a lot of Silicon Valley companies do. Open Business Environment: A business environment that poses equal opportunity and does away with practices such as monopoly and other biases helps nurture healthy competition based on real merit. This bolsters the environment as such and helps startups coexist within their own spaces and raise their standards in terms of offerings. Collaboration: Collaborating with Governments and NGOs helps a great deal in exercising social responsibility thereby giving a bigger purpose for companies to exist that transcends beyond revenues and profits and other transactional things. Brand image boosting is another perk of these collaborations. High Quality Life/Specialised business: High quality life is what everyone aspires for. When that is a given, that helps directing all the focus to the mission at hand and reach newer levels of specialization in the business. A lot of these are already visible in our scenario and it is about time we pull up our socks and strive to recreate the Silicon Valley success story.
FACILITIES The Chamber has a conference room which can accommodate 25 persons which can be used as a training hall for a nominal rent. LCD Projector with screen is available for use. For more details, contact the Chamber vide email : email@example.com or call 044 24349452/24349871.
Expert's Corner R. Kulothugan, Chairman – Expert Committee on Environment, Pollution Prevention & Control Sr. Vice President, Orient Green Power Co. Ltd Green practices that maintain and sustain good environmental quality are increasingly becoming a vital component of economic competitiveness in India. Consumer awareness of detrimental effects of products on the environment, both direct and indirect, have prompted many companies to incorporate environmental measures in the manufacturing, administration, purchase, sales and other stages. Measures have largely concentrated on an expanded and inspired version of the original 3Rs: reduce, reuse and recycle. The Madras Chamber of Commerce and Industry, with the aim of extending a helping hand to the member industries to assess the green Practices followed by them, undertook the Green Practices Audit of one of the manufacturing units. The audit was conducted on 23rd April 2015 by an audit team of four formed by the Environment, Pollution Prevention and Control Committee of MCCI.
The key findings of the Audit team are:
Improvement in energy efficiencies
Use of renewable energy
Green Belt development
The unit is certified compliant under the Management system standards ISO TS 16949, ISO 14001, and OHSAS 18001. In general the unit has taken action on waste minimization and environment improvement.
Possibility of Energy recovery from process exhaust gas stream.
Reduction of Bad odour emanating from the process – Scrubbing with cold water and 1-2 % potassium permanganate solution is being practiced. Other possible scrubbing liquids based on alnalysis of gas are to be tried.
2. Immediate improvements Huge energy is being spent in the exhaust system by operating ID fans, separation equipment and scrubbing systems. Verifying the heat value of the process emissions will be helpful and if found not economical then employing Variable frequency drives for the ID fans can result in reduction of energy requirement.
3. Areas for more detailed study i.
The focus of this audit was to verify the practices towards environmentally responsible living through efforts towards, •
Most likely areas for attention:
Checking Process emissions for heat value and possibility of using the same if found potent which can result in huge power saving 1.
Through isolation of scrubbing system employed.
Substitution of electrical energy with internally available energy for heating purposes.
Studying the possibility of using thermic fluid heaters in place of electric heaters in the process.
iii. Measuring & Monitoring the power consumption pattern of individual processes to identify the most intense areas and to identify suitable alternatives. The unit team thanked MCCI for the audit and for the recommendations for improvement in hitherto unexplored angles, by the unit.
Expert's Corner J. Raghunathan, Co- Chairman – Expert Committee – IT/ITES Co – Founder, Knowledge Capital Investment Group
S (mall) M (edium) E (nterprises) Blues The world is witnessing an era when the Small and Medium Enterprises (SME) are growing successfully taking advantage of the overall business and economic development. The increase in revenues and profits of these SMEs in the recent year or two has been primarily due to the exploitation of the growth opportunities by well run companies. SMEs historically have been family run mostly or started by first generation technocrats who have found a market for their niche’ products and services. Starting small and for the first time, SMEs have been managed on frugal cost budgets and have been modestly profitable and running with low debts. With this unwitting financial discipline, SMEs tended to grow very well and when the next generation took over, the dynamism of the youth combined with the proven success model of the parent which is cautious optimism, their advancement in revenue terms have been virtually a foregone conclusion. Come the millennium, these SMEs were faced with the task of automating their processes to funnel future growth and to move into the next quadrant scale. Cash-rich SMEs unhesitatingly went in for wholesale automation of their processes which very soon started giving them the benefits as they could now better service their customers, who are often big OEMs or multinational corporate. Those “not-so-cash –rich” SMEs who were managing with disparately automated processes started experiencing roadblocks in their customer servicing and began facing difficulties. Their demand planning went awry, response times delayed, order fulfillment getting sluggish and so on which led to them being challenged by their customers with cancellation of orders and eventual loss of business. With the inevitable example of the fruits of integrated automation, these SMEs started looking for cheaper alternatives in automation. The easy pick-ups were the middle of the road software outfits which flaunted their own home grown solution as an “affordable ERP” and lo! SMEs fell into the trap! The result, instead of the expected fully automated processes,
was the half baked information systems which did not produce accurate results and if they did, it was well beyond the time when decisions ought to have been made. While these SMEs did spend only 0.6x of the cost of a proper integrated information systems, they actually lost more than x in the form of lost time, increased management effort to resolve conflicts, wrong data and hence poor decisions and their consequences. The psyche of these SMEs to minimize spending on IT led to an unenviable situation of sub optimal performance which threatened to snowball into business derailment as the customers started demanding more for less. The today and tomorrow of business is still rosy for the SMEs but only for those who have the vision of identifying the benefits of integrated information and its value to their business. All the software product majors like SAP, ORACLE, Microsoft and many others have invested substantially in products that cater to the integrated information needs of the SMEs at affordable prices. These solutions, popularly called ERPs of the mid market, address the wholesome needs of these SMEs and need to be implemented “as is” to leverage the benefits of best business practices. Often, implementation of great products also fails and easily the blame falls on the product with the implementer going scot free. The SMEs implementing such a solution should carefully select the implementation partner and dedicate an internal team for a period of 6 to 9 months to see the implementation through. Often the process of implementation gives the benefit of educating a few of the internal team members on the ERP who in turn can subsequently champion the success of the solution. This would minimize the dependent on the external implementer and make the SME self reliant. The risks are that the trained employees may opt for an IT career and leave the company but then the automation process and the streamlined way of working would bring down people dependence and help to reduce the shock of attrition. With the telecom growth, falling costs of IT products and the growing awareness of the internet, it is very important for the SMEs to select and implement a suitable ERP which would integrate their business processes end to end. Such an automated enterprise would be better placed to manage its customer expectations and hence chart out its growth in a planned and disciplined manner.
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In thE pIpElInE Forthcoming programs 16.06.2015
Training Program on Managing Industrial Venue : MCCI Conference Room Relations in a Dynamic Business Time : 10.00 am to 5.00 pm Environment
Seminar on Works Contract – Taxing Venue : Hotel Savera, Dr.Radhakrishnan Salai, Ch-4 Principles and Issues Time : 9.30 am to 5.00 pm
Interaction Meeting with PF Commissioner Venue : Hotel Savera, Dr.Radhakrishnan Salai, Ch-4 – Recent Initiatives by PF Dept. Time : 3.00 am to 5.30 pm
Discussion Meeting on Company Venue : Hotel Savera, Dr.Radhakrishnan Salai, Ch-4 Amendments Act 2015 Time : 10.00 am to 5.00 pm
MCCI 179th AGM
10.07.2015 & 11.07.2015
EXIM Conclave – 3rd Cargo Scope Venue : Chennai Trade Centre 2015
28th July to 2nd August (tentative)
MCCI Delegation to Korea
Venue : Hotel ITC Grand Chola, Guindy, Ch-32. Time : 10.00 am to 01.30 pm
ChAmbEr In thE nEws
Introduction of Real Estate Investment Trusts (REITs) as an eligible financial instrument / structure under Foreign Exchange Management Act (FEMA) 1999 The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to allow the Real Estate Investment Trusts (REITs) as an eligible financial instrument / structure under the Foreign Exchange Management Act (FEMA) 1999. The approval is expected to enable foreign investment inflows into the completed rent yielding real estate projects, which is, as of now, prohibited under the FEMA Regulations. As a result of this decision, entities registered and regulated under the SEBI (REITs) Regulations 2014 will be able to access foreign investments which as of now are prohibited under the FEMA Regulations. The intent of introducing the instrumentality of REITs is to reduce pressure on the banking system to which the real estate sector looks for funds, free up existing funds of Banks and to encourage construction activities. REITs while attracting long term finance from foreign and domestic sources including NRIs would make available fresh equity to the sector.
Steps to Encourage Investments in Port Sector Government has taken several steps to encourage investments in the port sector including the following: (1) 100% FDI under the automatic route is allowed for Port development projects. (2) Port Sector has been given infrastructure status. (3) Bidding documents like Request for Qualifications, Request for Proposal and Concession Agreement have been standardised for Public Private Participation (PPP) projects. (4) The Tariff Guidelines for Major Ports have been revised giving more flexibility to the PPP operators to respond to market conditions. Discussions have been held with all coastline states including Gujarat while formulating perspective plan for development and modernization of Ports, namely, “The Maritime Agenda 2010-2020”. Further, discussions have also been held with the coastline states while formulating the Sagarmala Project which
what’s happening? is aimed at a comprehensive development of ports, port led development of the hinterland and efficient connectivity.
Use of New Power Technology An Advanced Ultra Super Critical Technology R&D Project has been approved by Government at a cost of Rs.1500 Crore involving BHEL, NTPC and Indira Gandhi Centre for Atomic Research (IGCAR) for enhanced efficiency of thermal generation. The objective of the scheme is to achieve higher efficiency, reduce carbon-dioxide emissions and reduce coal consumption for coal based power plants. The R&D work for the programme is carried out under the overall supervision of the Principal Scientific Advisor to the Government of India for certain pre-project R&D activities.
MSME-Samsung Digital Academy to offer young students a skill development course The Ministry of Micro, Small and Medium Enterprises and Samsung India signed an agreement to open MSME-Samsung Digital Academy, to offer young students a skill development course based on the Tizen OS Platform. As per the MoU signed by Mr. Amarendra Sinha, Development Commissioner, MSME and Mr. HW Bang, Senior Vice President Samsung India Electronics, the company will offer the Digital Academy course in collaboration with the Ministry and will seek to train youth on developing apps that run on the Tizen OS across a multitude of devices such as smart phones, televisions and tablets. In its first phases the Samsung Digital Academy will be rolled out across the 10 MSME-Samsung Technical Schools which have been set up by Samsung and MSME Ministry following an MoU in August 2014. Each of these schools will run a four week long course in batches of 30 students. The programme will eventually be scaled up to include 68 other MSME Technical Centre across the country as well as Indian Institutes of Technology (IITs and IIITs) National Institute of Technology (NITs), and other key institutes of technical education and engineering in India. The joint initiative is expected to help train approx 10,000 youth every year. These trained youth will have the opportunity to find placement in various
appliances manufacturing organizations including Samsung.
Agreement between India and Jordan on maritime transport The Union Cabinet gave its approval for signing of a shipping agreement between India and Jordan. Recognizing the significant mutual benefit that can be derived from cooperation in the area of shipping between the two countries, it has been decided to sign the agreement with a view to strengthening cooperation and to provide sustained mutual assistance and advice on merchant shipping and other related maritime matters. Signing of the Agreement will help both countries in encouraging and facilitating development of their maritime relationship and cooperation in the task of enhancing and stimulating steady growth of maritime traffic. The agreement will also help in exchange and training of staff and students from various maritime establishments, exchange of information necessary for
accelerating and facilitating flow of commercial goods at sea and at ports, establishment of joint ventures in maritime transportation, shipbuilding and repairs, maritime training, information technology, including development of simulators, port facilities and related activities.
Government Allows NHAI to Issue Tax Free Infrastructure Bonds Government has allowed National Highways Authority of India (NHAI) to issue Tax Free Infrastructure Bonds aggregating to Rs. 24000 crore and Capital Gain Tax Exemption Bonds aggregating to Rs. 4000 crore in the financial year 2015-16. Ministry of Finance, Department of Economic Affairs has conveyed their in-principle approval for issue of Tax Free Infrastructure Bonds on April 17. However, no such concurrence is required for issue of Capital Gain Tax Exemption Bonds. Tax Free Infrastructure Bonds to be issued by NHAI is likely to be having tax benefits under section 10(15) (iv) (h) of Income Tax Act 19.
Key eConomiC indiCators May, 2015* growth rate of gVa at basiC priCe at Constant (2011-12) priCes (in %) Industry
2012-13 2013-14 (NS) (NS)
Mining & Quarrying
seCtoral share in gVa at basiC priCe at Constant (2011-12) priCes (in %) Industry
Mining & Quarrying
Electricity, gas & Water Supply
Electricity, gas & Water Supply
3. Services GVA at basic prices
2012- 2013-14 2014-15 13 (NS) (NS) (PE)
3. Services GVA at basic prices
Source: Central Statistics Office. NS â€“ New Series Estimates
PE â€“ Provisional Estimate
* Central Statistics Office has revised the base year of National Accounts from 2004-05 to 2011-12. Also changes were made in Gross Domestic Product (GDP) reporting. GDP at factor cost will henceforth be presented as Gross Value Added (GVA) at basic prices for Industry-wise estimates.
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April - May 2015