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PERSONALITY

P V Mathew -- the visionary trade unionist

The society for houses for Federal employees was another feather in his cap. He was the founder President of the Federal House Construction Cooperative Society which begot Federal Park at Ernakulam, Federal Gardens at Aluva, Federal City at Angamaly, Federal Village at Aluva and the upcoming housing projects at Aluva and Thiruvananthapuram. Mathew had had a bright academic career. He passed the SSLC exam as a top scorer, BCom with the first rank and took the law degree. He also passed the CAIIB and was among the selected few in the foreign exchange test conducted by the bank. A good orator, he used to win several state-level prizes and accolades in elocutions and bagged the `Deepika’ Jubilee Educational Excellence Award, `Nam-

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ecause of its widely known vibrant trade unionism, Kerala is often labelled an unfriendly destination for investors. The movement has catapulted many political leaders to the citadel of power. But few organizations can claim a trade union leader having the status of P V Mathew, who is a stalwart of positive trade unionism with a social commitment and with the growth of the institution and prosperity of those working in it as his goals. So his retirement creates a great void in the trade union movement in the field in which he is working - the banking industry. Mathew joined Federal Bank as a graduate trainee and served different branches before becoming Manager in the Corporate Planning Department at the head office. He had led the Federal Bank Officers’ Association (FBOA) for 26 years as General Secretary and is bidding adieu to the bank after 38 years of service. Elected all-India Joint Secretary of FBOA in 1981 at the age of 27, he became its General Secretary at the age of 33. He continued to hold the position of General Secretary of the association with all honour and glory as the undisputed guiding spirit of nearly 4,000 members of different languages, regions, religions and creeds till the last day of his service in the bank making it one of the exemplary trade unions in the country. His visionary approach, farsightedness, great organizing skill, oratorical talents, negotiating ability and unassuming nature nurtured new hopes and desires in the minds of

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people. Mathew was a troubleshooter at times of turmoil in banks. For 23 years from 1989 Mathew had served as General Secretary of the All India Private Sector Bank Officers Federation. He had been Deputy General Secretary, Vice-President, Senior Vice-President and negotiating team member of the All India Bank Officers Confederation of 2.5 lakh officers of the State Bank and public sector and private sector banks. He had also taken the lead role in organizing several struggles in other traditional private sector banks in the state especially in Dhanlaxmi Bank, Lord Krishna Bank, Nedungadi Bank and Catholic Syrian Bank. The struggles undertaken by FBOA have become a great inspiration to all the bank officers in the country irrespective of the bank they work in enriching their dignity and self-respect. There was no parallel for his struggle against the RBI directive to work on Easter Sunday in Kerala. He proved his mettle in organizing the RBI march against rising NPAs, unethical outside appointments and the step taken to rename Thynothil Road as FBOA Road in front of FBOA. The Federal Institute of Science and Technology (FISAT) is a novel and bold experiment in the technical education sector, perhaps the first in the world by a trade union. Mathew was the founder General Secretary and the founder Chairman of its governing body.

Nov 15 - Dec 15, 2013

mude Malayalam’ Magazine Award and Stallions International Outstanding Personality Award . He is a board member of Angamaly Little Flower Hospital and member of the Fedbank Hormis Foundation Trust. Having become General Secretary of `Deepika’ Children’s League (DCL) at the age of 14, he was one of the editors of `Kuttikalude Deepika’, children’s magazine in Malayalam at that time. The first of seven children of the late Mathen Varghese and Ann Maria, Thekkevallyara Puthenpeedikayil at Thycattussery near Cherthala in Alappuzha district, Mathew married Philo K, Assistant Manager of the bank. They have two daughters - Meera Ann, a BTech and an MBA, Business Consultant, IBS, Bangalore, and Dr Minu Liz Mathew


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From the Editor Waterways must be used for transport

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t is heartening to hear the Chief Minister say that passenger ships would start service in the state very soon (“even this year”). Mr Oommen revealed this during his inaugural address at the launching of the Coastal Shipping Project at Kollam the other day. He also said that the Kollam-Kottapuram National Waterway-3 would be commissioned on January 1. Kudos to the Chief Minister. Better late than never. Editor & Publisher

Varghese Paul

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Keethara Publications Pvt Ltd 38/125 1st Floor, Narakathara Road, Kochi-682 035, Kerala, India. Editorial

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As the Chief Minister himself said, Kerala has not tapped even 5 percent of its water bodies. In its October 31-November 30, 2011, issue, PASSLINE had as its cover story ‘Why not a Metro Waterway for Kochi?’. It narrated the need for a comprehensive plan for the development of water transport in the state, particularly in Kochi. Relentless increase in the number of vehicles over the past few years and narrow and potholed roads conceived and built decades ago are slowing down the pace of development and growth of Kerala. It is inevitable in these circumstances to think of an additional, if not alternative, innovative, environment-friendly mode of transport. A voyage through our canals and backwaters watching nature’s beauty spots will be an exhilarating experience. Besides being non-polluting, such journeys will always be pleasant and smooth. All it requires is the development of waterways. NATPAC has already made a comprehensive study of the feasibility of emerging waterways in the state. The study clearly shows that we can develop this alternative traffic system at a comparatively low cost. If the Kochi metro rail project needs nearly Rs 5,500 crore the waterway project can be completed with a mere Rs 160 crore, the study reveals. Waterway projects have always been ignored by the authorities for various reasons. While bureaucracy is the main culprit, intervention by the road mafia is also a major factor behind the sector remaining undeveloped. Some critics say that cargo movement will adversely affect the purity of water because of possible leakage. But many countries use waterways to move cargo from one place to another considering its feasibility as well as safety. It is also possible to carry hazardous materials on special routes particularly marked for them. The length of waterways in Kerala is estimated at 600 km between Thiruvananthapuram and Kasargod. The whole state can be connected through waterways if the authorities are ready to explore the possibilities fully in a time-bound manner with will and determination. Let us hope that the Chief Minister’s Kollam declaration will be a harbinger of an additional, alternative, innovative, eco-friendly mode of transport fulfilling the longstanding demand of the people on the state.

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INBOX

Poll gimmick

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n order to prop up banking services the Government is announcing capital infusion of crores to banks to reduce interest rates on lending for two-wheelers and FMCGs. This step will surely stimulate sales of bikes and consumer durables so that automobile and banking circles can do brisk business and shares of automobile and FMCG companies will go up. The new Government directive will help the automobile companies and youths directly. Indirectly, the other sectors remain passive onlookers. Pushing funds to one sector does not create employment or beef up economic growth. Shortly after P Chidambaram took over as Finance Minister, leaving the Home portfolio, he had announced pumping of nearly Rs 15,000 crore to the banking sector facing liquidity crisis then. Whether the banks received the funds or not is not known. However, what happened after that was that the country’s economy came almost to the verge of collapse. Inflation went up. CAD widened. GDP fell. The rupee depreciated. After several ameliorating measures the weak economy has started warming up.

Investment pep

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udos to PASSLINE for providing data on Kerala’s Growth Companies which have presence outside the state and tie-ups with global giants. A few companies in the series have been facing problems caused by frequent trade union stirs forcing them to even plan to shift their headquarters outside the state. The best example is Kitex Garments established at Kizhakkambalam near Aluva which has been hit hard by trade union militancy powered by political foes.

Meanwhile, Assembly elections in five states--Chattisgarh, MP, Assam, Delhi and Mizoram— are to take place in November-December as also the Lok Sabha elections are round the corner so that more and more sops are in the pipeline from the Government for the gullible people. What I suspect is that all this liquidity faux pas is only an election gimmick.

The latest company that appeared in the columns is Apollo Tyres (Sept-Oct issue). Though headquartered in Gurgaon, Haryana, it was a company ridden with frequent strikes and lockouts, especially at its Perambra, Kerala, unit. Besides making profitable growth it has many firsts to its credit. It is interesting to note that all these companies’ performance profile indicates that their path to success has been or is no cakewalk.

V Srinivasan, Madura

Sarath A S, Kollam

Cheapest canteen at 1st pillar of democracy

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e all know that the Government provides subsidies for Parliament members. The subsidies involve telephone calls, air and rail fares, housing, water, electricity, personal assistants and food at the Parliament canteen. The parliamentary menu throws light on the dishes our MPs fill their plates with. A vegetarian thali comprises dal, subzi, chapatis, pulao, curd and salad. All of this is available only for Rs12.50. Yellow dal, considered to be the poor man’s food in India, costs just Rs1.50 for a single bowl. While the low costs make the desserts sweeter than they are, a bowl of kheer costs only Rs 5.50 at the parliamentary food haven. Similarly, a small fruitcake costs Rs 9.50.

Parliament canteen as there has been no price increase for the food served since 2010.

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Clean currency notes

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he Reserve Bank of India (RBI) has said that banks will not accept currency notes with something written on them. This practice comes into effect from January 2014. Though the practice of inscribing or scribbling on currency notes by bank staff was banned by the central bank quite earlier. Only by the beginning of next year will the public become part of exchanging clean notes.

Parliament

The last revision of the rates of food items served in the Parliament canteen was made three years ago. The rates were revised three times (2003, 2009 and 2010) in the last 13 years (the last revision was on DecemMenu and rates ber 14, 2010). According to official Fish curry & rice : Rs13 Tea : Re 1 sources, the Northern Railway Tomato rice : Rs 7 Soup : Rs 5.50 is providing catering facilities in Fish fry : Rs 17 Dal : Rs 1.50 Parliament House on no-profit, Chicken curry : Rs 20.50 no-loss basis and the losses if Veg thali : Rs 12.50 Chicken masala : Rs 24.50 any are met from the budget alloNon-veg thali : Rs 22 Curd rice : Rs 11 cation of the Lok Sabha and the Veg pulao : Rs 8 Rajya Sabha secretariats at the Chicken biriyani : Rs 34 2:1 ratio. During the financial year 2000-01 the loss incurred for running the House canteen was Rs 2,46,65,411.92 These, which should be available for poor which has increased with each passing year and people, are available for those who draw a salin 2011-12 the total loss or subsidy claim to run ary of nearly Rs 80,000 a month. The Governthe canteen was Rs11,94,57,441.59. ment bears a daily loss of Rs 3,31,826 to run the

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The story of Nitta Gelatin is also not very different though the issue is polluted water and trade union politics backed by unwary locals. The Japan-based multinational, however, has the power and pelf to withstand any untoward happenings and to survive and grow in places where they have set up shop.

Writing or scribbling on notes is a practice that prevails only in India though you won’t get a currency note with something written on it from ATMs. Have you ever seen a dollar, pound or any other foreign currency note with handwritings or ink marks on it? The apex bank circular pointes out that in certain branches of banks, the practice of writing/scribbling on the body of bank notes continues. Under the present system of mechanized processing of bank notes, inscription or scribbling on any part of them would render them to be classified as unfit for reissue. Accordingly, such bank notes get treated as soiled notes and cannot be recirculated


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REALTY

Passline News Service

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sset Homes, a trustworthy brand among builders in Kerala, has many accolades to its credit. During the short span of seven years, with 35 projects and 20,000 units Asset Homes stands out with the highest number of handovers. It is its strength to always be innovative and to be the first one. Having the first project with seven-star rating, the first one with a sustainable water management system, Asset Homes adds one more significant feat to this remarkable list. Asset Homes is joining hands with Kudumbasree Mission as a nodal agency to assure excellent maintenance to its multi-storeyed buildings and gated communities. Trained members of Kudumbasree will provide services in maintenance, security, catering, cleaning, garden care and waste management. This unit will take care of the day-to-day operations of new-age facilities like lift, generator, swimming pool, health club and sewage treatment plant. It is Asset Homes itself giving extensive training to these women on building maintenance and care. Presently Asset Portico, a premium townhouse of Asset Homes at Kadavanthra, Kochi, is maintained by a 10-member team of Kudumbasree. They are planning to extend the programme to 500 multi-storeyed buildings in the state. Thus, Asset Homes, the responsible builder, is widening its responsibility towards the customer as well as society. It does have ‘Asset Care’, a wing for customer care, which provides outstanding customer service. “When we incorporate Kudumbasree into our maintenance team, we are recognizing the State Government’s women empowerment programme. Indirectly we are empowering these marginalized women and offering job opportunities to them”, says V Sunil Kumar, Managing Director of Asset Homes. By December 2013, Asset Homes will hand over 35 projects within a short span of seven years. Already 20,000 units have been sold out; around 30 lakh families are considering it as their true assets. This year it is going to dispense seven esteemed projects in Kerala, all situated in major towns/cities, such as Aluva, Chottanikkara, PalarivattamKochi, Thrissur, Kollam and Thiruvananthapuram. Ulti-

mately. It is the vision and aspiration that drove the builder with a proven track record, there is no need company to such huge success in the real estate for apprehension. They wholeheartedly welcome this market. For the company, sluggishness, recession bill, because, they believe, it will make them cleaner or depreciation would never affect a brand which and healthier in their field.Having K Anil Varma as is based on a clear vision and accurate system. the Executive Director, eminent men on the Director “Any builder who can offer a range of products, with Board, 166 staff members and around 1,700 workchoice of location and choice of price can have busi- ers, Asset Homes considers teamwork as the founness in the realty sector;” says Sunil Kumar. “And the dation laid for achievements. It aims at a turnover of Kerala market is entirely different from the national Rs 2,000 crore by 2020. Beyond this magic figure, market. Whatever may be the scenario in the national market, in Kerala a builder can achieve 25%Asset Casa Grande, ultra luxurious fully furnished lake front 30% of business.” He says that the boutique sky villas at Thevara, Kochi, promoted by Asset Homes, depreciation of the rupee is equivaone of the largest real estate companies in Kerala, has won CRISIL lent to 20% increase in the income 7 Star Rating, the topmost among the coveted real estate project of NRIs. That will influence and reratings in the country. Asset Homes becomes the first-ever builder flect in their investment decisions. in the state with two projects which have won CRISIL 7 Star ratings. While planning a new project, Asset Casa Grande is the 29th completed project of Asset Homes within Homes keeps in mind five brilliant six years of its inception. “Now, on the successful completion of ideas to implement - location of the Asset Casa Grande, we are getting ready to announce a few more project, accessibility of the building, projects in Kochi, Thiruvananthapuram, Kollam and Guruvayur,” space allocation, price range and added Sunil Kumar. architecture. Asset Homes, as part of its business diversification strategy, “To find out an emerging location have also forayed into Industrial and Corporate Infrastructure Deis the most important criterion, says velopment Sector. In its new venture (Contracts Division), Sunil Kumar. In a vital location, like Kakkanad in Kochi, it is not wise to go with a number of projects. If the number of projects is large, the demand will be low and that will affect the net profit, Sunil Kumar says.” The same is the case with price range. In Kerala, the highest demand is for flats around Rs 40 lakh. But a brand with a sustainable growth strategy cannot attain success with such a limited range of projects. So they sketch plans for medium to premium, luxurious Anurag Jhanwar, Director, Real Estate Ratings, CRISIL handto super-luxurious apartments. ing over the 7 STAR rating citation to V Sunil Kumar, Managing Without compromising quality, AsDirector and Anil Varma, Executive Director of Asset Homes. With set Homes is destined to deliver its this, Asset Homes has become the first ever builder in the state to projects on time. have won the CRISIL 7 Star Rating twice.

7 Star Rating twice

To propagate the idea of water conservation it has implemented Asset Homes has secured an award of contract with Petronet sustainable water management LNG Ltd for the execution of interior and allied works for the Commethods in its projects. The ‘3 C posite Building and Reception center at the Kochi Petronet LNG water model’has been introduced Terminal worth Rs.35 cr. in ‘Asset E-scape’ in Kochi, the first Recently, Asset Homes handed over keys to 408 digital apartapartment in Kerala having water ments spread in six towers at Asset Signature, its newest launch flow restrictors. Apart from having in Thiruvananthapuram. This is its 28th completed project which rain water harvesting and water has ‘seven-star’ rating from Crisil. It features all the new-generarecycling systems, Asset Homes tion facilities such as Wi-Fi connectivity, biometric entry system, is now installing water flow restricvoice-over internet protocol, digital protection system, video door tors which is a state-of-the-art dephone and digital cable connection Maintenance works at the newvice to reduce water flow in all its ly launched Asset Signature in Thiruvananthapuram will also be upcoming projects. In all these handled by Kudumbasree Mission. apartments, using a testing kit, the residents themselves can test and assure the quality of the water they are using. there lies the biggest dream, which is to become the most reliable brand in the realty sector of India. The According to Sunil Kumar, the Real Estate Regulateam at Asset Homes has titled this dream ‘Vision tion and Development Bill 2013, which was presented 2020’. Obviously the path is customer-centric and in the Rajya Sabha, will be a boon to the customer as target-oriented, with a sustainable strategic growth well as the trusted builder. For the customer, he is asplan sured of having a legally valid flat. For a responsible Nov 15 - Dec 15, 2013

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cover story

It’s a mall, mall, Passline News Service

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n the 1990s people used to visit cinema halls or parks or attend functions with family or friends to while away the time. For shopping, there were traditional/local shops that sold just one kind of merchandise - shoes, clothing, cassettes, provisions, books or stationery. There were places for raw items like meat and vegetables. By the turn of the 2000s there arose a different type of shops called ‘margin-free’ markets/outlets. The elite in society preferred to visit these shops for their daily essentials. Margin-free outlets failed to create a new culture as they skipped many things ordinary buyers wanted. With the advent of the high-tech age, the attitude of the people to entertainment and shopping changed as abundant amenities and gadgets became available. Today most families in Kerala own a vehicle, have reasonable incomes and manageable numbers of kids.

As a result we have embraced a shopping culture which suits our style and speed in life and which has put excitement into the humdrum business of shopping. It is interesting to see Keralites, once against the mall culture, turning its protagonists. `A holiday in a mall’ has become the routine of the average Keralite family, resident or non-resident. The pleasure of shopping at malls compensates for the dullness in life. With the people embracing the new culture with enthusiasm, a major part of their lives being spent at malls eating, watching films, window-shopping or just hanging out, a plethora of malls have come up - large, mediumtype and small in cities and towns. The cool and cosy ambience inside them makes them places for entetainment, besides shopping. The fact is that most people, rich or poor, today prefer malls, as they offer them a variety of products under one roof in an

f malls and o r e b m u n a s a Kochi h ng, replacing ffi o e th in re a re many mo which cannot s re o st p o p d n a the mom nt retailers in ia g f o y tr n e e digest th managed by re a s ll a m e h T t. e the mark ut most of the b ls a n io ss fe ro p f teams o ops are mansh l a c lo d o o rh u neighbo are their livelih ic h w s ie il m fa aged by rning to realize a le w o n re a y e h hood. T slaught of the big n o e th e iv rv su that to n their shops weellr ru to e v a h y e th , retailers asking for bett re a rs e m o st u c ’s as today n atmosphere. a le c e e fr tir d a brands in

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Nov 15 - Dec 15, 2013

air-conditioned ambience where buying and gaming go in tandem. Kochi has a number of malls and many more are in the offing, replacing the mom and pop stores which cannot digest the entry of giant retailers in the market. The malls are managed by teams of professionals but most of the neighbourhood local shops are managed by families which are their livelihood. They are now learning to realize that to survive the onslaught of the big retailers, they have to run their shops well as today’s customers are asking for better brands in a dirt-free clean atmosphere. Lakhs of people throng the shopping malls every day for a pleasant shopping experience. Malls have become a favourite rendezvous for youths. The malls in Kochi are Lulu, Oberon, Centre Square, Abad Nucleus, Gold Souk Grande and Bay Pride. Lulu is one of the biggest malls in India which started its business in March 2013. There are malls in Kollam and Kozhikode, and other districts will also get them soon. Oberon Mall, Kerala’s first, which is promoted by the Oberon Group of Companies. showcases national and ainternational brands and has food stores and entertainment options. It is spread across more than 3,50,000 sq ft. “We’ll have a face-lift soon,”says Sureksha, the Marketing Head. “We have successfully completed five years and today have footfall of 13,000 per day. This increases at weekends,” says Joji John, Centre Manager. Joji John says that the Oberon Group has now appointed Beyond Squarefeet Pvt Ltd, India’s premier boutique mall advisory company, for reorientation, marketing, leasing and mall

management. Beyond Squarefeet provides solutions to mall development and mall management and provided these services to many malls in the country. Its current projects include Logex City Center and DLF Mall of India (Noida), Lulu International Mall and Oberon Mall (Kochi), Omax Connaught Place (Greater Noida), CG Mall (Nepal), Gokulam Galleria (Kozhikode), RP Mall (Kollam), Lonavla Square and K10 Mall (Maharashtra) and Aashima Mall (Bhopal). ``Malls should have a loyalty programme for maximum participation by customers and for better management of the mall sales people who should be punctual in all ways and should behave well towards customers. Many brands of dresses and varieties of food and multiplexes should be there in a mall. The unique selling proposition (USP) of a mall is good parking facility, food courts, game section and a better ambience. The main difference between a mall and local shops is that we have good parking facilities, all types of brands and excellent dealings with customers. We also have everything in the vicinity. Visual merchandise should be there to attract, engage and encourage the customer to make a purchase,” says Joji. Lulu Mall, located at Edapally, is the biggest mall in Asia with 25 lakh sq ft spread across 17 acres and 5,000 employees. Equipped with the most modern facilities and services, the mall has many international brands in luxury and lifestyle, a well-furnished food court that offers a variety of cuisine, dine-in outlets, coffee shops, money exchange counters, a 22,000sq ft family entertainment zone, a 5,000-sq ft ice rink, prayer halls, babycare rooms and more. It has already become the favourite shopping destination for residents and tourists alike.


mall world ``We are going to introduce Splash, the largest fashion retailer and one of the biggest retail conglomerates in the Middle East, and Calvin Klein, a fashion brand,” says Shibu Philip, Business Head. “We are getting footfall of more than 15.5 lakh per month. Lulu Marriot, a five-star hotel bordering the mall, will be opened by January next. The hotel has 300 rooms. The 20-storeyed property will offer royal and executive suites with international standards, multi-cuisine restaurants, swimming pool, coffee shop, spa, privilege club facilities etc,” says Shibu Philip. He says the mall has exciting offers for

Capital Fund and the Peevees Group. P V Abdul Wahab, an industrialist with business presence in India and Middle East countries, is the owner and promoter of the Peevees Group. The daily footfall is 20,000 to 25,000 which increases during weekends, according to the mall. Bay Pride Mall, an exalted creation of Abad Builders situated alongside Marine Drive, has leading brand shops, such as Metro, Brandz, Bata, Levi’s, Welspum, Fila and Koutans, and a big food court with different recipes and brands. “Daily 5,000 to 6,000 people come here just for amusement”, says the management.

Kochi definitely lacks infrastructue though it has the money. In the city proper there are limited facilities as its roads are narrow and congested. This will worsen its already bad traffic problems. The solution is to locate new malls on the outskirts of the city. Christmas. It will also be a part of the Grand Kerala Shopping Festival, Kerala’s largest shopping festival. Centre Square Mall, located on M G Road, is an entertainment destination spread across five lakh sq ft and showcases the finest in Indian and international fashion, a hypermarket, 11 multiplexes, gaming zone and food court with varied options. It has parking space for 500 cars and 500 two-wheelers. It is a joint venture between Kshitji Venture

“People who come to Marine Drive also visit our mall,” they say. Gold Souk Mall, part of the Gold Souk chain of malls located all over the country and a brand of Gurgaonbased retail and property developer Aerens Gold Souk Group, is the firstever mall in South India to be themed with the idea of wedding. Gold Souk too has a multiplex, game zone and food court and also hosts the first KFC outlet in Kerala.

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Abad Nucleus Mall at Maradu is India’s first LEED (Leadership in Energy and Environmental Design)-certified gold-rated green mall. It houses shops of all leading brands and has a food court, gaming area and a 24seat 6D theatre. A number of other malls are also slated to come up in the city, work on some of which is progressing. Malls are also being startedin several other places. Studies show that there has been a 30% drop in traditional marketing indicating a shift to mall shopping. The state has embraced the mall culture as malls offer a better form of retail therapy which today’s overstressed and busy working people need. No longer need they shop from different places as malls offer everything that they require. People are also fed up with the heavy traffic and dust in our cities and towns. Do our cities and towns have the spending power, the numbers and the infrastructure to sustain the stupendous growth expected in the number of malls? “We must watch how our cities are growing and how the state is developing. Undoubtedly there are places like Kozhikode and Thiruvananthapuram as also some smaller cities and big towns which can accommodate either more malls or start new ones. Kochi definitely lacks infrastructue though it has the money. In the city proper there are limited facilities as its roads are narrow and congested. This will worsen its already bad traffic problems. The solution is to locate new malls on the outskirts of the city. But India as a whole is catching up with the world where the mall culture is concerned. So there is every chance of Kerala having 10 times as many malls as we have today in a few years from now,” says an expert

Nov 15 - Dec 15, 2013

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8

CREATORS

In pursuit of newer technologies

By R G Gireesh

“W

e dream of a day when the sun sets at dusk in the valley, it would rise to see the dawn of Silicon Valley in India”. Displayed on the walls of Startup Village at Kinfra Park, Kalamassery, Kochi, this quotation is not just inspirational; it’s a positive wave which will soon hit Kerala. The anti-investment sentiment in the state will see a progressive change reflecting on its economic status. Already there are signs of youngsters providing jobs for others in their companies. What is encouraging is that the number of job creators is becoming more than job seekers. Startup Village is a platform of the new trend, the spurt in the number of companies there underlining it, with more than 300 havlng commenced their operations. Our educated youngsters have started showing their talent and creativity. Today every professional college has an incubator or similar facilities to encourage and develop its students’ innovative skills. Startup Village will provide facilities and support for entrepreneurs at their budding stage. Students from rural areas can incubate their ideas there. It was Asha Jadeja Motwani, venture capitalist, who started the initiative S V Square, meaning ‘Startup Village to Silicon Valley’, on

Vijith Padmanabhan: Son of K Padmanabhan, Senior Manager, Syndicate Bank, and M Sreekala, Vijith belongs to Palakad. From childhood he had had many dreams and ideas of creating products. “I got inspiration from Steve Jobs, the American entrepreneur and inventor and the cofounder, Chairman and CEO of Apple Inc. I always used to watch his works on YouTube. My family supported and helped me a lot to achieve my goals,”says Vijith. Vijith Padmanabhan Vijith, who loves philosophy and is a fine speaker too, created DOLOJO (www.dolojo.in) which means ‘do love and joy’. He is its co-founder and CEO which he started

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Startup Village campus some time ago. The annual S V Square project, which was rolled out officially on January 30 this year, selected Arvind Sanjeev, Jibin Jose, Vijith Padmanabhan, Akash Mathew and Nithin George as its first winners. These young entrepreneurs will soon fly to Silicon Valley to experience the technological hub there. Chief Minister Oommen Chandy announced the winners from nearly 1,270 applicants. The Government will arrange all facilities for their travel. In the competition the applicants were required to upload a video on YouTube spanning two to three minutes of their innovative projects. The winners were selected by an eminent jury chaired by Prof Anil Gupta of IIM-A (Indian Institute of Management-Ahmedabad) representing the academia and former NASSCOM (National Association of Software and Services Companies) President Kiran Karnik representing industry. The main objective of the initiative is to provide them with a chance to see the rich entrepreneurial culture of Silicon Valley and to implement such ideas at home. They will stay there for two weeks during which they will meet skilled tech entrepreneurs as also young ones like them. The five opened up to PASSLINE on the the path they covered to reach this height.

at the age of 19 with the idea of making the world more connected. With his friend Anil S Namboothiri he developed a website and the first product called Bluebag.com, which is a social bookmarking site and a solution to cloud bookmarking. Another product he created is Shout Crow, which helps to share only what matters. If a person needs to share only two minutes of a song of four minutes, he can cut that two minutes he needs and add it to his link. There are two other products: Futfolle.com which helps online users to make smarter, faster purchasing decisions through social recommendations, crowd-sourced ratings, reviews and customer satisfaction index; and Socialbuy.in which is an Android/ iOS app where you can get the product opinions of your social circle, make appropriate shopping decisions and help get great discounts. His team has seven members. His future plan is to develop a parker race in Kerala, which one sees in James Bond’s Casino Royale.

Jibin Jose: A native of Wayanad, Jibin Jose is the son of Soshamma Jose and the late T P Jose. T P Jose was in the military and Soshamma is a pharmacist. Jibin started web designing when he was in the 12th standard . His abiding passion for exploring something new made him think big. A final-year BTech computer science student at Toc H Institute of Science and Technology, near Jibin Jose Kochi, he thought of doing something new when he was in the first year at college after his friend Anoop Nayak told him about Startup Village. His friends and parents supported and helped him to fulfil his dream.


9 He also participated in INNOZ Hackathon 55444, where every team would be given 24 hours to develop a new app. Jibin developed a new app called Hash Rescue for which he got a Rs 10,000 cash prize. Hash Rescue is an app which can rescue you if you are standing helpless at any strange place: you have just to take your mobile, type your name <space>mobile number<space>place to 55444. Your message will be sent to the nearest police station. Jibin and his friends were then selected to participate in the BlackBerry Hackathon held in Bangalore. Startup Village arranged all facilities for the young team. They were given 48 hours within which they were to develop a new app. The team developed a new app called Story Board, an innovative application that provides a novel way of showcasing presentations using BlackBerry mobile phones. They were awarded the first prize for their innovation. Jibin also co-founded the campus startup, QEdge Code Studios, which was selected as one of the top five campus startups by a panel that included Kris Gopalakrishnan. Jibin won the BlackBerry Jam 2012 India and participated in BlackBerry Jam Asia in Bangkok, Thailand, representing India in November 2012. Jibin is among the top 10 developers selected from the country to work in the BlackBerry Dreamapp factory, competing against other Asian countries. He was given ‘The Best Engineering Student Award 2013’ for his excellence in academics and extracurricular activities by ISTE (Indian Society for Technical Education). Jibin’s passion is mobile application development and robotics. He has already created seven mobile applications and is working on ahis new one called ‘.retail app’, which is an e-commerce app connecting retail shops and products. At present he is working on his new robot, to participate in ‘E Yantra’, an event conducted by IIT Bombay. “It has been my dream to visit Silicon Valley. Students from all over India should come forward with their innovative ideas and Startup Village is the best place for incubators”, says Jibin. Nithin George Charuvilla: Born to George John and Lessy George of Kozhikode, Nithin completed his BTech from Rajiv Gandhi Institute of Technology, Kottayam. Nithin’s father rents out taxies and his mother is a nurse. Nithin is co-founder and CEO of QPlay Tech Private Limited. The company’s mission is to provide ‘the ultimate media viewing experience’. He started his entrepreneurial journey last year at Startup Village, won the BlackBerry Jam India 2012 and represented India at the BlackBerry Nithin George Jam Asia 2012 in Bangkok. He was the youngest member of BlackBerry Elite among 125 globally elected by Orlando University, Canada, for research in motion. A panel including Kris Gopalakrishnan selected his startup as one of the top five campus startups. Recently he visited Hongkong, where he was invited as a speaker at the BlackBerry Jam Asia 2013. He also served the IEEE (Institute of Electrical and Electronics Engineers) student community of India as Secretary and is also the founder chair of the first IEEE computer society student chapter of Kerala section as a fresher in college.

For his contributions to the student community in the field of technology, he was awarded the Richard E Merwin Scholarship, the most prestigious student honour of IEEE Computer Society. He was also awarded the Student Activity Chair (SAC) Award for Excellence and Student Volunteer Award in 2011 by IEEE Kerala Section. He was a special invitee to Microsoft TechEd 2012, representing IEEE Indian students. He had also worked with Dr Ann Gates, University of Texas in LEAD (Leadership and Entrepreneurship Development) project, encouraging student entrepreneurs. IIT-B conferred on him the title of Promoter of Spoken Tutorial Project of the Union Ministry of Human Resource Development for his contributions towards free software education. He has completed three projects - Cloud Computing (one can identify the hackers or if there is any hacking attempt), Story Board and QPlay Tab. Arvind Sanjeev: Arvind Sanjeev of Kadavanthra, Kochi, pursued his BTech in Electronics and Telecommunications from Toc H Institute of Science and Technology. From his schooldays he had worked on many projects, starting from burglar alarms and booby trap systems. When he was in the 10th standard, he made a remotecontrolled hovercraft. He used to get lots of prizes at science exhibitions in schools and got one at the university-level science fair conducted by CUSAT. His parents,Dr Sanjeev S, Principal Scientist Arvind Sanjeev at CIFT (Central Institute of Fisheries Technology), and Dr Usha Rani, Technical Officer at CIFT, supported him consistently. Arvind is the founder and CEO of ARS Devices. It was his passion for electronics and robotics that enabled him to invent innovative gadgets that won for him several prizes at tech fests and inter-college events. Arvind says he is not interested in working on a number of projects at one time. “The project you are working on should have some use,” he says. He won the ‘Most Promising Innovator’ award 2012 at the Yahoo Accenture Innovation Jockeys event in Bangalore. He is also a BlackBerry Elite member and as such was able to attend the BlackBerry live conference at Orlando, US. Arvind has applied for a patent for his project Ride Smart and is trying to get one from the US. Ride Smart is an app for controlling all basic car features such as AC, central locking and parking lights using a normal smartphone. The system has now been redesigned for the BlackBerry OS10-based smartphones running on the QNX kernel. Another project which made him popular was a‘glove-controlled remote hovercraft with GPS’. This is a hovercraft, an amphibian vehicle which can travel through land, ice and water. He got the first prize for this project at NIT (National Institute of Technology) Calicut IEEE interface competition. Arvind is sure that he will get a chance at Silicon Valley to study more about newer technologies. “I will try to implement those things here,” he says Akash Mathew: Co-founder of CIED Technologies, Akash is the son of Mathew Sebastian, a former agricultural officer, and Shiney, who was a teacher. They are from Aluva. Akash’s father had started In-

doCert, a nationally and internationally operating certification body, as also IOFPCL (Indian Organic Farm Producer Company Limited) at Aluva for helping farmers. Shiney is the CEO. Akash derived inspiration and support mainly from his family. At the age of 10, he and his cousin Jim George started operating and experimenting with different circuits and electronic items. Jim, a student of University College of Engineering, Thodupuzha, has also gone up to national level in project expos. Akash completed his BTech from Rajagiri Engineering College, Kochi. During his college days, he started working on robotics and both cousins developed a robot for display at the Technical Fest at Rajagiri College. They had to compete with their finalyear students. Though they had little theoretical knowledge about robotics they managed to develop a robot with their inborn talent and the practical experience they had during their schooldays. However Akash Mathew their first robot failed at the fest. They were not disappointed and learnt from their mistakes. Then they got a chance to attend a robotic workshop at NSS Engineering College, Palakkad, where they bagged the third prize in robotics. During their second year they moved on to webbased technologies and completed 12 projects with clients from inside and outside India. They started CIED (Conquering, Imaginations, Expectations and Dreams) Technologies, a private limited company, in the same year (July 2011). The 12 members of the company opted out of placement. The team worked for service projects initially and then started working on products. They presented their ideas to Sijo George, CEO of Startup Village, who gave them full support. “We spent sleepless nights at Startup Village holding discussions and incubating our ideas,”says Akash. Finally they developed their first product, Crush, designed for lovers. Crush is an app that lets you create your crush list and secretly save it. When someone on your Crush list adds you to their list, both of you will get the notifications. Crush has 25,000 users across 124 countries. Now the team is seeking investment for further development of Crush app. In the meantime they managed to make their second product in the field of industrial automation for which they have already raised funds. Their business concept was accepted for presentation at an international conference (IEDEC 2012) at Santa Clara, US. They have the paper (Project Hawk: An Innovative Introduction of Practical Learning and Entrepreneurship in Engineering Education) published on this concept, which is now available at IEEE (Institute of Electrical and Electronics Engineers) Xplore. “I will present our ideas and products at Silicon Valley. I also want other college students to come forward with their ideas. Startup Village is the best place for Incubators,” says a jubilant Akash. He adds that his team was behind the creation of Abhiyanthriki 2012 (national-level technical festival at Rajagiri School of Engineering and Technology (RSIT), Kochi) promotional videos, websites and the online treasure hunt platform. Nov Nov 15 15 -- Dec Dec 15, 15, 2013 2013

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ailing psu

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he Kerala State Road Transport Corporation (KSRTC) is frequently seen in the media - not for its merits but for demerits such as debt burden, lackadaisical approaches, political and trade unionrelated issues and mismanagement. When we recognize the startling fact that it has an average monthly loss of Rs 92 crore, the general public is thinking aloud: Is there a way to make it profitable as in the neighbouring

states, or is it better to close it down? As KSRTC is one of the largest public sector undertakings of the state in terms of number of employees and is a public transport system for the welfare of society, it is inevitable to resurrect it. Experts have suggested certain measures to be taken by the authorities to avert KSRTC’s death. Reallocate bus routes: The permits of all private buses plying on KSRTC routes must be cancelled, particularly where KSRTC services are operating below 50% of passenger capacity. Kerala has 21,457 route buses (stage carriages). Public transport in the southern states except Kerala is monopolized by state transport undertakings. In Kerala, public transport is dominated by private buses which operate 73% of the total services. Andhra Pradesh has 21,764 state buses against Karnataka’s 21,228 and Tamil Nadu’s 19,422.

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The permitted passenger capacity of a bus in Kerala is 60, but many KSRTC buses are running at less than 50% capacity, which proves that the notified routes of KSRTC are dominated by private players. The private bus operators are trying several initiatives and schedules to retain their services on KSRTC-notified routes. By reducing the surplus private buses, more passengers will be attracted to KSRTC and its revenue can be increased thereby reducing the yearly operating losses.

Most of the private stage carriage permits on notified routes are not at all required. One example will prove this point. KSRTC operates a service from Kumily to Erakulam at 2.40 am through the notified Thekkady-Ernakulam route. At the same time two private superfast permits have also been on the route, one at 1.50 am and the other at 3.10 am, both at early-morning hours. There is also little gap between the schedules. To grasp the gravity of the situation, we should have an idea of earning per kilometre (EPKM). The average EPKM of the KSRTC service was 2,102 paise for September 2012, 2,340 paise for August 2012 and 2,195 paise for July 2012. KSRTC operates 480 km and 380 km in the plains and 100 km in gut sections. At 100% capacity, the expected EPKM has to be 3,587 paise. The KSRTC service on the notified Thekkady-Ernakulam

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route is operating at only 58% capacity. Hence there is no need for the two private buses, one before and the other after the KSRTC service. There are hundreds of such examples. All these cause multi-crore losses to KSRTC. A report submitted by Varma & Varma, a chartered accountantancy firm at Thiruvananthapuram, in January 2012 had identified that KSRTC needed to operate more long-distance routes to create surplus income. The report found, “As against an average loss of Rs 1,711 incurred on short routes, long routes earned an average profit of Rs 1,891 which denotes that average profit is higher by Rs 3,602 on long routes.” The study found that the average revenue earned by a long-route bus was more than 2.31 times that of a short-route one. It is therefore found to be essential to increase the number of buses operated on long routes to a minimum of 50%. Should be more responsible: A majority of the private bus permits on notified routes are illegal or not necessary. But the very existence and smooth functioning of KSRTC always depend upon the integrity of employees and higher-ups. KSRTC officers or the standing council of KSRTC had not objected to these private bus permits or their renewals at any time; instead they had remained mute spectators. In most cases, existing private bus routes in notified areas can be redirected through alternative routes where public transport is not available at all, without disrupting the transport system in the state. One must also consider that all the private bus permits on notified routes are issued after scrutinizing the applications in the State Transport Authority (STA). Appeals against the decisions are filed in the State Transport Appellate Tribunal (STAT) and further before the Kerala High Court. Senior advocates from the High Court along with bus operators present the case of the private bus operators in the Regional Transport Authority (RTA) and at STA meetings. But KSRTC does not have any coordination, and individual KSRTC units file nominal objections before RTA/STA.

It is estimated that one private bus on a notified route reduces KSRTC income by Rs 32 lakh to Rs 54 lakh annually and each private bus permit on notified routes on average collects Rs 8,000 to Rs 9,000 daily. This amount comes to Rs 2.7 lakh a month and Rs 32.4 lakh a year. In the case of superclass luxury services, the yearly loss is about Rs 54 lakh. So KSRTC should have a centralized mechanism/legal advisers/executive director or senior officers to attend all the RTA/STA meetings and defend its case. Three critical areas: Productivity in the areas of manpower, fuel efficiency, maximum utilization of buses - these are the most critical areas which should be paid attention to by KSRTC. It is deficiencies in these areas that pull back the profitability of the organization. Today these are the lowest in KSRTC among RTCs in all states. The average utilization of a bus per day is only 262.4 km and per capita utilization of staff per day only 37.97 km. Bus utilization and effective km per employee per day are the critical parameters which affect the viability and the very existence of

It is estimated that one private bus on a notified route

reduces

KSRTC

income by Rs 32 lakh to Rs 54 lakh annually and each private bus permit on notified routes on average collects Rs 8,000 to Rs 9,000 daily. KSRTC. These two factors have a direct impact on the salary expenditure of the organization which is the highest in India. The average running km per litre of diesel is also the worst in KSRTC, which stands at 4.24 km. Fuel cost is the second biggest expenditure head. The operating cost for one km of service in KSRTC is 3,930 paise excluding diesel cost and other unexpected overheads. If we assume that the diesel cost per litre at that point of time was Rs 58.20 and adding other factors, the total cost of operation comes to 4,260 paise. The cost of operation of a km of bus service in the private sector in Kerala is assessed by NATPAC under Price Index for Stage Carriage Operations (PISCO) and the latest PISCO is of March 2013. Based on the comparative study and the costs of KSRTC and private buses, KSRTC needs 1,045 paise extra (4,260 paise per km) to run one km in Kerala compared with private buses


11 (3,215 paise). The extra burden is due to the salary head which includes pensions. KSRTC needs 1,818 paise as salary per km as against 867 paise per km for private operators, 728 paise for Karnataka RTC, 862 paise for Andhra Pradesh RTC and 989 paise for Tamil Nadu RTC. The pension commitment of the corporation per annum is around Rs 500 crore. This will not be paid out of the operating income. So a new corpus fund of Rs 5,000 crore is to be created to make yearly payment.

of the buses because income will be higher from long distances and maximum utilization of the vehicle and the employees is also taking place. The limited-stop ordinary services, fast passengers and superfast services are the best way to prune the escalating loss of KSRTC.

creating a pension fund, the KSRTC management initiated another lossmaking proposal of building shopping complexes for which neither the organization nor the Kerala State Transport Development Corporation-KTDFC (the promoter of the shopping complex buildings) has any expertise. Angama-

Social obligation: Free and concessional passes issued indiscriminately and without scrutiny of the categories, like physically challenged people and students, operating bus services to remote areas as recommended by MLAs and bus services at odd times like late night and early morning are also cited as reasons for losses. KSRTC had 47,326 passes which include 32,447 issued to physically challenged people. According to officials, these 47,326 passes caused a loss of Rs 7,270 lakh. There are 6,01,598 concession tickets issued to students. Many of the tickets are of one-month duration and some are of three months. Even if the life of the tickets is three months, students are using concession just for Rs 1.50 lakh a day out of the total 20 lakh student passengers. The total student strength in the state is 52 lakh. There are many KSRTC units which do not at all issue student concession tickets. All pensioners and KSRTC employees are issued free travel passes on which they can travel in any bus to any destination. The total number of staff passes and pensionersâ&#x20AC;&#x2122; passes is more than 75,000 and this causes a shortfall of Rs 151.20 crore to the corporation every year. Another argument is that KSRTC is operating loss-making services at odd times and between 10 pm and 5 am as its social commitment. Details of the ordinary services operated by KSRTC after 10 pm and before 5 am show that out of the 29,696 ordinary schedule trips (3,712 ordinary schedules x 8 trips) fewer than 100 are operated during this time (10 pm-5 am). In Kochi city, all Thirukochi and JnNURM buses start services only after 5.30 am and end before 9.15 pm. Even on the crowded Aluva-Ernakulam route the case is the same, the private city services operating between 5 am and 10 pm whereas KSRTC is not operating a single ordinary or city service during these hours. Increasing earnings still possible: KSRTC can increase the productivity of the bus and manpower by operating additional long-distance services. This will enable low per capita salary cost per km compared with the short haul

Another important step to be taken to improve the situation is that there should be a gap of 15 minutes during the peak hours and 20 minutes during the non-peak hours for all KSRTC ordinary services on non-city/town notified routes. Permits should not be allowed to private operators within this time gap on notified routes meant for KSRTC.

ly bus station had 200 cents of land. At current market price it will fetch Rs 30 lakh a cent. So the price of 200 cents of land comes to Rs 60 crore. Even at 10%, it should provide an income stream of Rs 6 crore. Now the income generated from the shopping complex a year is less than Rs 1 crore and the

interest on the capital expenditure incurred on the building is more than that. Top management: Except the Managing Director, all other senior officers like the General Manager and executive directors in the organization are ordinary graduates or diploma holders. The General Manager and all the executive directors in other state transport undertakings are professionals with postgraduate engineering or management degrees. The Government should appoint professionals and subject experts in the organization. All unit officers in KSRTC (each unit has 300-800 employees) are conductor-promoted who do not have any expertise or managing ability. Public sector undertakings with fewer than 300 employees are managed by IAS/IPS officers. Thus each KSRTC unit should be managed by an IAS/IPS officer. At least the five zonal managers should be IAS/IPS officers. At the same time KSRTC should also cut short its surplus employees. Even though its debt is mounting, KSRTC can be made profitable. For that, the authorities should wake up from its slumber and act to save it as also the taxpayerâ&#x20AC;&#x2122;s hard-earned money

Cancellations should be reduced: Cancellation of schedules is the highest in KSRTC, at the alarming rate of 16.3%, as against less than 5% in the neighbouring states. Out of 42 Thirukochi services, only 35 are on the road. In June 2013, only 11 services had operated fully. Whether buses are on road or in workshop, cancellation of one km of service will increase the cost of operation. All state buses in Tamil Nadu and Karnataka have to enter the prescribed bus stations in prescribed time. This eliminates speeding, bundling of services and services without passengers. This is possible in KSRTC also so that monitoring will be easy. Converting buses into CNG is another way to prune overheads since diesel expenses are high and efficiency is at rock bottom. Optimum utilization of assets: KSRTC has more than 70 urban properties in Kerala. Its Vyttila Mobility Hub had proved that it could operate its services without bus stations. All the state transport buses in Tamil Nadu are operated from municipal bus stations. They have workshops and garages on the outskirts of towns. The same can be implemented in KSRTC. The latest Kerala budget had proposed Vyttila-model bus hubs at all district headquarters. KSRTC does not need bus stations at district headquarters. Instead of selling the property and Nov 15 - Dec 15, 2013 Nov 15 - Dec 15, 2013

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ECONOMICS

A Nobel for markets Theory postulates that stock prices are unpredictable and exhibit a ‘random walk’. Therefore, it is impossible to get market beating returns based on published information. In other words, market players can make superior returns only if they had access to inside information.

Friedman. Hanson’s work explores the implications of dynamic economic models. In dynamic models where decision-makers face uncertain environment, decision-making becomes problematic. Hanson devised and applied econometric methods consistent with probabilistic framework.

Dr V.K. Vijayakumar

E

conomics is not an exact science like Physics or Chemistry. Yet it is one of the few subjects for which the coveted Nobel Prize is awarded. Even though the Nobel Prizes were first awarded in 1901, the prize in Economics was instituted only in 1968. The prize is known as the Nobel Memorial Prize in Economics Sciences and is funded by the Central Bank of Sweden. This year’s Nobel Prize was awarded to three US-based economists, Eugene Fama and Lars Hanson of Chicago University and Robert Shiller of Yale University, for their research into the pricing of financial assets. Research by the three laureates threw deep insights into the ways in which asset prices behaved at different time periods. Prices of financial assets like stocks and bonds are unpredictable in the short run but there are clear trends and patterns in their price movements in the long run. Research by the three laureates had great impact on policy and practices in financial markets. This year’s Nobel is recognition of this seminal contribution.

In dynamic models where decision-makers face uncertain environment, decision-making becomes problematic. Hanson devised and applied econometric methods consistent with probabilistic framework.

Eugene Fama – the father of modern finance: Eugene Fama can rightly be described as the father of modern finance. In the mid-1960s he propounded the ‘Efficient Market Hypothesis’ (EMH). According to EMH, markets are efficient. Since there are large numbers of players in the financial markets, all information in the public domain will be immediately discounted by the markets. Fama’s Random Walk

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Eugene Fama

Lars Hanson

Fama’s research had profound impact on Wall Street. His theory that even professionals cannot generate superior returns from the market led to the promotion of index funds. Index funds preclude the need for professional fund managers by investing in the stocks that constitute the index. Such passive funds replicate the performance of the index. Robert Shiller – the man who predicted bubbles: An interesting aspect of this year’s Nobel Prize is that it recognized and rewarded disagreements and conflicts of ideas. Robert Shiller is a well-known critic of the Efficient Market Hypothesis. Shiller who coined the famous phrase ‘irrational exuberance’ believed that the markets are not efficient and that irrational behaviour of market participants can create bubbles. He echoed the sentiments of the great economist J M Keynes who famously said: “Markets can remain irrational longer than we can remain solvent.” Shiller along with Carl Case created the S & P Case - Shiller Home Price Index. This Index doubled from 2,000 to 2.006 clearly indicating the formation of a bubble about which Shiller warned. The global financial meltdown of 2008 saw the housing index crash by 35%. Hanson - the model builder: Hanson is one of the co-founders of the Becker Friedman Institute which carries on the legacy of the celebrated Nobel laureate Milton

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Robert Shiller

The message of the prize: By recognizing conflicting views the Nobel committee has sent out a clear mes-

sage that there are open questions in economics without clear answers. This recognition of diversity and disagreements is not new. It famously happened in the past when Nobel Prizes were awarded in 1974 to Frederich Hayek and Gunnar Myrdal. While Hayek was the celebrated theorist and high priest of free markets, Gunnar Myrdal argued that markets can function only within institutional constraints and that the socalled free market is a myth. A subject grows through healthy debates and rigorous intellectual discourses. Karl Marx could write Das Capital because he lived and wrote in the enlightened intellectual environment of liberal England which promoted diverse views. This year’s Nobel for economics takes this great intellectual tradition forward. (Dr Vijayakumar is Investment Strategist, Geojit BNP Paribas)


13

TREND

eyewear market in India is booming. Lenstrade, Lensdirect, Yebhi and Rediff Shopping are some of the online eyewear retailers. Lenskart is India’s leading online shopping portal for eyewear. It has the largest market share with GKB Optical being the second on the basis of revenues. Silhouette of Austria, the world’s leading frame manufacturer, has also captured the Indian market and is the most preferred brand by youngsters. Luxottica is the world’s largest eyewear group, controlling over 80% of the world’s major eyewear brands. Its best-known brands are Ray Ban and Persol. It also makes sunglasses and prescription frames for a multitude of designer brands such as Chanel and Prada, whose designs and trademarks are used under licence. Luxottica also makes sunglasses branded Giorgio Armani, Burberry, Stella McCartney, Versace, Vogue, Miu Miu, Tory Burch and Donna Karan. Its prime competitor is the Safilo Group, an Italian company that designs, produces and distributes prescription frames, sunglasses, sports eyewear, ski goggles and ski and cycling helmets under its own five house brands and 22 licensed brands.

Designer spectacles the current craze Passline News Service

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esigner spectacles are the latest craze, many youngsters owning two or three sunglasses matching their costumes. They are used not only to protect one’s eyes from strong rays of the sun but also to get attractive looks. Lenses and frames of national and international brands with different sizes and colours that are appropriate for every face and skin are available in the market. For the past few years India has witnessed a big change in optical wear. Specs of different varieties and ranges have now become a passion for people of all age groups, especially among teenagers. International brands such as Seiko, Ray Ban, Esprit and Austin Reed have flooded the Indian market. There are innovations in frames and colours. Light lenses which are more effective than old ones are available. Progressive lenses are in good demand. In a progressive single lens, multiple vision fields are incorporated without any clear distinction between the fields themselves. “Titan has introduced a new collection called ‘Flair’ which is specifically designed for the wearers of bifocal lenses, mostly belonging to the 40+ age group. It is available in 100 colours and styles. Frames

with black colour are people’s favourite. In Kerala, men wear sunglasses more than women. In the North, however, the proportion of men and women is almost the same,” says Jayanath, eye consultant at Titan Eye+, Kochi. The prices of Flair series start from Rs 995. The frames are made of light-weight materials like acetate, stainless steel and titanium. Titan’s bifocal starts from Rs 850 and progressive from Rs 1,400. Essilor is also a leading player and is a highly sought-after brand.

“In Kochi itself there are 10 manufacturing units and the raw materials are imported from Africa, France, Germany and America. The rapid increase in the number of outlets opened by leading industrial groups in all major cities, the flourishing IT industry and the mounting internet users are factors contributing to the optical industry’s growth. Many organizations conduct eye camps and checkups in rural areas creating awareness among people about eye diseases, making them access the facility. Sunglasses are used by many today as a style statement rather than to protect

their eyes from sun’s bright light. Fastrack and Ray Ban have the highest number of fans in India. The Fastrack range starts from Rs 700. Ray Ban is the most popular foreign brand in India. Titan has also launched a range of sunglasses,‘Titan Glares’targeting the 25-30 age group. The sunglass market in the country has grown in the last few years. The most popular foreign sunglass brands marketed in India are Oakley, Dolce, Gabanna, Versus and Vogue, the most expensive being Dolce and Gabanna. Contact lenses have been available for almost 10 decades. They help to improve problems like presbyopia and astigmatism and also provide good peripheral vision. There are two types, conventional and disposable. Conventional can be used at least for a year but disposable should be replaced three or four times yearly. A majority are conventional contact lens users. Acuvue from Johnson and Johnson Vision Care Inc is the most popular brand among the youth. The online eyewear market has reported an increase in revenue in the past couple of years. As people today are more fashion-conscious, the

“In Kochi itself there are 10 manufacturing units and the raw materials are imported from Africa, France, Germany and America. Mostly people above 40 years of age demand no-line bifocal lenses or progressive lenses and the demand for traditional bifocal lenses is diminishing,”says K J Paul Manvettom of Paulson Opticals, General Secretary of the All Kerala Optical Association. People today are more aware about eye diseases and they start checkups early,” he says. “There is, therefore, an increase in demand for optical items today.” Frames with black and golden colours are the consumers’ favourites. Plastic lenses are made from CR39 (Columbia resin #39). It is a plastic polymer commonly used in the manufacture of eyeglass lenses. The abbreviation stands for Columbia resin #39 because it was the 39th formula of a thermosetting plastic, developed in 1940. Compared to last year, there is an increase in the number of outlets in Kerala. Branded companies are increasing their outlets across India and as a result it has become difficult for ordinary eyewear dealers to exist. “Companies having more chain shops are putting companies’ names on the products. Apart from the organized sector, dominated by leading eyewear companies, there are large numbers of manufacturers in the unorganized sector”, says Paul. “Oval lenses and thick frames are the present trend,” he says .

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A DREAM PROJECT Passline News Service

â&#x20AC;&#x153;T

he rich have become richer and the poor poorer. This disparity in society has been there since the beginning of human life. But social workers who are hardcore altruists can fight this social imbalance by taking from the rich and giving to the poor and needy.â&#x20AC;?These are the words of Fr (Dr) Jose Aikara of the Congregation of Mission (CM), who lives for the uplift of poor and downtrodden people. A great academic and visionary, Fr Aikara had toiled as a missionary in Berhampur district, Odisha, for 30 years and was instrumental in bringing new roads, electricity, drinking water, hospitals and schools to the area. Founded by St Vincent de Paul, the congregation is 400 years old spread across 86 countries with 52 provinces and 4,000 priests. In India it has two provinces, North and South, and Fr Aikara was the Provincial of South Province for a term of 6 years.

Fr (Dr) Jose Aikara

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Nov Nov 15 15 -- Dec Dec 15, 15, 2013 2013


15 Fr Aikara had been founder Principal of De Paul School, Berhampur, for 13 years. He asked for nothing in return from the Heavenly Father for his warmth and wisdom, his caring and caution, his advice to humanity and assistance to the poor and needy, but only His grace from above and he has received it abundantly even before the asking. When Fr Aikara came to Mysore in the month of January 2001 he had taken along with him the greatest of weapons of a social reformer, his morale, which had been gifted by the Almighty and sharpened and used by him for three decades. In 2003 he founded De Paul International Residential School (DPIRS), Mysore, and in 2004 obtained his MBA from Pune University. In 2005 he went to Tanzania and started two English-medium schools. In the same year he was elected to the office of the National Secretary-Treasurer, ASISC. He received the national award for his contribution to education from the then Union Human Resource Minister Kapil Sibal in 2009. Rev Dr Aikara was a member of the ICSE Board, the ICSE Examination Committee and the ICSE Finance Committee. He had been given 3 continuous terms as ASISC National Secretary-Treasurer till 2012. In 2011 he was elected third Chairman of the Council for the Indian School Certificate.It was in 2002 that he came to the tranquil ambience of the Brindavans of Mysore in search of a piece of land to pioneer a school which would be named after St Vincent De Paul. Fr Aikara knows that history beckons DPIRS as his school prepares to break new grounds by entering into a tieup with GCSE (General Certificate of Secondary Education, Cambridge University) and thus to house hundreds of young aspirants for whom education in India and abroad has become a passion as well as an obsession. However, Mysore witnessed a mysterious slumber in the field of education during the last decades of the 20th century. It necessitated an educational resurge and the advent of the 21st century saw the birth of a different school of thought - DPIRS, Mysore. Paying a visit to this centre of learning itself is a unique experience. God’s mission for Fr Aikara in the world did not end there. The Heavenly Father entrusted more responsibilities to His emissary and Fr Aikara joyfully accomplished them. This time God gave him a chance to unveil himself as a social reformer in his homeland, Kerala. Let us listen to his plans and ideas in his own words. “The proposed project which I am planning is a massive one with a total investment of Rs 500 crore. It is very close to my heart since it is in my homeland. As I am 66 now,

I strongly believe that this is the last school of special education, state-of- statesmen. Their vast experience and one which the Heavenly Father wants the-art auditorium, club houses and profound knowledge will be further some to complete before my departure sports complex and conference halls. licited to steer the Department of De from this world for my eternal life with By December 2013 work on retirement Paul Planners and Developers. The Him. It will be a global village spread homes will start. The international community life at De Paul Global Vilover 100 acres of land, girdled by hills school will be operational by the next lage has been defined in such a way and hillocks with lush green stretches academic year. Initially classes for IV that all of them will respect one another of tea, cardamom and coffee plantations in a sylvan ambience “Be a part of charity and 3,000 ft above sea level on the Kumarakam-Cumbum state We are planning 250 units in this unique project. Along with this highway, 20 km from Idukki or 20 the trust will construct 250 separate houses for the poor elderly perkm from Kattapana at Pushpagiri sons also. The number of orphaned parents, neglected by their kith near Udayagiri.

and kin, is increasing day by day. They will get all the facilities that we

“For the implementation of this extend to our members. There will be no discrimination among rich noble project we had floated a and poor and this will be totally free for eligible ones. The campus will trust named De Paul High Range be a secular one and we will construct a temple and a mosque along Trust in 2011 and christened the project ‘The Arcadia’... Basically with the church. The church will be a piece of Russian architectural a retirement home, it is a unique wonder. There will be a special school for the learning-deficient chilproject to carefully muster and dren with a capacity of 500. Each class will have a maximum of eight colour one’s dreams when they children to provide maximum attention to them. Poor children will be begin to ebb while planning a regiven free admission and all other facilities which well-to-do children tired life. After years of hard work enjoy. and the education and settlement of their children, the parents want to settle in their own motherland. Standard to VIII Standard will be there. without losing one’s own personal valHowever, they cannot cope with the All other projects in phase one and two ues and individual identity. We value cultural differences they experienced will complement the basic project, the their life, expertise and knowledge, exin Kerala. We wholeheartedly and af- retirement home and will commence perience, legacy, strength, weakness, fectionately invite them with care and operation one after the other depend- merits and their exceptional qualities concern to be with us for the rest of ing upon the need. that would inspire a posterity groping in their life where they are not only cared the dark. The induction and transition “Four types of retirement homes: at De Paul will be so easy and quick but also request them to use their professional knowledge and expertise that There will be four different types of that our residents would be inspired to they have gained as a lifetime accom- homes suitable for each one’s need. see our facilitators work 24x7 to make plishment, to make their stay in The Villas will be one type , constructed their stay the most joyful and memoArcadia more rewarding and mean- according to the design given by the rable experience that can ever happen ingful. We offer them most modern, member to fit in an area approximately in their life. 4,000 sq ft. Then “Why it is unique: The Arcadia is will come premium houses – fully inde- unique in all ways. No other similar inpendent houses of stitution in the world has ever offered 630 sq ft with two 75% of the membership fee to be rebedrooms and at- funded to the nominees in the event of tached toilets, pan- their departure from the campus. We try and sit-out and will deposit membership fee in the a garage. Deluxe joint account of Arcadia and the memhomes are semi- bers. There is no extra payment for the independent houses members once they become members of 630 sq ft with two except for their personal items. Food, bedrooms and all accommodation, medical aid and seother facilities simi- curity are free for the members and artistic and independent houses and lar to premium houses. Deluxe apart- provision is also available on campus apartments for single individuals and ments are of 480 sq ft, well furnished, for all those who want to continue the families with all the most modern ame- designed with one furnished bedroom, profession that they had practised. nities that they have enjoyed abroad or pantry and a balcony. Individual garage “I am confident of completing the also will be provided. elsewhere. village within five years and we will “Resident status: As the De Pau- strive with the missionary zeal to bring “The Arcadia will have two phases. In its first phase it will have 100 acres lian residents hail from different walks a generation from self- imposed exile of pastoral landscape, well-laid-out of life we are bent upon creating a from many nations and make them and fully furnished houses, an interna- community where they are honoured, gather in their own land, The Arcadia”. tional residential school, guest houses, valued and rewarded. We have the banking facilities, rental cars and driv- list of seriously committed and globFor further details contact: ers, an internet cafe, cable TVs, beauty ally renowned personalities who have Rev. Dr Fr Jose Aikara CM parlours, a gymnasium, multi-cuisine expressed their willingness to be hapPhone : 09845112529, 09446179243 kitchens and a dairy farm. The second pily associated with De Paul Global Email: aikarajose@yahoo.com phase will have a vegetable garden, Village. They range from professors, De Paul High Range Trust prayer hall/convention centre, garden- doctors, engineers, chancellors, viceAmalagiri, M K Padi P.O, ing and gardens, high-tech hospital, chancellors, artists, defence personKattapana, Idukki Dt, living quarters for medical staff, nurs- nel, Indian expatriates, lawyers, archiKerala - 685 514 ing college, hostel for nursing students, tects, philanthropists, sportsmen and Nov Nov 15 15 -- Dec Dec 15, 15, 2013 2013

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16

GLOBAL ISSUES

Global governance & United Nations K Vijayachandran

T

he world observes twentyfourth October as UN Day. The United Nations Organization (UNO) was founded on that day, in 1945 by 51 countries, soon after the Second World War. UNO was the successor to the League of Nations founded after the First World War with the primary objective of sustaining international peace and security. It was Emperor Ashoka (268-232 BC) who launched a global campaign for peace and theorised that, war was no solution for conflicts among nations. Peaceful coexistence of diverse cultures and nationalities is the fundamental objective of UNO which is an entirely new historical experience for mankind: The organisation has been helping in resolving the complex problems arising out of the uneven development across the globe. According to its founding Charter, UNO has four main purposes; (i) to keep peace throughout the world, (ii) to develop friendly relations among nations, (iii) to help nations work together to improve the lives of poor people and to conquer hunger, disease and illiteracy and to encourage respect for each other’s rights and freedoms, and (iv) to be a centre for harmonizing the actions of nations to achieve these goals. Due to its unique international character, and the powers vested in its founding Charter, the UNO can take action on a wide range of issues, and provide a forum for its 193 Member States to express their views, through the General Assembly, the Security Council, the Economic and Social Council and other bodies and committees. Organisation Chart and Activity Chart extracted from the website and reproduced elsewhere are indicative of the diversified capabilities of UNO. Work of the UNO, today, “reaches every corner of the globe. Although best known

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for peacekeeping, peace building, conflict prevention and humanitarian assistance, there are many other ways the United Nations and its System (specialized agencies, funds and programmes) affect our lives and make the world a better place.” “The UNO works on a broad range of fundamental issues, from sustainable development, environment and refugees protection, disaster relief, counter terrorism, disarmament and non-proliferation, to promoting democracy, human rights, gender equality and the advancement of women, governance, economic and social development and international health, clearing landmines, expanding food production, and more, in order to achieve its goals and coordinate efforts for a safer world for this and future generations.” The most recent UN initiatives on the destruction of chemical weapons are in perfect harmony with the mood of the contemporary world

The numerous institutions numbering around a hundred, created under UNO banner as specialized organizations, the regional commissions or fund raising agencies, such as UNESCO, UNIDO, WHO, FAO, UNDP and UNEP were all partners in this ambitious program. and its intense desire to pre-empt another nuclear holocaust. The present status and structure of UNO is the product of technological evolution through more than one and a half century of industrial revolution and global cooperation on specific sectors. Several of its specialized agencies were created even before its own birth. The International Telecommunication Union was founded in 1865 as the International Telegraph Union, and the Universal Postal Union was established in 1874. Both are now United Nations specialized agencies. As early as in 1899, the International Peace Confer-

Nov 15 - Dec 15, 2013

ence was held in The Hague to elaborate instruments for settling crises peacefully, preventing wars and codifying rules of warfare. It adopted the Convention for the Pacific Settlement of International Disputes and established the Permanent Court of Arbitration, which began work in 1902. As mentioned already, the forerunner of the United Nations was the League of Nations, an organization conceived in similar circumstances established in 1919 under the Treaty of Versailles “to promote international cooperation and to achieve peace and security.” The International Labour Organization was also created under the Treaty of Versailles as an affiliated agency of the League. The League of Nations ceased its activities after failing to prevent the Second World War. Unlike the short lived League of Nations the UNO has served the cause of human development for nearly seven decades and had even drawn up, in 1990, an ambitious Millennium Development Goals 2015. On several fronts, the level of achievements of MDG is far too below its ambitious targets, and it is difficult to say, whether a qualitatively different world has really arrived, as anticipated by its protagonists. The numerous institutions numbering around a hundred, created under UNO banner as specialized organizations, the regional commissions or fund raising agencies, such as UNESCO, UNIDO, WHO, FAO, UNDP and UNEP were all partners in this ambitious program. However, the world had undergone a fundamental change, in the meanwhile, with the demise of Soviet Union and the disintegration of Socialist Camp. Cold war climate giving way to the so-called uni-polar world, dominated by market ideologies had a negative impact on the MDG strategies. But even before the onset of the uni-polar world, there were numerous hurdles, which were blocking the optimum use of the organizational and technologi-


17 cal resources commanded by the UNO. Developed Countries under the leadership of the USA were not prepared to spare and share their technological resources with the developing countries on an equitable basis. For them global market and global capital were the sole objects of global relations; global cooperation and global welfare were of no consequence. For example, USA, the leading country in Nuclear Power, had no interest in using IAEA (International Atomic Energy Agency) for global cooperation in nuclear energy: It has been using IAEA for global policing for the implementation its own ill-conceived nuclear proliferation program.

It appears that big victory registered by market ideologies, toward the end of last century, was rather short-lived: It is, now, widely accepted that there are no solutions for the numerous problems that have come up in recent years, within the framework of global economics based on the competition model among nation states. Mutual cooperation and peaceful co-existence of nations and nation-states have turned out to be the only solution for the problems haunting the global economy, today. And, that calls for a system of Global Governance to decide over the tempo of globalization by consensus among the comity of nations, big and small, based on the principles of global equity and democracy and not by competition among the corporate.

The United Nations System UN Principal Organs General Assembly Security Council Economic and Social Council

Funds and Programmes1 UNCTAD United Nations Conference on Trade and Development

Subsidiary Bodies

UNDP United Nations Development Programme

Disarmament Commission

• UNCDF United Nations Capital Development Fund

Human Rights Council International Law Commission

• UNV United Nations Volunteers

Standing committees and ad hoc bodies

UNEP United Nations Environment Programme

UNITAR United Nations Institute for Training and Research

UNHCR Office of the United Nations High Commissioner for Refugees

UNRISD United Nations Research Institute for Social Development

UNICEF United Nations Children’s Fund

UNSSC United Nations System Staff College

UNODC United Nations Office on Drugs and Crime

UNU United Nations University

UNRWA2 United Nations Relief and Works Agency for Palestine Refugees in the Near East

• ITC International Trade Centre (UNCTAD/WTO)

Main and other sessional committees

UN-HABITAT United Nations Human Settlements Programme

Other Entities

UN-Women United Nations Entity for Gender Equality and the Empowerment of Women

UNAIDS Joint United Nations Programme on HIV/AIDS UNISDR United Nations International Strategy for Disaster Reduction

WFP World Food Programme

UNOPS United Nations Office for Project Services

Research and Training Institutes

Related Organizations

UNICRI United Nations Interregional Crime and Justice Research Institute

CTBTO Preparatory Commission Preparatory Commission for the Comprehensive Nuclear-Test-Ban Treaty Organization

UNIDIR2 United Nations Institute for Disarmament Research

UNFPA United Nations Population Fund

IAEA1, 3 International Atomic Energy Agency OPCW Organisation for the Prohibition of Chemical Weapons

Secretariat

Subsidiary Bodies Counter-terrorism committees

International Court of Justice Trusteeship Council 6 Notes: 1 The United Nations, its Funds and Programmes, the Specialized Agencies, IAEA and WTO are all members of the United Nations System Chief Executives Board for Coordination (CEB). 2 UNRWA and UNIDIR report only to the General Assembly (GA). 3 IAEA reports to the Security Council and the GA. 4 WTO has no reporting obligation to the GA, but contributes on an ad hoc basis to GA and Economic and Social Council (ECOSOC) work on, inter alia, finance and development issues. 5 Specialized Agencies are autonomous organizations whose work is coordinated through ECOSOC (intergovernmental level) and CEB (inter-secretariat level).

International Criminal Tribunal for Rwanda (ICTR) International Criminal Tribunal for the former Yugoslavia (ICTY)

Advisory Subsidiary Body

Military Staff Committee Peacekeeping operations and political missions

Peacebuilding Commission

Sanctions committees (ad hoc) Standing committees and ad hoc bodies

Other Bodies

Regional Commissions

Functional Commissions Crime Prevention and Criminal Justice

ECA Economic Commission for Africa

Committee for Development Policy

Narcotic Drugs

ECE Economic Commission for Europe

Population and Development

ECLAC Economic Commission for Latin America and the Caribbean

Committee of Experts on Public Administration

Science and Technology for Development Social Development Statistics Status of Women Sustainable Development United Nations Forum on Forests

ESCAP Economic and Social Commission for Asia and the Pacific ESCWA Economic and Social Commission for Western Asia

Departments and Offices EOSG Executive Office of the Secretary-General DESA Department of Economic and Social Affairs

6 The Trusteeship Council suspended operation on 1 November 1994, as on 1 October 1994 Palau, the last United Nations Trust Territory, became independent.

DFS Department of Field Support

This is not an official document of the United Nations, nor is it intended to be all inclusive.

DM Department of Management

DGACM Department for General Assembly and Conference Management

WTO1, 4 World Trade Organization

Committee on Non-Governmental Organizations Permanent Forum on Indigenous Issues United Nations Group of Experts on Geographical Names Other sessional and standing committees and expert, ad hoc and related bodies

Specialized Agencies1, 5

UNWTO World Tourism Organization

FAO Food and Agriculture Organization of the United Nations

UPU Universal Postal Union

ICAO International Civil Aviation Organization

WIPO World Intellectual Property Organization

IFAD International Fund for Agricultural Development

WMO World Meteorological Organization

ILO International Labour Organization

World Bank Group

IMF International Monetary Fund

• IBRD International Bank for Reconstruction and Development

IMO International Maritime Organization ITU International Telecommunication Union UNESCO United Nations Educational, Scientific and Cultural Organization UNIDO United Nations Industrial Development Organization

WHO World Health Organization

• ICSID International Centre for Settlement of Investment Disputes • IDA International Development Association • IFC International Finance Corporation • MIGA Multilateral Investment Guarantee Agency

DPA Department of Political Affairs

OIOS Office of Internal Oversight Services

UNODA Office for Disarmament Affairs

DPI Department of Public Information

OLA Office of Legal Affairs

UNOG United Nations Office at Geneva

OSAA Office of the Special Adviser on Africa

UN-OHRLLS Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States

DPKO Department of Peacekeeping Operations OCHA Office for the Coordination of Humanitarian Affairs

SRSG/CAAC Office of the Special Representative of the Secretary-General for Children and Armed Conflict

OHCHR Office of the United Nations High Commissioner for Human Rights

SRSG/SVC Office of the Special Representative of the Secretary-General on Sexual Violence in Conflict

DSS Department of Safety and Security

ples of peaceful coexistence of diverse cultures. The recent UNESCO document on internet as well as the deliberations and resolutions in the global meet in Dubai (WCIT-12) organized by the ITU, last December, are indicative of the growing faith of global communities in the UN instruments for global governance: Despite the hostile stand by USA, EU and OECD countries in general, and the global campaign

UNON United Nations Office at Nairobi UNOV United Nations Office at Vienna

Published by the United Nations Department of Public Information DPI/2470 rev.3—13-38229—August 2013

WHO could have made great contributions in the health sector but global monopolies in drug research and drug manufacture, in developed countries, had their own priorities, dictated on by global monopoly capital. Similar statements could be made with regard to Food and Agriculture Organization (FAO) as well as other UN agencies like UNIDO and UNDP for mutual cooperation in energy related as well as industrial and transportation technologies. United Nations Environment Program (UNEP) and climate change studies were the chief receiver of grants and donations from USA, during the two decades starting from the first RIO meet in 1992: The massive global campaign based on climate change has now ended up as a total fiasco, and RIO+20 program has been drawn up on a more realistic basis and drawing inspiration from the quarter century old MDG 2015.

unleashed by Google and other corporate giants against any sort of internet regulation by ITU, a new global telecom treaty enabling the same, was agreed upon by the Dubai conference.

The massive organizational resources and expertise of UNO and Bretton Woods Institutions, built up over the past seven decades, give mankind the confidence to collectively launch a bold and innovative project for global governance, based on the princi-

The recent revelations by Edward Snowden, a former contractor engaged by the National Security Agency of USA, have simply demolished the massive propaganda build up against internet regulation by UNO, in the name of protecting individual freedom from state oppression. ITU and the UNO getting involved in internet regulation is a bold step towards global democracy and global governance

Nov 15 - Dec 15, 2013

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POLICIES

What went wrong with the Indian economy and another 5.3 million jobs were lost in the manufacturing sector in the same period. If growth was not translating into additional jobs, and instead was leading to increased joblessness, there was something going wrong.

By Devinder Sharma

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ddressing the UN General Assembly in September 2011, Indian Prime Minister Manmohan Singh had said: “Till a few years ago the world had taken for granted the benefits of globalization and global interdependence. Today, we are being called upon to cope with the negative dimensions of those very phenomena.” “The shoots of recovery which were visible after the economic crisis of 2008 have yet to blossom.In many respects the crisis has deepened further,” he said. If the Prime Minister knew what was coming the question that needs to be asked is then why did he allow the Indian economy to take the same route towards self-destructions? The rupee has been on a free fall, the current account deficit _ the difference between export and import_ have surged to the pre-1991 levels, and the fiscal deficit shows no visible signs of reduction.

Prime Minister should have known it much better. Even at the peak of the economic growth period between 2005 and 2009 when economy grew at 8% to 9%, the high economic growth did not result in job creation. According to Planning Commission study, 14 million people were pushed out of agriculture,

In the nine years since Manmohan Singh took over, India has been flooded with cheaper manufactured goods, the imports touching $50 billion (Rs 3 lakh-crore). Nearly 54 of the imports have come in from China alone. Much of the imports were of consumer goods that could have been easily manufactured within the country. As if this is not enough India is now having talks with China to sign a free trade agreement. In any case, India has been on a fast-track mode to sign bilateral trade agreements with some 34 countries. The result: Imports have far exceeded the exports from India which means the trade agreements had not benefited the country. The Prime Minister cannot blame anyone. He himself has been pushing for bilateral trade agreements despite the warnings that the imports are surging. Take the case of the proposed India-European Union trade agreement in the offing. The EU is insisting that India opens up by reducing import duties on wines and spirit and also drastically cut back import tariffs on milk imports, from the present level of 60% to 10 per cent. This will bring a flood of milk imports , into India which ironically is the biggest producer of milk in the world. Importing cheap and highly subsidized agricultural commodities as well as manufactured goods is like importing unemployment. Because of the reduction in import duties of edible oil from 300% to zero per cent, for instance, India is now importing edible oils worth Rs 60,000-crore every year. While economists are hammering the Rs 1.25-lakh-crore food security bill saying that such massive public outgo will add on to the fiscal deficit, no mention is ever made of the Rs 30lakh-crore that has been doled out the industry since 2005-06 in the form of tax concessions. But despite the huge subsidy, the industrial output had been steadily on a decline. In May 2013 it

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Nov 15 - Dec 15, 2013

stood at minus 1.6%, exports have remained subdued, manufacturing has been almost killed. So wasn’t the tax exemptions a wasteful expenditure ? If recovered, the tax exemption alone could have wiped out the country’s entire fiscal deficit. Had the massive tax concessions to India Inc, which is clubbed under the category of ‘revenue foregone’, were instead invested within the country, it could have created millions of jobs. While industrial production remained dipped, equally shocking is the massive hoarding of cash that the private sector has been stacking. By March 2012, India Inc was sitting over cash

The Prime Minister cannot blame anyone. He himself has been pushing for bilateral trade agreements despite the warnings that the imports are surging. reserves of Rs 10 lakh crore. There is no need for India to bend backwards to attract foreign direct investments when its own corporate were sitting over a mountain of cash. Forking it out could have created investor’s confidence and improved the business sentiments. On top of it, a Credit Swiss report shows that the top ten big corporate groups in India have shown a sixtold increase in external commercial borrowings to reach a staggering Rs 6,30,000-crore. But these massive borrowings did not result inadequate returns thereby increasing the external debt. With so much of external borrowings and with cash reserves growing, what prompted the government to provide hefty tax concessions year after year needs to be investigated. In the last two years alone, Rs 11-lakhcrore has been doled out. Sadly, all this was allowed to happen when the Prime Minister knew that free market policies and deregulation were behind the economic woes. Instead of taking appropriate corrective steps he allowed the Indian economy to dither and slide. This is where he faltered. In fact, the solutions that are being proposed to prop up the ailing economy are the same that initially led to the economic downturn. More of the same, will only add to the crisis.— Third World Network Features. (Devinder Sharma is a distinguished food and trade policy analyst)


19

NGO

Couple who toil for organic farming

Passline News Service athew Sebastian and Shiney Mathew duo is a rare couple who has indulged to propagate the organic farming habits among the farmers of the state by supporting them right from certification to selling their products in domestic and international markets. They also conduct training programmes at different colleges and universities to spread awareness about the benefits of organic farming among the youths. Mathew Sebastian is the co- founder of INDOCERT, an Aluvabased NGO, and Shiney Mathew is the CEO of IOFPCL (Indian Organic Farmers Producer Company Limited), the largest farming organization in India owned by the farming community .

M

“The going back to the traditional way of fertilization in our agricultural holdings is the need of the hour, especially in a State like Kerala which totally depends the neighbouring states for its agricultural needs, including the people’s staple food -- rice. The agricultural products which are grown on commercial basis with intensive use of pesticides are arriving in our markets from the neighbouring states and we do not have any other option but depending on these products. The main reason for this phenomenon is steady depletion of arable land, high labour cost and loss of interest among the younger generation in cul-

tivation. The only solution for this problem is to hold awareness programmes for the general public on the need of conventional farming, terrace farming, poly house farming and green house farming and other scientific methods of farming applicable in a minimum land holding and high yielding using organic manure. Our traditional food is tastier than all fast foods available today. If we apply a little heart, we can bring back

our ethnicity”, said Mathew Sebastian, economic factors such as increased urformer agricultural officer and now banization (crowding), migrations and Executive Director of Indocert, Aluva, population demographics are further and his wife Shiney Mathew, CEO of contributing adversely to the safety of IOFPCL, one of the largest organic foods. Food production is becoming producer company in India owned by a highly complex business, particuthe farmers. Indocert is an organisa- larly since raw material is sourced tion formed in 2001, with a mission to on a global scale and new processrender reliable and affordable products ing technology are used to produce and food safety management system a vast array of products. Thus, food certification services in the field of pro- safety practices are important in every duction, processing and trade for the stage of food production, preparation, realization of safe and sustainable and consumption. To meet these chalagriculture and food products. While lenges, Indocert is offering the training Mathew was doing a project on ‘international marketing of certified organic products’ in 1996, he thought of starting an organisation to help farmers; and with the association of likeminded people the organization was formed. “Indocert Mathew Sebastian Shiney Mathew is a nationally and internationally operating certification programmes specifically designed for body headquartered in Aluva. Organic educational institutions, related food farming, which was once the traditional sectors and food chain industries. way of faming in India, is disappearing Shiney said, “IOFPCL was started these days. We are living in a generaby farmers in 2004 and they are the tion where we are served with adultermain shareholders of the company. ated food on our table and every day They have to pay Rs 1,000 per share we are hearing many toxic death cases and IOFPCL will undertake the export connected with food. All this is because of each shareholder’s agricultural yield of transformation from the traditional to a maximum amount of Rs 40,000 per way of farming to contemporary farmyear”. The company is emboldened to ing, where use meet the challenges by assisting the of fertilizers member-farmers in the production and and pestithe marketing of Organic and Fairtrade cides is soar- certified products in the domestic and international markets. The company pays premium price to the producers ing. Today this form of farming will gen- through our collective marketing eferate more profit than the traditional forts.” way of farming drawing most farmers to this mode of agriculture. To mitigate the gravity of the situation, we thought of using the programmes of Indocert to popularise the organic form of cultivation”, said Mathew. It is true that the food quality, including safety, is a major concern facing the food industry nowadays. A great number of socio-

“We have a membership of more than 2,500 primary producer-members in Kerala, Karnataka and Tamil Nadu,’’ added Shiney. The company follows the cooperative and fair-trade principles. Each member has one vote each irrespective of number of shares held. The company is governed by the Board of Directors elected from the

shareholders. There are small and big farmers who are our members and the whole profit is shared by the farmers without a middleman. This is the only producer-company in India which is running successfully. Our main organic products on offer are Malabar black pepper, ginger, turmeric, vanilla, coffee, cocoa, coconut oil, and cashew nuts,” avers Shiney. Indocert is accredited by National Accreditation Body (NAB), Government of India, as per National Programme for Organic Production (NPOP). Furthermore, INDOCERT offers Organic Certification as per USDA-NOP standards for products destined for export to the United States. INDOCERT is accredited as per ISO 17021 & ISO 22003 by National Accreditation Board for Certification Bodies (NABCB, QCI, India) for providing Food Safety Management System Certification Based on ISO 22000:2005. INDOCERT also has accreditation from National Accreditation Board for Education and Training (NABET, QCI, India) for conducting awareness training programme on Food Hygiene (GMP/GHP). Indocert has developed Indocert organic standards for non-European country operators for the certification of organic production system in the Third World countries. The company has strong technical collaboration with two well-reputed Swiss Organic Agricultural Institutions, FiBL (Research Institute of Organic Agriculture) and bio.inspecta (Swiss certification agency). IOFPCL has been registered with the Directorate General of Foreign Trade as an Importer – Exporter. The company is also a ‘Registered Exporter Member’ of the Spices Board and Agricultural Producer Export Development Agency (APEDA). The company has been successful in exporting organic and fair-trade products. Mathew Sebastian is also the chief editor of the magazine ‘Harithabhoomi’, which is dedicated to providing useful, well-researched information on scientific and holistic practices in agriculture, food and health

Nov 15 - Dec 15, 2013

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E-COMMERCE

Shopping ‘online’ Passline News Service n India the world of e-commerce is growing larger day by day, as there is a big scope for small entrepreneurs to start their own online business. It is clear that the future of business or shopping will be online in India because an online shop, e-shop, e-store, internet shop, web shop, web store or online store evokes the physical analogy of buying a product from a bricks and mortar retailer or shopping centre. People who are working executives and working in IT fields generally go for online shopping. In Kerala, where IT industries are booming and youths are more tech-savvy, the scope of e-business is reassuring. Online ethnicity like that of developed countries will be shortly witnessed in India and in cities like Kochi it will soar much faster. Increasing online shops have become a great threat to offline shops, as people now look for more comfort and simple ways to buy goods in their busy life.

I

Indulekha.com, which was started in 2006 by two journalists, Tom J Mangatt and Swapna Tom Mangatt, is Kerala’s largest online bookstore with a huge collection of Malayalam books. It also offers English books and music and film CDs at low prices with free shipping. “Our business is moving slickly. Kerala is becoming an ideal place for e-marketing. We have yearly growth of 200%, and 105 publishers are Tom J Mangatt associated with us, which makes us the largest online book sellers,” says Tom. However, there are some drawbacks like faultless maintenance of the website, cost of the software, online distribution costs and security of the website, he says. “In India people started buying things online when the cash on delivery (COD) system came. Many people still don’t have online banking,” says V K Adarsh, Manager Technical, Union Bank of India and Social Media Evangelist. In Kerala, he says, we have a number of online stores which deliver fish, vegetables and stationery. ‘Sea to Home’ is an online seafood shop of Kochi where you can order your favourite seafood. ‘Connected Shops.com’ is an independent and personalized grocery shopping agency, also in Kochi. It charges Rs 30 which includes shipping. Newspapers like the Malayala Manorama, Mathrubhumi and The Times of India have developed their own online stores. Ezyby.com is Kerala’s IT and telecom e-commerce site, which was launched last year. Ezyby.com is an authorized genuine online IT store with 2,000 products, brands and product categories. It offers services like COD, door delivery and same-day delivery in select cities for select products, besides 10day replacement policy, free shipping and best prices. Ezyby.com has state-wide pickup stores and authorized service centres across Kerala and tie-ups with Fedex and HDFC for delivery service and payment gateway. Ezyby.com has a 24/7 helpline for technical

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Nov 15 - Dec 15, 2013 Nov 15 - Dec 15, 2013

consultation and also provides pre-booking facilities for latest tech gadgets. Ezyby.com deals in brands like SAMSUNG, Apple, Sony, Toshiba, Lenovo, Acer, Asus, Microsoft, Intel, HTC, BlackBerry, DELL, HP, HTC, Belkin, Targus, D-link, Nokia, Apotop, Eken, Adata and Logitech. It is promoted by ITNET Infocom Pvt Ltd, one of the largest IT retailers in Kerala with 20,000 customers. Many small retailers are moving into online marketing as there are reasons such as we don’t need a shop, there is no need to pay a huge rent and also no definite time is needed to work. Another advantage for the consumers is that everything is available under an umbrella. For example, the largest traditional bookshop carries 3,00,000 books but in an online bookshop, the consumer can choose from three million titles and also can read the preview before ordering books. Online shoppers can also read the views and comments posted by others and this also helps them to make a decision

However, the developed countries had already turned entirely into online before buying a book. Many online sites offer huge and hefty discounts through money-back schemes or discounts on the base price. Some sites offer free shipping charges when the order exceeds a certain value, but some sites offer free shipping charges irrespective of the value of purchase. There are three kinds of online marketplace models based on how they connect sellers with buy-

ers. The first one is ‘managed marketplace’ which includes Jabong and Yebhi where the buyer deals with the marketplace. The second one is ‘pure marketplace’ where the buyer deals with the seller. They include eBay, Snapdeal and Flipkart. ‘Hybrid marketplace’ like Amazon is the third type where the buyer has two options to deal with the seller or deal with Amazon.

Some other online marketers in India are Softek Surya, Flipkart, E Bay, Amazon.com etc. E Bay and Amazon.com are US-based. Amazon made its foray into the Indian market in 2012 with the launch of junglee.com, enabling retailers in India to advertise their products for free to millions of Indian shoppers and to drive targeted traffic to their stores. Products on Amazon.in include books, films, tablets, ebooks, computers and accessories, mobiles and accessories, cameras and photographic materials, portable media players, toys and games, baby products, personal care appliances, healthcare devices, watches, fashion jewellery and home and kitchen products. Softek Surya is one of the leading value-added IT distributors in the country. Its distribution brands encompass brands like SanDisk, Karbonn, Moserbaer, Huawei, Kingston, HP, Sony, Storntium, Transcend and Casemate Mobile accessories. Softek Surya has grown over the years. Flipkart, another online market, was started in 2007 for making books easily available to anyone who had internet access. Today it distributes categories including films, music, games, mobiles, cameras, computers, healthcare and personal products, home appliances and electronics, stationery, perfumes, toys, apparel, shoes etc. Sachin Bansal, who started Flipkart with his college friend Binny Bansal in a small flat in southeast Bangalore in 2007 with Rs 4 lakh, is now the country’s best-known online retail brand. Sachin received the ‘Entrepreneur of the Year Award 201213’. The company registered sales of Rs 5 crore in 2008-09, Rs 20 crore in 2009-10 and Rs 100 crore the following year. Facebook marketing is a new notion to reach the public. It is the simplest way to do your business because there cannot be a better platform it which has more than a billion users and audience of all age groups. Therefore, marketing through Facebook is an excellent way to reach out to a huge audience. Social networks such as Facebook and Twitter provide advertisers with information about the likes and dislikes of their consumers. Each participating customer becomes part of the marketing department, as other customers read their comments or reviews. The process is then essential to successful social media marketing. All these facts ultimately indicate that in a day, 50% we live our life online. However, the developed countries had already turned entirely into online; the developing countries are also on the same path because of increasing internet use. E-commerce which was limited only in metros is now widely spreading in other areas. E -shopping becomes popular by the arrival of advanced smartphones and tabs which allow customers for e-commerce buying. In Kerala, the online market is booming because all the retailers are expected to launch their online sites soon and also there is a tough competition between them by offering free shipping charges, free coupons, gifts and many more items for the consumers


21

MONEY

Ways to exit from debt trap Passline News Service

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o live without loans and debts is not possible in today’s world. But we have to manage our debts carefully in our endeavour to lead a worry-free life and to become rich. We have also to be cautious about taking a loan as otherwise it may nudge you into the debt trap. In olden days, only if there was no other way did one go for a loan - a housing loan or a vehicle loan. Now things have changed. Loans are available for marriages, education, picnics, computers and mobile phones. They are made available within three minutes of application. Loans at low or even zero interest rates are available today. A loan is indeed of great use when you are badly in need of finance. There is logic in taking a loan for owning a home or buying a vehicle but not for miscellaneous expenses. Many compare the interest rates of various banks before taking a loan, but fail to check whether it is inevitable, whether they can repay it without default or what its period is. When the loan is spent wantonly its repayment becomes a casualty. Some rob to get out of the rut. Some may not steal but beg. Some opt for suicide. The way of youngsters is bizarre. They adopt shortcuts to become rich by becoming members of quotation gangs or indulge in financial frauds or dupe friends or relatives. Gopalakrishnan Nair of Kollam worked hard to educate his two children and to get them employed. But in the evening of his life he is haunted by the brunt of the huge debt he has run into over the years. Besides he is beset with several age-related diseases.

By owning some land and building a house we are creating wealth. Statistics show that land prices are mounting 15% yearly. Today Nair and his wife have no avocation, no own house. They had to sell the 10 cents of land they had below the market price to marry off the daughter, to pay off part of his debt and to meet their medical expenses. Nair’s debts amount to Rs 20 lakh. Only recently did his son get a job. Though he is educated and employed as engineer in the Gulf, whatever is left after paying rent and looking after his father and mother, besides his wife and family, is about Rs 15,000. The lenders are pressing for repayment of the Rs 20 lakh within two months.

Nair is a model of the financially famished Malayalee ilk. There are lakhs like him though the gravity of the problems may vary. However the reason is the same - debt. The amount of loans one can take depends on the balance left after one’s expenses. One can take a loan the EMI (equated monthly instalment) of which should not exceed half of this balance. If the EMI exceeds this, the monthly repayment will be difficult. Interest will get compounded and the loan amount

rise to the level when the person will become a defaulter. Almost all salaried classes in Kerala take home, vehicle, personal and gold loans. In respect of the first three loans, banks usually coax the takers to repay in time, but not so in the case of gold loans. Though there is no harm in having gold loans, some forethought on ways to retrieve the pawned gold in time is needed. There are incidents in Kerala of accumulation of interest and pledged gold being lost. Take the case of a car loan. As loans are available at reasonable rates can any income group have car? Only if you can afford the EMI. Otherwise it will put you to a cash crunch. Suppose you buy a car of Rs 4 lakh. Whether you use it or not, you incur an expenditure of Rs 4,000 monthly on it. If it runs 20 km daily this comes to Rs 7,000 plus the loan instalment. The amount comes to Rs 17,000 though you might have calculated the EMI at Rs 10,000 at the time of buying the car. So your financial equilibrium may crumble. There is also the risk of defaults on repayments of other loans. Payment of insurance policies, chitties etc may also suffer.

That means a daily expense of Rs 137 if the vehicle is used or not or a monthly loss of Rs 4,000. Running costs are extra. Insurance, fuel charge and frequent maintenance incur Rs 5 for onekm run. For 20 km it comes to Rs 100. Daily use at this rate means Rs 3,000 a month. A car in use will cost you Rs 7,000 a month. How much should be your salary to afford this luxury? If it is bought with a loan, interest and capital will have to be added to this. A car loan of Rs 4 lakh closes at Rs 6 lakh. Taking this into account this may come to Rs 10,000 (interest Rs 4.000+principal Rs 6ooo) a month. We have to spend nearly Rs 17,000 from the very first month on a car of Rs 4 lakh. Now think of buying a used car. It is feasible as the monthly expenses can be slashed to half. For secondhand cars, interest rates are higher, say 18%, against 13% for new ones. The period of loans is five years for new cars, whereas it is three years for used ones. Maintenance costs will be higher for used cars. A five-year-old used car bought at Rs 10 lakh is available for Rs 3 lakh. Of course maintenance charge will be heavy. Should we buy it? Because a Rs 10-lakh car is available for just Rs 3 lakh, one who has been wishing to buy a small car, say a WagonR, should not buy the Rs 10-lakh car because it costs only Rs 3 lakh. A secondhand WagonR can be had for just Rs 1.5 lakh. Running cost for a km will come to Rs 7. After use for four years it may still fetch the owner Rs 50,000. The likely loss will be only Rs 1 lakh after four years at

the rate of Rs 2,080 a month whether you use it or not. If it is a new car the loss will be Rs 4,000 a month - double the amount. Running costs will be Rs 7/km for the old one while it will be Rs 5/km for the new, aggregating Rs 3,000 (5X20X30) a month. A used car is more profitable. For a 20-km run it costs Rs 4,200 (Rs 7/km X 20X30) a month aggregating Rs 5,080. For a new one it is Rs 7,000. For a used car on loan EMI is Rs 3,000 and total Rs 8,080. For a new one it is Rs 17,000. The choice is yours. A home loan is quite different from a car loan. By owning some land and building a house we are creating wealth. Statistics show that land prices are mounting 15% yearly. The interest rate on housing loans comes to 11% on average. If you buy land and build your house you can make a profit of 4%. An example will explain this. Suresh bought a plot and a house for Rs 10 lakh after taking a loan of Rs 8 lakh at 11% interest five years ago. He sold the property for Rs 20 lakh. He paid off the loan with penal interest amounting to Rs 13.48 lakh. He could gain Rs 6.52 lakh. He had spent Rs 2 lakh from his pocket on buying the property. So his net gain is Rs 4.52 lakh. In other words, he got a profit of Rs 4.52 lakh in five years by investing Rs 2 lakh. His profit margin is 26.67%. If you are investing your money to acquire an asset you may still make a profit even if you get trapped in debts. On the contrary, if you are buying liabilities you may end up in tears

A car is never an asset. It is a liability. Realize it initially. Can you bear an extra liability? Is it worthwhile selling a Rs 5-lakh car for Rs 2 lakh after five years? Remember you spent Rs 3 lakh for five years covering running expenses, fuel charge, tax, insurance and maintenance charge. The resale value of a car costing Rs 4 lakh is Rs 1.5 lakh after five years. Depreciation comes to Rs 2.5 lakh in five years. Nov 15 - Dec 15, 2013 Nov 15 - Dec 15, 2013

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22

FUND MANAGEMENT

Equity mutual funds outperform ULIP equity funds A

shokan is working in Kuwait. In October last year, he came on leave to his native city of Kozhikode. He went to the State Bank of India branch where he had his savings bank account. Knowing that he is an NRI, the bank staff induced him to buy some life insurance and mutual fund products to save for his daughterâ&#x20AC;&#x2122;s higher education after 12 years. He took a unit-linked insurance policy (ULIP) from SBI Life, allocating the entire fund value to the equity fund. When he got the policy documents he found that after deducting various charges he got units worth about Rs 50,000 in the equity fund of the ULIP. After one year, he logged in to check the Sanjeev Kumar G performance of his investments. He found that the NAV of his ULIP had appreciated by 13.48%. Great, he thought. A quick check with his investment adviser friend revealed that there are mutual funds which have given higher returns than his ULIP fund. He was surprised because ULIP being a locked-up

schemes and ULIP funds. So our first effort was to identify categories with similar objectives so that we will not be comparing apples with oranges. We have taken only growth schemes of diversified, largecap, midcap and index equity mutual funds and also avoided the institutional plans where the expenses are lower than retail plans. A total of 188 equity funds were considered for this analysis. During the last one year ending 14-10-2013, the top five diversified equity mutual funds returns were as given below: Top 5 Diversified Equity Mutual Funds

1 year Returns

BNP Paribas Equity Fund

15.28%

Axis Equity Fund

14.69%

Franklin India High Growth Cos 12.75% Fund ICICI Pru Dynamic Plan

11.93%

ICICI Pru Focused Blue Chip Equity 11.45% Fund We took the list of ULIP equity funds which invest more than 80% in equities so as to have a level field in comparison. Forty-eight such funds were considered.

The mutual fund NAV calculation takes into consideration all expenses. There is no entry load for mutual fund schemes. Exit load is applicable only if the exit is before one year. In ULIPs the NAV calculation does not consider fund allocation charges and fund administration charges. So if you deduct these expenses then the actual ULIP returns will be lower than the NAV-based returns. investment gives a lot of freedom for the fund manager to deploy the funds efficiently. But it is not able to give higher returns than mutual funds. We have done a comparative analysis of the performance of the top five in equity, debt and liquid categories in mutual funds against the top five in ULIPs. We took the NAV returns for the last one year ending 14-10-2013 of the mutual funds and ULIP funds for the analysis. We have taken last one year for this analysis because the equity markets and bond markets were having high fluctuations during the period. This analysis is limited to the performance of the funds managed by mutual fund managers and ULIP fund managers. There are different categories of mutual fund

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Nov 15 - Dec 15, 2013

For the same period the returns from the top five ULIP equity funds were as given below:

Top 5 ULIP Equity Funds SBI Life Equity Pension Fund SBI Life Equity Fund Star Union Pension - Equity Fund Tata AIA Future Equity Pension Fund - Life Bharti AXA Grow Money Pension Fund

1 year Returns 13.67% 13.48% 10.26% 9.35% 9.19%

We could see that the returns from top two equity mutual funds are higher than the returns from top 2 ULIP equity funds. The performance of next three ULIP equity funds are lower than the performance of the three equity mutual funds which are ranked below the top two. The mutual fund NAV calculation takes into consideration all expenses. There is no entry load for mutual fund schemes. Exit load is applicable only if the exit is before one year. In ULIPs the NAV calculation does not consider fund allocation charges and fund administration charges. So if you deduct these expenses then the actual ULIP returns will be lower than the NAV-based returns. In the debt mutual fund category we considered growth schemes of flexi/dynamic debt schemes under the retail plan. Dynamic debt funds move their allocation across long-term and short-term bonds according to the market conditions. There were 36 dynamic debt mutual fund schemes. The one-year returns of top debt mutual funds are given below: Top 5 Diversified

1 year

Debt Mutual Funds

Returns

Tata Dynamic Bond Fund-Plan A

11.80%

Morgan Stanley Active Bond-Reg 11.52% Canara Rob Dynamic Bond Fund9.50% Reg BNP Paribas Flexi Debt Fund

9.41%

Kotak Flexi Debt-Reg

8.51%

The ULIP debt funds also did not have any restrictions on the maturity profile of the bonds. Under ULIP debt funds there were 169 funds. The one-year returns of top ULIP debt funds are given below: Top 5 ULIP Debt Funds

1 year Returns

LIC Market Plus - Bond Fund

9.97%

LIC Jeevan Plus - Bond Fund

9.93%

LIC Market Plus - Secured Fund 9.48% LIC Jeevan Saathi Plus - Bond Fund

9.20%

Shriram Life - Secure Plus

9.18%

Here also, as in the case of equity funds, the top two debt mutual funds outperformed all ULIP debt funds. The performance of the top two ULIP debt funds was only a notch below the top two debt mutual funds. There is a case of tax advantage with ULIP debt funds. In the case of debt mutual funds if the units are held for more than a year, then the profits will attract long-term capital gain tax which is about 10% of the profits without indexation. In the case of ULIPs there is no tax on the profits which you receive as part of maturity benefits. This benefit may offset the costs like fund allocation charges and fund administration charges. Therefore by setting aside this, we can fairly say that the performance of ULIP debt funds is on a par with debt mutual funds in the last one year.


23

PENNY WISE

Lessons on money management Passline News Service

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hanks to the electronic media, today’s kids know the things available in the market specially created for them and where they can get them. The fascinations of the consumer world and the advertisements appearing on the visual media have their impact on them. Parents, therefore, have the responsibility to make their children financially disciplined. Here are some valuable tips on money management. Teach your kids the value of money: If we want to make our children financially disciplined, we should teach them the value of money. Otherwise, they will feel that money is solely for spending. The different aspects of money management such as earning, spending wisely, keeping for the near future and saving for the future should be instilled in them at an early age. If you are an employee, you can tell your children that you are working for salary which, in turn, gives you a living. A businessman or a farmer can say to the kids that when they sell out their products they will get money. The affluent should teach their kids the different

ways of sustaining the affluence. There lies the basic lesson that we won’t get money from nowhere, but we have to work for it. For a rich dad as well as a poor one, money is the result of their sweat.

clearly on a daily basis. At the same time, make it clear to your children that you don’t want to keep an eye on them, but are trying to make them responsible for money matters, and to introduce the concept of family budgeting.

Guide them to spend money sensibly

Train them to save from their pocket money: The term saving should be familiar to each child. Whenever they get a reasonable amount as a gift or prize or pocket money, guide them how to spend it and save it. You can permit your child to spend 70% of the amount immediately to buy something they wish. At the same time ask them to save 20% of the sum for the near future and the remaining 10% for the future on a long-term basis.

When we go shopping, don’t hesitate to take your children with you. Let them watch and see the way you buy things. You can explain to the children why you have selected a particular brand. You may think about the price, quality, quantity, the brand and many other factors. If you are in a crisis, you may not buy all the items on your list. You may choose the most important ones. And thus you can teach them the differences of bare necessaries, necessaries and luxuries.

Make them write down the expenses Give your child a book to write down the expenses. (You yourself should have such a book in your family). Then ask the child to write down expenditure

Fifty-four liquid mutual funds and 29 ULIP liquid funds were considered for analysis. The liquid mutual funds have to invest in papers with maturity profiles of less than 60 days while for ULIPs the maturity profiles can be higher. The tax incidence will be similar to that of debt funds in this case and hence ULIPs have that advantage. The one-year returns of the top five liquid mutual funds are given below: Top 5 Diversified Liquid

1 year

Mutual Funds

Returns

Escorts Liquid Plan

9.68%

Morgan Stanley Liquid

9.21%

JM High Liquidity Fund

9.12%

Kotak Floater-ST

9.10%

Union KBC Liquid Fund

9.09%

The one-year returns of the top five ULIP liquid funds are given below:

Start a savings scheme for your kids It is wise to start a savings scheme for your children. Thus you can introduce them to the world of banking, and teach them to wait patiently to reap the benefit of their savings later. Allow them to donate: Let them be generous in the future. For that we

Top 5 ULIP Liquid Funds

1 year Returns

Kotak Dynamic Floating Rate Fund

11.19%

Kotak Pension Floating Rate Fund

11.16%

SBI Life Money Market Pension 11.02% Fund Bajaj Allianz Cash Plus Pension 9.06% Fund ICICI Pru Pension Money Market 8.88% Fund The top three ULIP liquid funds have outperformed all liquid mutual funds. Usually competitive environment and high expectation from large corporate investors force liquid mutual funds managers to deliver superior performance compared to ULIP liquid fund managers who are not driven like that. As of now ULIP fund managers are better positioned. Mutual funds usually face redemption pressures if markets are down. The money can flow in and flow out any time. But in the case of ULIPs it is not easy to pull out money. There are restrictions.

have to introduce them to the joy of sharing and giving. Make them donate to the poor and to be active in charitable deeds by their schools. Differentiate between parental love and pocket money: Parents and their children should realize that spending money for the child is not the decider of parental love. To prove your love towards your child, never give everything demanded by your child. If you can’t afford their demand, tell them frankly, explain to them why and suggest an alternative. Finally, one crucial point to keep in mind: try to understand your child and their needs from their shoes. Being financially disciplined is not meant to be a miser, but to be wiser. (The article has been prepared using the guidelines given by Dr Rajan Mathayi, Clinical Psychologist, Kusumagiri Mental Health Centre, Kakkanad, Kochi, and Anna Mary, Student Counsellor, Navanirman Public School, Vazhakkala, Kochi)

So the ULIP fund managers do not have redemption pressures. While SEBI has been actively (almost micro-managing) regulating the mutual fund industry, IRDA has not put many regulations on the ULIP fund managements. ULIPs are not required to publish their portfolios on monthly basis. Hence not much is read into their management style by the analysts. This also reduces the pressure on them. Therefore investors expect ULIP funds to perform better than mutual funds. A year ago, IRDA directed insurers to include the fund management fees in NAV calculation which is a good step. Similarly fund allocation charges and fund administration charges also should be included in NAV calculations. Considering the long-term nature of the investments and low churn unlike in mutual funds, insurers should give returns better than similar mutual funds. But it is still not visible (The writer is Managing Director and Principal Financial Planner, Progno Financial Planning Systems (P) Ltd) Nov 15 - Dec 15, 2013

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T

GROWTH COMPANIES-IX

FBL - from a small-time to the best performer in the field

he gowth companies in Kerala being featured in these columns have made their investors richer, in many cases by 10 times or more, with a minimum investment of Rs 1,000 in their shares . In a state which had once fought shy of investing in shares these companies proved a beacon of hope. Intending investors and brokers are now being enabled to know the best performers. In this issue is featured the best performer in the banking industry in the state, its largest scheduled bank in the private sector and the second largest bank in the country having crossed the Rs 1-lakh-crore mark in business in the financial year 2013—The Federal Bank Ltd (FBL).

It was in 1931 that Travancore Federal Bank was inaugurated at Pattamukkil Varattisseril at Nedumpuram, near Thiruvalla. The 14 founders included Pattamukkil Varattisseril Oommen Varghese, his brothers Oommen Chacko, Oommen Kurian and Oommen George and Kavumbhagam Mundapallil Lukose from Thiruvalla. Oommen Varghese was the Chairman

and Oommen Chacko the Manager. After it had functioned for nearly 10 years, the bank’s day-to-day transactions had to be stopped because of the ill health of the Manager. Understanding this situation, a lawyer from Perumbavoor, K P Hormis, and his acquaintances joined together, bought the bank and took over the management in 1944. In 1945, they moved the bank’s registered office to Aluva and Hormis became the Managing Director. In 1949, the Board of Directors was reconstituted and fresh Articles of As-

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sociation were adopted. The bank was renamed The Federal Bank Limited. In 1970, it became a scheduled commercial bank.

Shyam Srinivas During March 1993, the bank issued 25,25,000 equity shares of Rs 10 each at a premium of Rs 25 per share in the proportion of 1:2. Another 5,25,000 equity shares were offered to the employees on an equity basis. Only 30,47,894 shares of these were taken up keeping in abeyance 2,106 shares. Another 30,00,000 equity shares were allotted

at a premium of Rs 30 per share to ICICI associate companies. During March 1994, 35,45,500 shares were offered to the public at a premium of Rs 80 per share. Additional 1,72,600 shares were allotted to retain oversubscription. During January 1996, 74,08,122 rights equity shares (premium Rs 140; proportion 1:2) were issued and 73,51,734 shares were taken up. In 1995, 50,50,000 equity shares were issued and paid up, of which 3,318 were issued for consideration other than cash to shareholders of erstwhile St

Nov 15 - Dec 15, 2013

George Union Bank Ltd, Puthenpully. In 1996 the bank undertook a threeyear ‘Information Technology Strategic Plan 2000’ for automating its branches in a phased way. ‘Fedsoft’, the automation software package in-house, was developed in 1997. It is being used by 40 branches. An automated teller machine (ATM) was installed at the Vile Parle branch in Mumbai during the year. The bank’s site on the World Wide Web on the internet (http://www. federal-bank.com) was also set up. FBL was the first in the country to diversify into internet banking and entered into marketing pacts with some commercial agencies for its e-commerce business. The year 2001 saw it tying up with Escotel Communications to launch mobile banking services using SMS technology. In 2003 ‘anywhere banking’ provided the convenience of doing transactions from 300-plus interconnected branches and in 2004, 100% interconnectivity among all branches was achieved. During this period ICICI Bank divested 0.31% stake in FBL. An ‘equity subscription scheme’, a new retail product for financing the IPOs and public issue applications of its customers, was launched. FBL acquired a prime property in Chennai, owned by Ramco Super Leathers, under the Securtization and Reconstruction of Financial Assets and Enforcement of Security Act. The property, spread over six grounds and 26,000 sq ft on Anna Salai, is estimated to have a market value of Rs 16 crore. JRG Securities Ltd forged an alliance with FBL in 2005 for providing loans for subscribing to initial public offers (IPOs). The bank got an award for best use of IT. In 2006, it acquired Ganesh Bank. Best Technology Award, YMCA Award etc were bagged. IDBI Bank and Fortis joined FBL for a risk joint venture. Rights in the ratio of 1:1 at a premium of Rs 240 per share were issued and a stake was bought in Lakshmi Vilasam Bank and in 2007. An office in Abu Dhabi was set up. There was a rights issue in the ratio of 1:1. In association with Geojit Financial Services the bank unveiled in 2009 its online trading product called Fed-eTrade as part of its efforts to provide various products and services to customers. However, retail clients will now

Bonus Announcements Year

Ratio

Ex Bonus Date

2004

2:1

29 / 11 / 2004

Dividend Details Year

Dividend (%)

2013-03

90

2012-03

90

2011-03

85

2010-03

50

2009-03

50

2008-03

40

2007-03

40

2006-03

35

2005-03

25

2004-03

70

2003-03

40

2002-03

35

2001-03

30

2000-03

25

1999-03

10

1998-03

35

1997-03

40

1996-03

35

1995-03

30

1994-03

25

1993-03

20

1992-03

18

have access to online trading in equities as well as derivatives, IPOs and mutual funds through Geojit’s online trading platform. Dr M Y Khan was appointed a non-executive, independent Director. A call centre facility was launched. FedSelect, a premium product for high net-worth individual (HNI) customers, was unveiled in 2010. Shyam Srinivasan took over as Managing Director and CEO. A deal was signed with Al Ansari Exchange in 2011. The 1,000th branch was opened in 2012 at Muthoor, near Thiruvalla, making FBL the first Kerala-based bank to reach this mark. A real-time funds transfer service to customers for transferring funds to merchants and enterprises through mobile phones was started. This year a copy of the board resolution regarding the splitting up of shares of face value of Rs 10 to face value of Rs 2 each was submitted to the Bombay Stock Exchange. A person who invested Rs 1,000 during 1988-90 got a dividend of Rs 19,250, 19 times more than the original invesment. In addition to this he got a capital appreciation of Rs 1, 20,375 (MP Rs 80.25 on FV of Rs 2). (Information provided by Mr Babu Vettoor. Contact No. 9895356723)


25

NEWS

Curtain Raiser Event of WomenManagers Forum of KMA

A

runa Sundararajan IAS, Additional Chief Secretary, Government of Kerala, has inaugurated “The Curtain Raiser Event of Women Managers Forum Activities 2013-14” at KMA. Addressing the gathering on “Women in Corporate and Challenges in work place” she said that every woman is entitled to her own respective space and

Roles”, emphasized on how “Strong leadership starts with bringing together a group of people who may not have anything in common and inspiring them to achieve uncommon results”.

Gold Souk Maha Utsav G

old Souk in association with Toyota launched a fivemonth-long shopping festival on August 10 to end on December 31. At the carnival, which is managed by Studio Events, Nisha Karthik Madakuzhi from Kaloor, Kochi, was selected as the first winner of the mega-prize of Toyota Etios Liva.. Eldo Benjamin, Vice President, Nippon Toyota, selected the winner from the lucky draw.

The forum, which aims to create a setting for interaction between women manag-

Riyaz Khan presenting the key of Toyota Etios Liva to Nisha Karthik, who is the first mega prize winner of the Gold Souk Maha Utsav. Nippon Toyota Vice-President Eldo Benjamin and Gold Souk Resident Director Abubackar are also seen. The second and final draw will be held during Christmas-New Year. Abubackar, Resident Director, Gold Souk, cartoonist Bonny Thomas and Studio Event Directors Jayachandran, Bibin Thomas and Babu Alappat were present at the first draw Aruna Sundararajan IAS inaugurating the Curtain Raiser Event of Women Managers Forum(L-R) Jibu Paul, Hon. Secretary, KMA , S Rajmohan Nair, President, KMA, Parveen Hafeez, Chairperson, Women Managers Forum, KMA, Sushama Srikandath, Director & Chief Executive Officer, AVT McCormick Ingredients Private Ltd, and Dr Lalitha Mathew, Convenor, Women Managers Forum, KMA the glass ceiling that conceals this acceptable option is not just a perspective issue, but rather, an actual practical constraint that women need to redeem themselves out. Sushama Srikandath, Director & Chief Executive Officer AVT McKormick Ingredients Pvt Ltd, in her Keynote Address while speaking about “Women in Leadership

ers from various disciplines throughout the community, was presided over by S Rajmohan Nair, President, KMA. The gathering was officially welcomed by Parveen Hafeez, Chairperson, Women Managers Forum, KMA and Dr Lalitha Mathew, Convenor, Women Managers Forum, KMA, proposed the vote of thanks

Eagle Press releases Special Gift Set Diaries

D

iary manufacturer Eagle Press has released special gift set diaries for the year 2014. Thet set of premium grade consists of a big diary, a small slim one and vehicle care telindex. Made of superior-quality natural shade papers, the diaries are available with genuine leather cover in jet black/ maroon hues, gold-gilded sides and rounded corners, says the company.

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ajeev Menon of Draft Feb Ulka Advertising Pvt Ltd was unanimously elected the President of the Advertising Club Cochin at the club’s 18th Annual General Body meeting held at Rama Varma Club, Kochi. Anil James of Exodus Communications Pvt Ltd was chosen as the Secretary. The other office-bearers are: G Sreenath (Hammer) Vice- President; Raghu Ramachandran (Asianet Communications) Joint Secretary; Chitraprakash (Chitra Painters) Treasurer. Madhava Menon R (Aegis Communications), Raju Menon (Maître), Rajiv C A (The Hindu) , Dominic Savio (DDB Mudra), Sunil Nambiar (Mangalam) and Rajeev A T (Communication Mantra) are the new executive committee members

KFC diamond jubilee K

The gift set contains pages for recording contacts, scheduling plans, storing memos or making notes. Week-at-sight layout; month-wise planner of 2014, a page for personal data, dates to remember and calendar of 2013 to 2015 are features. ISD directory, details on rates of direct taxes, world

Advertising Club Cochin office bearers

standard times, air travel distances; multicolour maps, list of festival days, first-aid tips, ribbon marker etc are other folios

erala Financial Corporation (KFC), started in 1953, will celebrate its diamond jubilee with year-long programmes which will commence after inauguration at the Kanakakunnu Palace in Thiruvananthapuram on December 2, 2013. An essay competition on ‘Developing Entrepreneurship Culture among the Youth of Kerala’ will be conducted in connection with the jubilee in which students from professional colleges and the University College can participate. The first three winners will be awarded cash prizes of Rs 10,000, Rs 8,000 and Rs 6,000, respectively, and certificates at the inaugural function. The last date for submission of essays is November 11. Details can be had at www.kfc.org Nov 15 - Dec 15, 2013

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A new role for Manju Warrier V

ersatile actress and danseuse Manju Warrier has been designated as the goodwill ambassador for the Kerala Government - backed ‘She Taxi’ service launching next week. She has volunteered to support the transport service which has been initiated by the Gender Park, an institution set up by the Department of Social Justice, Department of Kerala to work towards achieving gender equity. She Taxis, owned and driven by women entrepreneurs, will roll out as a part of a pilot project in the state capital on November 19 at a ceremony attended by dignitaries including Manju, who expressed her willingness after hearing about the project. “As someone who has had first-hand experience of the difficulties and worries of travelling in unfamiliar cities at odd hours, I know how important a service of this kind will be to women. I’m sure this is an idea that will catch on quick,” she said. “I also respect the women who have come forward to operate these taxis given the challenges they are expected to face in a male-dominated business.” Once fully operational ‘She Taxi’ will be a 24X7 service available for booking via mobile phones and online. Women travelling alone or with families will be able to dial a toll free number connecting to a customer care centre. They will get a Unique Identification Code and the vehicle number on their mobile phones. All cabs will be metered and will have an electronic payment system allowing the user to pay using credit or debit cards or cash. The Kerala State Women’s Development Corporation, Maruti Suzuki Ltd and Technopark-based Rain Concert Technologies are associates in the project

Lulu group wins award

Lulu group Director M A Nishad receiving the Best Concrete Structure of 2013 award for Lulu Mall, Edappally, from Ultratech Cement Ltd Vice-President Anil Abraham. Shapoorji & Co Ltd Senior Vice President Sati Mahadevan is also seen

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Polycab Wires in Kochi

ice-Chairman, JMD and Group CEO R Ramakrishnan the other day inaugurated the new branch office of Polycab Wires Pvt Ltd, one of the front-ranking cable companies with headquarters in Mumbai, at Edappally in Kochi.

The company says that there are challenges in the renewable energy sector and the cable industry is facing new problems in product development and marketing. But

Of 40 years’standing as a cable giant and possessing ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certification, Polycab is still growing having posted a sales turnover of Rs 4,300 crore last year. Products that satisfy customers, support and trust of sales partners and customers and meeting the challenges of the 21st century successfully have led the company to tread successfully in its four-decade-old journey in the cable business. According to the company, what has earned it its reputation, credibility and identity is its steadfast loyalty to basic business principles like simplicity, accountability, credibility, united efforts and market identification. It aims at growth with quality products to be developed by modern and efficient manufacturing methods to meet the future needs of customers.

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in this sector too Polycab has succeeded in producing worthy products and developing an efficient marketing system of international standards. The company has visualized the growth path for the coming five years and beyond. Polycab, in due course, is diversifying into the portfolios of lighting, luminaires, switches, switchgears, electric fans and appliances. It is planning to grow into a company of assets worth Rs 10,000 crore in the next four-five years

TiE Kerala meet on Dec 13, 14

iE Kerala, the state chapter of The Indus Entrepreneurs (TiE), a global organization for promoting entrepreneurship through mentoring, networking and education, is hosting the second edition of TiEcon Kerala 2013 on December 13 and 14, 2013 at the Le Meridien Convention Centre, Kochi. “About 2,000 delegates from the state and outside will attend the conference which will be inaugurated by Chief Ministere Oommen Chandy,” said John K Paul, incoming President, TiE Kerala, in Kochi the otherday. “The first TiEcon Kerala held last year was a grand success with more than 1,200 delegates participating in the two-day conference. The membership of Tie Kerala grew from 75 to 500 at the end of the programme,” he said. More than 100 eminent speakers comprising entrepreneurs, industrialists, professionals, venture capitalists, educationalists, mentors and management experts from India and abroad, will address delegates in different sessions spread over two days. A V George, Incoming President, launched the new website, TiEcon Kerala 2013. John K Paul; Shivadas Menon, Treasurer; WgCdr K Chandrasekhar, Executive Director; and S R Nair, Past President, were also present during the website launch. TiEcon Kerala 2013 has chosen the theme ‘Prosperity through Entrepreneurship’. The State Bank of India is the sponsoring organization and the De-

partment of Industries and Commerce, Government of Kerala, is the strategic partner. They have started seed funding to support Kerala entrepreneurs. It is a small fund and is offered only to members. Till now four members have been given fund.

John K Paul announced that TiE Kerala would also unfold its vision for the state emphasizing the slogan ‘An Entrepreneur in Every Home’ by 2020, highlighting the increasing importance of entrepreneurship in creating economic prosperity and need for the youth to become more job creators than job-seekers. Bernard A Harris, former NASA astronaut and Appolo Mission Commander Director, will also attend TiEcon Kerala 2013. Other speakers include Karan Bilimoria, founder and Chairman of Cobra beer, and Ahok Rao, Chairman, TiE Global


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IRDA wants insurers to cut incentives to auto dealers

he Insurance Regulatory and Development Authority’s (IRDA) recent fiat on the incentives paid by the general insurers to automobile dealers is certainly a boon for customers. Insurers are paying high incentives to vehicle dealers by increasing the premium indiscriminately and squeezing the customers by charging high premium for the automobile cover(see the table).

Since the deal is between insurer and the automobile dealer , the advisors are not all getting any benefits from this business. The condition of the insurance advisors and broking firms are so pathetic, nowadays. Insurers drastically cut their commissions given to advisors and brokers and also the insurance companies attempt to skip them in the business deals will add to the woes of advisors and brokers

Insured DeMarket premium clared Value Rs. with50% discount

Showroom premium

Honda Amaze Diesel

676978

13552

20076

Fiat Linea Classic

764280

15117

27448

Maruti Swift Dzire

782500

15444

19609

Hyundai I20

783800

15462

21442

Nissan Terrano

1544000

26880

44000

Toyota Innova G4

1240280

29371

48668

Ford Figo

619000

12513

17000

Name of the Vehicle PRIVATE CAR

TAXI VEHICLE Toyota Innova G 4

1240280

36012

58263

SML ISUZU Supreme 866650 BS-III Truck

24267

32000

Bharat Benz

45220

74000

GOODS VEHICLE

2409600

Insurers pay large incentives to auto dealers to push sales of motor insurance policies, making insurance in the ‘own damage segment’ expensive, which is deterring customers from buying motor policies. The regulator recently convened a meeting of CEOs of general insurance companies to discuss the issue. Non-life insurers sell two types of insurance policies: ‘third party’, which is mandatory and pricing is regulated by the IRDA; and ‘own damage segment’ which is optional and pricing is fixed by the general insurers. IRDA chairman, TS Vijayan, wants more people to buy motor policies as there is a large number of people who own automobiles but are not buying policies.

tremendously. The IRDA, concerned by the incentives insurers paying motor dealers leading to expensive motor policies, has asked general insurers to cut such incentives and instead pass the benefits on to customers in the form of low premiums.The Chairman wants more people to buy motor policies as there is a large number of people owning vehicles and are not buying policies. Non-life insurers sell two types of insurance policies: ‘third party’, which is mandatory and pricing is regulated by the IRDA; and ‘own damage segment’ which is optional and pricing is fixed by the general insurers.However, general insurers justify such incentives saying that they are allowed under the outsourcing regulations

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No change in ownership structure: Federal Bank

ederal Bank has said that it has not sought any change in the already existing limit of foreign investment in the equity share capital of the lender or even in the existing sub limits for foreign institutional investors (FIIs) up to 49% and NRI holding up to 24% in the equity share capital of the bank. “This limit was approved by the shareholders in a resolution on February 23, 2006, and the RBI approval dated March 22, 2006,” says Shyam Srinivasan, the bank’s MD and CEO, clarifying certain media reports on the bank’s ownership structure. On April 5, 2013, a consolidated FDI policy was issued by the Department of Industrial Policy Promotion (DIPP), which says that specific Government approval should be obtained

I

for foreign holding above 49% and up to 74% equity capital for private sector banks. Because of this, the RBI has mandated Federal Bank to seek approval from FIPB to continue with the prevailing foreign holding limit. Therefore, the approval of FIPB was required to maintain the status quo of the limits existing in the bank since 2006. Srinivasan says that the limit on individual shareholding of 4.99% would remain and no shareholder (whether domestic, FII or NRI) would be able to acquire stake in the bank beyond 4.99% without obtaining the approval of the Board of Directors and, thereafter, of regulators. “The bank’s focus will remain on organic growth and any change in its ownership structure will not be considered,” he says

Idea drops tariff rates

dea Cellular slashed tariff for its 3G customers from November 13 to May 13, 2014. The tariff plan for 3G customers will be the same as 2G customers during above given stipulated time. Idea has already dropped 2G data tariff to 2 paise/10 KB in all 22 circles where Idea Cellular is operating and its 3G data consumers can now avail a profit of 30% per month. And this offer is available in Kerala, Maharashtra, Gujarat, Goa, Madhya Pradesh, Chhattisgarh, East- West UP, Andhra Pradesh, Haryana, Jammu Kashmir and Himachal Pradesh

NSEL imbroglio tilted Geojith’s bottom line.

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s per the terms of RBI ‘s Prudential norms for NBFC ,the board of Geojit BNP Paribas decided to provide full provision of Rs131.34 crore of Geojit Credits indirect exposure to National Spot Exchange Ltd. The company’s Q2 of fiscal year ended 30 September 2013 marked a revenue fall of 21% to 52.49crore from Rs 66.21crore for the same quarter of last year. The consolidated income for the year ended September 2013 is 118.83crore compared to 125.06 crore of the same period previous year. The profit for the quarter stood at Rs 12.50 crore as against Rs 18.51 crore of same quarter of the previous year, recording a decline of 33%. After providing provision the company will mark a net loss of Rs 94.20 crore during the Q2 of the fiscal, ended 30 September 2013. Geojit BNP Paribas Managing director – C J George said that “During the second quarter , due to various reasons, including NSEL scam, the retail activity in the capital market was subdued. However the third quarter has started seeing improvement in the retail activity in the capital marke, reflecting the higher volume.”

P Joy Oommen, new President of COSIDICI

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Joy Oommen, Chairman & Managing Director of Kerala Financial Corporation and former Chief Secretary of Chattisgarh, has been elected the President of Council Of State Industrial Development and Investment Corporations Of India (COSIDICI), which is a National Federation of State Level Financial Institutions comprising 18 State Financial Corporations (SFCs), 29 State Industrial Development Corporations (SIDCs) and 9 State Infrastructure & Investment Corporations (SIICs), engaged in promotion, development and financing of industry mainly in the small and medium sector. Nov 15 - Dec 15, 2013

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21-24 of November 2013 Municipal Stadium Ground, Palakkad, Kerala

Indexpo: Kerala’s industrial might at the show

NDEXPO 2013, the all-India industrial exhibition, will be a venue for showcasing a wide variety of technologies and equipments of different industries under a single roof. The Expo offers the public to see finished goods/materials, technology and services and also for engineering and other students to get familiarize with the same. It is a rare chance to purchase high quality products of different manufacturers and to experience new trends in the industrial sector. Traders of Kerala will use this opportunity to showcase their industrial activities to the entire world. Organized by Kerala Industrial Promotion Council (KIPCO) in association with Palakkad Management Association and Kanjikode Industrial Forum, the event is scheduled from November 21 – 24, 2013 at the Municipal Stadium Ground, Palakkad. The second in series -- the four-day exhibition-- is being powered by Federal Bank Ltd as the title sponsor and the bench marked exhibition is focusing exclusively on industrial might of Kerala and the rest of India. Some of the key categories of the Expo are ma-

chine tools and accessories, hydraulics and pneumatics, foundry equipment, material handling equipment and m a c h i n e r y, K S Mani precision tools, cutting tools, dies and moulds, instrumentation and automation, pumps and fittings, industrial components and consumables, industrial electrical and electronics, factory cleaning and pollution control equipment, general engineering, machinery for process industry, metallurgical plant and equipment, fabrication machinery and equipment, machines for agro industries, telecom equipment and service providers, IT consulting and service providers, software solutions for industry and finished goods from various industries. According to K S Mani, Chairman of Indexpo,“ the Expo offers a window for B2B (Business to Business) activity for the exhibitors and the industrial

visitors in Palakkad and other districts of Kerala. We expect a large number of delegates and visitors from public sector undertakings of the district and the state and also from other states. Karnataka and Tamil Nadu will be the two states having maximum delegates.” “There is an excellent window for industrial fraternity to establish vendor relationships in a wide range of domains and also a window for B2C (Business to end Customer) activity. Last year there were 150 stalls and we are targeting 200 stalls this year. As a part of Corporate Social Responsibility(CSR) we have a plan to allot two stalls complimentary to the eligible participants. The highlight of this year is that we honour five entrepreneurs, including two women and three men, from two different industries. Further, Indexpo will be a launching pad for debut entrepreneurs those who produce innovative products. The expected visitors to the show will be 15,000. We have proposed around 300 MBA students as volunteers and rest will be taken from Engineering stream”, Mani said.

hind industrialization process of the country due to various reasons. The very reason for setting up this organization is to drive the message as clear as possible to the general public that we can’t expect everything to be done by the government alone and that we need to put some fine effort if we need to improve the social situation in Kerala at a much faster pace. The primary objective of KIPCO is to foster, promote and co-ordinate national/international cooperation and movement for dissemination of knowledge for industrial promotion of all scales/ types, pooling the creative genius at regional, national and international levels and capabilities of governmental and non-governmental agencies engaged in promotion and protection of industrial units of all scales. “There is an immediate agenda being pursued by KIPCO with Kerala State Government. That is to get Palakkad declared as the industrial capital of Kerala and get allotted 25 acres of land for a permanent convention/exhibition centre in Palakkad. The Central and State Governments are supporting the district to be the No: 1 industrial belt in Kerala by promoting and establishing the Integral Railway Coach Factory to the extend of 400 acres of land; expansion of existing BEML unit at an extend of 250 acres which can produce Defence vehicles and Railway coaches.

“ There will be technical seminars related to different sectors of the industry and will be conducted till 1 pm every day and afterKINFRA has developed noon session will be live 350 acres of land to establish K Pankajakshan with vendor development a textile park as well as other programmes. Every day industrial units. KSIDC is proentertainment will add glitz and glam- moting a light engineering park to an our to the fair,” says K Pankajakshan, extend of 50 acres to be declared in the General Convener of the event. nearest future. There are scope for esKIPCO is a public initiative for promoting `responsible industrialization in Kerala,’ and act as a catalyst in the industrial development of the State of Kerala which has been left much be-

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tablishing many number of subsidiary/ ancillary units in and around Palakkad district to support the other major industries,” avers Mani , who is also the President of KIPCO


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21-24 of November 2013 Municipal Stadium Ground, Palakkad, Kerala

Gempac: gem among packaging machine manufacturers G

empac is rubbing shoulders with technological entrepreneurs making a giant leap on the packaging industry front. Gempac Packaging at Kalamassery is manufacturing machines to pack 1 gm/ml to 10 kg/litre of oil, vanaspati, atta, maida powders,curry powders,masalas, granules, chips, pickles. Gempac has machines having a capacity to pack 40 packets of liquid a minute. Machines for packing curry powder alone are also made here. This high speed PLC machine is the exclusive speciality of Gempac, say the company sources.

The demand for Gempac machinery in foreign land is the sign of patronage Gempac enjoys in those countries, says Gempac Managing Director P A Mathew. Packaging machines for kudumbasree units are also manufactured here. The oil com-

developed by the company itself. In order to ensure quality of the parts the purchasing is executed directly from Mumbai and Ahmedabad by the company.

P A Mathew panies in Tamil Nadu like KTV, SVS use the machinery made by Gempac. Gempac has the customer care service centre running 24 hours a day. The customer care service centre consists of nearly 15 service engineers. Nearly 33 varieties of machines are made by the company. Gempac sells nearly 100 machines an year. 60% of the market is in India and 99% in Kerala. The serial number, the year of manufacture are etched on the packaging machines. This number and the year help in the availability of the machine parts easily. Spare parts and software are

The fully automatic machine for packing `dosamav’ was first manufactured by Gempac. Travancore Cements’ 5 kg pack of Vembanad cement is packed by the machine manufactured by Gempac. Parachute, Parisudham like oil brands, multinational bigwigs like Lulu group, al manama, Carrefour are also customers of Gempac. Gempac exports machines to African countries, UAE, Saudi Arabia, Kuwait, Oman, Sri Lanka, Nepal and Middle East. Gempac has an office in UAE and OMAN. Export is at the rate of 4 machines a month. Nearly 33 varieties of machines are manufactured a year by Gempac. The management of the company is carried out by three partners be-

sides Mathew, his son Jithu Mathew, an Electronics engineer from Ilahia College Muvattupuzha; and K S Sreekumar

Safe-Power: eco-friendly electronic giant

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afe- Power Technologies Pvt Ltd, a leader in technology and innovation, started its operation in 1990. The company’s complete product line includes backup systems , lighting LED based automatic systems, energy management,

APFC panels, solar systems. SafePower Canopus is a joint venture for providing light source which saves energy above 50% compared to ordinary lights. Safe-Power LED lights are rare combination of electronics, optics and thermal management which downgrade low cost, low quality imported products in the market. The company’s pursuit for providing ecofriendly technologies paved the way for generating energy from the sun. So Safe-Power forayed into the realm of generating energy that empowers the ecosystems and stays closure to nature. Safe-Power is an ISO 9001-2008 company. The company has successfully incorporated the ISO process into

production, designing and marketing which help deliver global standard products. The company holds the certification from 1998. It took nearly 15 years for SafePower to integrate the cutting edge dominant technologies and expertise in production, to strategically grow as a global standard company providing true quality and value for money. Products are LED lights,UPS, Home UPS, Servo Stabilizer, Solar Products and Battery. During the production process they pay special attention at every point of the process from product development to manufacturing, sales and after sales customer care. The reason is simple, because they need their customers to enjoy the best quality products. ``Safe-Power manufacturing facilities are equipped with the latest technology present in the world. Our team consists of specialists in this field. As a result products rolling out from the facilities are of top quality standard”, says Managing Director K A Joseph Nov 15 - Dec 15, 2013

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21-24 of November 2013 Municipal Stadium Ground, Palakkad, Kerala

Electronic Cable Centre Focus on high-performance products

Passline News Service

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lectronic Cable Centre in Kochi, dealing in electronic wires, cables, connectors, sleeves and panel accessories, has carved a niche in cable business in India. They stand apart from other entrepreneurs by birth and heredity as Anil Kumar Agarwal, the Managing Partner, and Anil Kumar Agarwal his son GauravAgarwal, the Partner, natives of Rajasthan, have extensive experience and in-depth knowledge which enable them to provide perfect Gaurav Agarwal solutions for clients’ specific requirements. They focus on the special-

ABOUT A FEW PRODUCTS

F

lexible Wire- Their single core cables have higher flexibility due to larger number of strands in the conductors and are used for wiring of control panels, machines, electronic items and various electrical installations in small, medium and large industries where bending radius is less. Moulded Cable- Cable Centre offers wide range of Moulded Cables that are suitable for DVD players, computers, TV, gaming and many other electronic gadgets. These are tested at their well-equipped labs to ensure quality and efficiency of the products. Connectors- The company deals in a wide range of connectors from the leading brand of MX, Neutriks and Amphenol. ized segment of the worldwide cable and connectivity market that require high-performance products.

Fire and Safety

339/6243, Palace Tower Alapatt Cross Road, Cochin-15 Ph: 0484 2356236,2356757,2357555,4029424 Tel Fax:0484 2356767 E-mail:powermechkochi@airtelmail.in

Quality is evident at every stage of their internal and external customer interactions in every product and solution they offer.The comprehensive range of products is thoroughly tested in the state-of-theart laboratory to ensure that they comply with international quality demands and safety standards. The packaging and logistics unit takes adequate measures to ensure safety of cables and just-on-time delivery and spacious warehousing facility for safe storage of the products under controlled environment. All the cables are stocked in a segregated manner in different rows with proper labelling on every package. This allows easy accessibility to the products during the process of dispatch. The warehousing facility enables the Centre to meet all the bulk and contingency requirement of the clients within stipulated time frame.

The duo acquired advanced knowledge in cable business, having their own manufacturing unit in Rajasthan taken care by one of their uncles and its prospects lured them to take up cable trade, leaving their established spices business initiated by their father in a small way, here as Kochi fascinated them as a commercial hub in India with branch office in Thiruvananthapuram dealing in wide range of cables, wires, connectors, moulded cables etc. From 1989, Cable Centre has made valuable contribution in the field with quality products. The organization started dealing with Cables and Wires. Slowly over the years, seeing the developments in technology and based on the customer requirements, Cable Centre has started dealing with connectors and other cable accessories.

Authorised DealerKIRLOSKAR Green Diesel Generating sets.

Bata Safety Shoes

Authorised Distributor-

Dealer - Ingersoll Rand Air Compressors

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Nov 15 - Dec 15, 2013

Currently Cable Centre is the authorized dealers of reputed international brands such as Belden Cables, Con Cab Cables, Chetan Cables, Neutrik Connectors and other brands”. Moreover, they follow a streamlined and well-defined process to ensure complete customer satisfaction. Cable Centre offers quality products and expertise in today’s advanced technology. Their cables are known for providing a stable operation under different electrical environment.

Authorised Kerala DistributorOccupational Health and Environmental Safety Division,Abrasives Systems Division and Industrial Tapes and adhesives Division

Authorised Distributor-DOWCORNING Silicone Sealants

benchmarked a new level with innovative designs and engineering concepts.

Agarwal asserts “we make sure our products are procured from the most reliable manufacturers, who have

The reputation of a company is known by its customers. Cable Centre is the key suppliers to well-known private and public sector establishments like NPOL, Cochin Shipyard, Asianet, Kairali TV, and to the industries like Shipping, Camera and Security Devices, Power, Manufacturing, Hotel and Malls, Audio & Video and all other Electronic Industries


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21-24 of November 2013 Municipal Stadium Ground, Palakkad, Kerala

‘Govt throttling entrepreneurship’ Passline News Service

“I

ndustries in Kerala are migrating to neighbouring states despite Government initiatives like Global Investment Meets (GIMs) and Emerging Kerala. Unless the Government builds confidence and trust among the existing industrialists such exercises will be of no use. Our existing industries are augmenting the pace of economic growth of the state by paying crores of rupees as tax and levies to the exchequer and also by creating huge employment opportunities, which the Government cannot do”.

levies. They provide 2.75 lakh jobs. In return they get only harassment from bureaucrats and they are treated like cheats and fraudsters”, Amarnath, who has been President of the Aroor Industrial Association for the past 10 years, says in an interview. “Ours is the best industrial estate in Kerala with peaceful and cordial relationships among all stakeholders. There is no strike or lockout in any of the units in the estate”.

“There are 10 departments - Sales Tax, Central Excise, ESI, Provident Fund, Factories and Boilers, Labour, Pollution Control Board, indusThis is what V Amartrial centres, local bodies nath, eminent industrialist and trade unions - all of and head of the Aswathy which hamper the indusV Amarnath Group of Companies, has trial growth of the state. It to say about the industrial situation in needs enormous manpower and laKerala which he describes as “dismal borious work to maintain the umpteen and shameful”. files related to each department”, says Amarnath. “None of us are against “There are 24 industrial estates these departments and we welcome in Kerala under the district industrial the cross-checking and scrutiny by centres, and 2,800 industries are funceach but they must minimize the paper tioning in them. About Rs 240 crore is work and other formalities and give enlevied from these micro, small and metrepreneurs more time to concentrate dium enterprises (MSMEs) as state and on their industries instead of harassing central taxes and Rs 110 crore as other

Contact: Mob:+91 9847464689 9387673001 9048229010

them with illogical queries. Entrepreneurs are the industrial brand ambassadors of the state. Unless we endorse the state as industrial-friendly, whatever efforts the Government takes for attracting investment would be wasteful”, says Amarnath. About the rapidly growing Aswathy Group, Amarnath says it is driven by a relentless pursuit of excellence by having quality and professional management. Founded in 1971 by the great visionary and industrialist, the late N Vanikumarnath, Amarnath’s father, Aswathy Spun Pipes has become a recognized leader in the designing and manufacturing of steel-reinforced concrete pipes. Located in the industrial belt of Aroor in Alappuzha with a built-up area of over 20,000 sq ft, Aswathy makes different sizes of concrete pipes used in sewage, culverts and road works and spigot and socket pipes.

After the death of Vanikumarnath, Amarnath, a reputed criminal lawyer by then, took over the reins of the company in 1998. Amarnath brought pro-

fessionalism in its management and added two more units to the group - Aswathy Pipes Pvt Ltd and ASWA-CON. Aswathy Pipes is situated in four acres of land with a built-up area of 30,000 sq ft in Kollam district and ASWA-CON at Aroor. ASWA-CON manufactures RCC concrete septic tanks and water tanks. Amarnath and wife Bindu, an LLM graduate, have two children, Aswathy and Gopika

Sam Packaging Innovations Pvt. Ltd. 33/597, Development Plot, South Kalamassery, Ernakulam District, Kerala-683 109, India. Tel: +91 484 - 2544142, 2544184, 2110202. Tele fax: +91 484-2544184. E-mail: gempacindia@gmail.com info@gempac.in Website:www.gempac.in

Nov15 15- -Dec Dec15, 15,2013 2013 Nov

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21-24 of November 2013 Municipal Stadium Ground, Palakkad, Kerala

Tubes &Tubings: carving a niche in PVC conduits and fittings S

rijit V, a great visionary and pioneering businessman from a middle-class family, is the brains behind Tubes & Tubings. Started in 1996, Tubes & Tubings is an ISO 9001-2000- certified proprietorship company.

received the ISO 9001-2000 certification in 2004 from Moody International Certification Limited under UKAS accreditation, which is one of the prestigious accreditation boards worldwide. In that year Srijit shifted his office to Kochi.

Srijit, a BE and an MBA, spent a few months as a sales representative of Onida, manufacturer of electronic prodSrijit ucts. It was after the real estate boom Kerala witnessed during the early and middle 1990s that Srijit started the PVC channels and fittings manufacturing factory at Perumbavoor, near Kochi, with a capital of Rs 23 lakh. “I had to undergo many difficulties in the beginning. My brother-in-law Suresh, Managing Director of Shaktiman PVC Pipes, helped me a lot to start the business. In fact it was his valuable suggestions and sagely advice that inspired me to venture into the field,” says Srijit. Tubes &Tubings

With its brand ‘konseal’, Tubes & Tubings has carved a well-deserved niche for itself in the market for highquality PVC conduits and fittings, PVC channels and PVC tiling trims, and the present turnover is Rs 9 crore. The manufacture of high-voltage ducting PVC products and doubling of the turnover along with the company’s expansion are Srijit’s future plans.

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Srijith is also a member of the director board of Millennium Rubber Technologies Pvt Limited, promoted by a team of engineering professionals with a common professional/educational lineage, viz Cochin University of Science & Technology (CUSAT). The company was formed in 2000 with a business plan to manufacture rubber and other polymer-based products, including speciality products for high-technology applications. Noby

Nov 15 - Dec 15, 2013

Joseph is the Managing Director of Millennium Rubber Technologies. The company currently has a wide range of activities, like manufacture and supply of chemical-resistant rubber moulds for designer tile and interlock manufacturing factories. Kristal Group, Bangalore, Cochin Port Trust, Skyline Builders, Cochin Naval Base, CPWD, Government of India PWD, Government of Kerala Central Excise and Customs CoOperative Housing Society Kochi, Technopark Thiruvananthapuram, Amrita Institute of Medical Science Kochi and BSNL are some of the major clients of Tubes & Tubings.

Deepa is Srijit’s wife. They have two children—Nanda Kisore and Navaneeth Krishna.


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21-24 of November 2013 Municipal Stadium Ground, Palakkad, Kerala

Sreerama Group delivers scaffolding equipment S

reerama Group, started in 1999, is a leading supplier of construction equipment like adjustable props, adjustable spans, centering boards, column boxes and scaffoldings and which can replace the conventional method of using bamboos and woods for making foam works in civil construction projects. The company Sreerama Group, which is a familiar name today in construction field, was established with an objective of making available the state-ofthe-art facilities and equipment to the construction industry. The construction industry which is traditionally a labour intensive area is facing a challenge of high labour management and therefore it has become essential to adopt mechanized methods of construction. “We offer a wide range of facilities for the construction

F

industry and always remain a reliable partner for it. The company adheres to the policy of supplying quality products at the right price; and promises strict delivery according to commitments. This helped us a lot to reach at this height”, says K K Babu, Managing Director.

economical solutions to various types of projects. It strongly believes in serving its customers with quality products, affordable prices and prompt delivery.

Currently the group has a capacity to manufacture various pieces of civil constructionsupporting equipment like props, spans, centering boards and all scaffoldings The company is now to cover an area of four in a position to cater to lakh square feet a month. the needs of users from The company will grow as all over the country as a leading manufacturer it has central excise-liand supplier of scaffolding censed unit and central equipment within a short sales tax registration. span of time. Directorate of According to the group, K K Babu Industries and Commerce, it is equipped to provide solutions to any kind of scaffolding re- Government of Kerala, honoured the quirements. Its design department is company with the Best Entrepreneuralways prepared to analyse customer ship Award for the year 2004-2005 for requirements and suggest the most its outstanding performance.

Most of the reputed construction contracting companies across India are in the company’s customer profile list. The vision of the organization is to remain as a trustworthy partner forever in the minds of the customers and business associates

FCRI meets needs of flow product industry

luid Control Research Institute (FCRI) is an autonomous Institute under Government of India located at Palakkad , Kerala. It was established in 1987 with assistance and participation of UNDP(United Nations Development Programme), under the Government of India Ministry of Heavy Industries & Public Enterprises.

The accuracy of fluid flow plays a vital role in industry and in fact it is the single largest measurement parameter which is decisive in the quality and quantity of products. Hence having a measurement standard for flow with International credibility is of high priority. The very purpose of establishing FCRI by Government of India was to create a facility that would provide a standard for flow measurement in air, water and oil flow medium. Government has invested more than Rs 65 crore to establish the flow standards of FCRI and has developed it to a world class fluid flow laboratory. Fluid Control Research Institute

FCRI has established flow laboratories adapted to the field requirements of flow product industry. Fluid flow measurement consultancy, testing and calibration, quality and reliability analysis, field evaluation and validation, etc are some of the sought-after services provided by the institute. Fluid dynamics studies, providing training in flow engineering and control- related areas, consultancy for data acquisition, CFD (Computational Fluid Dynamics) analysis, software development, etc. are some

of the other major areas of activities of FCRI. State of the art NABL (National Accreditation Board for Testing and Calibration Laboratories) accredited laboratories have long been in operation for the calibration and testing of flow products in water, oil and air media.

FCRI has one of the largest water flow laboratory in the world with 15000 m3/hr flow capacity. It is also in the process of establishing the biggest CNG ( Compressed Natural Gas ) test facilities in India . The flow facilities are at par with similar laboratories in Europe and USA, as have been proved through an inter-laboratory comparison programme with National Engineering Laboratory-UK, Delft Hydraulic Laboratory-Netherlands, NIST-USA and Denmark Technological Institute-Denmark. The calibration of flow meters or testing of flow products at FCRI are carried out with reference to international standards like API, ISO, ASTM, OIML, etc.

ernment organisations from countries like UAE, Qatar, Oman, Bahrain, Singapore, Kuwait, Malaysia, Srilanka, Bangladesh, Netherlands, Mauritius, Fiji, Israel, etc. Water Flow Laboratory, Large Water Flow Laboratory, Centre for Water Management, Oil Flow Laboratory, Air Flow Laboratory, Primary Standards in Air Flow laboratory, Secondary Standards in Air Flow Laboratory are the facilities available at FCRI

*6 Ê7ˆÀˆ˜}Ê*ˆ«iÃÊ …>˜˜iÃÊEʈÌ̈˜}Ã

More than 800 foreign delegates from 70 countries have been trained by FCRI so far. The countries include Afghanistan, Azerbaijan, Cambodia, Ivory Coast, Myanmar, Sudan, Trinidad & Tobago, Kenya, Tanzania, Philippines, Turkey, Ecuador, South Sudan, Bangladesh, Lesotho, Uganda, Zimbabwe, Costa Rica, Oman, Thailand, Mauritania, Laos, Maldives, Palestine, Syria, Uzbekistan, Senegal, etc. has taken part in the these training programmes. FCRI’s International customers include Private companies and govNov 15 - Dec 15, 2013

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21-24 of November 2013 Municipal Stadium Ground, Palakkad, Kerala

Malabar Cements

Success succeeds success P

The only limestone deposit in Kerala identified by the Geological Survey of India during 1961-62 and later proved after exploratory drilling by the Mineral Exploration of India during 197475 is in the Pandarethu Valley of the Walayar region on the northern side of the Palakkad gap. This deposit is located in a dense forest area, a P H Kurian hilly terrain. Despite being a difficult terrain and an arduous trek to the limestone site, the State Government ventured on putting up a cement factory as cement was a scarce commodity in the 1970s. So in 1978 it was decided to launch a public sector company for the manufacture and distribution of cement.

re-independent India had witnessed the presence of a few public sector undertakings, though Central Government bodies, in Kerala. They were in the railway, port, communication and defence wings. The great visionaries of the nation recognized the need to transform India into a strong economic and industrial power as only largescale industrialization could solve the problems of our impoverished states. They also realized that these tasks could be fulfilled by the development of public sector ventures in the core segments of steel, cement and coal along with a network of dams to improve agricultural productivity. Consequently the coveted Five-year Plans were initiated. The new strategies for the public sector were later outlined in the policy statements in 1973 and 1977.

FLUID CONTROL RESEARCH INSTITUTE FluidControlResearchInstituteisanISOͲ9001:2008accredited,Stateoftheart,autonomousFlowandFluidEngineering facilitydedicatedtoresearch&developmentinFluidflowmeasurement&ControlTechniques,undertheMinistryof HeavyIndustries&PublicEnterprises,Govt.ofIndia. 

The plant was commissioned on February 2, 1984, and started commercial production on April 30 that year. Malabar Cements Limited (MCL), an IS/ISO 9001:2008 certified company, is the only grey Portland cement factory in the state and is today synonymous with not only superior-quality cements but also is an example of employer-employee rapport, productivity and transparency. MCL is the only state-owned public undertaking venturing into cement manufacturing.

RecognitionofFCRI

ActivitiesofFCRI          



TheInstituteprovidesfacilitiestowardstechnologicaldevelopmentstotheflowproductindustriesandservesasa NationalCertifyingAuthorityandQuality/Reliabilityevaluationfacility.

The company has contemplated many expansion programmes for the future. Providing huge employment oppportunities in tune with the growth of the state has been MCL’s declared policy. It is committed to the protection of nature by keeping the atmospheric emission below the prescribed norm stipulated by the Pollution Control Board (PCL).

          



LARGEWATERFLOWLABORATORY

FluidControlResearchInstitute,KanjikodeWest,Palakkad–678623,Kerala,INDIA.website:www.fcriindia.com Tel:0491Ͳ2566120/2566206/2569010Fax:0491Ͳ2566326 EͲmail:customercare@fcriindia.com

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Nov 15 - Dec 15, 2013

There is unhealthy competition in the cement market from private sector giants, resulting in in-

flating the cost of one of the fundamental construction materials mandatory for any modern engineering edifice. But MCL decided to fix the selling price of cement affordable so as to benefit the people of the state. The plant is today over 30 years old. And it is time to upgrade the existing equipment to achieve snag-free and uninterrupted production. The company is working out comprehensive plans in this direction also. Over and above, MCL is well aware of its responsibility to provide maximum employment to the people of the state and to take part in social uplift activities. Cementing humane bond by CSR: It is MCL’s earnest endeavour to see that the noble causes of industrial advancement in the state are upheld, but not by forgetting the philanthropic, social and environmental obligations to attain. Malabar Cements is a frontrunner in the practice of corporate social responsibility (CSR). It has become a routine gesture of every profit-making private company and institution to make a mark in the field. But K Padmakumar in public sector companies MCL stands out in CSR activities setting apart 5% of the profit for various social welfare schemes. It is to be noted that MCL has carved a niche in CSR activities during the period when the present Chairman, P H Kurian, and Managing Director, K Padmakumar, are at the helm of affairs. “The company has drawn up several CSR programmes in association with Kerala


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21-24 of November 2013 Municipal Stadium Ground, Palakkad, Kerala Social Security Mission. It has named the schemes formulated for financial aid and philanthropic deeds. MCL has adopted the Nadupathy Tribal Colony at Walayar and has sponsored the ex-

`Snehapoorvam’ is another scheme intended to benefit the students of BPL families of Balussery, Vengara and Kuzhalmannam to pursue their education.

Strategic plan: MCL caters to only about 8 % of Kerala’s market with major presence in the northern part. It is planning to commence its operations in the Cherthala plant and also to set up cement grinding units in northern and southern parts to increase its market share to around 20%. It has also

outlined plans for bulk sourcing of raw materials and intermediate products like clinker on a global canvas and for an initiative on the availability of limestone to be finalized with direct dialogue with neighbouring states. Efforts are also on to improve employee morale, career progression, succession

Industries Minister P K Kunjalikutty handing over a cheque of Rs 70 lakh to the Insititute of Palliative Medicine as part of Malabar Cements Ltd. CSR initiative

penses connected with the renovation of a ward in the Kozhikode Medical College. The company plans more effective initiatives as part of CSR on a par with the modernization of the medical college ward in the future” says Padmakumar. The PSU has initiated plans to provide financial assistance for the basic infrastructure development of the Pain and Palliative Care Society in Kozhikode Medical College and help the pain and palliative care centres run by local bodies and self-help Organizations at Akathethara and Kunnumpuram in Malappuram district.

‘Sruthitharangam’ takes up the causes of children again listing eligible children from BPL families to ensure them medical aid in the form of cochlear implant facility in the case of hearing-impaired children. There is a general complaint that the tribal population in Kerala are a neglected lot in every aspect of life, especially in the health sector. MCL has taken the right step in locating Attappadi as an area for the treatment of babies in the Government hospital there.

ploughed back its surpluses as investments in other PSUs. Padmakumar has given high priority to government-government transactions in the mineral sector and also

plans, human resource development and teamwork. Within three years the company targets an increase in turnover to around Rs 750 crore with and profit to Rs 180 crore

The ‘Sraddha’ scheme focuses on cancer awareness and diagnosis among BPL youths in the age group of 18-20 in Palakkad, Malappuram and Kozhikode districts. ‘Suraksha’ is an ambulance service meant for Palakkad district for transport of people who need urgent medical attention.

‘Asrayam’ is a scheme to provide financial help for emergency treatment of patients from BPL families in Government hospitals. The scheme is now applicable to the people of Palakkad, Malappuram and Kozhikode districts. MCL provides assistance for Nazreth Care and Support Centre at Cheruthuruthi which undertakes the care of chronic patients ousted from the mainstream of society.

‘Karunya’ is a financial deposit scheme for the educational and medical expenses of the mentally and physically challenged children at the state level. Steps have also been initiated to empower children in Palakkad and Trithala. Transport facility for autismaffected children of Vengara Government UP School and providing study material for about 40 schools are also included in the activities. The love of music is reflected in MCL’s scheme `sruthitharangam’. That may be the impulse for the company to refurbish the garden at Chembai Gramam, Kottayi, Palakkad, the birthplace of world-renowned musical maestro Chembai Vaidyanatha Bhagavathar for the benefit of music lovers. Nov 15 - Dec 15, 2013

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21-24 of November 2013 Municipal Stadium Ground, Palakkad, Kerala

E

lectric short circuit is a routine news item which appears in our media. The reason attributed to this mishap is rampant use of cheap and sub standard electrical goods, especially wiring cables being used for the electrification. . One who ponders to avert these type of accidents will naturally depend on the brand like Sark Cables which dominates the market by manufacturing good quality wiring cables ensuring the safety of its customers. At all the levels of the manufacturing process the company is giving utmost care for the quality and safety. It is no wonder that high

It is no wonder that high profiled customers are still depend on Sark cables for their requirements. Sar Cables commenced its operation in 1996 at Kanjikode, Palakad district, and slowly but steadily they spread their wings. profiled customers are still depend on Sark cables for their requirements. Sark Cables commenced its operation in 1996 at Kanjikode, Palakad district, and slowly but steadily they spread their wings. In the year 2005 , the company started its power cable manufacturing unit in Thodupuzha and as a part of development the promoters of

the company have started yet another unit in Coimbatore. Sark Cables could achieve a Rs 20 crore turnover in last fiscal and the company aiming Rs 30 crore in current financial year. Sark Cables: A spark of friendship It is the shoots of friendship sprouted between two aspirants in the campus, K Sajeev Kumar and Sunil Joseph, the Managing Director and the Technical Services Director respectively, culminated in the birth of SARK CABLES PVT LTD. The similar industrial interest assimilated in the minds of the duo to make a foray into the manufacture of cables forced them to know more about cable manufacturing during the period of their education. K Sajeev Kumar After studies both got job in a multinational electronic company in Delhi where they learnt the primary lessons of marketing. How to start a Sunil Joseph small unit was their afterthought and to achieve the goal they gave up the job and joined a small entrepreneurship and grasped the ways to start a new venture, Sunil Joseph recollects the initial period like this. They came back to Kerala and started a unit of Sark Cables at Kanjikode Industrial Estate. Today, Sark

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Nov 15 - Dec 15, 2013

creates and supplies from small electronic circuit to cables for giant industries. “There is no compromise on quality of the product. Stringest tests are carried out in every phase of the manufacturing to ascertain the quality. The quality of our products should be always above our customers expectation.. That is the main forte that makes the products popular among our consumers”, says Sajeev Kumar. We are specialized in manufacturing industrial cables which were rare in the market during the initial stages. Therefore Sark has got more recognition in industrial sector. “Cables were manufactured corroborating to the need of industries in Kerala during our early stages. Our specialty is that we make products akin to customers’ budget and time frame,” asserts Sunil Joseph. Range of products Power cables, control cables, single core heavy duty cable, building and panel wiring submersible cable, multicore flexible cable, instrumentation cable, service wire are Sark’s main products. “As part of product modernization we are aiming to make cables used in solar energy sectors also. The Industrial biggies like Malabar Cements, Cochin Refinery, Travancore Titanium, KMML, Keltron, Asianet, Reliance are also under Sark’s consumer list. We have off shore market in most of the Middle East countries. The reliability for Sark and the trust in its products that make industrial bosses our customer is really a great recognition for Sark”, remarks Sunil Joseph. Awards and recognitions The quality and the safety of the products have fetched them many awards such as the Best Entrepreneur Award of the industrial Department for the years 1998 and ‘99, Best Entrepreneur Award instituted jointly by Business Deepika and Palakkad Management Association in the year 2000, Best State Level Entrepreneur Award of the Industrial Department. By the next 5 years Sark Cables mulls to garner 50% of the cable market share in the State


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21-24 of November 2013 Municipal Stadium Ground, Palakkad, Kerala

Powermech Group: giving the best to customers T

he Kochi based Powermech group led by Ramesh and Sudheesh, consists of two companies Powermech Diesels and Powermech Controls and Safety. Powermech Diesel which deals in diesel generating sets is an authorized Kirloskar Green DG set dealer. The Ramesh company has over 6000 successful installations across the State and outside. They are the best dealers for Kirloskar Green DG set in South India for many years. They aim to achieve maximum customer satisfaction by providing the best product and service at reasonable price and right Sudheesh time to their customers.

public and private sector companies for many years.

sions of 3M- occupational health and environmental safety division, industrial adhesives and tapes division,

dustrial safety shoes and Dowcorning Silicone Sealant.

abrasives system division and corrosion protection products division. They are also distributors of Bata in-

Apart from the dealership of many safety products the company represent MAllcom Safety Pvt Ltd and Udyogi Plastics Pvt Ltd. They have been supplying products to all major

The Powermech group has completed seventeen years of operations and they believe that whatever they have achieved till now is due to team work and dedicated services to customers. The enthusiastic promoters of Powermech group are willing to walk an extra mile for their customers satisfaction in every aspects of the business ,for which they set a benchmark for their organization and lead the group from front

Powermech Controls and Safety is an authorized distributor of four divi-

Nov 15 - Dec 15, 2013

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21-24 of November 2013 Municipal Stadium Ground, Palakkad, Kerala

Industrial insurance policies

nsurance is ubiquitous in every segment of life. But it is generally known that only a fraction of the Indian population is holders of insurance policies. That is why insurance companies, foreign or native, are galore in India. In addition to the existing policies the following write-up sheds light on some of the policies in the industrial sector.

Fire Insurance Fire policies are the policies which are issued for the buildings, furniture, fixtures, plant and machinery, stocks etc. Standard Fire Policy covers the loss or damage to the subject matter of insurance caused due to the perils of Fire, Lightning, Explosion/Implosion, Aircraft Damage, Riot, Strike, Malicious and Terrorism Damage, Storm, Cyclone, Typhoon, Hurricane, Tornado, Flood, Inundation, Impact damage, Subsidence and Landslide including rock slide, Bursting and or overflowing of water tanks, apparatus and pipes, Missile testing operations, Leakage from automatic sprinkler installations, Bush fire subject to the terms and conditions of policy. Marine Insurance Marine insurance policies are the contracts which insure the vessels like ships and also include transit of cargo by land or water or both. Marine Hull policies are the policies which insure loss or damage to the ships, trawlers, fishing boats etc. Marine Cargo policies cover the loss or damage of cargo during the transit by sea, river, road, rail, air or post by the perils like fire, lightning, and breakage of bridges, collision with or by the carrying vehicle, overturning of the vehicle, derailment or accidents of such nature to the wagon. Marine cargo policies can also cover some extra perils such as theft, pilferage, non-delivery, strike, riots and civil commotions and terrorism, on payment of additional premium. In marine cargo insurance, policies can also be issued on “All Risks“ cover basis at the discretion of the insurer by charging an additional premium. Burglary Insurance Burglary Insurance Policy is available for the business premises and covers the loss or damage to the insured property, goods, furniture due to burglary and house breaking of the premises. It is a condition that loss or damage is caused to the insured’s property by forcible or violent entry or exit from the premises. The policy can also cover the cash kept in safe and the loss due to damage to insured’s property caused due to burglary. Policy does not cover the loss or damage due to theft or due to use of keys or duplicate keys. Premium rates depend upon the type of construction of building, godown, shop and its location,

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type of goods, type of safe where in cash is kept, availability of guard for 24 hours, other measures taken by insured to prevent burglary, volume of sum insured, past claim experience. The condition of average is applicable in burglary insurance. Fidelity Guarantee Insurance Fidelity Guarantee Insurance Policy covers the financial loss of employer caused due to fraud, dishonesty of employees on its payroll. Policy can be issued to cover the employees on individual or collective basis, named or unnamed basis, and position wise or without mentioning positions of employees. As per policy condition the loss is covered only when the loss is reported to insurer within the period mentioned in the policy for example within one year of date of loss or date of expiry of policy or date of termination, retirement, resignation, death of employee, whichever occurs first. The loss is required to have occurred within the period of policy and should have caused by the employee concerning its employment.. Engineering Insurance The subject matter of Engineering Insurance is various types of mechanical, electrical, electronic machinery, plants, equipment and materials, engineering works and may vary in different ‘Sneering insurance policies. The premium rates and terms and conditions of policies issued under this section also vary. The important policies issued under Engineering Insurance are Machinery Breakdown Insurance, Loss of Profits (Machinery Breakdown) Insurance, Electronic Equipment Insurance, Erection All Risk Insurance (EAR), Contractors All Risk Insurance(CAR),Boiler and Pressure Plant Insurance, Loss of Profits Insurance, Deterioration of Stocks Insurance. Machinery Breakdown Insurance The machinery Breakdown Insurance the sudden and unforeseen loss and damage to the insured machinery is covered due to short circuit other electrical causes, negligence, human error, lack of skill except the causes mentioned in the exclusions. Loss and damage to the machinery due to fire originating from within the machinery is covered in machinery breakdown insurance whereas the loss and damage due to fire from out of machinery is

Nov 15 - Dec 15, 2013

not covered. Hence machinery should also be insured under a Fire Policy. In Machinery Breakdown Insurance Policy the sum insured is required to be the cost of replacement of the insured property by new property of the same kind and same capacity. Boiler, Pressure Plant insurance In Boiler and Pressure Plant insurance policy, loss or damage due to Explosion, Implosion of boiler and pressure plant is covered Additional cover is also available for loss or damage to surrounding property of owner and for third party liability on payment of extra premium. Liability Insurance Liability Insurance policies cover various types of legal liabilities to third parties which may be faced by commercial/business concerns. Main policies in this head include: Workman compensation insurance to cover liability towards employees, Compulsory public liability insurance under The Public Liability Insurance Act 1991, Directors & officers liability insurance to cover the liability of directors & key officers of company, Professional Indemnity Insurance to cover the liability of professionals, Product liability insurance to cover the manufacturer’s legal liability arising due to sale of defects in products, Public liability insurance for industrial & non-industrial businesses. Workman Compensation Insurance Workman Compensation Insurance Policy covers the legal liability of employers for payment of compensation towards its employees for death or permanent total disability or permanent partial disability temporary disability, personal injury due to accidents arising out of and during the course of employment as per Workmen Compensation Act 1923.Premium is charged on the total annual wages of all the employees covered which is prescribed for various trades and industries. There is no sum insured in this policy. The WC Act 1923 has pre-

scribed the amount of compensation which depends upon the age, monthly wages and type Of injury caused to the workman. The occupational diseases caused to the workmen during and arising out of employment are also treated as accidents and make such workers eligible for compensation under the WC Act. Product Liability Insurance This policy is suitable for the manufacturers of products. Policy indemnifies the insured for the legal liability arising out of damages due to accidental death, injury, disease to the third parties or damage to the property, caused due to use of faulty product. Cost of defense is also covered. Vendor’s liability, liability arising out of exports can also be covered on payment of additional premium. The policy does not cover expenses towards recall of products, fines, penalties, loss of goodwill/market etc. Public Liability Insurance This policy covers legal liability towards third parties for the accidental death, injuries or disease & damage to property including defense costs. The policy may be taken for industrial risks such as factories, godowns or nonindustrial risks such as hotels, malls, cinema halls, clubs, schools/colleges, shops, hospitals, offices. Policy can be extended to cover liabilities arising due to natural calamities, pollution etc. The policy does not cover liability arising due to fines, penalties, liability due to any contractual liability, non-compliance of lawful regulations etc. The above mentioned policies are recommended for industrial clients. Depending upon the size and volume of industry we can provide discount in premium up to 60 % in selective insurance policies. (For your queries, contact Viswanathan Odatt 9895768333 email : odatt@aimsinsurance.in or visit us www.aimsinsurance.in)

MALIAKKAL

INDUSTRIAL ENTERPRISES Importers of Boric Acid Powder for Refractories and Metallurgy applications. Also available – Borax decahydrate, Citric Acid, SHMP, Alum powder, Water treatment chemicals and Speciality chemicals for various Industrial applications. 39/754, Karikkamuri Cross Road, Ernakulam, Kochi-682011, Kerala.

Tel: 0484-2367251, 2368547 Fax:0484-2367978 Email: mail@maliakkal.in Web: www.maliakkal.in


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Years of Enriched Tradition

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Printed and Edited by Varghese Paul for Keethara Publications Pvt Ltd. 6802, Convent Road, Kochi-35 Tel. 0484 4038346 Email:passline.com@gmail.com and Printed at Ayodhya Printers Pvt Ltd., Cochin-26. Design & Layout by Unnikrishnan

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