NTERPRISE The Business
Vol 1 Issue 5 June 2011
Rising from the ashes
Team Business Management Group CEO Kalyan Kumar G. Deputy Editor Catherine Gilon Design Art Director Lakshmikanthan Designer Matha-ul-Ameen Circulation Senior Manager Karthick G.K. +91 98848 76175 Advertisement Media Sales Manager - Chennai Suresh Kumar G. +91 93817 91788 Yuvarani Peter +91 98403 17477 Support Media Coordinator Mubarac Nisha Board of Advisors G Vamshidhar Kaushik Tiwari Tatwamasi Dixit A.R. Santhanakrishnan Madhav Das N. Srikrishna Anusha Kannan Dinesh Kumar Agarwal R. Vinod Madhavan Kutty M.S. Raghava Rao
At Pen Point
.............................................................................. Friends, We at The Business Enterprise endeavour to provide best possible counseling to men in grey in managing their businesses, be it huge or small. In our 9 years of business consulting experience, we find that one of the greatest challenges faced by HR in a company is finding the right guy to the right job, it is sometimes scientific and mostly philosophical. This issue, we explore an initiative of a start-up which has come out with a tool to assess a person’s ability for a particular job. A much needed tool, I would say. Through our cover story, TBE is venturing out to give a glimpse of what it means to going back to school and what options are available to Corporate India. We are also presenting to you (If you are an entrepreneur, a CEO or even a mid-level manager) a listing of courses that suit your requirements. Continuous upgradation of skill remains a key requirement for corporate India to manage the challenges that a global market poses. We have a step-by-step guide for those eyeing an MBA from a premier institute through ‘Going Back to School’ on page 36. We also bring out a facet that B Schools often ignore – how not to be a bad manager. This edition ought to be a bible for those on the lookout for a ‘Higher’ education. We also present you with the guide to execute strategies (my pet subject) through ‘Aligning employees with corporate strategies’ on page 26. I am a strong believer that great strategies go unnoticed unless they are properly executed. And ‘execution’ is the greatest art Indian Corporate should hone. Executing one strategy is better than 1000 untouched innovative strategies. During my consulting experience, I see many organisations doing ‘just business’ without identifying what they are best at. This results in losing focus, wasting energies and doing everything except what they are supposed to do. Sticking to the core (first identifying what is the core) is need of the hour. Stick to the core, achieve expertise and you are on your highway to creating corporate history. Let’s continue to learn everyday.
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Kalyan Kumar Editor-in-Chief
ENLIGHTEN 06 India at a glance 08 Start Ups & Ventures - Weaving Dreams 10 Best Practices - En route to success 14 Leadership - Luxury on platter
Strategies 18 Product - Lighting rural India 22 Finance - ABCâ€™s of accounting 24 Technology - ERP Demystified 28 HR - I feel... therefore i am...
Execution 30 Process Management - Compliance as a service
Research 32 The number game 10
EXCLUSIVE 36 Rising from the ashes 38 Breaking free 40 Breaking down the hurdles 42 Just dial for success 44 My message is hope
ENTERTAIN 46 Escape 48 Brand basics 50 Corporate cuisine 70
ENVISION 52 Business on cards
EVOLVE 56 Business Essentials 58 Hyundai verna
60 Office humour 62 Event 64 Crib corner 65 Real estate 68 Your next step 70 60 seconds 72 Brand ish 74 Irony
INDIA AT A GLANCE
A glimpse of India’s economic indices in the year 2011
Trends in GDP Growth Compared to previous Quarter Quarter Q4 FY 2011 (March 2010) Q3 FY 2011 (December 2010)
Growth 8.4 8.2
Trends in GDP Growth Compared to Previous Year Quarter Q4 FY 2011 (March 2010) Q4 FY 2010 (March 2009)
Growth 8.4 8.6
Sectors Agriculture Industry Services
Currency Pair USD to INR EUR to INR GBP to INR CNY to INR JPY to INR
18.0 16.0 14.0
Jan-11 4.00 6.50 10.00
Month Open 45.11 63.91 72.54 6.87 0.54
Dec-10 9.00 6.20 8.60
Month Close 44.60 66.18 74.32 6.86 0.55
Trend Period Average Period High Period Low Period Variance 44.62 45.11 44.01 7.50% -1.13% 64.42 66.21 63.32 64.66% 3.43% 72.94 74.45 71.66 55.06% 2.40% 6.83 6.88 6.72 0.19% -0.17% 0.54 0.55 0.52 0.01% 0.68%
Inﬂation Rate in % 16.2
13.3 13.9 13.7
12.0 10.0 8.0 6.0 4.0 2.0 0.0
6 The Business Enterprise | June 2011
% Change 9.7% 4.9% 0.3%
5900 5800 5750 5700
% Change -2.9% -2.2% -2.0% -1.7% -1.6%
% Change -76.2% -32.8% -24.8% -24.5% -19.5%
19,800.00 19,700.00 19,600.00 19,500.00 19,400.00 19,300.00 19,200.00 19,100.00 19,000.00 18,900.00 18,800.00 18,700.00
• ERP Implementation
Nifty Gainers Scrip Name % Change Reliance Capital Ltd. 4.7% 3.5% Power Grid Corporation of India Ltd. Infrastructure Development Finance Co. Ltd. 3.3% 2.9% Jaiprakash Associates Ltd. 2.4% Bharat Heavy Electricals Ltd. Nifty Loosers Scrip Name Punjab National Bank NTPC Ltd. HCL Technologies Ltd. State Bank of India Dr. Reddy's Laboratories Ltd.
Sensex Loosers Scrip Name ONGC Ltd. Reliance Communications Limited DLF Ltd. Reliance Infrastructure Ltd. Larsen & Toubro Limited
Close (April 30st 2011) 19,135.96 5749.5
Sensex Gainers Scrip Name ITC Ltd. Bharti Airtel Ltd. Tata Consultancy Services Limited
Absolute Inﬂation Rate across Key Sectors Sectors Mar'11 Feb '11 Manufactured Products 6.21 4.94 Primary Food Articles 9.47 10.65 Fuel 12.92 11.50
“What you are, to what you want.”
Open (April 1st 2011) 19,420.39 5826.05
Previous 8.25 - 9.50 6.75 5.75 6.00
Indices Sensex Nifty
Current 8.50 - 9.50 7.25 6.25 6.00
Key Rates Base Rate* Repo Rate** Reverse Repo** Bank Rate***
77 June 2011 | The Business Enterprise
D.S.Venkatesh, Promoter of Opus Fashions
Weaving dreams The tale of how sheer willpower overcame the worst nightmare in life.
8 The Business Enterprise | June 2011
othing succeeds like success. That means success comes in ripples. There are people who have a persistent and a never-say-die attitude and refuse to accept failure as a deterrent but see it rather as a motivation or urge to go further and further till they reach heights. This issue, we look at one such illustrious person who is a shining example for indefatigability. Meet Mr. D.S.Venkatesh, Promoter of Opus Fashions.
The disaster and the dream At the age of 21, after my graduation, I planned to start a business. Initially I started doing work for a local FMCG. When the company shut down, the owners failed to settle dues worth Rs 47 lakhs. Being a first generation entrepreneur, I was not able to understand how to handle the situation. I also had to cope with the issue of supporting my family. I had hit rock bottom. Lot of questions raised in my mind. What to do next? How to survive? How to build my confidence? Initially, I started brainstorming with two or three people. After seeing a print ad campaign for nightwear, my wife Madhavi suggested that we could create a line of comfortable home wear for women. I knew we were looking at a market that can potentially please lakhs of women as the concept of loungwear was practically non-existent in India. We had to change the image of cylindrical nighties to a more pleasing home wear. There was a huge gap in the sector which we effectively used.
a crash course in garment design, basically to understand the structure of a garment, form, shape and colour. I approached Chennai’s National Institute of Fashion Technology for a designer who could give form and shape to the idea. With only a notional salary to offer, getting one was not easy. But it was time for my luck to turn. Not only did I manage to persuade Veena Chatraman, one of NIFT’s best students, to join us, we also got financial help from unexpected quarters. My father-in-law’s friend, a businessman offered to lend Rs 5 lakhs. Thus was born Opus Fashions in early 1999.
Courting success Women have great desire to be well dressed even while at home, unmindful of cost. Our product had unique features, known for value addition, coming within their budget so breaking into this segment was easier. Our first taste of success came in two months, at an exhibition called ‘The Women’, where we sold Rs 1 lakh worth lounge wear. This was the first revenue Opus had earned. Since then, we have been able to make huge sales in every stall we setup as we offer genuine discounts for our quality products.
those which create taste and passion for quality. The craze today is innovation, cost being brushed aside as a non-entity. The team comes up with 100 new designs across categories every month and we experiment with different kinds of materials and design cuts. Our garments are free-flowing without compromising on the fashion factor. With exquisite kurtas and saris being our latest lineup, we are now focusing on the youth segment.
Change is constant Nowadays, the market is flooded with so much choices that you need to constantly reinvent your brand. In four years, I have to improve myself ten times over in terms of outlets, production, retail, design development.
The last word I feel young entrepreneurs today need to be consistent in delivering fundamentals. They should keep learning new skills with the change in the market and read to lead! Eventually, I feel if one does his work happily, he will achieve his goal. Have faith in yourself and the efficacy in your ideas!
Innovation is our bread We create inspirational products,
Baby steps After finalizing on the idea, we had to streamline finance , manufacturing unit, operating process and our market position. My wife also enrolled in
Saravana Kumar G
99 June 2011 | The Business Enterprise
En route to success This issue, we focus on how to strengthen competitive advantage by adopting leading practices in supply chain management
10 The Business Enterprise | June 2011
upply chain performance is a key factor in a company’s competitiveness. The industry, in general, is increasingly embracing the supply chain as a competitive differentiator. Trends in the supply chain management practices, and the route-tomarket options, have begun to change the way business is done. More and more companies today outsource production globally. Consequently, their products move through multiple layers of distribution before they are available at a store or point of consumption. There is also intense pressure on these companies to leverage their supply chains to bring about a fast turnaround of supplies to meet market demand. This means that all stakeholders in the supply chain need to work closely to enable faster and leaner operations. Further, companies need to maintain regulatory compliance throughout their operations. Recent supply chain trends include increasingly powerful trading networks, increased transparency in measuring and monitoring the value chain performance, and outsourcing of non-core activities. In line with these trends, the leading practices adopted by the industry essentially aim to achieve alignment along the following three vectors: aligning supply chain and brand strategies, aligning supply to demand and aligning the supply chain objectives with that of the trading partners. How a company gears up to meet these alignment requirements affects the supply side and inside and customer-side business process in the company’s supply chain, to address the following challenges: • Leveraging the ecosystem of trading partners for efficiency and effectiveness • Integrating product tracking and traceability into all manufacturing processes and distribution touch points • Removing latency of information without disrupting operations • Adopting best practices to accelerate product flows in the supply chain • Enabling newer and more efficient routes to the market • Adopting innovative practices to drive product demand
Manufacturing companies look to accomplish this while eliminating every wasted motion and potential bottleneck that can threaten its efficiency and profitability. This is where technology is making a difference. Internet and mobile technologies together eliminate wasted time hidden in business processes and speed up the entire supply chain.
unintended or mistaken use of products are major concern areas. Ability to track and trace products – across all manufacturing processes and distribution touch points, right from point-of-production to point-of-use – not only ensures product safety and security but also supports efforts to improve productivity and profitability.
Leveraging the ecosystem of trading partners for efficiency and effectiveness In an effort to squeeze inefficiency out of their supply chains, many companies are adopting more strategic relationships with suppliers. This means a more fluid approach to shared processes and organisational boundaries. Contract manufacturers, third-party logistics (3PLs) and suppliers work closely with enterprise procurement departments on gauging and fulfilling future demand. Companies now have open lines of communication with suppliers by providing the tools to manage shared processes.
Automated track-and-trace systems, built around auto-ID technologies such as bar coding and radio frequency identification (RFID), now ensure that products can be uniquely identified, with a serialised number that serves as a ‘fingerprint’ for only that particular item/package. Auto-ID technology allows the possibility of instant verification for any item, at any location in the supply chain. It also facilitates ‘no-touch’ track and trace capabilities to support true pedigree information about the company’s products, and this information can be accessed by all supply chain partners. Industry experience has indicated that these capabilities not only constitute strong barriers for potential counterfeiters to overcome but also strengthen supplier accountability and performance.
While private virtual trading exchanges facilitate collaboration with suppliers, they are often fraught with the challenge of low levels of adoption. The core obstacle being the small and medium-sized suppliers having to log into different systems to participate in different private trading exchanges sponsored by their customers. Cloud computing and software-as-a-service (SaaS) technologies now make multi-enterprise collaboration on public trading exchanges possible, through multitenant platforms. In addition to making it possible for the small and medium-sized suppliers to do business with multiple customers on the same platform, collaboration in the cloud also brings in the economy of the ‘pay-for-use’ option through SaaS solutions.
Integrating product tracking and traceability without slowing down operations Most industries have to adhere to very specific and important statutory requirements to ensure consumer safety and a company’s ability to track and trace its products in the supply chain determines how effectively it is geared to meet them. Counterfeiting, diversion, mishandling, mislabelling, and
Companies are now using these technologies to easily refine dominant industry practices to embrace compliance, without slowing down operations in the supply chain. Moreover, these technologies also provide unprecedented control and efficiency for recalls, returns processing and inventory control.
Eliminating latency by taking enterprise systems to where the action is Many companies today rely on their enterprise systems to help them make the smartest use of effort and resources, but the process of manually entering information into the appropriate forms can be a drain on productivity. Workers – whether on the shop floor, in the warehouse, or on the shipping dock – must interrupt the flow of work to key in information into a form, or wait until they have completed an activity to update the system. Both approaches are error prone and compromise the accuracy of the enterprise record. And because enterprise software can be difficult and expensive to customise, many companies are often forced to adapt their processes to fit existing functionality, 11 11 June 2011 | The Business Enterprise
NLIGHTEN jeopardising any competitive edge resulting from unique, innovative business practices. With many companies relying on logistics service providers for physical distribution, the problem of latency acquires larger proportions on account of the varying levels of their ITsavvy and orchestrating collaboration across multiple organisations. Rather than manually entering information into enterprise systems, with Enterprise Mobility Solutions, workers use handheld barcode and RFID scanners to collect information and complete transactions on the spot. Rules-based guided put-away and picking enforces compliance with inventory policy and optimises warehouse traffic. Companies would also be able to use these solutions to streamline cycle counts, WIP pulls and labelling activity with advanced functionality that supplements existing enterprise system (ERP) capabilities, without costly modifications. Because workers can stay focused on the task at hand, such solutions also dramatically accelerate product flows and supply chain throughput. At the same time, companies make smarter use of available warehouse and manufacturing space, while reducing shipping errors.
Improving delivery times by making shipments instantly available for delivery Cross-docking is a popular strategy for 3PL providers and organisations with extensive distribution networks. The practice of immediately converting inbound deliveries to outbound shipments offers significant financial and operational advantages. Effective cross-docking requires continuous real-time visibility of shipments as they move from the factory to the end customer. Unfortunately, even with warehouse management modules supporting cross-docking installed, traditional ERP technology doesn’t offer the real-time visibility and accountability to optimise crossdocking efficiency. Without the ability to track shipments on a real-time basis down to the level of individual item or package, companies can lose control over inbound and outbound materials, thereby increasing the potential for duplicate shipments, delayed shipments and other errors 12 The Business Enterprise | June 2011
that can offset any gains in efficiency. This functional technology gap poses a significant challenge for 3PLs and distributors. Without tracking and tracing capabilities designed specifically for cross-docking, companies risk building up excess inventory and incurring the administrative overhead required to receive and process ‘rogue’ shipments. Auto-ID technologies, coupled with mobile technologies, allow drivers and shipping and receiving personnel to scan inbound and outbound shipments slated for cross-docking. The handheld devices communicate directly with the tracking database in real time via a wireless connection, or alternatively store scanned information for batch uploads to the database at a later time. The devices also feature applications that enforce predefined receiving, delivery and cross-docking parameters designed to minimise shipping errors and subsequent returns.
Enabling alternative, efficient routes to market While most discrete product manufacturing companies rely on the traditional wholesale distribution channel, companies the world over have begun to leverage information technology to ship direct-to-store or even direct-to-consumer. A direct channel gives the company more control over the inventory – versus ceding inventory control to wholesale distributors – while helping reduce returns and keeping costs low. However, it also increases the administrative workload. Direct distribution requires increased real-time visibility and control across all nodes/touch points in the supply chain, and this again is enabled by auto-ID and mobile technology capabilities. Accelerating and enriching the demand generation process Some of the more successful companies are using mobile technologies to overcome the limited amounts of time those buyers are willing to spend with their sales representatives, to enrich the interactions, and to drive increased demand for their products. These solutions help their sales personnel perform pre-sales planning, on-the-road preparation, and post-meet follow-up activities related to a meeting with a customer.
In addition to complex planning tasks like goal setting, calendar management, route planning and researching customer issues, these solutions enable on-the-go look-ups for updated information about the company’s products and competitive comparisons. Companies have also extended capabilities to perform related activities such as filing in meeting summaries and expense reports using these technologies. Of late, these solutions are also helping to provide information that strengthens the personal bonding between the sales persons and customers, as well as enabling a new selling paradigm of collaborating with colleagues in real time.
Customise your process Among the leading practices in supply chain practice are multi-enterprise collaboration and enterprise mobility and auto-ID. Easy access to Internet technologies and mobile applications allow for much more functional capability on the shop floor, in the field and in the supply chain. The most important thing is to learn to look at technology as a means and not as a goal. Most businesses tend to adapt their processes to technology constraints, mainly to preserve out-of-the-box solutions. The successful ones recognise that business benefits immensely from their own best practices. Instead of getting carried away with the success stories of other companies and force-fitting their processes to the existing functionality offered by off-the-shelf enterprise systems, businesses are better off looking for technology options that enable their own winning business processes. This way they would not only be able to enhance product quality and customer service levels but also improve profitability and position in the industry. S Sridharan
The writer is Managing Director, TAKE Solutions – a global technology solutions and service provider, with significant focus across two principal business areas – Life Sciences and Supply Chain Management.
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I thought all was lost With my dignity destroyed And a child in my arms But hope smiled at me As I found my destiny here In giving and recieving love abundant!
Lux ury on platter In an exclusive interview with The Business Enterprise, Neeraj Chadha, Regional GM India, Hilton Worldwide and Rajesh Punjabi, VP Development share with us the plans Brand Hilton has for India and how they woo the Indian market.
14 The Business Enterprise | June 2011
Rajesh Punjabi, VP Development
1. How has the Indian market received Hilton - the global leader in hospitality? Rajesh: The Hilton brand enjoys great brand recall. It offers over 90 years of hotel management expertise with a portfolio of globally renowned, award winning brands to cater to all customer segments from luxury, full-service to mid-market. Hilton Worldwide is one of the fastest growing hotel companies in terms of deals signed globally, and we have a pipeline which will triple our presence in India. We are amongst the first to launch in the focused service mid-market through our brand- ‘Hampton by Hilton’ which is due to open this year and the second one is slated for next year. We understand the dynamics of the Indian market and have adapted our accommodation and service offerings to meet the needs of the Indian market for both local and foreign travelers.We foresee a phenomenal growth in the hospitality sector and are poised to tap into the growth opportunities in India.
2. Being a late entrant in this country, what were the challenges that Hilton faced and how did you go about breaking the ice? Rajesh: Given that hospitality development is at an early stage of the growth cycle (evidenced by the low hotel supply), Hilton Worldwide does not see its entry into India as a ‘late’ entry. The potential of the market is enormous. India has a powerful combination of a substantial population, a growing middle class and a huge capacity for business and leisure travel both domestically and internationally. There is a huge demand for rooms here and relatively low hotel supply - there are more hotels in Manhattan than India - across all segments. With our award winning services and portfolio of best in class brands, we are well placed to meet the needs of travelers across the different segments.
3. What are the best practices that you endorse in customer experience
management? Neeraj: Hilton Worldwide has always been recognized as the stylish, forward thinking global leader of hospitality. Today Hilton Worldwide, with ten brands across segments, welcomes guests in more countries than any other fullservice hotel brand, with more than 3,600 properties worldwide. In the APAC region, we have 68 hotels in 17 countries. Hilton remains synonymous with hotel because of its innovative approach to products, amenities and service. We ensure that the services delivered are of global standards and consistent across each of our properties, both in India and internationally. We consistently strive to deliver world class service at each of our properties so that our guests’ experiences are consistent, no matter which property they stay at.
4. How do you go about building brand loyalty in the Indian market? Neeraj: With our world class brands across several portfolios, we have the bandwidth to meet the needs of travelers across different segments. All our properties in India are at a traveler friendly location and provide easy accessibility to all prime destinations within the city. Also, all our Hilton Worldwide Hotels in India and abroad offer the Hilton HHonorsR program that provides points and MilesR and no blackout dates on reward stays. Members of HHonors guest reward program can double
dipR to earn both points and miles for every stay at more than 3600 Hilton family hotels worldwide. Honors rewards include free hotel nights, experience getaways, dream vacations and premium merchandise. Members can also convert HHonors points to airline miles or vice versa. Irrespective of the location of the hotel, Hilton Worldwide strives to provide standardised services across each of our ten properties, globally.
5. How do you train the local talent here to align with your global strategies in CRM? Neeraj: Hilton understands the uniqueness of India and adapts our accommodation and service offerings to meet the needs of the Indian market for both local and foreign travelers. We work with developers and owners in the local market who are leaders in their 15 15 June 2011 | The Business Enterprise
NLIGHTEN Neeraj Chadha, Regional GM India, Hilton skill set. Hilton Worldwide as a group has always strived for true customer centricity services - putting the customer at the center of our decision-making process through personalization, customization and relevance. The centralized proprietary technology implemented has allowed Hilton to get closer to its customers and build stronger relationships with guests at any of its ten hotel brands.
respective fields. Through the combined strengths and expertise of Hilton Worldwide and our partners, we deliver world class accommodation offerings and award winning service that fuses international standards with a local Indian touch. We conduct internal workshops to align the local teams with the ethos of each brand. Our India team is equipped with deep local domain and industry knowledge and technical knowhow, as well as strong connections with reputable developers. Also, we put in significant investment in understanding the local market requirements. For example, the F&B outlet at Hilton Garden Inn New Delhi/ Saket, India Grill is designed to cater to the taste buds of the domestic clients. We also facilitate cross pollination of resources within the various brands of hotels we operate in India, to enhance their understanding and 16 The Business Enterprise | June 2011
6. How does your ‘Lightstay’ concept make way for a practical, greener world? Neeraj: LightStay is Hilton Worlwide’s proprietary system of measurement. It calculates sustainability performance impact across their global portfolio of hotels and delivers value to hotel owners without any additional cost. The system’s data is used to improve the guest experience and drive economic returns. The LightStay system measures indicators across 200 operational practices including housekeeping, paper product use, food waste, chemical storage, air quality and transportation. LightStay helped Hilton Worldwide properties using the system reduce energy use by 5 percent, carbon output by 6 percent and water use by 2.4 percent. Hilton has put in efforts to reduce waste output, resulting in a 10 percent reduction in 2009 versus 2008. These results have been independently audited and are adjusted for any differences in occupancy levels and major weather events year over year. In the first full-year of findings, the energy conserved was enough to power 5,700 homes
for a year, the water saved was enough to fill more than 650 Olympic-size pools and the carbon emission reduced was equivalent to taking 34,865 cars off the road. Reductions in water and energy use translated into dollars-saved for hotel owners with estimated savings of more than $29 million in 2009 utility costs. LightStay also includes a ‘meeting impact calculator’ that measures the environmental impact of any meeting or conference held at a Hilton Worldwide property. This enables meeting planners and corporate travel managers to consider the environmental impact of hotel stays and meetings when making purchasing decisions. In addition, it provides corporate customers with the opportunity to include meeting impact data in their own sustainability reporting. We aim to have all the properties within Hilton Worldwide’s global portfolio of brands on LightStay by end of 2011.
7. Brief us about your geographic presence in India and expansion plans for the future? Rajesh: Currently we have the Hilton Garden Inn New Delhi/Saket in the focused service segment, Hilton Janakpuri/ New Delhi, Hilton Mumbai International Airport Hotel, Hilton Chennai and DoubleTree by Hilton New Delhi Mayur Vihar in the upscale, full service segment. With Hilton New Delhi Mayur Vihar, which is scheduled to open in a few months’ time, we will have approximately 20 properties in various stages of development. We will also be introducing Conrad, DoubleTree by Hilton and Hampton by Hilton brands in India, delivering a mix of offerings across various market segments. Our expansion plans include all key cities in India across tiers and strong tourist destinations.In 2011, we expect to open five additional hotels, representing an additional 700 rooms. By 2012, we expect to open a total of 10 additional hotels representing an additional 1,984 rooms inclusive of these five in 2011. This will triple our presence in India and take the number of operating hotels to 15.
Lighting rural India When Kushant Uppal, CEO, Intelizon Energy, came up with the idea of utilising solar power for lighting solutions, he had just stepped on a road less travelled. Sharada from The Business Enterprise traces his challenging journey.
18 The Business Enterprise | June 2011
‘Let there be light’, goes the adage. In a country like India, where darkness plagues villages, the most basic requirement such as electricity is almost non-existent. The majority of our population still live in villages. Lack of power has not only affected the business of many villagers but also stalled many a student from studying. There was a need to develop and bring in a product that could give solutions or alternatives to power problems in rural and semi-urban areas. And the Hyderabad-based company Intelizon Energy Private Limited did just that. It designed solar-based energyefficient products specifically to cater to the energy needs of rural India. Kushant Uppal, the CEO of Intelizon Energy, remembers the time when he was working in the Silicon Valley, US. He reminisces, “Back in December 2005 over Christmas holidays, I had a discussion with some friends in California on the potential of solar energy. It prompted me to think about ways to commercialise it in India and I started discussing it with Dr Ashok Jhunjhunwala.”
Fund, a Chennai-based Venture capital fund which had invested in many social innovation projects. Intelizon Energy’s idea of developing solar products for electricity began somewhere in early 2007; however, the real planning and designing of the product began in May/June 2007. “This was the time when we hired our first technical professional after setting up Intelizon Energy in Hyderabad. We set up a full- fledged office then,” he says. Setting up Intelizon Energy and working on this concept did pose colossal challenges for Uppal. “The challenge was to come up with a reliable and quality design at low cost. We had to quickly learn the way things work in India in terms of commitments and performances,
Along with the launch of this product came the apprehensions. Although numerous tests and customer surveys were done on the ground about the viability of this product, Uppal was still nervous about how the product would do on the field. When it was finally made, many distributors were appointed in Maharashtra to promote and educate people about this product in villages and small towns. Intelizon Energy’s first product was Zon. Uppal says, “We put our energy behind product design to use the latest electronics, LED and battery technology to create Zonlight – our first innovative multitasking light.” The challenges of marketing this product were immense as well. Says Uppal, “When one is dealing with a non-branded product which has high upfront cost and no visibility, it is tough.”
The challenge was to come up with a reliable and quality design at low cost. We had to quickly learn the way things work in India
Dr Jhunjhunwala, who spearheads Tenet (Telecommunications and Computer Networks group) at IIT Chennai, has helped incubate many companies in rural areas and has also developed world class telecom and banking products for rural markets.
It was also important to develop such products keeping the target users in mind. Uppal says, “Dr Jhunjhunwala pointed me towards the rural market, and we discussed ways to create solar products that could replace kerosene and diesel with a short return on investment for the user.” In June 2006, Uppal quit his job in the US. After multiple trips to India for market and technical research, he came up with a solid business plan to produce and launch these products. Intelizon Energy got its first financial support from Rajesh Jain, and this was soon followed by a commitment from Venture East Tenet
as these were very different from what one observes in the Silicon Valley,” he shares. Coupled with the challenge of operating in India came another challenge of setting up the human resource for the organisation. With many professionals making a beeline towards hefty pay packages and perks, luring smart people into the start-up, which gave stock options, was a stumbling block for the company. When Intelizon Energy went to conduct market research for the product, there were two kinds of products in solar that were available. Says Uppal, “Such products were of low quality and low cost. Also, the Ministry of New and Renewable Energy (MNRE) approved solar lanterns that were driven by subsidy but were too expensive to commercialise.”
Having used existing market retail channels, Intelizon Energy quickly expanded to trying out direct sales and the microfinance route. Adds Uppal, “We had to experiment a lot with the marketing strategy on the basis of ground knowledge, and it took us almost two years to have the clear-cut plan that is in execution today.”
Considering that the customers are from rural areas, the pricing aspect had to be planned carefully as well. “We priced it at Rs. 799, which would be a 6- to 12-month return on investment depending on the user’s existing expenditure on lighting needs,” he says. Harsha Langhya Lendi, a farmer from Ranshet village in Maharashtra, uses Zonlight for more than eight hours a day at home and farm and saves Rs. 6 per day on kerosene usage. He expects to pay off for his product in four months. The solar light has changed the business of many villagers. Shridhar Rahate from Velvi village, Dapoli district in Ratnagiri, has been using ZonHome in his shop since September 2009. Prior to this product, he was using candles and torches. That, however, failed to attract many customers. He spent Rs. 10 a 19 19 June 2011 | The Business Enterprise
Uppal also feels that there is tremendous potential for the product in the market, which is dominated by poor-quality, low-cost and no-warranty Chinese products. With its wings spreading to Africa, Intelizon Energy has managed to get 20% of its revenue last year from the African market. If one looks at the vast spectrum of uses the products have, the potential is immense. There are numerous examples of the impact and how this product is used in the daily life of people living in rural and semi-urban areas. The product is used by farmers and housewives for regular chores. Sometimes, people even use these white lights to identify snakes. Children use the light while studying. Also, weavers, blacksmiths, fisherfolk and shopkeepers use these lights for income-generating activities. Uppal adds, “We have also installed ZonHome (solar roomlight) in medical centres and schools which had grid with tube light but no backup.”
day on candles, but it was of no use. Since he started using ZonHome, he saved almost Rs. 1,000 and earned almost Rs. 3,000–5,000 per month from his shop. There are scores of villagers across the country who have benefited from this product.
Intelizon Energy has surely created a change with respect to providing electricity to those areas that really need them.
The company is expected to break even this year. It has two partners, Emergic Capital and Venture East, who are investors in this company. The company has raised close to $1 million so far. Intelizon Energy has also stepped into the African market. Uppal explains the reason for venturing into the African markets, “We have a partner in Africa Comafrique. We had gifted the Managing Director Mr Manmohan one of our products. After six months of keeping the product unused and idle, he suddenly turned the light on one day and it worked. He was taken by surprise. It was then that he got in touch with us, and we have been working together for the last three years.”
With this, people are saving on electricity bills and getting back-up with these reliable lights. Uppal even mentions cases where people have disconnected their main grid as it proved to be unreliable. This also made sure they saved on the monthly connection bill and they could completely rely on Zon lights to support their energy needs. Intelizon Energy has moved from a businessto-consumer to a business-to-business partnership model to tap into existing channels and scale rapidly. Uppal says, “We are currently focused primarily in India and plan to expand overseas in a big way in the next 2–3 years. We now have a good understanding of consumer needs in terms of products and prices and are modifying our product portfolio to meet these requirements.” In the year 2010, Intelizon Energy was one of the finalists for the prestigious Red Herring 100 Asia Award. Intelizon Energy has surely created a change with respect to providing electricity to those areas that really need them. There is a hope that electricity will now be within the reach of the common man in the hinterlands. Sharada Balasubramanian
20 The Business Enterprise | June 2011
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22 The Business Enterprise | June 2011
his is an era of Information Technology and there are each. You buy 100 more eggs during the year (Financial year) and you sophisticated systems like ERP which will throw you the profit sold 90 eggs. Your standard selling price for eggs is Rs. 2 each. What is and loss statement for any period at just one click. But the your profit for the period 1st April to 31st March? method of finding profit is as old as money itself. Right from the curd vendor women in our villages who mark their sales in burnt charcoal If your answer is Rs. 90, you are a genius being a non-finance person. to Reliance and Tatas, the ultimate goal is profit. In any business for that matter, profit is calculated. Only the methods differ. This article Traditional format of P&L of a business involving goods is meant to help the managers who are masters in their own Expenses In Rs. Income In Rs. domain but who are clueless about debit and credit. Opening stock (10 eggs)1 0S 180 Sales (90 eggs) Purchases (100 eggs) 100 Closing stock (20 eggs) 20 Principles a non-finance manager should know before Gross profit (Result)9 0 preparing a P&L statement: • Cash generated is not the profit of the business. Cash Total 200 Total 200 flow statement is totally different from a P&L statement. A formal P&L statement does not consider cash flows. For example, you Opening and closing stock is the value of stock which you can find buy goods worth Rs. 1,000 from a vendor paying cash and sell it to a from the purchase invoices. customer for Rs. 1,100. All this happens on 25th March. You give the customer a month’s time to pay his due. But you were asked to calculate Sales is the sum of your billing to the customer. the profit on 31st March. How much do you say? It’s still Rs. 100 though the cash has not been received yet. Purchases are the sum of invoices that you received during the period • The business should be treated as a person altogether different from from your vendors. the proprietor. So the transaction between the business and proprietor forms part of the P&L. To put it simply, while preparing the P&L of a business, consider the proprietor as a third person from whom you have got money and you must give it back at some point of time. This is why interest paid to the proprietor forms part of the expense side in the business’ P&L, whereas it is actually an income to the proprietor. To start with, the majority of the businesses falls in either of these two categories: one is Sales and the other, Services. Preparing a P&L statement for a business of services is very simple. There will be service income and expenses paid to professionals. There will not be any goods involved. The format of a traditional service-oriented business’s P&L
Expenses Salaries and wages Other expenses (say interest paid Profit4 Total
In Rs. Income In Rs. 50,000 Income* from 100,000 services 5,000 Other income (say bank interest etc.) 5,500 100,500
Income refers not to the cash received. It may also include the non-cash income (refer principle 1 above). All cash received is not income. For example, loan from a bank. Now for the business involving goods. Before getting into that, let’s try answering this simple question. You are in the business of selling eggs. On 1st April, you have 10 eggs in hand which you bought paying Re. 1
If you go by layman’s logic, you sold 90 eggs during the period and got (or will get) Rs. 180. You paid Rs. 90 for those eggs you sold. So your business generated a profit of Rs. 90. Profit is only for the goods sold. There cannot be profit without sales. The mentioning of opening stock and closing stock in the statement is to arrive at the profit only on the goods sold. Gross profit is the profit only from selling goods. Net profit is the real business profit. The above table extends below to find Net profit: Expenses Salaries Other expenses
Net profit (balancing Total
In Rs. 50
Income In Rs. Gross profit 90 (see above) 10 Other income 10 (interest received from bank, income from 40 100 Total 100
Disclaimer: This article is aimed at giving a rough idea on the concept of P&L and it does not in any manner recommend the format of the same which is governed by the Companies Act 1956.
CA. Surendar Sitaraman
The writer is Assistant manager in Hyundai Motors - India
23 23 June 2011 | The Business Enterprise
ERP demystified C
omputerisation has turned into a boon and has been a trigger for modern industrial revolution. It has enabled business users to understand the top and bottom lines of their business with much more precision, thereby contributing a huge sum when it comes to inclusive growth of businesses across all industry verticals. All successful organisations across the world have set up strong processes supported by an able enterprise resource planning (ERP) system. These success stories are born out of good utilisation of the same; there are many Indian success stories too. Even though these success stories stare entrepreneurs in the face, they do have certain inhibitions when it comes to adopting any ERP. These inhibitions are nothing but myths. This column aims to enlighten the reader with common Indian ERP myths and what the facts really are.
24 The Business Enterprise | June 2011
Myth 1 “Oh My God!! The Cost of ERP Implementation is so huge…. It is going to be a white elephant. We cannot afford it! “ Whenever I have been personally consulted for ERP implementation, the first thing a business owner expresses is this inhibition; they always feel that ERP is a cost and it’s going to take a toll. As a consultant, I always try to take this thought process out of entrepreneurs and lay the facts in front of them. Fact First, ERP should not be seen as cost; it should be seen and considered as a capital investment. Yes, I do agree there are lots of cases of ERP failures and people have gone bankrupt. These ERP failures were due to bad implementation methodology or partners. A glass can always be seen half full or half empty; when it comes to ERP, always see that it is more than three-fourths full. A successfully implemented ERP with a good utilisation rate will offer more to your business and definitely turn it into a success story.
In such a scenario, managing the activities of an organisation is a complex task. If proper control procedures are not in place, very soon the operations can get out of control, and products or organisations can fail. Yes, I do agree that if an organisation is very small in size and if it caters to the niche market and has limited scope, then it can sometimes succeed without ERP; but when the organisation grows big, it needs the support of ERP and that is a hard fact.
Myth 3 General Manager – Purchase to his boss: “I will never recommend ERP for our company. Look at our competitor’s problem; one of their purchase orders was on hold for more than three days because ERP wouldn’t allow
Many employees think that ERP will add more work, make the work more difficult and will force unnecessary procedures. Transformation from the old system to the ERP system is a difficult process. This transition can be managed well either by hiring consultants or a well-oiled ERP implementation team. I have personally been involved in taking companies through this ERP shock. If well executed, today’s ERP tools automate many of the repetitive, monotonous and tedious procedures, tasks and processes, thereby making the life of the employees a lot easier.
Myth 4 Inventory Executive to his colleague – “Brother, this ERP stuff that is going on in our office, I hate it, man!! This is entirely for the top management to view! What have we got to do with this? I am so demotivated in doing this extra work apart from my regular responsibilities.”
We analyse some of the most common ERP myths for you. It's time to make an informed decision.
Myth 2 “Boss, my company has been running manually all these years and, you know what, we are very successful. Why do I have to automate? Why do I need ERP?
Every Indian SME/MSME/large company asks this question. Any fellow ERP consultant of mine will vouch that he/she has faced this question when he/she pitched in for ERP. This is definitely a big myth; the facts are different.
Fact I have an analogy for this question – even without cars and bikes, people used to commute; why do people need vehicles now? Don’t they have to spend on fuel, maintenance and much more? Isn’t this a luxury? ERP is similar to this. Today’s organisations are becoming large and the products are becoming more and more complex in size, sophistication and technologies used. Also, a single group does not necessarily build the different components of a product. This is the era of distributed production, where different branches situated in different parts of the world develop the components of a system.
them to raise one as the manager who had to authorise it was on leave. The loss they faced was huge. For me, ERP means more procedures and more work; I will never let it happen to our company!” This was a discussion in one of the ERP steering committee meetings I had convened. I countered this GM with another question. Has any purchase order been on hold because the authorised signatory was not in town? His answer was an honest ‘Yes’. My response to him again was: how different is an ERP from this? That ERP increases work load is one of the biggest myths but the facts say a different story.
Fact Any ERP, while being implemented for the first time, has to go through what is called in consulting parlance as an ‘ERP shock’. The transition period from the traditional system or manual processing to ERP is difficult as new skills have to be learnt, new procedures and processes have to be followed, and so on.
If you are the business owner or an ERP consultant, you would have overheard this conversation. Well, I have, several times. This is one of the biggest myths going around. The fact is, of course, different.
Fact An ERP system gives the store clerk access to the inventory record and enables him to find out the exact quality of an item. It allows the production supervisor to plan his activities. It allows all employees to apply for leave, get loads approved, travel expenses reimbursed and so on. But for making the best use of the information processing power of an ERP system, the users should be trained on how to make the best use of the various features available. If people are ignorant about these, they will find it useless and if they are not properly trained, they will find the experience tedious. This hostility towards ERP can be eliminated if the users are properly educated and made aware of the benefits of the ERP system.
Myth 5 “ERP will make me cut jobs; I will have a tough time convincing my employee union.” I have heard a couple of entrepreneurs raising this concern. This is one of the biggest myths. 25 25 June 2011 | The Business Enterprise
NLIGHTEN Let me put the facts straight.
Fact A properly implemented ERP system will automate many tasks in the organisation. This does not mean that the ERP system will make people redundant. Yes, many tasks will be automated and this will make the people who were doing those jobs unnecessary. But the ERP system also creates new job opportunities and the people whose jobs were automated could, with proper training, be used to fill the new positions. ERP is, in fact, a people system made possible by computer software and hardware. In fact, it adds value to an employee’s CV. I have seen a normal stores executive turn into a SAP expert and his market value went up by three times.
Myth 6 Entrepreneur to a Management Consultant: “You consultants increase my cost. ERP providers can implement ERP, I don’t need you people.” I have been to many business development calls and have heard this almost everywhere. This is a big myth. Yes, there can be either good consultants or bad ones, but generalising it is definitely a myth.
Fact I have this analogy: your hand is fractured and you are in an operation theatre. There needs to be a replacement done with a steel rod. The doctor charges you more than the steel rod manufacturer. Would you go to a steel rod manufacturer who also knows dimensions and skins or would you go to a doctor? Management Consultants are like your business’s doctor; they understand your business like your body and install the ERP@the steel rod into your business. As mentioned earlier in this article, there are both good and bad consultants. It is in your hands to choose the best one; once chosen, I am sure you will be in safe hands. Myth 7 Entrepreneur to his management team: “Hurrah! Team, well done! We have completed ERP implementation; it will take care of everything in our business.”
26 The Business Enterprise | June 2011
I have been in successful ERP go-live meetings and have heard this uttered by the business head to the steering committee. I have been arguing for ERP till now and I am still doing so; don’t be confused when I say this is a myth. Let us put some facts on the table.
Fact ERP is not a cure-all. Yes, a properly implemented, operated and maintained ERP system can dramatically improve productivity, automate tasks, reduce wastage and improve profits. But an ERP system needs people to operate, use and maintain it. If employees are not interested in using the ERP system or are using it improperly or if the system is not maintained properly, then the ERP will not deliver on its promises. ERP is nothing but a technological wonder that requires you to input junk and take out junk, famously known as ‘JI JO’ (Junk in Junk out). It is a fact that the ERP tools have evolved over time and have now become very sophisticated. Today’s ERP tools automate most business functions and processes, thus making the users’ lives a lot easier. But thinking that the ERP tools will take care of everything can be a recipe for disaster. While the ERP tools make these jobs easier, there is no substitute for human judgement. Raghav Kousik
The writer is Business Head, Meye Dashboards.
ERP is expensive ERP is time consuming
ERP Knowledge a must to use an ERP product
These myths are demystified by
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I feel… therefore I am… Many a time, we wear a smile even when our heart frowns in disapproval. Perhaps, communicating what we really feel could help handle the situation better.
et me start with a small episode that is supposed to be a joke: A passenger on the hind seat of the cab touched the driver from behind to ask him to stop. The driver screamed, lost control, nearly hit a bus, went upon the footpath and stopped close to a shop window. For a second everything went quiet in the cab, then the driver said, “Look, don’t ever do that again. You scared me so much!” The passenger apologised and said, “I didn’t realise that a little tap on your back would scare you so much!” The driver replied, “Sorry, it’s not really your fault. Today is my first day as a cab driver. I’ve been driving a van carrying dead bodies for the last 20 years.” How funny is that? Frankly, I did not find it funny enough, maybe I have a poor sense of humour. But I was rather caught up in a chain of thoughts. What struck me was the driver’s awareness of the cause of his behaviour. If he was not aware of what caused the panic in him, he would have gone on to find something external to him to rationalise his erratic behaviour so that he does not have to feel bad about it. Let me explain. For instance, if he were to think something like, “why are these passengers so insensible and don’t they know that distracting the driver while driving can turn out to be disastrous?” then he would not have felt anything abnormal about his behaviour and would have happily(?)
28 The Business Enterprise | June 2011
continued with the same behaviour. Don’t we often do it? We can recall at least one situation in which we did something and then said to ourselves, “Why did I do that?” These situations may arise because we are not aware of ourselves – our patterns of behaviour and the underlying emotions. Becoming aware of and recognising patterns of responses to various situations is one of the prerequisites to having some control over reactions and increasing self-directedness. One of the first and most basic steps for raising our emotional quotient (EQ) is to identify our feelings by name. The first step towards emotional literacy, according to Mayer and Salovey is “the capacity to perceive and to express feelings. Emotional intelligence cannot begin without this first step.” The purpose of developing our emotional literacy is to precisely identify and communicate our feelings. When we do this, we are helping Nature fulfil its design for our feelings. Thankfully, we have a plentiful vocabulary with which to describe and identify our emotions. But unfortunately, most of us are never taught to make full use of this rich vocabulary. A good place to start is with simple, threeword sentences such as these: ‘I feel sad. I feel
motivated. I feel offended. I feel appreciated. I feel hurt. I feel disrespected’. Sometimes just by naming a feeling, we begin to actually feel the feeling. It is, as if by naming it we give the brain permission to access the emotional part of the brain. This step of identifying the feeling by name is essential to a high development of one’s innate emotional processing abilities. Feeling words not only express a feeling, but they also express the intensity of the feeling. By expressing intensity, they communicate the degree to which our needs are being met and our values and beliefs are being upheld. Often, it is socially unacceptable to directly express certain emotions. We are too afraid of offending others or appearing unhappy. Sadly, we live in a world where appearances matter more than reality. So instead of truthfully expressing our feelings clearly and directly, we express the same emotions indirectly, either through our actions or our body language. Sometimes we actually outright lie about our feelings. When we start to hide our feelings, lie about them, or tell people only what we think they want to hear, we impede communication and distort reality.
Let me share with you some of the ways in which we miscommunicate our feelings: Masking Our Real Feelings: There are many ways we mask our real feelings. I know it is a plain lie, when I, at times, say I am fine, though I am obviously irritated, worried or stressed. Sometimes, we intentionally or unintentionally substitute one feeling for another. For example, if I say “I hope I don’t fail”, I might actually be feeling afraid that I will! Inconsistency: Often, our tone of voice or our body language contradicts the words we are saying. None of us can totally hide our true feelings, but many of us do try to disguise our voices to go along with the act. People who are especially superficial even adopt the cosmetic voices like TV actors in order to further conform to societal expectations and further mask their true feelings. Overuse: One of the ways we corrupt language is to overuse a word. Consider the word “love.” We love corn soup, cricket, and our mothers.
Doesn’t it seem that we should use a different word for the way we feel about our parents as opposed to food?
Exaggeration: When we exaggerate our feelings we are lying in order to get attention. People who need to exaggerate have had their feelings neglected for so long, they have resorted to dramatisation to be noticed and cared about. Unfortunately, when they send out false signals, they alienate people and risk becoming like the boy who cried wolf. As the story goes, because he sent out too many false alarms, he was ignored when he truly needed help. Consider these exclamations, none of which are typically true in a literal sense: ‘I feel devastated; I feel decimated; I felt run over by a truck etc’. Minimisation: Many people minimise their feelings, particularly when they are upset, worried or depressed. They use expressions such as: ‘I’m fine. I’ll be alright. I’m okay, don’t worry about me. There is nothing wrong’. Indirect Communication: Because we are not skilled at directly expressing our feelings, we often use indirect communication of our emotions such as by using examples, figures of speech, and non-verbal communication. Let’s look at a few of these forms of indirect communication. Using sentences that begin with “I feel like...” may be the most common form of communicating our feelings. The literal result is that we often feel like labels, thoughts, and behaviours, as we can see below:
Non-verbal Communication: Studies show that up to 90% of our communication is nonverbal. When we communicate non-verbally our bodies are literally expressing themselves. For example, we think of those who will not look us in the eyes as untrustworthy, dishonest, afraid or insecure. Our eyes have the power to judge, to attract, and to frighten. Through our eyes we can show interest, boredom, disbelief, surprise, terror, disgust, approval and disapproval. Our faces often express what we are not saying verbally. Our lips may tremble when we are afraid. Our forehead wrinkles when we are concerned or confused. And when people tap their fingers or feet they are usually feeling impatient. After we learn to find the right word for our feeling and its intensity, the next step is explaining why we feel what we feel. At this point, our analytical brain is called into action. We actually make things much easier for ourselves and others when our language is clear, direct and precise. When what we say is consistent with the non-verbal cues we unconsciously send out, we gain respect because we come across to others as a person of integrity. Clear, truthful communication is not only helpful in personal relationships, but also essential to a society. We will simply be much better off, when we all follow the good old rule: Say what you mean and mean what you say.
For further reading: Emotional Intelligence by Daniel Goleman
I feel like (a label) - I feel like: ... an idiot ... a baby ... a failure I feel like (a thought) - I feel like: you are crazy. I feel like it was wrong. I feel like he is going to win. I feel like (behaviour) - I feel like: ... strangling him ... shooting him ... wringing his neck ... teaching him a lesson ... quitting ... giving up ... jumping off of a cliff. We typically use lot of such expressions, which actually camouflage our feelings and when we use them we don’t get in touch with
The writer is a Learning & Development professional and presently steers the L&D practice at Madras Cements. He holds Masters Degrees in Psychology and Human Resource Management. 29 29 June 2011 | The Business Enterprise
How an external agent (consultants) can help in compliance of companies.
Compliaasnce a service
30 The Business Enterprise | June 2011
9 to 6
ndia had enacted numerous Acts since independence and post industrialization basically to take care of the welfare of the employees. The various labour laws of India define the benefits of the employees and the obligations of the employers. All these Acts make it mandatory for the employers to comply with various provisions of the Acts with clear timelines and any non compliance would have serious repercussions for the employees. To give a few examples: • Non / delayed remittances of PF and ESI contributions will attract interest and penal provisions. • Non /delayed submissions of half-yearly returns of ESI may attract denial of medical facility to the employees when he/she needs. • Non transfer of accumulated PF contributions from one employer to another when the employee shifts jobs will make his earlier contributions ceasing to earn interest after 3 years. Apart from PF and ESI, a host of Acts are applicable and to name a few, Minimum Wages Act, 1948, Maternity Benefits Act, 1961, Payment of Gratuity Act, 1972, Shops and Establishment Act etc.Though most of the Acts are Central, the implementation of these Acts especially the welfare of the employees are through the respective states and cities. It becomes very difficult for companies especially with employees spread across the country to comply with the rules and regulations of various legislations. Since all the labour laws have been enacted to take care of the welfare of the employees, all these Acts have stringent penal and prosecution provisions which could hamper a company’s growth plans. Considering the significance and complexities of complying with various labour laws, Companies need to focus on ‘compliance’ for which substantial band-width and costs need to be incurred. Smaller companies cannot afford to have full time professionals to handle this. In this era of Mergers and Acquisitions, due diligence in terms of compliance assumes significance and non-compliance will be seen as potential risk
which may even be a show stopper in M&As. Hence, it makes lots of sense to outsource compliance as a service to professional firms. The advantages of outsourcing are • The service provider understands the expectations better and handle them well due to their experience. • Smaller companies can avail professional services without having to hire a full time resource. • Foreign companies setting up shop in India needs professional advice on various registrations as they are not familiar with the intricacies of various laws. • Saves senior management band-width on monitoring the compliance levels and costs. • Relationship with various govt bodies. • Knowledge partner – pro-active advices on amendments to various Acts and judgments having impact on the clients. • Automated maintenance of registers and records. • Handling inspections.
But there is a caveat in outsourcing. The outsourcing partner needs to carefully chosen and it is preferable to have a professionally managed service provider to manage compliance. Like every other outsourcing, the entry barrier is low and it is important that the companies deal with an organised company with decent net-worth and facilities. Companies would do well in outsourcing their compliance functions to ensure that their employees are highly motivated and productive apart from making sure that the company maintains a clean track record of complying with various labour laws.
The writer is the Senior Vice President of finance and delivery at TalentPro India. He comes with over 24 years of finance and secretarial experience with major MNC’s and Indian companies. He is a member of the Institute of Chartered Accountant of India and the Institute of Company Secretaries of India
31 31 June 2011 | The Business Enterprise
The number game Are Indian stock markets driven more by investor sentiments than financial fundamentals? Background On November 26, 2008, India’s financial capital was under terrorist attack, with epicenter being just few hundred meters from BSE headquarters in Mumbai. There was a sense of panic and anger across the nation, and BSE did not opened on November 27. The next day when it opened first time after the fiasco, negating all anticipation of analysts, the Sensex gained more than 1 % at its high. Also within twenty working days after the tragic incidence, the Sensex crossed 10,000 mark as compared to 9026 on the November 26. This was the message of confidence and strength of the world’s second fastest growing economy to the terrorist groups. On May 18, 2009, enthusiastic with hopes and aspirations for a stable and reform friendly government, investors greeted the victory of UPA with unprecedented reaction. It was an outburst of emotions that led Sensex to hit its first upper circuit in history, with day closing at 2110 points rise, about 17%, crossing the 14000 mark. Stock markets are vital sources of finance to propel economic development of any country. From years, analyst and researches are trying to figure out, what drives the prices of stocks. Hypothesis like “Fully efficient markets” and “Behavioral Finance” are present, and are academically accepted. However, more often than not, the actual movement of share markets cannot be predicted by such theories.
Research Objective Our research is a qualitative and quantitative
attempt to understand and compare the movements of the Indian benchmark stock index-BSE, based on two very important factors. Firstly, the financial fundamentals, which for a listed company are PE ratio, EPS, cash flows and projects in hand; and for an economy are GDP, growth, FDI & FII and Govt. policies and stability. Second are the sentiments of investors, which are based on biases, expectations and fears.
The Business Enterprise | June 2011
In September 2008 came the rumors of bankruptcy of ICICI bank, and that its top executives are selling stake at India’s largest private bank. Even after clarification and confirmation regarding the financial stability of bank, by then CEO K.V Kamath and Joint MD Chandra Kochhar, ICICI stock fell by a record 26 % in the month.
Even though one cannot measure the investor sentiments numerically, their implications are sometimes the over-riding factor. In mid 2004, when first unconfirmed news of dispute between Ambani brothers surfaced, the stock market responded strongly. The dispute was made public only in November, but the damage was already done. When the
Incidences like this compelled us to measure and compare the effects of sentiment driven news vis-à-vis the financial fundamentals of a company or economy on a real time basis. Subsequently, it gave rise to the question- “Are
One-Sample Statistics N Difference
Mean Std. Deviation Std. Error Mean
One-Sample t-Test Test Value = 0
Difference (Fig 2)
financial year ended in March 2005, Reliance was the fourth worst performer stock with firm’s market value at $ 19.3 billion when group annual sale exceeded $ 23 billion.
Sig. (2Mean tailed) Difference 0.443
95% Confidence Interval of the Difference Lower Upper -1.2467
Indian Stock Market driven more by Investor Sentiments than Financial Fundamentalsâ€?.
Research Methodology To carry our research, we selected seven stocks from BSE listed companies which are most fundamentally sound in their respective sector. These selected stocks are RIL, ONGC, L&T, ICICI, Infosys, TCS and Pantaloons. We fixed a time frame of six years, starting from January 2005 to January 2011. Next, we obtained news articles for each company, from the above mentioned time period, that are more of speculative in nature than fundamental. While collecting the news articles, we were totally unaware of the change in stock prices, thus creating a random sample size of forty six. After gathering the company specific news, we found out the change in the concerned stock price for the day first flashed on internet or television. This enabled us to get the database of actual change in stock price for our sample. Now to get the theoretical or expected change, we used the beta value of the stock. As we know beta values are calculated for a period of last five years and give the relative movement of a particular stock with respect to Sensex. Thus the product of beta value with corresponding percentage change in Sensex is taken as proxy for the theoretical or expected change.
Data Analysis Out of the seven stocks used, let us see the
graphical comparison for TCS. In the graph shown below, the Y axis represents percentage change while the X axis represents the dates of our interest. (Fig 1) The graph shows the variation in Actual Change (in blue color) and Expected Change (in red color) in the TCS stock price. Each number on X-axis corresponds to a date of observation of stock, consequent to the first flashing of selected news article. It can be clearly observed from the graph that the fluctuations in Actual Change are much higher or amplified as compared to the Expected Change. Here it is important to note that the blue line represents the response aroused from the flashing news while the red line is a proxy for the macro or more fundamental developments. Thus on the given day of speculative news, the impact of sentiments on the market (given by blue lines) is greater than impact of fundamental factors (given by red lines).
Statistical tools and interpretation Now, the relevant question is that whether the difference between the expected and actual values are a matter of chance, or are substantial enough to come to a conclusion. This can be effectively answered by using statistical tools. Here, we create a sample of difference between the expected values and actual values, and thus the sign of mean of
sample will give the statistical interpretation. Ho = Mean of the difference of the sample is greater than or equal to zero. In other words, impact of fundamentals is more than sentiments. Ha = Mean of the difference of samples is less than zero. We apply the - One sample, one tailed test After running the statistical tool, following results are obtained: (Fig 2) Now, we get the significance value as 0.443, which is by default, for two tailed test. To convert it into one tailed test, we apply following relation. P-value (one-tailed) = (P-value (twotailed)/2) ^ 3 Which gives P-value (one-tailed) = 0.0108 Thus at alpha = 5% or 0.05, we get P-value (one-tailed) < 0.05 Which implies that Null hypothesis is rejected. Which implies that mean of the difference of sample is less than zero. Hence we can conclude that the impact of actual change (Investor sentiments) on stock prices is greater than that of the expected value (market fundamentals).
Research Conclusion The statistical analysis confirms the hypothesis. It suggests that on account of surfacing of a news report, which may be unconfirmed, speculative or simply a rumor, the movement of the stocks are determined by the sentiments developed among investors, which usually dominates over the long term elements of the company and of the general shape of the sector and economy as a whole. Also, it points out that to be a successful investor, either one should be capable of predicting the sentiments and should make money in intraday trading; or be totally unmoved by prevailing sentiments and make money based on fundamentals, on a long-term perspective.
4.00 Akash Jauhari & Karan Verma
2.00 0.00 -2.00 -4.00
10 11 12 13 14
Akash Jauhari is PGDM Finance Student at IMT Ghaziabad; and currently intern at Deloitte Touche, Gurgaon in Financial Advisory Section. Karan Verma is PGDM Marketing Student at IMT Ghaziabad; and currently intern at Ogilvy & Mather, Gurgaon in the Creative department. 33 33 June 2011 | The Business Enterprise
from the Ashes How resilience can be built in an organisation during â€˜changeâ€™ and how individuals can take challenges heads-on.
The Business Enterprise | June 2011
friend of mine often says that if it were not for a positive attitude and the zest to look forward to life, most of us would be languishing in our past, cowed down by our woes and problems. After a trauma at the individual level or a downturn in business, positive psychology often prompts us to ask ‘what now’ or shall we say ‘let the show get on’. Managing the change and the transition successfully is the key. In this article, we shall narrate a few reallife examples and learn how individuals and organisations have overcome the slide-down, and emerged victorious and positive.
Change at the enterprise level I was associated with the Vedanta (Sterlite) Group during the time when large public sector organizations like Bharat Aluminium Company Ltd. (BALCO) and Hindustan Zinc Ltd. (HZL) were acquired and integrated with the Group. The manner in which we went about the change in management and made the transition successful was an experience of a lifetime. To make these mammoth public sector undertakings (PSUs) viable, and then to unleash their vast potential and unlock significant value, we had to: • First, get the ‘buying in’ of all the employees down the line, and lock-in the commitment of the key management staff to the change agenda or ‘new order’ • Second, articulate and communicate the ‘big picture’ of where we want to be, and the potential that was available to be achieved in terms of volume, value, geometric increase in productivity and profitability, and the scope for achieving international and ‘best in class’ benchmarks. • Third, clearly define the change (from ‘as is’ to ‘to be’) and involve the employees in workshops across the organisation and in all locations. • Fourth, we involved those who will be impacted, in devising the change agenda – the unions, the workmen and the executives and the managers. There was, at all times, continuous and consistent communication about what we need to do, ‘the why’ and
‘the how’, and thus demonstrate the steps by which the changes will be achieved in clearly measurable terms. • Finally, measure and showcase the change outcomes which reflected the marked improvements – in overall efficiency, productivity, profitability, reduction in costs and overheads, and a much vibrant workforce than ever in the past. Today, both these organisations are leaders in their own right, and marching forward gallantly. People are at the core of all these changes and it was the same people who worked in the PSU, in its previous avatar, who achieved these significant improvements on all fronts. Several ‘diamonds’ were also mined in the process of identifying potential leaders from amongst the existing pool of talent; and many of them were quickly assigned to these new roles with higher levels of responsibility with commensurate financial and performance rewards. What would have been an ‘also ran’ business enterprise was transformed into a highly efficient and profitable juggernaut, staking claims to international benchmarks.
The ‘I’ resilience At the individual level too, we pass through depression or face a sudden setback in the family or in health. We could almost give up, but life prompts us to fight back. Examples abound of friends who have fought breast cancer or a life-threatening disease to add zing to their own life and to the lives of those around us. To cite a case in point, a friend whose case was given up after he suffered a cerebral hemorrhage due to a stroke 8 years ago, is today the epitome of positivity and self-confidence. How did he manage this change and re-emerge to become a role model for all of us? His advice:
At the individual level, we must: • Put positive psychology to work. • Find ‘meaning’ in what we do – professional or personal vocation. • Build a network or ‘satsang’ of friends whose encouragement and involvement will prod us to try and accomplish new peaks. • Have a ‘higher order philosophy’ attached to life – what is it that we wish to leave behind? What is it that we would like to be known for? Can we touch the lives of those around us? Can we light up their lives? A trauma must not be seen as a ‘trauma’ but as a means to perceive situations and people differently. It is not the pessimism that must prevail, but the hope for a different ending; not remorse and recrimination about life and the provider, but a renewed belief and faith that we possess the strength and courage to overcome. ‘Change’ and ‘Challenge’ are interchangeable – every challenge prompts us to change our way of dealing with the situation at hand, change our perception of the people and circumstances, and change our approach and methodology to resolve. Change, on the other hand, is indeed a challenge that threatens our mindset and methodology, challenges our assumptions, and challenges our thinking and the strategies that arise therefrom. Life itself is constantly and continuously challenging us to change. G. D. Sharma
• Nothing in life is a setback. These are mere opportunities for us to re-position ourselves. • Pull yourself out from a crisis and fight – we can all do it. No individual has this special talent that others do not have. • Only fighting back will give us success; surrendering is mere cowardice. He cites Lord Krishna who says: ‘He is noble who has fallen and gotten up after every fall’.
The writer is an illustrious alumnus of Tata Institute of Social Science, Mumbai (1979 Batch). He is the Principal, Beeline HR Advisory, an HR Consulting firm based in Chennai.
June 2011 | The Business Enterprise
Opening up Jails are often perceived as dingy dungeons where the prisoners suffer a condemned fate. But Tihar Jail has set out to heal these broken souls and, in the process, has set up a business venture from the most impossible terrain.
The Business Enterprise | June 2011
“When the links of my chain begin to shine, I think that somewhere day breaks over your sleeping face.” Faiz Ahmed Faiz, one of Urdu poetry’s best exponents wrote this when he was in jail for conspiring against the state. A jail where the sun’s rays found it hard to reach inside, often leaving the inmates in a state of gloom. Imagining what life must be like inside a jail doesn’t leave one with positive images until you come across the reform initiatives at Tihar Jail. From offering a library facility, to university programs, meditation and yoga classes, and employment opportunities, Tihar Jail gives the word hope a new meaning to many distraught prisoners. Tihar Jail Factory, which has been in existence since 1961, gained impetus in the last few years with a steady increase in the number of employees working at the factory. Currently more than 700 convicts work there to produce furniture, carpets, bakery items, paper products and beautiful paintings. Yes, beautiful paintings.
recalled that growing up as a child he would often sketch in his school notebook. But with time that habit died. “This training helped me get in touch with my long-forgotten passion and made me think of what I would really like to do in life,” said Iqbal. There is no dearth of reform stories in Tihar Jail. Many inmates, after walking beyond the mighty walls of this jail, have found employment using the skills they picked up. Tihar is one of the largest Jails in Asia housing over 12,000 inmates. The turnover from the sale of products made at the factory is soaring by the year registering Rs. 6.65 crore in 2009 and Rs. 11.5 crore in 2010. It is expected to cross the Rs. 15-crore mark this year with products being sold in and around Delhi NCR. A lot of big and small retail chains are tying up with the factory to
her approach of reaching out and connecting with people to bring about a healthy change. She asked an assembly of prisoners if they prayed. A stoic response was followed by a ‘yes’ by some. And then she sang that famous song ‘Ae malik tere bandey hum’ and asked the prisoners to sing along. From that day to now, Tihar jails still echo with devotional chants. Her much-applauded innovation at the jail was the ‘petition box’ where prisoners could write directly to her about their complaints and concerns; this helped her gain credibility among them. In one of the jails, prisoners put a note in the petition box inquiring about Dr. Bedi’s absence for some days. She made herself accountable too in the process. Such was the atmosphere of trust that she fostered during her stint. And even today, the prisoners’ grievance cell that registers all complaints through fixed and mobile boxes works effectively in resolving matters raised by the prisoners. No prison internationally has such a set-up.
At the Tihar Jail Factory where inmates work hard to produce all these goods, our effort is to make them realise the dignity of labour.
Ramchander Nath Foundation, a non-government organisation, one of the many involved in reform activities, trains inmates in art at the jail. Professional artists spent many hours inside the jail premises interacting with inmates, demonstrating for instance how a painting is made and eventually working on honing the skills of the inmates.
Those trained are mostly in the age group of 18–21 years, and there are many instances of inmates producing quality works that often find takers in the competitive market outside. “There are many NGOs that step forward to help the inmates in exhibiting their works and get an appreciative audience. The scope of the trainings is not just limited to helping inmates explore opportunities in the field of art but also to work well as a means of therapy,” said Sunil Kumar Gupta, Law Officer cum PRO, Tihar Jails. The NGOs involved at Tihar mostly concentrate on education, vocation and counseling. Iqbal, 24, who underwent the training,
supply its products. All this augurs well for everyone involved in the reform programme. “Our focus is to reform them and change their mindset, which is the biggest challenge we face. But if you achieve that, it is the most satisfying thing. At the Tihar Jail Factory where inmates work hard to produce all these goods, our effort is to make them realise the dignity of labour. If they understand that, our job is done. But surely it is not an easy path that we tread,” said Sunil Kumar Gupta, who balances optimism and reality rather well. Several initiatives in the reform programme at Tihar go back to the 1990s when arguably India’s best known cop Kiran Bed, during her stint as the head of Tihar Jail, introduced yoga, meditation and literary classes for inmates, among other things. All the good work that is still going on is largely the result of the drastic and innovative steps taken by Dr. Bedi. Her first day at the jail in a way defines
Tihar’s reform programme sees participation from retired army officers, teachers, psychiatrists and eminent professors, who conduct various activities to help inmates look at life positively and bring about an internal transformation. According to the jail authorities, the prisoners take well to these interactions and over a period of time show significant change in behaviour and outlook. It is indeed heartening to see civil society doing its bit for the punished. They are a part of the same society and need to be eventually integrated back and enabled to lead a normal life. Franklyn D Roosevelt once said, “Men are not prisoners of fate, but prisoners of their own mind.” The reform programme at Tihar seeks to free them of those very prisons that trap them. And this must not stop at Tihar. Jails across the country must adopt a similar approach in dealing with prisoners. The government’s role does not end with conviction of men and women but with rehabilitation. A helping hand through the bars can mean a lot.
June 2011 | The Business Enterprise
BREAKING DOWN THE HURDLES After the triple disaster, Japan is looking at rebuilding their economy slowly. Feed efficiency can be one important step in that direction. This issue, Mr. Gerard Keenan, Executive Chairman, Keenan Systems tells us how their company can help Japanâ€™s food sector rise back from the ashes.
The Business Enterprise | June 2011
Gerard Keenan, Executive Chairman, Keenan Systems
1. What is the current scenario in Japan as far as self-sufficiency in food cycle is concerned? Japan is 40% self sufficient in food and this situation was a large concern nationally before the earthquake, now the situation is even worse following the earthquake, tsunami and radiation problems. To exacerbate the situation, in recent years Japan has seen a shift away from the traditional, locally sourced diets of fish, rice and vegetables to more imported meat, dairy and processed foods. A further issue currently in Japan is the average age of farmers, particularly rice farmers who are mainly over 70 years of age. However in some parts of Japan, including the north east where the tsunami hit hardest, there had been good progress in integrating young people back into agriculture.
2. What role does Mech-fiber® play in building a cost-efficient dairy system? Keenan is a feed technology company that improves feed efficiency for dairy cows, the conversion of feed into milk, by improving the cow’s digestion of the feeds. Mechfiber® technology produces a unique ration physical structure that helps the bacteria in the rumen (cow’s stomach) better access the feed nutrients. This allows the cow to get more milk from the feed eaten. The potential for improvement globally is 30% more milk from feed (i.e. land and water resources). In India, a 30% gain feed efficiency is worth more than Rs 10, 000/cow in profit margin to the farmer. Data from 9,400 dairy herds in 25 different countries showcased the fact that top third of Keenan herds produced 5 litres more milk per cow per day, from 1 kilo more feed than the average.
3. What impact can increased dairy feed efficiency have on the economic front? An improvement in Feed Conversion Efficiency (FCE) will have significant global implications and will reduce the volume of animal feed, agricultural land and farm animals that are required to produce 700 million tonnes of milk each year for the global
population. The latest surge in food and commodity prices has reawakened concerns about the capacity of the global agriculture sector to meet the food demands of the world’s growing population In a research revealed at the first Global Dairy Feed Efficiency and Food Sustainability Summit which took place simultaneously in Dublin, Paris, Washington, London, Berlin and The Hague. Professor Robert Jolly, Department of Economics, Iowa State University said that “The ability to produce more milk from the same resources will significantly help the agricultural community overcome the challenge of meeting the future global demand for commodities. A 25% increase in efficiency could reduce the land area needed for dairy feed production by more than 51 million acres at a cost savings at current feed prices of nearly US$46bn (€37bn) annually. Increased feed efficiency would also significantly reduce the environmental impact of dairy production through better land use and reduced greenhouse gas emissions.”
4. How can Keenan and FCE help Japan in their long road to food security?
Mech-fiber® technology, combined with the proper nutrition and protocols, allows farmers to increase food production while preserving the precious resources of feed, land, water and the environment. It is an established practical solution that allows producers to deliver more milk from the same resources. Given Japan’s need for food security, Mechfiber® technology is very applicable in Japan. We estimate the average Japanese dairy herd can improve feed efficiency by 20%, thus allowing Japan achieve more milk from existing resources and make maximum use of scarce, expensive feeds, whether sourced locally or imported.
5. What are Keenan’s plans in India? Keenan is in first phase development with Kolkata-based Keventer to bring its technology to Bengal. The two companies are setting up a plant to produce feed utilising local feeds, forage and Mech-fiber® technology for farmers supplying milk to Keventer. The objectives are more milk, better milk and improved profitability. Keenan first year target will be to produce 100,000 litres of milk per day.
June 2011 | The Business Enterprise
Just dial for success
Sometimes, success is just a call away. For Just Dial, it was so literally!
he advancement in technology has made life convenient for us. If you are looking for a phone number, you no longer have to look through that fat directory in tiny print! All it takes is a call to a directory service like Just Dial and the number is immediately either given to you or smsed to your mobile! But life hasn’t been a bed of roses for Mani who started Just Dial. He had his share of ups and downs before he hit an all-time high with Just Dial! How difficult has this journey been for him? What was his turn-around point? Mani shares his story with us. The beginning I am a Tamilwho was brought up in Kolkata, and I started my career in Delhi as a salesman with United Database, a directory service of businesses. Coming from a traditional Tamil family, my career was meant to go the engineer or chartered accountant route. While I did pursue my CA articleship, because of the circumstances at home, I had to take up a sales job. I saw people leafing through heavy books and lots of fine print to get that one small, yet important, piece of information. It made me wonder if it was possible to offer a similar service over the phone. That idea was
The Business Enterprise | June 2011
the foundation of Just Dial. Challenges The challenges were multifold. When you start your own business, typically of course, the biggest challenge is capital. When it comes to buying capital equipments or things like hardware or software you need an investment. The other one was, of course, to attract the best talent, for which you need to be a company of reasonable reputation with a reasonable amount of money power to attract the right talent and number three is, of course, with a consumer-faced business, you need marketing money to reach out to people, to let them know about your service, etc. Therefore, since we did not have capital we had to use innovative ways of doing this. The technology edge Technology has been the cornerstone of our success. Not many would know this, but Just Dial was the first Indian company to win the prestigious ‘Red Hat Innovation Award’ in 2010. Just Dial was selected for its migration from a Microsoft DOS-based client server system to a web-based system powered by Red Hat Enterprise Linux. Just Dial was able to increase the flexibility and decrease IT and licensing costs by migrating from proprietary
software to open source solutions. Since we realised at the inception that we could never ever spend money on advertising in the near future or afford any kind of marketing spend, we focused all our energies on getting the accurate data and processes in place. And then from Day 1 we have been working on the ‘Wow’ factor for the user. And Just Dial has used technology to the hilt, which has helped us turn around dynamic business needs in considerably short time spans. Turn-around moments As clichéd as it may sound, failure was a stepping stone to success for us, a huge success indeed. After failing in the first attempt that lasted barely two-and-a-half years, Just Dial continued to remain a dream and obsession from 1992–96. The idea could not crystallize because of the lack of financial resources and the right eco-system. But finally, Just Dial was started in a small 300 sq. ft garage office in 1996. We learnt from our past mistakes and realized that we need a number that is easy to remember and common across geographies and not just a recognizable brand name. Thus, Just
Dial is available on a single landline number 69999999 across India. Besides, now we also have a unique mobile number, 08888888888, which you can dial from across India, from Kashmir to Kanyakumari, and get a hi-digital quality sound experience. Not just this, the same number can be used to send text queries and get instant results, as always. It’s been a wonderful journey from a threemember start-up to a 4,500-member corporation. Revenues grew from Rs. 85 lakh in March 1997 to Rs. 200 crore in March 2011; from a single city to covering almost every city and town in India. We have grown from a few thousand users to 57 million unique users. Our daily average user strength is above 6 lakh today, while our web usage is neck-to-neck with the voice service. Today, our services are available across multiple platforms like web, voice, sms, andWAP. When we started, only a handful of people believed in us, but fortunately, we had the last laugh. Spreading wings The power of Just Dial is in its simplicity, and simplicity will never go out of fashion. We combine simplicity with high-tech technology and speed. The idea is so simple that anybody could have thought of it; the challenge is in
the execution. Yes, we have launched Just Dial in the US and we can pretty much say that the sheer power of Just Dial inspired us to take it to the rest of the world. Also, definitely the financial success in India and the ability to raise money and capital and also looking at mature markets where the market size is so huge that we look at it as a great opportunity. Having said that, we are today a company focused on India, with high growth opportunities existing here itself. Last word My advice to new start-ups would be to dare to dream and pursue it passionately. This is, of course, the quintessential element. Besides this, an entrepreneur needs to have an innate sense of belief in oneself or just ‘raw faith’ and a vision that transcends beyond the present scenario; one must couple that with an eye for detail and look at every challenge as an opportunity. In fact, I vouch for a constant and continuous improvement on a daily basis. Seek to find your own trend rather than follow the herd, and always be open to embrace change. I’d say, work hard, work smart.
Shivani Arora June 2011 | The Business Enterprise
Having been diagnosed of cancer, Mrs. Radhika Santhanakrishnan could have swooned in selfpity. Instead, she decided to launch a full-fledged war against the disease. Pennalam, a social enterprise was a passion born from a painful personal journey. Here's her story.
am a business women and am normally very conscious about my health. I have regular health check-ups. Back in 2009, when I went for an examination, my doctors suspected that something was wrong (I had missed the checkup in 2008). When the biopsy results came in, I was informed that I had a malignant tumor in my left breast. Though the news was shocking, I wasted no time in crying and instead sought medical intervention immediately. After painful sessions of chemotherapy and a surgical intervention later, I was fully cured.
The call to cure But this shocking experience made me think of the emotional trauma other women like me went through and with the treatments being very expensive, I realised that the burden can be even more hard. This was my call to give back to the society. While on
The Business Enterprise | June 2011
my treatment, I had visualized Pennalam, a wellness centre that could provide cost-effective diagnosis and treatment for women who had cancer. Luckily for me, my oncoplastic surgeon Dr. Selvi had a similar vision. With the aid of a supportive family, Pennalam was setup as a unit of Sri Dhanvantri Trust. Ours was a wellness centre that was for women run by women. Specialists with over 20 years of experience in oncology joined our team. On August 24, 2010, health secretary Subburaj inaugurated our care centre for breast and cervical cancer. This was the first step in a long journey.
Treatment at a subsidised rate It is very unfortunate that people keep postponing check-ups. Most of these diseases get you when you are 40-45 years old. This is the period most women go through financial and emo-
tional strain. Hence, they ignore their health. Most of these diseases are 100% curable when detected early. Our first step was to get these vulnerable women to come for screening to help stop a traumatic experience later. We shot a movie that created awareness about the different screening processes. At Pennalam, with our team of radiologists, oncologists and physiotherapists we aid those interested by providing screening at a very subsidized rate. In the event of patient diagnosed of cancer, the treatment is given totally free of cost if they are below the poverty line. We have a day care centre with a doctor on call to provide immediate response any point of the day. Even post-surgery, if the patient develops complications, we have lymphopress that can drain out excess fluid collection. Most of our patients are too traumatized to eat or sleep normally. Hence,
we help them with sessions of counseling.
Challenges aplenty Our major challenge has been the tendency of people to avoid screening. Everybody is scared that something wrong might turn up during screening hence they want to avoid it till the disease takes over them. As of now, we have been targeting women selfhelp groups, colleges and corporate to spread awareness. We create interactive campaigns that include maximum participation. People feel comfortable to discuss their personal issues after such campaigns. Getting them to screen for the disease is again another up-hill task. As for as cancer is concerned, our greatest enemy has been our negligence to take early action against the disease. At Pennalam, we seek to change this.
June 2011 | The Business Enterprise
When the Tropican charm comes calling, never say â€˜noâ€™!
ituated in a quiet enclave in Seminyak, and adjacent to the exclusive Legian Bali are a cluster of 11 private villas that stand majestically amid scented gardens and private pools. This exquisite residence that redefines luxury living in the tropics is The Club at The Legian. Tastefully designed to bring out the best in Balinese architecture, the 10 one-bedroom and singular three-bedroom villas occupy their own compound and boast of individual swimming pools. The stylish interior and contemporary furnishings are designed by the internationally acclaimed interior designer, Jaya Ibrahim, whose artistic flair is prevalent at The Legian and The Beach House. The Club at The Legian is the perfect luxury escape, with personal butler service, an unsurpassed degree of privacy and convenient access to the facilities at The Legian Bali.
The Business Enterprise | June 2011
Exclusive Dining Privileges
• Welcome drink and cold towel
Complimentary daily breakfast and afternoon tea for Club guests may be served at The Club Lounge or in the privacy of their villas.
Bali, known as ‘the island of the Gods’, is one of the 17,000 islands that make up Indonesia, and is approximately 10 degrees south of the Equator.
All villas are free-standing and occupy their own private compounds. Large dreamy bedrooms, ample living areas, beautiful en-suite bathrooms and ornamental ponds, and sizeable private swimming pools, present the perfect milieu for those seeking luxury solitude.
Just as it is rich in history and culture, this tropical retreat that offers a myriad of activities, is a choice holiday destination for avid leisure seekers. The attractions in the famous districts of Ubud, Kuta, Seminyak and Legian include sightseeing, shopping, dining, and of course, beach play at one of the most beautiful coastlines in the world.
• Welcome bottle of sparkling wine and canapés • Daily newspaper and seasonal selection of fresh fruits in the Villa • Daily breakfast in the Villa or at The Club Lounge • Daily laundry service excluding dry cleaning up to 6 pieces per person per day • ‘ Mini Bar with well-stocked alcoholic drink selection¬ replenished daily • Return airport transfers • Refreshments and afternoon snacks in the Villa or at The Club Lounge
What are you waiting for, this summer head out to this heaven on earth.
• Drop and pick-up within Seminyak, Legian and Kuta areas • Packing and unpacking service by your butler
June 2011 | The Business Enterprise
Do you know how some famous brands got their names? LYCOS From Lycosidae, the family of wolf spiders
MERCEDES This is the first name of the daughter of Emil Jellinek, who worked for the early Daimler Company around 1900
NIKE Named after the Greek goddess of victory
NOKIA Started as a wood-pulp mill, the company expanded into producing rubber products in the Finnish city of Nokia. The company later adopted the cityâ€™s name
STARBUCKS The owners named Starbucks after the first mate in the book Moby Dick.
The Business Enterprise | June 2011
Corporate cusine This issue, we share with you some mouth-watering recipes from the kitchen of Taj’s Vivanta.
TIME FOR PREPARATION: 25 min
Ingredients • Rice vinegar • Sugar • Salt • Sushi rice • Water
1000 ml 600 gm 100 gm 1 Kg 800 ml
• Take the rice vinegar in a small handi • Boil it with salt and sugar until salt and sugar gets dissolve • Strain it and store it • Wash the sticky rice very well and soak it overnight • Cook the rice in a cooker with water for approx 25 min • Cool the rice and spread out. • For 1 kg of cooked rice, add 300 ml of sushi vinegar.
The Business Enterprise | June 2011
Chennai – the famous land of idlis and dosas, is one of the few cities of India that has embraced various cultures and at the same time, has kept alive its authentic traditions. Known for its hospitality, an eating experience among the various cuisines will definitely be an unforgettable one. Originating from this philosophy, Chennai got its one-of-a-kind platform where life and food interact on a day to day basis. is a unique portal that encourages more people to go out and try new places, educate them about what’s new and who’s who in town, and create great experiences for the people of this City. While riding on a wave of change where people step out of their comfort zone to experiment with new cuisines - ranging from Greek to Japanese, new places and new people, breaks the myth that Chennai has any lesser to offer in terms of its food life. On this portal, people get exclusive deals, offers and vouchers from city restaurants; along with the unique feature of having food delivered to your doorsteps on just a click of a button! All this and more... at unbelievably heavy discounts! is all about food and brings forth an opportunity for experiencing great dining, that is worthy of the money spent. Rediscover food and create new experiences . with
A yummy revolution With CHENNAIFOOD.COM, good food is just a click away!
Business on cards
Look at what the tarot cards predict for your profession this month…
3 of swords/ X of swords
Eight of wands Reversed/ Six of pentacles
King of Wands/ Five of wands Reversed
Aries - Arians, for the past few months, you are in a depressed state of mind, are you feeling betrayed or let down by close or trusted people around you? Be aware of petty rivalries at your work place. After your previous setbacks what aids you this month is definitely a firm resolve to cut out people and situations which no longer hold you. Remember it’s for your welfare that you need to let go, put an end to traumatic relationships which causes you angst and bid goodbyes to old. Major relationships, projects or job ends to give way to better prospects.
Taurus - Taureans , is your work life getting into stagnation? Do not despair, be ready to ask for help as you will definitely require some and get assistance from key business people who will help you move forward. All you have to do is to be humble and ask. Some news has been blocked or delayed so do take care to double-check your blackberry messengers and incoming mails. Those who are seeking grants and financial favors will see positive results soon.
Gemini - Geminis, finally you are in position to take wise and informed decisions. By now, your inner struggles would have ended and you can now move forward with strengthened relationships and let the past trivial rivalries rest. Your Colleagues and juniors will look forward to your growing leadership skills and confidence, helping you to scale new heights in your profession. Time to go in for action based on correct information.
Fool/ Four of Coin reversed
Devil reversed / page of Pentacles reversed
Magician reversed / five of coins reversed
Cancer - People having their cancer in sun, please remember the old idiom ‘nothing ventured nothing gained ‘,’to win some you need to lose some ‘. Follow your heart and go for your dream ventures and projects, stop deluding yourself with false securities .Your plan will meet with success, just have faith and conviction in them .The fool’s message is take the leap of faith and you will fly. If you have to invest little to get higher returns, do not hesitate.
Leo - Bravo Leos , congratulations for having overcome excesses in your life. It was a wise decision but maybe heavy on your pockets. Take things slowly don’t get trapped into new financial propositions, avoid delaying taxes and dues .Take stock of your wealth and do get in touch with trusted advisors to guide you further towards financial wellbeing. Also do take care of your minor health problems as negligence will amount to penalty.
Virgo - Virgos, stop feeling so needy. Don’t let others take advantage of your seemingly weak position. Beware of manipulative consultants who might promise moon, be aware of your own capabilities. Tarot message is to be independent while taking up financial contracts and making professional decisions. Do not rely on fresh contacts or trust new people in your surroundings .Guard your secrets well and beware of imposter and fraudulent practices.
The Business Enterprise | June 2011
Knight of cups/ Ten of Pentacles
World/ King of Pentacles
Libra - Librans, rejoice, have you found your self esteem growing in past couple of days? You are now flooded with attractive opportunities and options in your career and personal life. Great major arcana cards are influencing you this month.Your decisions will have long term effects so choose with care. Have all the fun, enjoy the limelight, you deserve it .Your optimism will take you far.
Scorpio - Scorpions, you sure are in a mood of flirting with adventure and maybe overseas destinations are beckoning through new jobs or business options. Keep your passports ready, you are ready to fly to greener pastures which will make you feel at home and aid your prosperity. If you have been trying to emigrate, this is best time to do so.
Sagittarius - Sagittarians, great news for you, you have the will and money too, so take up that dream trip now. You will rise in your fortune either due to increase in your wages or profits in business. This is the right time to complete projects with desired outcomes and earn prestige and wealt . You have become more grounded and practical which will help you in your target achievements.
Temperance / Nine of Swords
Wheels of fortune reversed/ Two of Swords
Hierophant reversed/ Seven of Wands Reversed
Capricorn - Itâ€™s good to be balanced in all spheres of your life and Capricorns are surely going to see this happening to them in near future. Accept the consequences of your action bravely, do not dwell on past happenings and let it not interfere with your present dreams .Learn to accept your fears and nightmares as they are open figment of your imagination and cannot harm you in reality. You have achieved new heights of self awareness which will lead you to victory.
Aquarius -Cool Aquarians, life can be unfair at times but that does not mean that in our ignorance we cause hurt others. You might feel destiny wheel is giving you a spin right now as you are experiencing the downside of life, but please remember itâ€™s just a phase. You will be soon up, all you have to do is stop being stubborn in your attitude and dealings. Be more receptive to advices and take care of yourself by removing imaginary traps around you. Take informed decisions and do not take actions blindly.
Pisces -Piscean, are you in a rebellious mood? Sometimes even usually quiet people can show their claws. You are wise in human ways find out what is causing this upheaval. Can it be avoided? You need to first secure your position and then take up something else. Maintain status quo and try not to fall for enticements which will in future hamper your professional standings. Guard you interests carefully as someone is coveting what you own. Focus on what is really important to you and do not pay much attention to a momentary restlessness and impulse which is plaguing you now. You are in a strong position and need to maintain your status quo. Tarot message asks you not to be rash and upset your applecart.
The writer is a professional tarot reader and occulist. For business advice, contact her at engage@theenterprisemagazine,.com June 2011 | The Business Enterprise
This issue, we look into some gadgets that can make your busy life smoother. RIM Blackberry Presenter This new Blackberry presenter is one of the hottest business gadgets. It comes handy with a 3.4-inch x 2.4-inch boxlike accessory; it is designed to be used with Blackberry smart phones. You just need to plug it to a monitor or projector and your presentation is on. Bluetooth too can be used to display PowerPoint slides from your handset. It can be set to automatically swap the slides at specified intervals and also there is an option to pause when required.
Office 365 Microsoft Office 365 is all set to woo professionals and small businesses. It is a subscription service that combines the familiar Microsoft Office Web Apps with a set of web-enabled tools that are easy to learn and use. It works with your existing hardware backed up with robust security, reliability, and he kind of tcontrol you need to run your business. Office 365 gives you access to email, calendar, and contacts from virtually anywhere, at any time, on desktops, laptops, and mobile devices*â€”while it helps to protect against viruses and spam.
The Business Enterprise | June 2011
Scotch Brite Lint roller The presence of lint or other small fibers and bobbles is another common problem that you contend with, at home or at workâ€“ especially on garments, upholstery and linen. 57
Powered by proprietary 3M adhesive and patented Polypropylene film, the Lint Roller from Scotch-Brite ensures effortless removal of pet hair and lint from all surfaces. Unlike conventional sticky paper roll, the Scotch-Brite Lint Roller grabs the lint in a roll without leaving any stain on the surface.
Human Touch Massager At the end of a hard day at work, imagine someone massaging your tired legs. This Human Touch elite foot and calf massager kneads, rolls and vibrates, relieving painful feet and improving circulation. Want more? This gadget flips 180 degrees and doubles as a fancy-schmancy leather ottoman! Go ahead, enjoy the luxury of a good massage anywhere, anytime!
Roomba Now, you have a robot that can do all the cleaning while you do your work. The robot maid vacuums all the crumbs, dust and pet hair, making multiple passes and even sucks the dirt out along the baseboards, under the furniture and along those tricky corners. You can program the robot to activate while youâ€™re not close by.
June 2011 | The Business Enterprise
Hyundai Verna Fluidic drives in The natural rhythm of life
fter a disastrous upgrade in the form of Verna Transform, which failed to click with the masses, it was high time Hyundai did something to revive the sales of the model. And boy did they hit the bull’s eye with the new Hyundai Verna Fluidic. Fluidic because it is based on the company’s new design philosophy - Fluidic Sculpture. While Verna Transform was just a cosmetic upgrade, the new Verna Fluidic takes a completely new form both in and out. Read on to see how the new Verna Fluidic gets going.
Flow with the wind
The new Verna Fluidic impresses you at the first glance with its low-slung looks, athletic lines and coupe-like styling that gives the car a muscular profile. The front grille reflects the new Hyundai’s styling cue to sport a similar grille for all its cars and the chrome finish just add to the luxury quotient. The two-piece black bezel design eagle-eye headlamps are sharp and offer great visual appeal during the day. Unique fog lamps below complete the stylish front of the new Verna. On the side, a sleek crease passes from the front wheel arches to the rear tail lights highlighting the side profile. To the rear, the wraparound tail lights fuse into the back of the car without breaking the design flow of the car. With the 8-spoke 16” alloy wheels and chrome dual exhaust pipe, the new Verna Fluidic complete a
The Business Enterprise | June 2011
The wind swirls inside
The interiors of the new Verna Fluidic are as dynamic as its exterior. Y-shaped center console divides the front part and is designed to continue the fluidic sculpture philosophy. The instrument cluster is fresh to the eyes with its white and blue lighting, with two large dials, one for tachometer and another for speedo. In between sits the Driver Information System that displays information on trip meter, average fuel mileage, journey time, distance to empty and more. The panel also has an ECO Drive system that has a gear-shift indicator (for manual transmission) prompting you to change gears and the ECO indicator (for automatic transmission) that glows when the car is at its fuel efficient best. The top variant of the new Hyundai Verna Fluidic has got a smart key system that aids in keyless entry, push button start/stop and remote boot opening. The center console is mounted with a 2 DIN Audio system for CDs, MP3s and an integrated system for other multimedia devices like iPods, USBs and Aux-in support. The steering-mounted audio controls allow easy access to the music system and Bluetooth for accessing calls. The rear mirror is an electro-chromic one, meaning it senses and reduces light intrusion from
behind thus reducing glare. It also has small screen that shows you the happenings of the car’s rear while reversing through a camera in the back. On the comfort front (and back), the new Verna scores high marks with automatic air conditioner, beige leather upholstery, heightadjustable seat belts and head rests, front and rear seat center armrest, cooled glove box, sunglass holder, cup holder and more. The front seats offer ample thigh support and space for driving comfortably for longer durations. In the rear, three persons can be seated without much hassle and the comfort factors are not compromised with nice legroom and head room.
Winds of change
Now this is where the new Hyundai Verna Fluidic is miles ahead of its competitors. With four engine options and ten variants, you are really spoilt for choice with the new Verna. While the petrol version starts from Rs.6.99 lakh and goes up to Rs.9.64 lakh for the topend variant, the diesel counterpart starts from Rs.8.09 lakh rising to Rs.10.74 lakh to the top. In the VTVT Petrol version, there are two options - 1.4 L and 1.6 L. The various variants include - 1.4 Petrol, 1.6 Petrol,
1.6 Petrol SX, 1.6 Petrol SX (O) and 1.6 Petrol SX (O) AT. The 1.4 L/1.6 L petrol engines pump out a maximum power of 107PS@6300rpm/123PS@6300rpm and a maximum torque of 13.8Kg@5000rpm/15.8Kg@4200rpm. For the diesel, there are again two options - 1.4 LCRDi and 1.6 LCRDi VGT. The variants of diesel are 1.4 Diesel, 1.6 Diesel, 1.6 Diesel SX, 1.6 Diesel SX (O) and 1.6 Diesel SX (O) AT. The 1.4 L/1.6 L diesel engines produce a maximum power of 90PS@4000rpm/128PS@40000rpm and a maximum torque of 22.4Kg@17502750rpm/26.5Kg@1900-2750rpm. While the 1.4 L petrol engine boasts of a 17.43 kmpl , the 1.4 L diesel engine delivers a mileage of 23.5 kmpl according to ARAI. Winding through and around The new Hyundai Verna Fluidic has got great driving capabilities if not perfect. It is easy to maneuver through city traffic with light steering and in speeds over 150 kmph, it feels
steady and trouble-free. The transmission comes in three avatars - one for the automatic and two for the manual. The 4-speed automatic offers a sporty response in acceleration with variable oil pressure. In the manual menu, 5-speed for the petrol engines and 6-speed for the diesel ones provide smooth and noiseless transmission with the help of key and balltype synchromesh, optimized gear-tooth and precision machining. The McPherson struts with coil spring in the front and Couple torsion with beam axle to the rear provide comfortable driving economics. With gas type shock absorbers, the suspension setup dissolves the bumps and potholes of the Indian roads with ease. Front and rear discs (for the 1.6L versions) offer generous braking power and confidence.
Conquer the winds of Thor
With six airbags (2 curtain, 2 side and 2 front), ABS with EBD, Rear parking camera and rear bumper sensors make the new Hyundai Verna Fluidic a safer place to be in. Cubby
holes around the cabin offer storage space for all your belongings and the large boot takes care of your luggage. The new Hyundai Verna Fluidic comes in six exciting colours - Sleek Silver, Carbon Grey, Stone Beige, Phantom Black, Crystal White and Purple Fantasia. Soâ€Ś With various premium and luxury features and cutting edge technology that are packed in for a great value for money product, Hyundaiâ€™s New Fluidic Verna has jumpstarted its race with amazing bookings all over India. Launched on May 11, the new Verna has already clocked over 5000 bookings in just 5 days.The new Hyundai Verna has got it all to be a winner and has already proved its potential with tremendous number of bookings within five days of its launch. Hyundai is right on track this time with the new Verna Fluidic. Happy Driving. Bala Subramaniam N
June 2011 | The Business Enterprise
Office humour Here’s a chance to present your colleagues with a funny award!
K. M from Marketing
Aravind S, Mumbai Presented By: __________________
is hereby presented to V.J from CC dept. ___________________________ for her beauty and her vulnerability to create attrition. Surendar S, Chennai Presented By: __________________
is hereby presented to Miss. V _ _ _ _a ___________________________ for losing the promotion to a ‘competitive political colleague’ Kumar, Banglore Presented By: Nandini _____________________
If you want to award your friend/ colleague mail us your entries @firstname.lastname@example.org The Business Enterprise | June 2011
events Bangalore International Exhibition Centre Hotel Intercontinent the Lalith, Mumbai IFSEC South India Indian ICT Summit 2011 1 June to 3 June The IFSEC South India event is one 08 July of the international exhibitions that deals with fire safety and security. The event will host a large numberof exhibitors and visitors from different sector of security and safety such ascomputer Security, Integrated systems and network security, IT security, etc. The event aims to bring together all the professionals from the security industry tomeet together under one roof and discuss trends and need of security as well as the issues related to security.
The Summit will assemble the key players in the information & communication technology sector – the manufacturers, suppliers, the intermediaries, the service providers, maintenance companies, the customers, regulators, government agencies and the consultants - to exchange latest information on technological improvements, new innovative ideas, products,services and solutions.
The Department of Business and Financial Studies in collaboration with Institute of Objective Studies (IOS), New Delhi is organizing anInternationalC onference on:‘Interest-free Institutional Mechanism (Banking, Finance and Insurance) for Promoting Investment’. This conference is expected to have distinguished scholars on the subject area both from India and abroad .
Management Pvt Ltd, Mumbai will showcase processes, systems and technologies or ‘enablers’ in automotive manufacturing. This is the first exclusivefair focusing on Automobile engineering & vehicle manufacturing processes. Theunique rationale of the event is very strong penetration within the automotivemanufacturing region. It aims to connect various constituents of this rich industry.
SP Grand days Hotel, Panavila Junction,Trivandrum 12 June Workshop on Billionaire Mind set By Dr PP Vijayan
This season, Trivandrum, will witness, the prestigious ‘Billionaire Mindset’ one day workshop organized by Lifeline Foundation, Trivandrum.The focus of this workshop is to realise, develop and nourish a Billionairemind set in you and to make you dream big and set your goal to be a Billionaire. Dr.P.P.Vijayan (MA, MBA, LLM, PhD), an internationally acclaimed Mind Power trainer, author, researcher and techno management consultant would be conducting the workshop at Trivandrum.
Chennai Trade Centre, Chennai Chennai Trade Centre, Chennai Composites India Expo 2011 Srinagar, Kashmir Automotive Engineering Show 2011 17 June - 19 June Conference on ‘Interest-free, institutional 10 June - 12 June CIE’11 to be held at Chennai Trade mechanism for promoting investment’ Automotive Engineering Show Center, Chennaifrom 17th to 19th 2011, organised by Focussed Event June 2011. The Indian Composites 03 June to 05 June
The Business Enterprise | June 2011
Industry hasa strong and proven record of accomplishments. Major growthdrivers are segments like Wind Energy, Consumer Durables, Railways, Automobile, Oil & Gas, Building & Construction, C hem ic a lsIndust r ies,Pipi ng , Cooling Towers, Marine, etc. CIE’11 is positioned as premiere show which will provide an unparalleled opportunity for the manufacturers and distributors.
What if you could view your business perfomance like this?
A view to your Business.
June 2011 | The Business Enterprise
My problem is I have an incompetent boss. The only reason he was hired was because a senior manager had recommended him. I am unable to do my day-to-day work because this guy is pretty bad at closing whatever deals I bring in. How do I deal with this? Vidya, a relocation company, Chennai
You are in a delicate position where, if you allow things to happen as they are, your boss could very well show you as a reason for not closing deals. However, it is difficult to climb higher and report about your boss’s efficiency. One via media which is available is to request the senior bosses to call for a review meeting with your boss, you and other members of the team. At this meeting, you need to facilitate a deal by deal account of what went wrong in closing deals – point out root causes and inefficiency directly. Lead the reason without actually naming the boss. If the super bosses are smart, they will grasp the issue clearly. My colleague keeps tracking and investing in the stock market during office hours. I need to do all the paper work as we work as a team. My boss has no idea about who does what. How do I make him understand my trouble? Nikhil M, Delhi
Bring up the matter of the stock investing activity with your colleague in private, stating the implications of his work and the effects on you. Draw a line where his accountability is clearly demarcated and yours. Share the responsibility so that you are not overloaded with paper work. Even after this, if he continues to waste time, you could tip off the boss on what’s happening. Team work does not mean putting up with nonsense.
I have been working for five years with this company and have yielded sufficient business results to claim a promotion. But the recent appraisal did not work in my favour as I am now 6 months pregnant. Do I have to give up on my career growth because I am pregnant? Please help me. Rekha K, Bengaluru
You need to seriously consider the performance of the last five years and understand why it is unfavourable. Being pregnant shifts your priority to family and health. If I were you, I would not covet that promotion and I would instead take a year’s sabbatical to calmly review all the options and focus attention on my pregnancy and the baby. I work for an HR department of a growing company. My problem is that my CEO never empowers the manager of each division to decide on recruitment. He takes the decisions himself and keeps shuffling staff from one department to another. How can I help set up a process where the managers can have more say in choosing their own team? Sridhar K, Chennai
Selecting people into the organisation is the ultimate prerogative of the top man, so if your divisional mangers want to have a say in recruitment, the CEO needs to find value in involving ‘down the line’ people. There could be reasons for the CEO to keep recruitment in his own grass for various personal agendas. Shuffling people around is also a part of his agenda. Other than bringing in executive coaching for your CEO by an outsider, I doubt whether you can move his mind away from the recruiting process.
J X Gregory The columnist is Founder-Director, SAGA Consulting. He is a Management graduate from XLRI-Jamshedpur’81 with over 30 years of experience in HR, Change Management and Consulting. His work during the last 15 years in competence mapping saw him profiling over 4000 middle and senior management employees and in coaching them for higher responsibilities and leadership. Mail your queries to engage@ theenterprisemagazine.com The Business Enterprise | June 2011
Sai Aravinda, Anupam Flats, Madipakkam Manapakkam
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Audi breaks new ground in design with the unveiling of the all new A7 Sportback! Audi, the German luxury car manufacturer, announced the launch of its design marvel, the new Audi A7 Sportback. Equipped with a powerful and efficient 3.0 TDI V6 engine, the luxury sedan is priced from INR 6,400,000 onwards (ex showroom Chennai). The new Audi A7 Sportback was unveiled by Mr. K Subramanian, CEO Audi Chennai & Audi Bengaluru. The Audi A7 Sportback is a moving sculpture. Measuring 4.97 meters in length, 1.91 meters in width, and only 1.42 meters in height, the lines of this five - door coupe convey aesthetic athleticism and sophistication. Engine The new Audi A7 Sportback will debut in India with the 3.0 TDI V6 engine which produces 500 Nm of torque at 1400 - 3250 rpm and 180 kW (245 hp) at 4000 - 4500 rpm. S tronic and quattro drive are standard with this engine. Acceleration from 0 to 100 km/h takes 6.3 seconds and top speed is limited to 250 km/h. Fuel consumption is just 6.0 liters of fuel per 100 km on average. Pioneering Design The new A7 Sportback is an Audi in new top form. Its low, dynamically drawn roofline lends it the character of a coupe. The design presents the aesthetics of modern technology in every detail – in the sharp and precise stroke of the lines. Optional LED headlights accentuate the distinctive expression. These use light-emitting diodes to provide all functions and simultaneously consume little energy. Interiors: A perfect culmination of luxury and style In true Audi tradition, the interiors of the Audi A7 Sportback have been carefully crafted, with utmost levels of perfection. The car features topclass new materials such as layered wood veneers, and an optional ambient lighting system. The front seats are available with optional ventilation and massage functions. The head up display is a new, high-end feature that Audi makes available as an option in the A7 Sportback. It projects the most important data for the driver to see onto the windshield as symbols and digits. The information appears in a 26 x 9 centimeter window roughly 2.5 meters in front of the windshield. The Audi A7 Sportback was selected as the winner of the “Auto Bild” Design Summit 2011. The five-door coupé was voted No.1 by a wide margin for its outstanding design. Globally, Audi recorded significant growth rate worldwide in the luxury class. With 422,000 cars delivered in the first four months (2010: 360,706), Audi sold 17 percent more cars worldwide than in the same period last year.
Your Next step Opportunity knocks every month
IT(Software, Dotcom, Infra.Mgmt.& UI Design) Recruiter-HR Future point Technologies Hyderbad and Bangalore, 0-2 Years: Candidate would be responsible for end-to-end recruitment process,short-listing the resumes,conducting preliminary interview and evaluation of the candidates,development of recruitment matrix,optimal use of various channels of recruitment like portals, consultants, employee referral programs, job fair, campus recruitments etc. for effective recruitment. Shine Job Id - 284237 Business Development Executive Destiny Delhi-NCR, 3Months-3 Years: Candidate would be responsible for IT sales, software sales, web services sales, website sales, web hosting services sales/ marketing and online branding. Shine Job Id - 279424 Executive-Finance Anthroplace Consulting Pvt Ltd Kolakata, 1 Years: Candidates with strong report writing MIS ability with good english is required. Shine Job Id - 246111 Direct Sales Executive Indiamart Intermesh Ltd Pune, 0 - 2 Years: Candidate will be responsible for new client acquisition,enthusiastic and ready to travel across Ahmedabad. MBA fresher or any person willing to make career in marketing field can apply. Shine Job Id - 256348
The Business Enterprise | June 2011
Management Trainee-Sales & Marketing Logic ERP Solutions Pvt Ltd Top Metros, 0 Years: Candidate should be MBA or appeared for the final year MBA with good scholastic background, high mental ability and quantitative aptitude. Shine Job Id - 244931 Sales Executive 3i Infotech Limited Bangalore, Chennai, 0-1 Years: Preference would be given to candidate from commerce background and having experience in PR activities / marketing/ pre-sales/ sales. Shine Job Id - 275698 IT Sales Executive CMAX Infotech Pvt. Ltd Delhi-NCR, 1-3 Years: Desired candidate must have his/her own conveyance,be ready for direct sales,technical proficient,confident & presentable,team leader,work in shifts and possess good communication skills. MBAis preffered. Shine Job Id - 283663 Recruiter TAS Consultant Bangalore, 0-2 Years: Desired Candidate should have done MBA -HR required for US based IT company at Bangalore. Shine Job Id - 266945
Banking, NBFS, Insurance and Accounting Marketing Executive Angel Broking Limited Pune, 0-2 Years: Candidate must have excellent interpersonal skills /excellent communication skills,knowledge of selling financial products, excellent network & good contacts. MBA is preferred. Shine Job Id - 275979 Relationship Manager/Officer Alchemist HR Services Pvt. Ltd Bangalore, 1-3 Year: Candidate would be responsible for corporate sales / institutional sales.Freshers who have done full time MBA can apply. Shine Job Id - 277036
Manafacturing Sales Executive Plastopedia Corporation Delhi-NCR, 0-2 Years: Desired Candidate with excellent knowledge of the internet including MS office,online marketing,knowledge of social media is an added advantage. Self motivated, well spoken and a keen interest of writing is also an added advantage. Freshers with exceptional communication skills are welcome to apply. Shine Job Id - 283522
Real Estate and Housing Executive - Sales & Marketing Shaurya Housing Ltd. Delhi-NCR, 0-2 Years: Candidate would be responsible for pre -sales & post sales,interacting with clients, direct sales. Candidates with selling exposure in real estate background will be preferred. Shine Job Id - 286057 Business Development Executive Binary SoftZone Pvt. Ltd. Delhi-NCR, 0-1 Years: Candidate must be Graduate/M.B.A. Experience in sales will be preferred.Must have the flair for marketing and channel development. Shine Job Id - 272552
June 2011 | The Business Enterprise
60 Seconds Itâ€™s your take on food, shopping, movies, books and life! SHOP GVK One -Banjara Hills, Hyderabad. Out of all the malls I have been to in Hyderabad I must say this one meets international standards. There are brands aplenty like Giordano, Bossini, Pepe, United Colors of Benetton, Shoppers Stop, Crossword, Planet Sport and Wild craft. It is one of the best places for shopping for different varieties like clothes , accessories, inner wear, jewellery, shoes, electronic gadgets, gifts and toys. - Ravinder Reddy, Hyderabad
SCOOP Pirates of the Caribbean: On Stranger Tides Too much of anything can never be good. This fourth installment of the pirateâ€™s adventure travels down the same road again. For those who awaited some Depp-Dench romance, all you get is a cameo. Johnny Depp is his charming self but the murky screenplay is too much for his shoulders to carry. Join Depp on his quest for the fountain of youth if you want to have some mindless fun. - Shivaji M, Pune
The Business Enterprise | June 2011
SCAN Practice of management by Peter F .Drucker.This book by the celebrated author lets us into the attractive world of management. The concept he highlights are pragmatic, down to earth and perhaps, revolutionary. Thinking and doing are the two arms of the action. No one can dare to say which is more important. Drucker highlights the role of thinking is doing well. - Prof.J.L.Narasimhan, Chennai
SLURP Very impressive service and decent ambiance and quiet reasonablly priced. I enjoy the one point billing system where you donâ€™t need to shell out change at every counter. Food is awesome and rates are very reasonable. One of the finest collection of Chicken Mushilka, Murgh bano kabab, Pasta in spinach sauce, Samurai chicken, Handi vegetable and Northindian cuisine with desserts, pastries, sizzlers, cakes, with coffee shop. You name your choice and you can find it all at Barbeque Nation Restaurant, Chennai - Yaswanth Chandrasekaran, Chennai
SNAP The dusk beckons
- Harish Kumar, senior software engineer, Keanne, Chennai
Corporate employees can mail us crisp reviews at 60seconds@ theenterprisemagazine.com on or before June 20, 2011. For Please mention your full name, designation and company information for publication. June 2011 | The Business Enterprise
Brand-ish Style walk
Name this product, give it a tag line and win exciting prizes. Winning entry for last issue: Afloat - Head over heals in music- Abdul R, Bengaluru
Other interesting entries include: Blu - The rythm of life, Nisha, Chennai Juke - In sync, Rina M, Mumbai
Mess up Tell us the story of how you messed up in an interview or how your candidate lost his mind during an interview, the best story gets a corporate gift. HR of a company called one of the candidates through phone for an interview, candidate attended the call and he answered his call in informal language thinking that it was a prank call from a friend. It was later that he realised that this is a telephonic interview for his applied job. I was rolling in laughter as my friend told me how he messed up his interview. In fact, he thought it was a call from me. - Karthick M, Chennai
Mail your entries (within 30 words) to email@example.com with â€˜contest â€˜in the subject line on or before June 15, 2011. The Business Enterprise | June 2011
Hilton Hospitality Now in Chennai Hilton Chennai offers a contemporary feel with a touch of old madras, which is reflected in its restaurants and room decor. The rooms are designed for comfort and relaxation while featuring state of the art technology. Hilton brings to the city five gourmet restaurants offering innovative and interactive dining experience. The hotel offers the finest events and conference facilities in the city, also being the perfect venue for weddings.
Now Open For reservations visit us at chennai.hilton.com
Hilton Chennai 124/1 J.N. Salai, Ekkaduthangal, Chennai 600 032, India
ÂŠ Hilton Worldwide 2010
IRON Arun Ramkumar
The Business Enterprise | June 2011
NTERPRISE The Business
A unit of Sri Dhanvantri Trust
Prajna A Call for Action
A National conference seeking inclusive growth of women in corporate sector
Venue: GRT Grand convention centre, Chennai Date:
June 24, 2011
For more details, contact
The Business Enterprise
Brisk Corporate Services Pvt. Ltd, 10/3 A- 5th Street | Nandanam Extension, Nandanam, Chennai - 600035, TN,India, Ph : (+91) 44 4320 1140 | F : (+91) 44 4359 6379 www.theenterprisemagazine.com
R.Dis No: 982/10