The debt’h trap

Standardise stamp duty all across
The development of the grossly underdeveloped debt market in India has been years in the making. Despite various promises, the corporate bond market in India hasn’t developed as it should have been. A comparison with other economies shows that the total amount of corporate bonds outstanding in India is just 0.4% of GDP. But now, with SEBI considering loosening of disclosure norms and RBI allowing short-selling in G-Secs, there is a definite hope. That is, as long as the government doesn’t play truant!

There are quite a few reasons for that. While India continues to grow at a brisk pace, the demand for credit in the economy is escalating. But if one looks at the current infrastructure, it very flagrantly manifests that the banking system–the major provider of credit – will not be able to satisfy the credit demand in the future. Not only this, banks will have their own cup of woes once Basel II norms are implemented. Though equity markets look right now like quasi-El Dorados, they can pull the rug under anyone’s feet at any moment. Given a scenario like this, improving the accessibility of the corporate sector to debt, through a structured and transparent corporate bond market, becomes imperative.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative

The Venturous Accomplisher

Prudence and conviction seem to be the steadfast pillars on which every business decision of Promod Haque, Managing Partner, Norwest Venture Partners (NVP), is based. As we steered across the busy roads of Mumbai to meet the globe’s leading venture capitalist, our belligerent enthusiasm was tempered by the overwhelming significance of meeting the man who has been ranked as a top deal maker by Forbes for the past five years. Promod elaborates on his investment philosophy, “We are coming into the company as financial investors. Our view is that it does not make sense to micro-manage. If a management team does micro-manage, then there is some problem with the management team, something deficient about that team. Typically, we go for strong management teams that can run the company on their own,” clearly exhibiting a credence that forms the foundations of NVP, a company that has successfully and dynamically partnered with entrepreneurs across the globe to create colossal business enterprises for over four decades.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative

The deal may look prodigious

After three months of boastful speeches, the deed was done... Ratan Tata has won, if not anything else for his losing shareholders, the biggest of ego battles (not counting his Singur infamy). Ratan Tata finally raised a toast – perhaps all he can afford now – on January 30, 2007, for having knocked out Brazil’s CSN to gain control over the Anglo-Dutch steel-maker Corus for an obscenely high $12 billion – a per share price of 608 pence and an amount 34% higher than its initial offer! So while some praised the deal, a closer look proves how the deal is well redefining ‘corporate insanity’!

Hitesh Agarwal, Sr. Research Analyst ,Angel Broking, justifies Tata’s aggression with, “...the possible synergies over the long-term.” Sadly, in the long term, especially in this industry, everybody’s dead! Pricing is a no-brainer, for starters. Abul Fateh, Analyst, Parag Parikh Financial, agrees, “The reasonable price range would have been between 500 to 550 pence per share. Tatas have paid so much for a company, which was available for a few million dollars a few years back!” Worse, Corus (which was born out of a disastrous merger in 1999) shares honours with the worst performers in corporate history when its shareholders saw their wealth erode by 96% during the post merger years till 2004.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative

IBM welds printer segment with Ricoh

To focus more on lucrative areas like technology services, soft ware and high-end computer servers and systems, IBM announced its plan to divest its printing division to Japan’s printing and imaging giant Ricoh. Ricoh would pay IBM a sum of $725 million in return of the 51% acquired stake. The joint business called Info Print Solutions Company would be located in Boulder, Colorado and would eventually be taken over completely by Ricoh over the next three years. Importantly, IBM’s past divestures include its much debated sale of its personal computer business to China’s Lenovo Group and hard disk-drive business to Hitachi Data Systems. Shedding off to gain, maybe?

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative

Improved Dramatically

Forget comparable achievements by any other entrepreneur, Prof. Yunus’s initiatives can put even governments to shame. For, his bank has not only provided income-generating loans (and that too without any collaterals) in millions and student loans to the poorest of poor families, but has also been instrumental in building 6 lac homes. Reports state that ‘an overwhelming 5% of his borrowers come out of poverty every year. It is through his efforts that poor children are now healthier, education and nutrition levels are higher, housing conditions are better, child mortality has declined by 37%, the status of women has been enhanced and the ownership of assets by poor women, including housing, has improved dramatically’.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative

Cool ‘n’ hunky

Want to add dashing designer wear to your usual prêt-aporter collection? Then go for this dark jacket and trouser designed by Jattinn Kochhar. The jacket with a complementing light colour tee creates the perfect party mood and the crystal design on the tee adds the sparkle to your sexy swagger as you make your way through the club. Grab this ensemble coming from Kochhar’s boutique just Rs.20,000 and get ready to rock!

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative

Value’s the buzzword...

With value-for-money minded Indians, what better than a retail outlet that provides a lot more for a lot less! Price discrimination as many might call this, but this mega-player seems to have understood the dynamics of the Indian purchase habit! Vishal Mega Mart, which today has 46outlets pan-India, with a further plan of adding 19 more by 2007-end, is the force that’s dictating the rules of the game in Indian retail space... The USP of Vishal being high-quality products at unbelievably low prices, thousands flock to its showrooms just as Ram Chandra Agarwal, MD, Vishal Retail Ltd. agrees, “We try to provide the best possible value and satisfaction to each customer for their money and this satisfaction can be easily seen in their faces when they leave our stores.”

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative

Conquering the hinterland, with... Linterland! Voila!

Of course, the name is credible, and the achievements... incredible!

In a territory that was vastly untapped, Lowe Lintas, in 1999, floated its aptly named rural initiatives wing, Linterland, obviously aimed at the metaphoric synonym, hinterland. Debashis Das, President, Linterland, reminisces passionately, “When we started in 1999, the basic idea was to be a rural support to the whole lot of Lintas’ clients. The first few years, we did (experiment with) implementation, as we did not have the knowledge or the manpower.” Over the decade, the agency has evolved into a pristine communications agency.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative

Make quality ad-films? Why doesn’t Delhi

When I entered the adbiz in the early seventies – JWT Kolkata – Delhi was a great place to get a letter from! No kidding! In the ad map it was really nothing from nowhere. When I relocated to Delhi in the late seventies, things had definitely improved, but it was still continents away from being a truly professionally driven zone. Crucial inputs were still outsourced.

Today in the year 2007, saadi Dilli is rocking! Clients, agencies, talents, infrastructure, drive, energy – the ad scene (in terms of growth path relating to both revenues and categories) is zooming north giving traditional Mumbai a solid run for money! However, the moment film or electronic media comes into focus, Delhi retracts into stone-age mode and registers a blank! Be it a ten-seconder or a sixty-seconder, anything relating to an ad film is instantly sent to Mumbai.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative