Showing posts with label iipm-article. Show all posts
Showing posts with label iipm-article. Show all posts

Saturday, May 04, 2013

The B&E B-SCHOOL PANEL MEET 2012-13

For three years now, B&E has been coming out with its critically acclaimed annual B-school rankings, which rank the top 30 B-schools in India uniquely based on the scores given by industry leaders to the top 30 B-schools (shortlisted on the basis of rigorous primary and secondary research by ICMR) on five critical parameters – course content, industry interface, faculty research & writing, global exposure and placements & packages.

The B&E B-School Panel Meet 2012-13 focused on whether ‘entrepreneurship’ and ‘social inclusion’ should be added to the five existing parameters to rank the top 30 B-schools. While there was widespread consensus on the need to inculcate an entrepreneurial spirit, panel members also expressed concern that B-schools were creating more employees rather than entrepreneurs. Dr. M. K. Chaudhuri, Founder-Director, IIPM, commented, “To be a successful entrepreneur, some experience is essential. Only after 3-5 years experience in some product/market, I can imagine that they can innovate on a new product and look forward to almost 100% success. A placement is absolutely necessary if you want to achieve some business objective.”

In terms of social inclusion, the debate centred on whether it is really relevant to corporate strategy, and consequently, to B-school education. Prof. Arindam Chaudhuri, Editor-in-Chief, Planman Media, asserted that it was an absolute necessity and stated, “At IIPM, we propagate the philosophy of ‘survival of the weakest’, as opposed to ‘survival of the fittest’, which is how the world runs. But if you want to change the society to a more humane society, you have to focus on ‘survival of the weakest’, which is also the philosophy that we follow in our families.” He further added that if the industry could lobby for purchasing power for the bottom 80%, they would be really lobbying for 20 years of profits.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education
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Saturday, April 27, 2013

Who will be America Inc.'s new #1 in 2012?

Profits of the 2012 B&E US Power 100 brigade totalled 13.4% more than last year. If America Inc. doesn’t suffer a double-dip recessionary heartache anytime soon, next year, the profits could rise higher. The question is: where will the leaders of the pack appear next year?

Twelve months in the past, my forecasts for America Inc. would have found a different set of takers. By the time July 2011 drew to a close, America Inc.’s benchmark indices had conveniently started the journey downhill. The S&P 500 was at a 6 month low (at 1,292.28 points). And the NYSE Composite and NASDAQ Composite indices were breaking longer records (8-month lows at 7,528.39 and 2,756.38 points respectively). As for brains in the boardrooms, they were worried about their shareholders. The simmering discontent over returns from bourses around the world, troubles in Europe that were mounting every passing day, and the cloud of criticism that surrounded the painful inflammation called unemployment that had shown no signs of subsiding since playtime got over last, were all unromantic truths. Wall Street had become nervy. America’s big boys of business too had.

On-ground, the possibility of a double-dip recession had got investors into a binary mode of thinking as far as returns were concerned. Off it, polarisation in American politics – with the Democrats blaming private interests and ill-directed deregulation for leading the economy to the pit, and the Republicans finding faults in the half-measured pump-priming for the economy’s failure to climb out of it – had disturbed the balance between pragmatism and (party) principles. Then, America’s AAA credit rating was headed towards the red zone, and no single bloc – for abundance or lack of desire – had a hassle-free solution to lighten the economy’s budget woes. It wasn’t a situation that called for celebration. With American GDP growth expected to fall below the 2% mark in 2011 (after rising 0.9% and 1.3% in Q1 & Q2, 2011) and global economy forecasted to underperform the 2010 story (estimated to fall short of the 4.4% growth scripted in 2010), optimism was out of question. So was any hope of a double-digit growth in bottomlines of companies and returns for the investor clan.

I had predicted otherwise. I had not only predicted that American companies would deliver double-digit growth in profits (PAT of 2012 B&E US Power 100 companies grew 13.4% y-o-y), but also handpicked the ones who would lead the band of profit-makers.

Like I said before, twelve months in the past, my forecasts for America Inc. would have found a different set of takers. Of the 20 companies which I had forecasted would occupy the top 20 slots of America Inc.’s profit charts, 16 actually did. According to my estimates in B&E, Exxon was supposed to walk away with the crown in FY2011, followed by Chevron, Apple and Microsoft. It happened. In fact, if an investor were to bet on me and invest equal dollars on each of the aforementioned top four names that I’d claimed would emerge winners, his return in just 11 months (as on June 27, 2012) would have been 22%. [To give you an interesting example, in July 2011, when I had predicted Apple to rise to #3 amongst profit-makers in FY2011, its m-cap was $310.41 billion.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
 
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Friday, April 12, 2013

“We Will follow our Motto of Keeping Supply Below Demand!”

Enrico Galliera, Commercial & Marketing Director at Ferrari SpA, joined the Italian luxury carmaker just a year back, after working for over two long decades at various positions in the marketing department of the Italian pasta-maker Barilla Holding Spa. In an exclusive interview with B&E, he reflects upon Ferrari’s rough ride during the slowdown, its performances in markets like China, Japan & South Africa, its attempt to create fuel-efficient engines, and his “supply-less” motto for succeeding in new markets.

B&E: Ferrari is a very well-established brand in the luxury car segment. It believes in selling premium quality than volumes. But contrary to conventional wisdom, even the luxury car sellers suffered considerably during the recent slowdown. How was the slowdown experience at Ferrari, especially when compared to the tough times faced by players like General Motors, Toyota and other labels which focus on volumes?
Enrico Galliera (EG): As compared to what the volume players in the automobile industry went through during the economic crisis, the time was still a relatively better period for Ferrari. As we generally work with a 12-month waiting period, the economic crisis cannot be termed the worst period for Ferrari so far, though we did get hurt to an extent. To be honest, it would be wrong to say that we were totally insulated from the economic crisis. But what saved our topline during the 2008-2009 period was our entry into newer markets like South Africa, which helped the company manage overall volumes. The fact that South Africa, in such a short time has become the 15th largest market for Ferrari out of the 59 countries that we are present in, gives you a fair idea of how the market played a saviour.

B&E: So do you plan to enter other countries in the African continent, just in case you would require more cushion if there is another slowdown soon?
EG: Actually, yes. The response we got in the South African market has motivated the company to expand to other African countries as well in the near future. We already have Ferrari owners in markets like Mozambique, Angola and Nigeria, and I am sure, given a tough business scenario in the near future, these emerging markets will serve us well.

B&E: China is another market which has over the years, impressed luxury automobile sellers. Your company has spent 7 years in China, but it has all been rather silent there. Has your time in China been a rather dull one?
EG: No. We have seen huge growth and penetration in the Chinese market over the past few years. China has been and is a very important market for Ferrari. Though I confess that after entering China in 2004, we did take a few years trying to understand the market. But today, we are geared-up to increase our volumes there as well. To quote a figure, Ferrari sold over 300 units in China in 2010, which market a y-o-y increase of 40%. That for us is phenomenal. And going forward, we only expect the sales to rise higher. It was a slow start, but we are catching up very fast.

B&E: Next, to Japan and Egypt – what degree of pressure do natural disasters like the Tsunami in Japan and unforeseen events like the unrest in Egypt put on the sales of your company?
EG: Such incidents for that matter, are surely bad signs for any luxury carmaker. Japan is undoubtedly one of the most important markets for Ferrari. But trouble there had begun even before the catastrophic events unfolded in April this year. Even before the Tsunami, there was a slowdown in sales due to the stagnant situation of overall economy of the country. With the Tsunami occurring, our problems in Japan have only been aggravated. The company is today really concerned about Japan and how long it will take for such an important market to recover. At the same time, unrest in Egypt and several Middle-Eastern countries is also a major concern for the company.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
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Thursday, April 04, 2013

The Best a man can get?

When P&G bought Gillette for $57 billion in 2005, it earned Criticisms galore. Six years later, The Brand has already added $32 billion to P&G’s kitty. If Gillette’s India Market Performance improves fast, the coffers will only swell further. And there are signs of that happening.

The electric shaver and the safety razor have cut deep into the American and European markets but many Indians still strop their own razors or visit a barber for a shave. In fact, as per a CII official, over 50% of India’s 600 million males shave outside their homes in salons. Naturally, for Gillette, the world’s top razor-blade maker, India is a highly attractive market with a vast potential. Indian men on an average shave only 2.5 times a week, far lower than, say, Koreans and Japanese. But cracking this market, especially the mass segment, is not proving to be easy for Gillette. Years of conventional marketing and advertising have won it a premium brand image, but Gillette lags behind rivals in India because consumers can’t afford to buy its flagship products. So while it dominates the Rs.10 billion blades and razors category at the top-end of the market, family-owned Indian companies such as the Houses of Malhotra and Vidyut dominate the mass market.

Gillette India’s revenue of Rs.8.52 billion for FY2009-10 (July ‘09 to June ‘10) looks healthy given that it contributes to 19.4% of its parent Procter and Gamble’s India business (which amounts to Rs.44 billion). But Gillette’s India glory-tale is chicken-feed when compared to the brand’s global revenue of roughly $8 billion! Understood that the brand globally contributes to a much lower 10.13% of the total sales of P&G, but the fact that India contributes just 2.37% of Gillette’s total revenue invites nothing less than shame for a 28 year-old brand. Across the world, Gillette accounts for about 70% of the razors and blades sales, but in India, it has failed to live up to its spectacular global performance. And even though it is currently the market leader in the five billion-units-a-year razors and blades market in India with roughly 40% share, its performance here pales in significance to its global dominance. Just 10% of Indian men who shave use Gillette blades, compared with about 50% worldwide.

Gillette’s personal care products – shaving systems and cartridges, razor blades, toiletries, and shaving brushes – represent what the company is all about in India. The category accounts for a little over Rs.6 billion in sales – 70.42% of all that the company rustled up sales-wise during its last accounting fiscal (ended June 2010). Next in the pecking order is oral care, comprising toothbrushes and other oral care products. This division brought in sales of Rs.2.2 billion or 25.82% of all sales. Then there is the portable power products division, made up of battery sales, which rang in 3.76% of its sales.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles

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Monday, March 18, 2013

The ‘IDEA’ For A Change

The Operator with the Punch Line ‘An Idea Can Change Your Life’ has felt its mark in The Telecom Space. The Company has fared well in FY2010 and now have High Hope with 3G and MNP.

Every corporate houses posses a dream of becoming a part of the Great Indian Telecom Story. While giants like Tatas had realised the potential of the services long back and had become the part of the telecom growth in the early days, players like Reliance entered a little late. Corporate houses like Future Group, Unitech are latest incumbent in the race. But, making a dent in the high competition telecom market – having 15 players and ailing with falling ARPU, shrinking margins – has been a harrowing task for all of them. However, Idea Cellular is the one that has stood the test of the time and is the only telecom player to have made it to this year’s edition of B&E’s Fastest Growing Companies in India.

The $29 billion Aditya Birla Group had a fair amount of “IDEA” about the potential of telecom industry at the dawn of the sector in the mid 90s. The first telecom licence was awarded to the Group in December 1995 in the high ARPU Maharashtra and Gujarat Service Areas followed by the launch of services in the 1997. The company went slow with plans in the first decade of its inception, as during the period mobile telephony was the service of classes. However, Idea became aggressive in 2007 after getting the pan India licence. In fact, by the end of FY2010 it had rolled out its services across all 22 telecom circles in the country.

But, the company’s fortune took a north after it started rolling out services across all the circles. From a mere 12.44 million subscriber base by the end of December 2006, Idea Cellular services are subscribed by 74.2 million people today. It’s market share has also witnessed a significant jump with more than 10% market share already in its kitty.

Idea Cellular’s aggressive expansion plans also included M&As. In fact, in June 2001, it forayed into Madhya Pradesh Service Area after acquiring RPG Cellcom. Similarly, after acquiring Escotel Mobile Communication in early 2004, it started offering services in Haryana, UP (WEST) and Kerala. Spice Communications operating in Karnataka and Punjab was also acquired by Idea. It’s because of these organic and inorganic strategies that Idea today is the sixth largest telecom player in India.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

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Friday, January 18, 2013

A well won bet...with a shallow prize

Marriages are made in heaven, so what’s wrong with three of them? Ask Renault, whose problems in India are linked to having too many JVs, says B&E’s pawan chabra

Sometimes, the difference between an ordinary life and a life of purpose can be a well won bet, especially when we look at the life of Renault founder and automotive genius Louis Renault. This dates back to the time when he had successfully converted a De Dion-Bouon cycle into a four-wheeled small car. He named it Renault Type A. He subsequently won a bet with his friends, who challenged that the car couldn’t drive up the slope of Lépic Street in Montmartre. Not only did he win the bet, he also won the courage and inspiration to become an auto manufacturer. The rest, as the cliché goes, is called Carlos Ghosn, the singular reason why as of date, Renault operates in around 118 countries and has been able to bring in the numbers by leveraging its broad product line and its JV with Nissan. However, Carlos Ghosn, CEO, Renault and Nissan Motor Co. may want to rue the fact that Renault’s bet on India doesn’t exactly have a legendary feel so far. This is one uphill journey, where the peak remains to be scaled. And the prognosis is that the three marriages (i.e. Joint Ventures) that the company has solemnised in the Indian market haven’t exactly been of the ‘made in heaven’ kind.

At the recently held Tokyo Motor Show, CEO Carlos Ghosn managed to set the cat among the pigeons (unintentionally, if you look at his statements later on) when he announced, “I am not saying we will, I am saying we can (exit up to 2 JVs). I don’t want anybody to be surprised. We have today three partners (in India). Our intention is to continue with the (three) partners, but if it is not possible, I can tell you that we need at least one.”

The red flag has been Renault’s JV agreement with the tractor major Mahindra & Mahindra. When the Logan was launched in 2007 (positioned as an entry-level sedan with a price tag starting at around Rs.4,50,000), it was expected to sell around 2,500 units a month but has managed to sell just under 500. The car has faced a host of issues, including competition from the Swift DZire & Tata Indigo as well as the higher excise duty structure and the import duty due to low levels of localisation, a factor where its competitors have been well endowed. Maruti Suzuki, which sells every second car being sold in the country, sells around 6,000 units of Swift DZire and Tata Motors banks around 2,500-3,000 units of its Indigo from the domestic market. In addition, “Logan wasn’t able to appeal to the Indian consumer basically because of its plain looks,” says auto expert Murad Ali Baig. The company is planning a new version of the same model; but not many would want to make a bet on such a ploy succeeding as of now. More trouble for the JV has recently come from Hyundai Motors India. The company has filed a case against Mahindra Renault India stating that the latter is planning a car named Sandero; and is hence trying to cash in on its popular Santro, as the names sound similar.
 
 
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program) .

 
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Friday, January 11, 2013

“Honest pricing policy”

B&E: What were the vision and mission for the Indian market when LG started off its operations in India?

MBS: The company pursued the vision of becoming a true leader, attracting customers worldwide through its innovative products and design. In the first few years after its entry, LG did not get into price wars. Unlike other players, it did not offer any exchange schemes or discounts. We believed in an ‘honest pricing policy’ and our message to customers read ‘No scheme, no gimmick, great products and honest prices.’

B&E: What understanding of the Indian market did LG had then and what strategies did LG as a company formalise for penetration at that time?

MBS: Since its initial years in India, LG has focused on bringing out new models regularly in its product range. In its first year of operation in India, LG launched 70 models across a range of products. In 1997, it introduced its Golden Eye Technology TV, which had a light sensitive natural algorithm ‘eye. Thus, LG showed that it cared for customers’ health through its products. LG’s concern for health of customers was its Unique Selling Proposition (USP) in the Indian consumer durables market. Similarly, LG positioned its refrigerators as the ‘preserve nutrition system’ refrigerators.

B&E: What were the key challenges that LG as a company had to face at that time?

MBS: When LG started its operations in 1997, it sold products that were imported. Hence, its products were priced high and were equivalent to other foreign (Japanese) products. However, in 1998, LG launched ‘Sampoorna’, its first low priced TV for rural consumers, and followed it with ‘Cineplus.’ The Indian customers wanted the best products at reasonable prices; LG started introducing quality products in the economy range.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles.

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Saturday, December 01, 2012

MARGARET ALVA: RESIGNATION

Alva's statement and resignation may start series of apprehensions

Following her charges, veteran Congressman and President of the party’s Scheduled Castes Cell, Yogendra Makwana said that the party should not sit idle over the issue and should look into the matter.

What was first looked at as an 'emotional outburst' has, after the remarks, from Makwana taken a different turn altogether. It shows clearly that there is apprehension within the Congress circle and if the leaders don't take the matter seriously, then it may set off a series of chain reactions. At this point of time, Congress is not ready for any such problem as the crucial Assembly Elections are nearby.

Many Congressmen may be saying that Alva's statements and her consequent resignation will not make any difference to the party, but it is worth noting that it has been a long time since a senior Congress leader has come against the party and taken some stand.


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.

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Friday, November 30, 2012

IRAQ: US IRAQ SECURITY AGREEMENT

To be able to maintain peace and security in Iraq, al-Maliki would need approval from the opposition

However, he can only bank on the endorsement of his own Dawa party and Kurdish bloc that have 27 and 58 seats respectively. Faction of rebellious Shia cleric, Muqtada al-Sadr, with 32 seats, resists the deal, whereas al-Maliki's Shia coalition partner, the Supreme Iraqi Islamic Council (SIIC), with 30 seats, is still sceptical of lending its support.

Talking to B&E on the withdrawal, noted Iraqi expert at Centre for American Progress, Sean E. Duggan said, “An indefinite US military presence will reverse the calculations of Iraqi opposition groups – most notably the Sunni Awakening forces and the Sadr movement – that have been critical in bringing about short-term security improvements. Therefore it is extremely important for al-Maliki to assure its approval.”

Muqtada al-Sadr also opposes any accord that would maintain US military in Iraq. And Shiite-dominated Iran, which exercises substantial sway among some Shiite parties, also opposes the accord. The support of other parties will also depend on Baghdad’s demand of getting authority to arrest and try Americans accused of crimes unrelated to official military operations. Looks like tough times ahead.


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
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Tuesday, November 27, 2012

The dragon strikes gold again

China's oil deal with Iraq is opening doors for a future where it can sign deals on its own terms

While the outgoing government in US tries hard to make the world believe that it has done a world of wonders for Iraq and its people, China silently signed an oil deal with the Iraqi government, thus making new inroads to suffice its thirst for oil and providing doors for foreign investment in the region. The deal is an extension of the oil deal signed in 1997 during Saddam's rule and is the first international deal signed by the post-Saddam government. The $3 billion deal would provide China with oil for the next 22 years, who would then use it to generate electricity. The size of the deal can be estimated from the fact that it has been signed for the Adhab oil field in Wasit province and is expected to produce 90,000 barrels a day, renegotiated by the Chinese state-run oil company, China National Petroleum Corporation (CNPC).

The contract signed in 1997 was on a production-sharing basis but the present one is a service contract, under which China will not be a partner in profits and instead will be paid for its work. The revised deal seems to be on worse terms than the original one signed with Saddam but the CNPC is ready to take more risk than any other giant oil firm. This, says an energy security analyst, would be the ‘game changer’.


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
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Wednesday, November 21, 2012

BARACK OBAMA: PRESIDENTIAL CANDIDATURE WIN

Barack Obama has won the battle. Will he also be able to win the war?

The mad last-minute rush of Democratic super delegates and results from the final primaries in Montana and South Dakota, handed Obama the 2,118 delegates victory.

Son of a black Kenyan father and white Kansan mother, Obama has made history by breaching America''s mightiest barrier – that of race. And thus naturally, the word "respect", found deep resonance in almost all of his moving speeches – plus the fact that Americans weren''t nearly as dumb as the world believes them to be.

Most observers feel Obama will easily overcome the conservative challenge from McCain – the general perception being that the latter will simply carry on the policies of Bush. No matter how vigorously McCain attempts to trash this by distancing himself from Bush – and, yes, by emphasising his own breadth of experience and Obama''s lack of it – it is clear where the die is cast. Said McCain in one of his scores of vapid, colourless speeches, "The American people didn''t get to know me yesterday as they are just getting to know Senator Obama." But maybe the American people just didn''t want to ''get to know'' McCain; and as they were "getting to know Obama", they liked what they saw and heard: a sane voice after two seemingly interminable spells of self-destructive Republican paranoia under President Bush!


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.


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Monday, November 19, 2012

DAIMLER & HERO GROUP: JOINT-VENTURE

Daimler is the fourth foreigner to set foot in Indian truck domain. Will it help break the low foreign sales jinx?

The duo are looking forward to mass manufacturing a new brand of LCVs, MCVs & HCVs; with close to 80% degree of localisation. Sounds encouraging till you hear this one – the Indian market has had a long lasting love-hate affair with Tata Motors. And this will prove a major hurdle for international players including Daimler. Heart-burning stats prove it all: Only 2.51% of total commercial vehicles sold in March 2008 bore a ‘foreign’ tag. Tata on the other hand had a handsome 61.67%; clearly not a level-playing field!

However the dark clouds would pass away for the foreign invaders with the usage of latest technology as a differentiating factor, thus overshadowing the old Indian workhorses, as an auto analyst asserts, “In the long term high-tech machines & investments will work for the foreigners. Even though new players may take time to compete effectively with existing players like Tata Motors, they will have an advantage when it comes to technical know-how and global experience.” Pricing and operating costs still remain the key differentiating factors in the Indian truck market though. And even though Daimler has the competence to deal with the cost differentials that handicapped many other international brands in the past, it still has a tough job ahead; for Indian manufacturers are growing & maturing fast too, just like the Indian economy.


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.

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Thursday, November 15, 2012

A pricey Russian wedding?

While PepsiCo sees greater inroads into Russia, all that experts can see is a marriage going bad

In love with a Russian... and married soon after – that’s the latest at PepsiCo. This $115.6 billion giant (nyse), which today commands an incredible global market share of 31.1% (as per Beverage digest) has fallen in love with a healthy, juice producing Russian company, christened ‘JSC Lebedyansky’ (world’s sixth-largest juice manufacturer). The marriage dowry however is ‘beyond’ fair at $1.4 billion for a 75.53% stake in Lebedyansky.

Justifying the takeover, Michael White, CEO and Vice-Chairman, PepsiCo International states, “This agreement provides us with a strong platform for continued expansion in one of the world’s fastest growing juice markets and advances the global transformation of PepsiCo’s product portfolio.” According to ubs ag, Russia’s juice market is currently valued at $2.5 billion and is expected to grow by 10% a year through 2010. Even Euromonitor International has stated that the fruit and vegetable juice sales volume in Russia has grown by 73% (in terms of volume) from 2002 to 2007. So does this prove that this bait is all fleshy?


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
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Friday, November 09, 2012

India’s is the next growth story

For years, ever since the UPA came to power - and even before that when NDA ruled - PMs and FMs have espoused that India’s is the next growth story.

But first, a quick summary of the economic growth story. The February 2008 IMF India Assessment report mentioned that “over the past five years, average growth of 8¾% has made India one of the world’s fastest growing economies.” The report addsed that inflation has “remained contained,” current account deficits have been at a moderate level, factors which, as per IMF, “pay tribute to India’s sound macroeconomic policies and past structural reforms.” Although India’s growth rates have remained high, they have been relatively subdued – if we can call it that – in recent quarters. India’s GDP grew by a smashing 9.3% in Q1 2007-08 (but it was lower than 9.6% in Q1 2006-07). In Q2 2007-08, it was even lower at 8.9% (compared to 10.2% in Q2 2006-07). The IMF forecast for India’s GDP growth in this fiscal is 8.75%. Subir Gokarn, Chief Economist, Standard & Poor’s, Asia Pacific, told B&E, “India’s GDP growth is expected to be 8.6% during FY 2007-08.” Dharmakriti Joshi, Director and Principal Economist, Crisil, commented, “We expect the GDP growth to moderate further in 2008-09... to a little over 8%.” The cumulative GDP figure at current market prices at the end of Q2 2007-08 had reached $1.09 trillion. Interestingly, while India’s GDP – in PPP terms – in FY 2006-07 was $3.8 trillion, the World Bank downgraded it by 38% in January 2008 (quoting recalculation using a new methodology) to $2.34 trillion.

Comparatively, the manufacturing sector – as per RBI Q3 review – recorded “a lower growth of 9.8% during April-November 2007, as compared to 11.8% during April-November 2006.” Dr. Dalip Kumar, Consultant, NCAER, revealed, “Non-farm activities, manufacturing and services... are either slowing down or just maintaining their trajectory of growth.” RBI itself accepts that the slowdown is due to “decelerated/negative growth in 11 out of the 17 manufacturing industry groups”; the 11 sectors account for a whopping 49.3% weight in the Index of Industrial Production (IIP). Frankling Templeton, though, does mention in its January 2008 ‘Market Snapshot’ that “the composition of IIP hasn’t changed to reflect new economic drivers and sectors; and the government is expected to introduce a new index with... new weights and a wider basket of items.”


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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Wednesday, November 07, 2012

PRESIDENTIAL RACE: USA

The Hillary-Obama contest is a fascinating show piece of American elections

“The Clinton-Obama contest is a fascinating showpiece of American political theatre. In addition to the male/female and black/white aspects, the personalities embody a contrast, few other countries embrace that of new v/s old & change v/s continuity. I cannot think of any country apart from the USA where political experience is an electoral liability. The two leading contenders for the democratic nomination, embody these observations, and Obama is praised for his strong commitment to “change” without defining what this means while Clinton emphasises her “experience” without convincingly demonstrating that she has any. It’s American, it’s “show business”, and it’s exciting, even if somewhat primitive,” Dr. Robert

McGeehan, an associate fellow at Chatham House, told B&E. The next Obama-Clinton fight will be on January 26 in South Carolina where the black community is crucial factor. Though the black voters were loyal to the Clintons since the first presidency of Bill, this time, according to the polls, Obama is more popular among them. A victory on Saturday is crucial for Obama to go to the Super Tuesday campaigns with confidence. Obama hasn’t so far played his racial cards vigorously, which many analysts say is a “strategic error.” Would he take them out in pretty American style? Well, let’s wait and see.


Source : IIPM Editorial, 2012.

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