Domination Mar 2014 by Domination, DoMS IIT Roorkee

VOLUME– IV ISSUE- 03 MARCH 2014

NEWSLETTER FROM DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Editorial

……………………………………………………… ……………………………………………………… Dear Readers,

wonderfully covered the topic

Your thoughts and feedback

under perspective story. A gen-

are always welcomed and ap-

With the onset of spring and a

eral election will be held in nine

preciated. Feel free to write to

new financial year around the

phases, the longest election in

us for any input. Stepping into

corner, this issue of DoMina-

the country's history, from 7

the spring with a new zest, we

tion is all about past learning

April to 12 May 2014 to consti-

hope to deliver to you a fresh

and new beginnings. Cover sto-

tute the 16th Lok Sabha in In-

start with this new edition of

ry of the month is an in-depth

dia. Ms. Monica Singh has ana-

Domination!!

discussion of corporate govern-

lyzed its effect on Sensex and

ance, its need and challenges

Indian Economy.

ahead of Board of Directors by Mr. Abhilash Choudhary.

DoMination is never short of the fun quotient. This edition

Today organizations are

features the next round of quiz

streamlining sales and mar-

for them who love brain

keting by replacing high-touch,

twisting powered by “Buzzing

repetitive manual processes

Crowd” – Quizzing club of

with automated solutions and

DoMS and a thought provoking

Ms. Apurva and Ms. Shifia have

poem by Ms. Archana Singh.

ards - Reg ation in DoM m a Te

02 | DOMINATION, MARCH 2014

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Contents 04

Faculty Adviser “Corporate Governance: The Role of Independent Directors”

Dr. R.L. Dhar

Team DoMination

09 16

Apurva Sood Gaurav Mittal Mehul Lala Sudeshna Naskar Vignesh B

Marketing Automation

Chlorophyll

10 Designing Team Ashish Kumar Jaiswal

Qutopia

Dhruv Kadian Rakesh Ranjan Kumar

Roorkee- 247 667, India Tel: +91-1332-285014, 285617 Fax: +91-1332-285565 DEPARTMENT OF MANAGEMENT STUDIES INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

Email: domination.doms.iitr@gmail.com Website: www.iitr.ac.in/departments/DM/Pages/Index.html

DoMS da Evince

Success Story

16 Sensex ahead of elections

For private circulation only

03 | DOMINATION, MARCH 2014

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Cover Story ………………………………………………………

“Corporate Governance: The Role of Independent Directors” Corporate Governance is the frame-

sonal and corporate funds while

attract investors whose support can

work of rules and practices by which

managing a company, particularly in

help to finance further growth.

a board of directors ensures account-

case of the family owned corpora-

Corporate governance helps in pro-

ability, fairness, and transparency in

tions in Asian countries.

tecting the basic rights of its stake-

a company's relationship with all its

Broad of Directors Consists of:

holders and provides stability to the

stakeholders which constitutes of

1. Executive Directors (EDs)

corporation for making decisions

financiers, customers, management,

2. Non-Executive Director’s (NEDs)

which follow the various legal frame-

employees, government and the

3. Independent Directors (IDs)

work, company laws and norms set

community. The board of directors is

Need for Corporate Governance

by regulatory bodies like MCA and

typically central to corporate govern-

With increased global com-

SEBI in India.

ance. Corporate governance is based

petitiveness, the growing market is

Corporate Governance Regulatory

on principles such as conducting the

faced with the challenge of attracting

Authorities

business with all integrity and fair-

and retaining investment in order to

An effective regulatory and

ness, being transparent with regard

participate more fully in the global

legal framework is indispensable for

to all transactions, making all the

economy and address other con-

the proper and sustained growth of

necessary disclosures and decisions,

cerns. Poor corporate governance

the company. Over the years, the

complying with all the laws of the

weakens a company’s potential and

issue of corporate governance with

land, accountability and responsibil-

at worst can pave the way for finan-

many high profile case of poor gov-

ity towards the stakeholders and

cial difficulties and even fraud. If

ernance been exposed, it has re-

commitment to conducting business

companies are well governed, they

ceived a high level of attention

in an ethical manner. There has to be

will usually outperform other compa-

around the world. There are several

distinction between what are per-

nies in long term and will be able to

reports and recommendations of the

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

“Corporate Governance: The Role of Independent Directors”

……………………………………………………… International Committees/ Associa-

defined as a person who has no di-

tions, etc. on the development of

rect or indirect material relationship

The regulatory environment

appropriate

pro-

with the Company, its subsidiaries, or

in India around corporate govern-

moting good corporate governance

its auditor, or as a partner, officer or

ance is changing rapidly and those

standards, codes and practices to be

significant shareholder of an entity

entrusted with governance i.e. the

followed globally. In India, the Minis-

that has a material relationship with

Board of Directors and the Audit

try of Corporate Affairs and Security

the Company.

Committee are being made responsi-

and Exchange Board of India imple-

The big change in recent decades has

ble for the prevention and detection

ment these frame works. Recently

been the mandatory appointment of

of fraud. The current legal frame-

SEBI has come out with clause 49

independent directors (IDs), but

work does not differentiate be-

along with existing Companies Act

there is very little power given in

tween

2013.

hands of these IDs by the law and

(IDs) and executive directors (EDs) as

Around the world some principles

top

companies

it fails to distinguish between their

have been introduced. These Princi-

which makes their role very limited

liabilities. The real question is, since

ples of Corporate Governance focus

and ineffective. Independent direc-

independent directors only play a

on publicly traded companies and

tors are expected to act inde-

supervisory role, should they be pe-

are intended to assist governments

pendently

thus

nalized only in the event of a discrep-

in improving the legal, institutional

should be expected to ask tough

ancy that directly relates to their re-

and regulatory framework that un-

questions, take tough decisions, in-

sponsibilities?

derpins corporate governance. They

cluding the removal of the CEO

The role of IDs in fraud prevention

also provide practical guidance and

where necessary. In practice, very

and detection has come under the

suggestions for stock exchanges, in-

little of this happens, because the

direct scanner of regulators, mem-

vestors, corporations, and other par-

independent directors are beholden

bers and other stakeholders due to

ties that have a role in the process of

to management for their appoint-

the recent exposure of high-profile

developing good corporate govern-

ment. If corporate governance is still

instances of fraud in India and

ance.

Corporate governance ar-

unsatisfactory, it is because the

around the world. The IDs can play

rangements and institutions vary

mechanism and appointment of in-

the crucial role of bringing objectivity

from one country to another, and

dependent directors is not effective

to the decisions made by the board

experience in both developed and

enough.

of directors by playing a supervisory

emerging economies has shown that

The clause 49 is introduced by SEBI

role.

there is no single framework that is

ensures companies have set of inde-

appropriate for all markets. So the

pendent directors on board. The IDs

Importance of Corporate Govern-

Principles are not prescriptive or

now have a limit of only two 5 years

ance

binding, but rather take the form of

tenures at a company with a 3 year

recommendations that each country

cooling off period and a cap of maxi-

ernance

can respond to as best fits its own

mum 7 public companies at a given

Satyam, BP all are signs of emergen-

traditions and market conditions.

time. The board should be chaired by

cy and should ring alarm for the cor-

an independent director.

porates to think how they handle

framework

for

management

Relevance of Independence of a Director in Corporate Governance Independence of a Director is

ance

Independent

directors

The big scandals of poor govof

Enron,

WorldCom,

and govern themselves. Questions Issues and Challenges for Independ-

are raised around the world and it

ent Directors in Corporate Govern-

have become very important for the

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

“Corporate Governance: The Role of Independent Directors”

……………………………………………………… corporations to understand the most basic reason of their existence.

porations of the future.

do not exercise governance rights,

It is true that the 'corporate

are highly concerned about getting

Today the corporations believe that

governance' has no unique structure

fair

treatment

from

their main purpose is to maximise

or design and is largely considered

shareholders

shareholders wealth, shareholders

ambiguous. There is still lack of

Creditors, especially banks, play a

are the ultimate owners of the cor-

awareness about its various issues,

key role in governance systems, and

poration and that ultimately they are

like, quality and frequency of finan-

serve as external monitors over cor-

to exercise their control if the board

cial and managerial disclosure, com-

porate performance. Employees and

and management is not able to do

pliance with the code of best prac-

other stakeholders also play an im-

what they are ought to do, then they

tice, roles and responsibilities of

portant role in contributing to the

have right to remove them. The

Board of Directories, shareholders

long term success and performance

problem particularly with public

rights, etc. There have been many

of the corporation. Thus, it is neces-

listed companies is that they want to

instances of failure and scams in the

sary to apply governance practices in

raise the share prices not in the long

corporate sector, like collusion be-

a right manner for better growth of a

run but rather in very short period.

tween companies and their ac-

company.

This ideology allures the manage-

counting firms, presence of weak or

ments to cut security corners(like in

ineffective internal audits, lack of

BP) and adopt unethical means to

required skills by managers, lack of

enhance their stock performance.

proper disclosures, non-compliance

and

controlling

management.

with standards, etc. As a result, both Future prospects and developments

management and auditors have

in corporate governance

come under greater scrutiny.

India has become one of the

It would not be sufficient to

fastest emerging nations to have

form corporate governance frame-

aligned itself with the international

work alone and take it as the solu-

trends in Corporate Governance. As a

tion to stop all the wrong doings

result, Indian companies have in-

practiced by the companies, it needs

creasingly been able to access newer

to be ensured in occurrence of any

and larger markets around the world;

wrong doings found there is proper

as well as able to acquire more busi-

judicial framework present to punish

nesses. The response of the Govern-

the convicts.

ment and regulators have also been

However, inapt application of corpo-

admirably quick to meet the chal-

rate governance requirements can

lenges of corporate delinquency. But,

adversely affect the relationship

as the global environment is chang-

amongst participants of the govern- By-

need of adopting and sustaining

ance system. Institutional investors Mr. Abhilash Choudhary are increasingly demanding a deci- DoMS, IIT Roorkee(2013-2015)

good corporate governance practices

sive role in corporate governance.

for value creation and building cor-

Individual shareholders, who usually

ing continuously, there is a greater

infoabhilashchoudhary@gmail.com

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Perspective ………………………………………………………

Marketing Automation Automation is a tech-

comprehensive marketing database,

Automation

nique, which uses various software

which includes the details of all the

Marketing Automation is a combina-

platforms and tools to automate the

customers, the customer behavior

tion of a number of platforms chiefly

tedious marketing activities. It pro-

and the interactions with them. This

Social Media Marketing, Email Mar-

vides automated solutions for repeti-

helps in choosing the target segment

keting, Phone Campaigns, CRM Inte-

tive, manual processes and removes

and customizing the message for

gration, Campaign Management and

the scope of human error involved in

each customer.

Analytics.

Relationship Marketing Engine: This

Users of Marketing Automation

Marketing Automation Software is

domain creates and automates the

Since Marketing Automation is cus-

used for lead generation, segmenta-

marketing processes and conversa-

tomer oriented and helps in reten-

tion, converting prospective custom-

tions across various channels.

tion of customers by building mean-

Marketing

sales and marketing activities.

ingful relationships, the industries

ers to actual customers and in retaining customers by building strong and

Analytics Engine:

build-

which use this range from B2B

long-lasting relationships. It also

ing an effective database and an en-

(Business to Business), such as soft-

plays a key role in cross-sell, up-sell

vironment for the management of

ware, business services, manufactur-

and Marketing ROI measurement.

the various processes comes the ana-

ing etc., to B2C such as media, enter-

lytics engine which tests, measures

tainment, healthcare etc. Even small

Key Components in Marketing Auto-

and optimizes marketing ROI. It also

and mid-sized businesses are widely

mation

helps in the evaluation and improve-

adopting marketing automation to

ment of the marketing process.

automate their marketing processes.

Database:

Before starting the

After

Due to increasing competi-

automation process, one needs a Approach to Marketing

tion, fluctuating market conditions

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Marketing Automation ……………………………………………………… and pressure to increase the reve-

a comprehensive plan it can lead to

nue, more and more B2B marketers

the following pitfalls:

the efforts. The success of the automa-

are opting for automation of their

tion process depends upon a firm’s

marketing process to manage their

strategy, its people and the content

complex ecosystem.



Sending emails to customers

on which the company works.

forms an integral part of Mar-

Though one gets a decent

How does it help in the growth of a

keting automation technique and

ROI from marketing automation, the

business?

if not utilized properly it can

returns one reaps depends upon the

Besides increasing market efficiency

often be perceived as spam.

incremental work put into the strate-

It requires a constant updating of

gy and the automation process.

and improving ROI, marketing auto-



mation helps in the growth a busi-

the leads and customer data-

ness by performing following tasks:

base. If the organization is una-



Management of Marketing Cam-

ble to generate new leads and

paigns by maintaining the data-

expand its database and is in-

base, providing an environment

stead just trying to convert leads

for creation and management;

into customers, it is unable to

and an environment to analyze,

acquire the unexplored market

evaluate and improve the cur-

share.

rent marketing campaign.



Confinement to email as the only



Generation of quality leads



Converting leads to customers



Aligning sales and marketing

Keys to successful Marketing Auto-

goals

mation

channel for marketing campaigns

Marketing Automation minimizes the Pitfalls of Marketing Automation

human element in mundane tasks,

For marketing automation to work

but it does not generate leads or do

properly it must be in conjunction

marketing for a firm. It can only help

with the marketing strategy. Without

in the management and scaling of

ByMs. Apurva Sood DoMS, IIT Roorkee(2013-2015) soodapurva@yahoo.co.in Ms. Shifia Mittal DoMS, IIT Roorkee(2013-2015)

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Chlorophyll

……………………………………………………… Its wise to learn, its GOD like to create

ByMs. Archana Singh DoMS, IIT Roorkee(2013-2015) archana.singh999@gmail.com

She lit a flame She wanted to live, Just this merciless killing Can never end our grief.

But what had happened cannot be undone, Brutally assaulting someone is just not fun. You cannot force a girl for your own hunger for SEX, What all it requires is a change in our mindsets. I fear going out, not just in dark but in the day too, But who cares, this government will let it go in a day or two. She was daddy’s lil girl, Wanted to conquer the world. But they chopped off her wings, In a way one cannot even think. For them, it was just a fun game, But now this hue and cry is all in vain, The whole humanity is in shame. She lit a flame, She wanted to live, To never die again Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie 09 | DOMINATION, MARCH2014

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Qutopia ………………………………………………………

It’s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say more? ‘Qutopia’ – A Utopia of the

best Biz Quiz Tidbits to wreck your brains! Rush in your answers to domination.doms.iitr@gmail.com before 21st April 2014. The winner will have their names published in the next issue. Also, person getting the highest score in the current quarter will get a gift voucher. Answers in the next issue of DoMination.

Section A (1 Point for each correct answer)

1. Name the BitCoin exchange that declared bankruptcy in February 2014. 2. The power of knowledge’ is the tag line of which newspaper . 3. Which was the first Indian bank to open its branches outside India? 4. By what name is Phiroze Jeejebhoy Towers better known as? 5. Name the Brand with the tagline “Handcrafted in Chennai”.

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Qutopia ……………………………………………………… Section B (2 Point for each correct answer)

Q1. What is the name of the mascot on the bonnet of a Rolls Royce?

Q2. Identify the celebrity.

Q3. Identify the company

Q4. Identify the watchdog organization.

Q5. Identify the group.

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Qutopia ……………………………………………………… Answers for February edition Section A

SECTION B 1.

Sochi Olympics picture is in longer side of the note, unlike the usual notes which have picture in the landscape

3. Bihar

Micromax

4. National

Ranbaxy Laboratories and Jaiprakash Associates are moved out of Nifty. Tech Mahindra and United Spirits will replace them.

Tata Tea

1. TATA 2.

Karbonn

5. Youngistaan 6. Infosys

Winner of February edition

Agam Gupta DoMS, IIT Roorkee (2013-15)

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

DoMS-da-Evince ……………………………………………………… Tulima Ranjan is a 2010 batch passout and currently working as Senior Business Analyst in Delta Airlines.

1) Please let us know about your

typical business analyst role most of

4) Have you noticed any change in

journey prior to joining IIT Roor-

MBA graduate get offered in the IT

the customer behaviour in recent

kee.

space.

times?

An engineering degree from

SOA governance team ensures that SOA

The customer now wants their

VTU in information technology and two

policies, procedures and templates are

travel to be priced to the minimum –

years of Data-Warehousing experience

followed throughout the SOA team and

get me from A to B – no frills. And then

with WIPRO Technology – to sum it up,

that these are updated as required.

depending on their needs they add on

an average MBA aspirant.

things like meals, wifi, extra leg room,

I worked as project engineer

3) What is your views on the current

etc - even a checked in bag. So the

(that’s the fancy title you get as a fresh-

situation of airlines industry in

amenities which earlier were expected

er) on an ETL tool called Ab-Initio in the

USA, particularly in the current

to be provided, have to be paid for

UNIX environment. The backend was

recession?

now. And the customer feels they are

mostly Teradata. Interacting with the

The Airline industry in the USA

not paying for something they don’t

machine 8 out of the 10 hours was ex-

hit major snag after 9/11. People had a

want or don’t use while travelling. From

tremely boring. So MBA seemed like

fear of flying and avoided air travel.

airline perspective this broadens the

the most logical pit-stop to change ca-

This has resulted in many airlines filing

number of price-points for the same

reer path.

for

consolidation

seat. So they can cater to the demand

(M&A) of major carriers - Delta-

of a broader market and expand their

Northwest, AirTran-Southwest, Conti-

customer base.

2) What are your roles and responsibilities at Delta Airlines?

bankruptcy

and

nental-United over the past decade.

Also, the whole loyalty pro-

Senior SOA Business Analyst is

And the latest being US Airways and

gram has caught on big-time in every

a two part role – in projects and in SOA

American Airlines merger. With this

industry. This is even more so in air

governance team.

consolidation of competition and peo-

travel because of two things. Loyalty

In any project I am Responsible for Cli-

ple getting their faith back in flying, the

programs get you different levels of

ent Engagement throughout the lifecy-

airline industry overall has seen profita-

membership which make you eligible

cle of the Project. I conduct JAD ses-

ble growth and has come out of the

for freebees such as free upgrades, free

sions and create various artefacts (use

recession. Airlines are now aligned to-

first checked in bag, priority boarding,

cases, service contract, traceability ma-

wards discovering new ingenious ways

free Wi-Fi, access to lounge etc. This

trix etc.) for requirements assimilated

for cost cutting. For example delta has

inclines customers to align themselves

from different channels. In delta we

acquired a refinery to produce jet fuel.

with one airline and then stick to it, so

have various channels reservations,

Personally I do feel that this trend of

that they can reach the highest medal-

delta.com, kiosk, ACS etc. who are the

diminishing number of competitors

lion with that airline. Also you can earn

clients to the SOA team. Within the

increases the chances of market manip-

miles with your daily credit card pur-

SOA team I support developers and QA

ulation. We will have to wait and watch

chases and use it towards air-travel if

throughout the SDLC lifecycle. This is a

how this plays out.

you are in the airline loyalty program.

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

DoMS-da-Evince ……………………………………………………… had midnight KTs with offshore. I was

Thank god no one was hurt. But some

5) Recently there has been a lot of

handling production failures on week-

of our friends were in water a long

talk about analytics. How do you

ends. Managing client expectation with

time; one even lost his helmet while in

see the function of analytics in

seamless transfer of application devel-

water. The other was under the raft2

your job?

opment, code deployment, defect fixes

for around 200mtr stretch and that was

Analytics is not a part of my

within tight deadlines and in an agile

super scary. Those few minutes made

job. I perform more of business process

environment has to be the most chal-

them appreciate life even more. Today

analysis.

lenging role so far. My sincere advice to

we can look back and laugh over it, but

Having said that I would like to

anyone planning to come here on H4

it was a very dangerous situation to be

mention Analytics is one of the major

(spouse visa) – its very difficult to con-

in.

contributors to deltas phenomenal

vert h4 to h1. The only jobs that are

So when folks go rafting, which you

quarterly results. Analytics has tremen-

available are in pure IT development or

should, Be Safe, Be by the book and

dously improved the accuracy with

QA. So please plan accordingly.

make sure you are not in the last raft!!!

which delta can predict on which route

how much a customer is willing to pay

Would you like to share an interesting incident with us?

8) Any message for readers, especial-

at most in any given time period. This

Instead of sharing something

ly for the current batch of DoMS?

allows delta to determine the correct

from work life, I would like to walk

While at DOMS - some of us took trips

price point on which they should offer a

down the memory lane with one of the

at every given opportunity – Rishikesh,

fare such that the aircraft flies full ca-

most unforgettable incident during

Dharamshala, Vaishnodevi, Chandigarh

pacity and generates maximum reve-

MBA.

– anything that we could fit into the 2-5

nue. Also By analysing passenger traffic

In our first year half of our

days breaks we got. Some of us partici-

on routes it has helped in determining

batch went white water rafting. We

pated and won in lot of B School

which type of aircraft to fly on which

were 27 of us in 3 rafts divided in a very

events. Some of us organized events

route for maximum profitability. During

interesting fashion. The nerds (all of

such the IIT fest, Spornado. And some

an unforeseen event such as volcanic

them – except one had glasses) were in

made use of the amazing sports facili-

eruptions, it was analytics which helped

the first raft, the happy-go-lucky back-

ties we have. In short, apart from stud-

to re-route passenger traffic in real time

benchers (mostly freshers) were in the

ies we all did something that we thor-

to minimize the negative customer

second and the heavyweights (literally)

oughly enjoyed.

feedback.

were in the third.

In between your busy schedule – make

After sometime, folks in raft1

efforts to find time to do the thing that

turned back and they see blue helmet

you enjoy. Because when you look back

floating across the Class3 rapid they

you might now remember the hours

After my MBA, I came to the

had just crossed. It so happened, that

spent in office, classes or libraries, but

US. When I finally started working it

Raft2 had done two flips right in the

you will always remember the trips, the

had been more three years since I left

middle of the rapid and the only person

awards and the pool table!!!

WIPRO, and my technical skills were

who was left on the raft was a spunky

rather rusty. I joined WIPRO (onsite) as

lady. Slowly she helped pull the instruc-

technical lead for at Capital-One. I was

tor and few others onto the raft. But

overseeing the transition of their entire

the raft had floated downstream faster

Statistical Infrastructures and Tools

than those in water could keep up.

(SIT) Platform from Infosys. Due to re-

Luckily, the few remaining hitch hiked

source constraints, it was just me onsite

with the already overcapacity raft3. It is

and rest of the team was in Bangalore. I

still a mystery how they managed to

used to get KT’s in mornings and then I

stay afloat!!!

6) What is the most challenging role in your career so far?

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Success Story ……………………………………………………… Ajay Bijli, 46, an entrepreneur who has made a for tune for himself building PVR Cinemas into India’s largest chain of multiplexes

A diamond-studded watch, a

Many of Bijli’s choices can be

theaters. Building Priya Village Road-

private island, a business jet, a

traced back to his growing-up years

show (PVR) became priority. It was a

chauffer-driven super luxurious car,

and to the phase after his father,

tough period and the idea of having a

bespoke anything—luxury is limited

Kishan Mohan Bijli, passed away—

good time took a back seat. “After

only by the imagination. And by the

that was when he had to find his feet

that I became very conservative. Ac-

depths of your pocket. Ajay Bijli, 46,

in the world.

tually the need of the hour was to

an entrepreneur who has made a

run the business and take care of the

fortune for himself building PVR Cin-

It would be fair to say that

inheritance. At that time people used

emas into India’s largest chain of

Ajay Bijli had a privileged childhood.

to wonder why I never bought any

multiplexes (with a turnover of

As a kid, he was pampered—he was

cars—whenever something would

around Rs 1,100 crore) has no such

used to being driven in good cars and

get spoiled, only then it would be

constraints. But, he says, “I am just

travelling first class on holidays. “My

replaced,” says Bijli. It was only after

very reluctant to talk about it be-

dad was fond of Mercedes for the

2005,

cause there is no end to luxury.”

longest time and he was a collector,

achieved a certain scale that he

to the extent [that he would buy]

found time for himself again. That’s

It’s not that he doesn’t live

whatever would come on the State

when the cars and the holidays reap-

the good life; he merely isn’t in a

Trading Corporation or what was

peared.

mad pursuit of the best things that

possible to import—and he had a

money can buy. There is a Bentley to

good collection. He influenced me as

go to work in, first-class international

far as travel and cars are concerned.

travel,

clothes

He would always say that if you are

stitched in the UK or Singapore, se-

travelling, then travel well. That has

cluded destinations for family vaca-

stayed

made-to-measure

with

me,”

says

when

PVR

Cinemas

had

Bijli.

tions and a house that’s been under construction for the past 12 years.

His father, who ran a truck-

“The fact that the choices I have

ing

company

called

Amritsar

made are priced higher than other

Transport, passed away in 1992. Ajay

things is incidental. It is not the driv-

also inherited a cinema hall called

ing factor for me,” he says. This is not

Priya in New Delhi’s Vasant Vihar.

a show for the world to see and

The theatre business excited him,

judge.

especially the potential of multiplexes in a country full of single screen

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Regardez I’economie ………………………………………………………

Sensex ahead of elections The fever of elections is pick-

24,000 mark before the elections,

governance, scams and lack of lead-

ing up in India, and so are the stock

the economic outlook of India is

ership and are highly unlikely to

market figures. Unlike the pre-

looking positive. Argument ensues

come to power in the general elec-

election situation in 2004, when

between the two political bastions

tions this year. The anti-incumbency

Sensex was on a decline due to the

trying to claim the rewards, with the

against UPA government and the

imminent loss of NDA, the stock mar-

BJP arguing that this is a result of the

projected image of Modi as a devel-

kets are soaring. Since the trend of

public faith in their prime ministerial

opment driven leader may benefit

coalition governments started in the

candidate, Narendra Modi, while

the BJP government. The investors

mid 1990’s, the pre-election season

Congress attributes it to the sound

believe that BJP’s prime ministerial

generally sees a decline in the mar-

economic policies introduced by

candidate will implement the Gujarat

kets due to uncertainty. But this time

their party during their regime. Pin-

development model on a national

around, the Sensex breaching 22,500

pointing a single factor behind this

level hence increasing their confi-

mark and the rupee strengthening

market high would not be correct.

dence in the economy. Modi is be-

against dollar have a different story

There are more than one factors con-

lieved to be a pro-business and pro-

to tell. With the American brokerage

tributing towards the upward market

industry leader and has displayed

firm Goldman Sachs on Tuesday up-

trend

commendable performance in the

grading India to “overweight” from “marketweight” after the domestic markets scaled lifetime highs and Experts forecasting Sensex to touch

economic Modi effect

front.

This

possibility

seems to be instilling confidence in

The present UPA government is riddled with corruption, bad

the foreign investors in Indian markets .Although Modi has been unable

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Sensex ahead of elections

……………………………………………………… to come up with a sound agenda to

mismanagement, high fiscal and cur-

pering. FIIs pulled out large chunks

improve the economic scenario of

rent account deficit and high infla-

of money from the Indian markets

India except for a broad economic

tion in the previous year, India still

dragging down Sensex and hitting the

vision. Launching bullet trains, laying

managed a growth of around 5%

rupee hard. But recent RBI moves are

optical fiber networks and interlink-

thus faring better than other emerg-

expected to provide a cushion to In-

ing rivers are what the Gujarat Chief

ing economies. With the FIIs pump-

dian Rupee. The recent cuts in QE did

Minister is proposing when he comes

ing over $1 billion in Indian stocks

not see the market declining, on the

to power. The supporters praise

since the beginning of 2014,the mar-

contrary Sensex has been on a high.

these promises as visionary while the

kets are infused with confidence and

This is because the announcement of

critics call them empty promises that

likely to continue this way.

QE tapering came as a shock in May

are practically unattainable. While whether Modi comes to power

while now the markets are better Indian Economic Fundamentals

prepared to handle the tapering.

or not remains to be seen, one can

With the Consumer Price

The result of general elec-

expect a stable government at the

Index easing to 4.7%, the current

tions will be announced in May and if

center focused towards development

account deficit dropping to around

experts are to be believed, India will

on the economic front. The disen-

$35 billion from $87.8 billion in 2012-

see a stable coalition at the center

chantment of the Indian voter man-

13,rupee strengthening to below 60

which will spur the economic growth

dates better governance and eco-

against dollar, and Sensex breaching

further which is most probably going

nomic reforms.

22,500 mark,

to be sustainable in the long run.

the fundamentals of

Indian economy seem to be growing FII inflow

stronger thus reviving faith in the

A number of studies in the

investors.

past have observed that the movement of Sensex is directly related to

QE tapering

the investments by FIIs. It is also ob-

The news of Quantitative

served that FIIs have a considerable

Easing tapering in the month of May

influence on market sentiments as

last year led to the sharp decline in

other market participants consider

the value of rupee against dollar and

FIIs as infallible in market assess-

also saw the plunging to record lows.

ment. Among the major emerging

Every currency saw a decline in value

economies, marred with political

due to the announcement of QE ta-

ByMs. Monica Singh DoMS, IIT Roorkee(2013-2015) singhmonica666@gmail.com

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

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