Enterprise and Economic Update Kerala April 2011

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Vol.1 Issue 3 April 2011

RNI No. KERENG02297

Editor K J Jacob Copy Editor Anna Mathews Principal Correspondents Aby Abraham G K A P Jayadevan Correspondent Kuruvilla Chacko Sub-Editor Asha Jacob Design and Layout Renu Arun Website Suhas K Ranju Thomas Sales and Marketing Jose Thomas Printed, published and owned by K J Jacob and published from Independent Media, XI/173 B, Mulakkampallil Buildings, Kunnumpuram-Civil Station Road,Thrikkakkara, Kochi,Kerala-682 021 Phone: 0484-2421231 and Printed at Maptho Printings, Near TVS Junction, South Kalamassery, Kerala-683 104.

Subscription, advertisement sales@economic-update.in +91 97444 17980 We value your feedback.

Please write to us at: letters@economic-update.in Read us at www.economic-update.in Cover design : Anoop Radhakrishnan

Taking the tech route

T

hat was year 1999. Y2K was feared as a bug that would bring all IT-run enterprises to a halt. A musical channel went around the fashionable MG Road in Bangalore asking people what is Y2K. The answers came thick and fast.

“It’s a music band.”

“It’s a new Sony product.”

“It’s some computer bug.”

“It’s a flight PNR number.”

Illuminating answers all. But the cream of suggestions came from a well-dressed unsuspecting young man.

“I don’t know. I am from Kerala.”

Kerala has the unique distinction of having pioneered the concept of dedicated IT parks by setting up Technopark, Thiruvananthapuram. However, the State failed to build on the initial momentum. The result was that Kerala, with its high literacy and concentration of science and engineering graduates, lagged behind the neighbouring States. We did not make the progress we should have in opening up ourselves to the technology revolution.

But it is no longer the case. Kerala is moving fast forward on the IT highway. Seven years back, the State had very little to offer an IT investor in terms of infrastructure; today, it has more than 1000 acres of land and other dedicated facilities on offer for the industry.

This is reflected in the adaptation of technology in business also. IT is today one of the most efficient tools of business, be it manufacturing, services or even agriculture. The good news is that we too have chosen to follow the pattern around us.

More companies now embrace computerisation and automation. Some even go for world class softwares such as SAP and reap the benefits. Many companies have discovered Internet as a smart place to do business in.

The emergence of social media is the latest on the IT front.

It is relatively young, but has influenced people like no other technology till now. It is estimated that Facebook has more than 50 crore members, and is growing by the second. Smart people have already identified it as one of the most effective tools to reach out to their target audience.

The advantage of technology is that it keeps evolving. Every new version makes a product simpler and more effective. This is the case with the Internet and social media also. The very purpose of websites has changed over the years; social media has been reinvented as a marketing tool.

The cover story in this issue examines the importance of the web and the social media in furthering businesses. It has the tips that help the latecomers come on board.

Technology is touted as a great leveller. We all are heirs to it, whether we live on MG Road in the Garden City or in God’s Own Country.

Editor 3

Contents COVER STORY

30 The net effect Intelligent and imaginative use of the Internet can take businesses a lot ahead.

The arrival of social media has made the web an all-important brand building tool

34 All

the world’s a stage

Serial entrepreneur Jose Thomas sets up JT PAC, the finest private centre for performing arts in South India

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Contents 14 INTERVIEW/T BALAKRISHNAN, IAS An elevated dream

The high-speed rail corridor will make Kerala's public transport faster and safer

26 Gateway to Malabar The Azhikkal Port promises to bring in economic development to the North Malabar region 28 Indian Paisa League IPL debuts in Kochi bringing with it a slew of business opportunities 40 On target Dileep the actor is a highly successful producer also 42 The cool office V-Guard sets an example with its green office building 46 So long as it’s black What’s the colour that customers go in for while shopping? Who goes for what colour of car?

Update talked to marketers across the spectrum and finds out some interesting trends 50 Energisers at the desk Forget ergonomics, exercises can help you control your aches

18 The roadrunner The Usha School of Athletics has brought out an unseen face of sprint queen PT Usha. From top athlete to top coach to top manager, the transition has been as brilliant as the lady herself

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I

t’s here the Smart City project will come up. In the foreground is the Government-run Infopark, Kochi.

The Smart City, a dedicated infrastructure project for the IT industry, will come up on 246 acres. It is being developed by Smart City (Kochi) Infrastructures Limited, a special purpose vehicle in which the government of Kerala holds 16 per cent equity while Dubai-based Tecom Investments and its affiliates hold the rest.

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V Sivaram

When it was conceived about seven years ago, Smart City was hailed as the landmark project which would catapult Kerala to the top IT destinations in the country. Several rounds of talks, signings and settlements over, it is finally on its way to take off.

But in the last seven years, the topography of the area has undergone unbelievable transformation. Infopark, which started with one building— Tapasya with 1.25 sq ft—has expanded. It has seven buildings today, which together have about 25 lakh sq ft of built-up space. About a lakh IT professionals work here. Several top-notch IT companies including Wipro, TCS and Cognizant have sarted operations here. It has already launched development of the second phase on 160 acres.

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LETTERS

sible for their articles even after they have reported it. The mobility hub doesn’t seem to be functioning properly even though its inauguration is over. You must follow its progress and put pressure on authorities to ensure timely completion. Else your article just becomes another piece of information which we can get from the daily newspapers.

Arun Raghavan, Kochi

Showcasing Kerala The magazine is very good and well brought out. It has rekindled my pride in Kerala, my home State, which I plan to return to in three years. I’m sure E&E Update will contribute significantly to the progress of the State by sharing the good news of its development and potential with the rest of the world.

Prof Mathukutty Monippally, IIM Ahmedabad Feel-good cover story My family hails from Alleppey though I am settled in Mumbai. It was inspiring to read about farmers who have moved onto mechanisation as the way forward for paddy cultivation. During my days in Alleppey, I remember the aversion the farmers there had towards machines.

Today, I am proud to see my native place move with the times. Kudos to your team for bringing out this development.

K J Kaimal, Mumbai For mechanisation In this age of mechanisation, it is heartening to note that the farmers of Kuttanad are embracing the harvester as their main weapon to improve outputs. I think a parallel study should be done to check whether other crops predominant in Kerala such as rubber, pineapple and coconut too have any mode of mechanisation. With less labour hands available, such alternatives will be the need of the hour. It would be useful for cultivators and farmers to be informed beforehand.

P J Thomas, Kottayam More focused The magazine has begun to narrow its focus and become more reader friendly. Not just the cover story but also the one on the government hospital in Ernakulam which has 8

rarely received good reviews from the media otherwise was a good read. The design and layout is also inching away from the traditional look that most Kerala magazines have. UPDATE has it to become the next big business magazine in the country.

K Krishna Kumar, Kochi Do more I totally agree with Mr KC Chandrahasan who wrote a guest column for ‘Once Upon a Time in Muziris’.

Kerala should not expect that tourists can be taken on a ride especially when it comes to heritage tourism.

With such sites being the mainstay of tourism worldwide, it will be a shame if we show half baked locations to global tourists. They might even stop believing in our backwaters and Ayurveda. Kerala has to do more and show its history in a more authenticated structure if the Muziris Heritage project is to make any gains.

George Thomas, Kochi Track it There was a report on the Vyttila Mobility Hub. It was meant as a news report and that it did. But I feel your magazine should track the project even after its inauguration.

We expect the media to be respon-

Real info The story on tensile fabrics was a good read. It is unimaginable at first sight that the sails of the Burj ul Arab are made from fabric. Also I was recently at the Hyderabad Airport. Though I have flown from the airport many times before, it was only this time that I noticed the fabric roofing for the walkways.

Earlier, it looked like just another concrete structure to me. Now I feel like installing it as canopies for my office balconies. They look better and feel cooler than other alternate structures.

Anoop R, Thiruvananthapuram Better feel I have been following UPDATE since it was launched 2 months back. I must commend the improved design, content and overall look of the magazine. It now feels worth its price. The stories in particular evoke strong pro-Kerala sentiments among the readers.

Good to see so much good actually happening in the State.

Dileep Krishnan, Chennai Global route All the hype over Christian Brothers was just that-over hype.

The movie failed to live up to its expectations. If the movie hadn’t released worldwide simultaneously the producer would indeed have incurred huge losses. Maybe he saw it coming and decided to go global to save himself, rather than wanting to take Mollywood to the global level.

A good read nonetheless.

Rajmohan M, Kollam

I say!

If at all there is a threat from ITC, Mukesh (Ambani) is available...If at any point of time I want (a partner), Mukesh will be my ideal partner Leela group chairman Capt Krishnan Nair responding to a query if the Leela Group was uncomfortable with ITC gradually increasing stake in his firm Anoop Radhakrishnan

“IT-driven growth of the service sector is changing the Kerala’s image. We currently employ 1,800 people in the State and the number would go up to 2,500 within a year. Wipro is on an expansion mode in the State.”

Wipro Chairman Azim Premji, after inaugurating the renovated office of the South Indian Bank “I was a shareholder who was asked by Mr Narayana Murthy to come and join the board. After this AGM, I’ll go back to being a shareholder. I will sit there, may be ask them questions on everybody’s behalf.”

Mr Mohandas Pai, after resigning from the board of Infosys Technologies Ltd “I think there are many honest businessmen, I think there are many that bend. I’m happy that I have not bent, not that I am dishonest, that I have not bent.”

Tata group chairman Ratan Tata, on being asked whether it is hard to be an honest businessman in India “We made good use of the electronic media, SMS and the Net. The media spread it across the country.

Even I cannot understand how this happened.”

Gandhian activist Anna Hazare, on the spread of his movement across the country 9

AT A GLANCE

No double-dip depression: IMF The IMF has released its twice-yearly projection of world economic growth, forecasting that global GDP will increase by 4.4 per cent this year. It said concerns were fading over a “double-dip” recession, though the recovery could be threatened by higher commodity prices, especially oil. Regarding Japan, the IMF recognised that the "immediate fiscal priority is to support reconstruction" after last month's earthquake, but urged the country to link such spending to a clear strategy for reducing public debt.

Buffet’s Man Friday leaves under cloud

David Sokol, hitherto seen as a possible successor to Warren Buffett as boss of Berkshire Hathaway, resigned from the company to manage his family's money. His departure was overshadowed by revelations about his dealings in shares of Lubrizol ahead of Berkshire's $9.7 billion proposed takeover of the company.

S&P downgrades US outlook Standard & Poor’s, one of the world’s leading rating agency, has downgraded the outlook 10

for the United States from ‘stable’ to ‘negative’, saying it believed there was a risk US policymakers may not reach agreement on how to address the country’s long-term fiscal pressures.

It was for the first time since the attack on Pearl Harbor 70 years ago that the outlook turned negative. The announcement surprised the financial markets, where attention in recent months has been focused on the problems of the weaker nations of the Eurozone.

S&P said that compared with the small number of developed countries with a coveted AAA rating, the US had “very large budget deficits” which reached as high as 11 per cent in 2009.

Japan sceptical about growth The Japanese government has downgraded its assessment of the economy in the wake of the devastation caused by the earthquake and tsunami. It said key areas of the economy would suffer, including industrial production and exports.

The disaster affected many companies which had operations in the north-east of Japan, destroying factories and blocking supply chains. The Japanese economy had already been struggling to come out of the global financial crisis before the earthquake and tsunami hit on 11 March.

Analysts say the twin natural disasters have set back that recovery process even further.

Japan estimates rebuilding will cost up to 25 trillion yen ($295bn).

BRIC wants new reserve currency

The leaders of BRIC emerging economies have called for changes to the global financial system, including a broad-based international reserve currency system “providing stability and certainty”.

Leaders of Brazil, Russia, India and China also demanded that the International Monetary Fund expand its use of Special Drawing Rights, which are used as a quasi currency to transfer funds between member governments. A summit of the leaders of the nations—South Africa attended the meeting as a special invitee—said the recent financial crisis had exposed the inadequacies and deficiencies of the current monetary order, which has the dollar as the world’s most-used currency.

Hu tops Forbes list Chinese President Hu Jintao has topped the list of world’s most powerful person by the US Forbes magazine. The magazine described him as a person who, “unlike Western counterparts, can divert rivers, build cities, jail dissidents and censor

internet without meddling from pesky bureaucrats, courts.” US President Barack Obama, who last year topped the list, has been placed behind Hu at second while Saudi King Abdullah stands the third most powerful man in the world. Russian Prime Minister Vladimir Putin holds the fourth place and Pope Benedict XVI has been placed fifth. UPA chairperson and Congress president Sonia Gandhi has been ranked ninth while Prime Minister Manmohan Singh has been ranked 18th among the world's top 20 powerful people.

Cubans can now sell property

At the Congress of Cuba's ruling Communist Party, Raúl Castro, the country's president since 2008, replaced his brother Fidel as party first secretary. He called for all of Cuba's political leaders to be limited to two five-year terms in office and for a handover of power to a younger generation, though only three new members were elected to the 15-person politburo. The Congress approved reforms that will see up to 1 millions Cubans move into a fledgling private sector of small businesses and allow property to be sold.

AT A GLANCE

121 crore Indians, says Census

India’s population has jumped to 1.21 billion, an increase of more than 181 million during 2001-11, according to provisional data of Census 2011. The number of males stood at 623.7 million and females at 586.5 million. India’s population accounts for 17.5 per cent of the world figure. After 1911-21, the past decade (2001-11) witnessed the addition of smaller population than the previous decade’s growth. Uttar Pradesh is the most populous State with 199 million people, followed by Maharashtra with 112 million people.

Lakshadweep is the least populated at 64,429 people.

IT hiring zooms

The hiring numbers of IT majors leave nothing to doubt about how far the companies have left behind the recession. From the quarter ended March 31, 2010 to the one ended December 31, 2010, the top 5 IT majors in India—Tata Consultancy Services (TCS), Cogni-

zant, Infosys, Wipro and HCL Technologies—together clocked a staggering figure of 1,14,038 net additions in terms of headcount. This stands in sharp contrast to the net addition figure of 47,462 in the corresponding year ago period.

The numbers have shown a marked increase for each of the big IT companies.

Car sales cross 25 lakh mark Car sales in India crossed the 25 lakh mark in the financial year 2010-11, according to the Society of Indian Automobile Manufacturers (SIAM). It registered a growth of 30 per cent over the previous financial year, the fastest growth rate in a decade.

SIAM had earlier estimated the sales at around 22 lakh units. For the current financial year, SIAM estimates the growth rate to plummet to 12-15 per cent, due to price increases, necessitated by higher raw material prices.

Currently India is behind America, China, Japan, Germany and South Korea in car sales.

Enrolment in primary schools drops While the Centre has been busy tom-tomming its efforts to send more children to school, enrolment in primary classes across the country has, in actuality, dropped since 2007. Between 2008-09 and 2009-10, enrolment in classes I to IV in Indian schools dropped by over 2.6 million.

IMF lowers growth forecast International Monetary Fund (IMF) has lowered India’s economic growth rate forecast to 8.2 per cent for 2011 and warned that boom like conditions could lead to over-heating of the economy. The multilateral lending agency had earlier projected the country’s economy to grow by 8.4 per cent in 2011. IMF took note of the high inflation in India, recorded at 8.31 per cent in February, even as RBI expects it to come down to 8 per cent by Marchend.

Industrial growth slips in February Industrial production growth slipped markedly to 3.6 per cent in February this year from a high of 15.1 per cent posted during the same month in 2010, mainly owing to a dismal show by manufacturing and mining, the two key sectors in the index of industrial production (IIP).

The capital goods and basic goods segments performed dismally: manufacturing or factory output slumped to 3.5 per cent from 16.1 per cent in the year-ago period.

World Cup final, the most watched The Cricket World Cup

final will go down in history as one of the most viewed sporting events on television ever. An estimated 67.6million people watched the final between India and Sri Lanka. The viewership for the match surpassed that of the Indo-Pak semi-final, the most anticipated match of the tournament for the subcontinent audience.

The number of viewers for the semi-final was 67.3 million, compared to 32 million for the other semifinal between Sri Lanka and New Zealand.

Mahindra to bring Boeing plant to India

Mahindra & Mahindra Ltd has decided to shift Boeing’s aircraft machinery plant that it recently acquired from Melbourne to the outskirts of Bangalore. The company hopes that the move would help improve the quality of aircraft parts it produces and attract clients that need to fulfil their offset obligations in India. Last year, it purchased 75.1 per cent stake in two Australian aerospace companies — Gippsland Aeronautics and Aerostaff Australia —to expand its aircraft and aerospace-component manufacturing capabilities in Australia.

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AT A GLANCE

Kochi Port launches single window The Cochin Port Trust has set up a single-window facility for the customers. It will cater to the documentation of all cargo-related activities at Mattancherry and Ernakulam wharfs and oil tanker berths under the Port Prust.

The facility will act as one-stop service window for entry/exit and billing for the pre-stage facility and clearance for export and import containers. It will also provide billing service for storage of containers and reefer service.

SIB Business crosses `50,000 crore

South Indian Bank has clocked total business worth `50,560 crore in 2010-11, exceeding the target of `48,000 crore set for the year. The bank opened 61 new branches during the period.

Its deposits and advances grew at 29.08 per cent and 28.92 per cent respectively.

The company’s business has tripled during the last 3 years from `25,000 crore. The bank has set a target to increase its business to `75,000 crore by 2013.

Ro-Ro brings down charges Operators of the RoRo barge service at the 12

Vallarpadam ICTT have announced a reduction in charges. The new rates for ferrying of a 20’ trailer has been brought down to `750 from `1,000 for a 40’ container is down to `1,350 from `1,667.

The concessional rate should help reduce cost of movement of containers from South especially those of Cashew, Coir and Seafood.

Oracle enters Technopark

Oracle India has leased out 40,000 sq ft space in Technopark Thiruvananthapuram to commence operations of its development centre by September this year. The agreement was signed by Air Commodore Jayaraman Ramamoorthy (Rtd), vice-president, Oracle India; Mr Mervin Alexander, chief executive officer, Technopark; and Mr Venu Krishnan, executive director, Leela Infopark.

Oracle has already initiated a recruitment drive and has identified resources whose training will commence by June in Technopark.

V-Guard is now `700 crore co V-Guard Industries Ltd has achieved a sales turnover of over `700 crore for the financial year ended March 31, 2011, thereby registering growth of more than 50 per cent

over the previous financial year.

The sales from new markets outside south India also showed tremendous increase during the period. The upward trend in sales of all products contributed to the increased turnover registered in the fiscal, a release said. The company manufactures a range of products namely voltage stabilizers, pumps, electric water heaters, solar water heaters, cables, UPS, ceiling fans, etc.

Jacob Mathew is WAN-IFRA president Mr Jacob Mathew, executive editor of Malayala Manorama, has been elected President of the World Association of Newspapers and News Publishers (WAN-IFRA).

Mr Mathew, who will begin his two-year term on July 1, is the first Indian to hold the presidency of the global organisation of the world’s press. He will succeed Gavin O'Reilly, Chief Executive Officer of Independent News & Media Plc. Muthoot IPO a huge hit Gold loan provider Muthoot Finance’s initial public offering (IPO) received an overwhelming response from investors

with the issue getting subscribed over 24.47 times. At the upper price band, the Kerala-based company will be able to raise `901.25 crore from selling 51.5 million shares in IPO. Earlier, Muthoot Finance had allotted about 7.73 million shares to anchor investors at `160 a share.

Toonz bags FICCI Frames awards The Technopark-based Toonz Animation India Pvt. Ltd. has bagged two awards at the FICCI Frames 2011, Asia's largest global convention on the business of entertainment.

‘Gaturro' (3D stereoscopic feature film), a co-production of Toonz and Illusion Studios, Argentina, won the best animated feature film award and ‘Little Kalari Warriors' (2D TV Series) conceived and created by a team at Toonz won the award for the best animated promo.

“It is indeed a proud occasion for all of us at Toonz. Winning two awards in a highly competitive platform like Frames is a dream-come-true for us,” said P. Jayakumar, CEO, Toonz Animation.

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Interview/T Balakrishnan, IAS

An elevated dream The high-speed rail corridor will make public transport faster and safer

T

here is one project which figured prominently in the election manifestos of both the ruling Left Democratic Front and the opposition United Democratic Front: the construction of a high speed rail corridor connecting the north and south of Kerala.

And it is for solid reasons. More than 3,900 people die on Kerala roads every year—that is, on an average, 10 people don’t return home every day. Not a proud record for a State that boasts of some of the best social development indicators, comparable with those in welfare states.

The high speed rail corridor project attempts to address this issue by creating a futuristic and world class public transport system. That it calls for minimum acquisition of private land makes it all the more attractive.

Perhaps the most ambitious and costly infrastructure project ever planned in the State—it envisages an investment upwards `60,000 crore—the rail corridor was conceived by the Industries Department. The Delhi Metro Rail Corporation (DMRC) is conducting a feasibility study on the project, and is expected to submit its report

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soon. “The early indications are that the project is viable,” Additional Chief Secretary in charge of Industries and Commerce Mr T Balakrishnan said. Excerpts from an interview: What is the high speed rail corridor project all about?

The final contours of the project are yet to emerge but we plan it as a high speed (upwards 250 km/hr) dedicated railway line for passenger transport, connecting the north and south of Kerala, extendable up to Mangalore. An elevated railway line, it will be 612 km long when fully constructed. There will be 13 stations in between with a train

The government is setting up a special purpose vehicle. This SPV, in which the government will have equity, will identify a developer for the project. KSIDC will act as the facilitating agency.

passing through every half hour. All the trains will have 12 bogies, each capable of seating 66 people.

At what stage is the proposal now?

We have entrusted the DMRC with a viability study. The study is in its final stages and we expect a report soon. The traffic survey and data available reportedly favour the project.

What is the timeline for the project?

The project will be implemented in phases, and will be spread over 10 years. The first phase connecting

Kerala has come to a stage where its roads are hopelessly congested. Our National Highways present a scary picture. Given the peculiar geographical and demographic profile, road widening is not easy. A high-speed rail network, which requires very little land acquisition, offers a practical solution

Thiruvananthapuram and Kochi can be completed in five years.

What will be the cost of the project?

We are yet to finalise it, but it is estimated that construction of each km would cost upwards `100 crore.

How will you fund the project?

The project will be implemented through the public-private participation route.

What prompted the government to think of the project?

Arteries are the lifeline of a human body; transportation is the lifeline of the economy. When they get blocked, one cannot keep good health. Kerala has come to a stage where its roads are hopelessly congested. Our national highways present a scary picture.

Given the peculiar geographical and demographic profile, road widening is not easy in Kerala.

It could take years for the work to complete, and by the time the traffic would have increased even more.

Today, you have people travelling from Kochi to Thiruvananthapuram and back everyday for work. They have very little time their families.

The deaths on Kerala’s roads are unacceptable. They become all the more painful when the bread-

T Balakrishnan, IAS

winners of the families die.

We took all these factors into account while thinking of designing a futuristic transport project.

What are the advantages of a rail network?

Kerala’s topography is suitable for rail traffic. Look at Kerala’s map: its maximum width is 120 km.

About 80 per cent of the people live in the coastal areas. We plan to have the high speed railway network touching all districts except Wayanad and Idukki.

Another reason is that the project would not require large scale acquisition of land. Land acquisition and rehabilitation of the land owners are a very costly and cumbersome affair in Kerala. Our effort is to minimise exclusive land acquisition. Since this is an elevated railway line, we would not have to acquire the land, except in certain spots. In all other areas, we are thinking of designing various options such as an agreement where we will get the right to use, for a price which will be paid as a lump sum or as annuity. The owners can continue with their current utility without much disturbance.

How will it help the development of the State?

Kerala is on the road to development as a knowledge-based economy as we cannot take a polluting 15

industrial route. Tourism, education, healthcare, IT—the sectors which are environment friendly—are going to take the State forward. All these sectors would call for faster and safer mode of transportation as people have little time to waste on travelling. When complete, this project will be one of the attractions that will draw investors to the State.

We also plan to develop satellite towns along the route.

We have conceived the project in such a way that it will not add to the congestion of the cities. Instead, it will decongest them by developing satellite towns and supplementary infrastructure. The project will boost all kinds of trade in the State as it will facilitate speedy transportation of cargo. It would also open access to new markets for producers and farmers.

There has been a demand for a sixlane expressway.

Will this project make that proposal redundant?

No, it will not. We still need a decent six-lane road, if we were

to optimise infrastructure projects such as the container terminals. This project will only meet the growing demand for public transport.

Will it provide affordable public transport?

Travel on the high speed rail will not be cheap. It will only be comparable to travel in a car. The long-term benefit will be that if we can offer a decent public transport system, we can reduce congestion on the roads, besides saving fuel and reducing pollution.

How are you going to implement the project?

The government is setting up a special purpose vehicle. This SPV, in which the government will have equity, will identify a developer for the project. KSIDC will act as the facilitating agency. We need to have a different work practice for this project. We need to stick to time and cost schedules; we cannot afford overruns on either.

How different will be this project

The dragon rail W

hile the rest of the world is still debating the viability of High Speed Rail (HSR), China has gone ahead full steam and built more than 8000 kms of HSR. The Chinese government plans to link the different standalone HSR routes and build a network stretching across the nation - 17,000 km of high-speed lines are now under construction, taking the total length of HSR to 25000 kms by 2015. This is more than a fourth of the total rail length in Chi16

na. The HSR with an average speed of 250km/hr carried an average of 796,000 people daily in 2010 and it is expected to help meet rail demand in China that is expected to more than triple to five billion passengers per year by 2020. China has also announced plans to build a HSR, linking Southern China with Singapore via Vietnam, to boost trade.

Besides providing a fast, reliable and comfortable means of long distance transport to a large number

with respect to technology?

It will use technology at every point, from setting up multiple ticketing options and regulating traffic. Every process will be automated.

Where are you planning to source technology from?

At present, we have both Japanese and European technologies available for high-speed rail projects.

Is it a model Kerala alone pursues, given its cost implications?

We are the first one to moot the idea, but several States have started thinking on setting up their own projects. All the other Southern States—Tamil Nadu, Karnataka, Andhra Pradesh—and Punjab and Haryana are all working on similar projects.

What will be the role of the government in this project?

The government will play a key role, from the conceptualisation to commissioning of the project. KSIDC is already working on the project. of travellers, the Chinese expect the HSR to provide a host of other benefits. It will help link labour markets to the production centres and open up newer markets and make it easier to service consumers. Moving passenger travel from conventional railways to HSR will increase freight capacity.

This will reduce shipping costs and make interior locations more attractive to businesses by making practices like just in time manufacturing feasible there. Electric trains use lesser energy on a per unit basis, are less polluting and can draw power from diverse sources, unlike automobiles and aircraft that depend on petroleum. HSR will also link city centres, promoting the growth of urban centres and limiting sprawl and traffic congestion. Faster travel will also help in reducing the long holidays needed by migrant workers to go home. All these will help improve productivity and competitiveness of the economy.

By Invitation

A business recipe Navas Meeran “You do not require an invitation to make profits,� declared Dhirubhai Ambani in one of his historic speeches. You may agree with his business practices or not. But the sprit behind that statement made Ambani, once a petrol dispenser in the god-forsaken land of Yemen, the most successful Indian entrepreneur of all times.

Picking up new opportunities and optimising resources are critical to the success of a people as well as an enterprise. I have often wondered why we have not looked at an opportunity which screams itself in front of us. Kerala depends heavily on the vegetables that cross the border from Tamil Nadu even when we have a lot of land lying vacant here. It perplexes me that the State, which created a great culinary tradition using simple ingredients, readjusted its taste-buds so easily and embraced the stuff brought from outside. Why is it that Keralites, who are very well aware of the long-term impact of pesticides on human health, have no qualms in consuming vegetables with no quality checks? And finally, are we so rich that we can buy all that we need from the market?

My observation is this: vegetables and fruits offer an easy to grab business opportunity in Kerala. It has a captive market and ready consumers.

We should encourage cultivation in all those waste land and produce at least a share of what we consume here. I am not talking about the vast stretches of land—we should be able to incentivise vegetable cultivation in small stretches, perhaps 10-15 cents, or even less. If a household can grow all the vegetables that it consumes, it means some saving. And if there is an organisation to which they can sell the extra produce, it means an

increased income. Together, it will change the budget of many families for the better.

I have recently started working with a group which is setting up an integrated farm produce and marketing company. It will work with farmers and ensure a steady supply of quality vegetables with 100 per cent traceability throughout the year and supply them to the consumer through branded outlets. The project looks not just at making profits. We believe that if it succeeds (it will, we all fervently believe), it can change the rural economy of our State. It will cut a lot of middlemen operations and serve the interests of the farmer as well as the consumer.

I do not think only major corporations can do this. Small and local groupings of farmers can also think on similar lines so that we make the maximum out of the resources we have. Sitting at the eighth floor of the eastern corporate headquarters, I can see a lot of vacant land around us. If we calculate its real estate value, it will be in crores. But it saddens me that these lands produce nothing, and lay barren.

I dream about a time when every inch of land in Kerala has some vegetation, and we produce what we consume. I dream about a time when we feed our children with food that are full of nutrients and not pesticide residues. I dream about a time when we recapture our simple but graceful culinary practices and live a healthy life.

Profits we must make. But only a healthy economy with a healthy population can sustain it.

Mr Navas Meeran is the vice-chairman and managing director of Eastern Condiments Limited.

17

WOMAN POWER

The roadrunner The Usha School of Athletics has brought out an unseen face of sprint queen P T Usha. From top athlete to top coach to top manager, the transition has been as brilliant as the lady herself

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Kuruvilla Chacko

learing hurdles is not an unfamiliar feat for P T Usha. From the shy village girl to iconic star of Indian athletics, Usha has sprinted a long way, clearing many. Off the field, too, she has proven her mettle by setting up one of the most promising training establishments for athletes in the country.

Situated at the Kinalur Industrial Growth Centre of Kerala State Industrial Development Corporation (KSIDC), USHA or Usha School of Athletics epitomises the hardwork, dreams, sweat and organisational prowess of the queen of Indian athletics for all times.

Behind many of those child prodigies breaking national or State level athletic records, you will find the smiling face of a proud Usha. These girls have backed the faith that their chechi (elder sister) has in them, providing a fitting reply to her doubters and a beacon of hope for Indian athletics.

The director of USHA seldom sits on her chair; she would rather be on the field training her wards on the sprawling campus. The school, which trains 12 girls now, has an administrative cum residential block. “We are planning to make a fullfledged 400 metre synthetic track and facilities for accommodating 200 students,” said Ms Usha, elaborating her plans. “We are on track and I have received a lot of help and encouragement from all, be it administrators or corporate or ordinary people.”

The beginning was not easy, though, she reminisces. In the early 2000s, when

18

Indian athletics remained stuck in mediocrity, Ms Usha, then retired, decided not to give up hope. She approached a then Central government secretary to help aid the academy she was building in Kerala.

The official, however, dismissed the idea outright, terming it a task impossible for a woman to accomplish. He didn’t believe she, or for that matter a woman in India, could train another woman to attain an Olympic gold in athletics.

Ms Usha left; offended, but not disheartened. Instead of settling down in her secure government job (she was a Class I officer with Indian Railways), as retired sportspersons in the country do, she chose to start from where she left off; by tracking her dreams on the field. Only this time, she would play the role from the sidelines.

From top athlete to top coach, Ms Usha’s life has been the stuff of constant inspiration. Serving as the country’s torchbearer in athletics for years, there was always a desire in Usha to give back to the nation after her retirement. The spark was provided by the AKG Sports Lovers, a club in Koyilandy in Kozhikode.

The club, apart from felicitating Usha after her retirement in 1999, also asked her to coach 12 handpicked local girls. Usha felt it was a perfect opportunity to utilise her experience and skills to develop a new generation of athletes. But as she concedes, “It’s easier to run than to train.

When one runs, it’s all about you, your spirit and your desire. When you coach, you have to convince others.”

She found the going difficult and unrewarding as many of the recruits did

not have a real talent or intent. She felt the need to use her resources more efficiently if she was to make a difference. She realised that a proper selection process was needed to help real talent come through.

It perhaps marked the moment of realisation for Usha as an organiser.

From sports star to ace coach, Usha’s life was getting ready to embrace a new phase—that of a dedicated sports manager.

The first trials she conducted in 2002 saw around 500 girls in the age group of 13-14 participate. For most of these girls, training under Usha was all about securing their future.

“Many just wanted to excel in sports

during school or college and then get into some government job under the sports quota,” she says. “They believed that under me their life was taken care of.” But Usha was a taskmaster like any good manager. She weeded out the average ones, while nurturing those with potential.

She had a team of recruiters to assist her in the selections. The fivemember panel of athletes from the country, selected girls based on allround criteria expected from a potential international athlete. Focus was not on speed alone, but parameters like balance and strength which defined a runner.

Her experience from her days as

an athlete was put to good use. She made sure that her wards were provided with the best facilities, something which she did not get.

Of the initial recruits, none were child prodigies at first. But she kept the faith in her wards, preparing them as torchbearers for a new era in Indian athletics. Mental conditioning camps and scientific training modules were prepared to ensure that the girls were not overworked or burnt out. Two training periods—one in the morning and another in the evening—were fixed. The workout included light running, breathing exercises, games and regular races. Usha would drive from her home in Koyilandy twice every

P T Usha trains with her wards in the hills of Kinalur, with the academy hostel in the backdrop.

To her immediate left is Tintu Luka, India’s best medal hope in athletics in the 2012 London Olympics

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“It’s easier to run than to train.

When one runs, it’s all about you, your spirit and your desire. When you coach, you have to convince others,” says Usha P T Usha in front of the administrative and hostel bloc of Usha School of Athletics (USHA) day (for the morning and evening practice sessions).

Even the diet was regulated in accordance with the specifications of the Central Food Technological Research Institute. This dedication passed onto her trainees as well. Targets were set for each of them; to be achieved within a stipulated time. The measures soon started to bear fruit.

Her students excelled in school and State-level athletic meets.

Records were broken and people began to believe in USHA. In track events like hurdles, long distance or medium distance, other participants stood no chance against USHA’s surefooted roadrunners. Tintu Luka, her favourite student and ace 800 m runner, is today the emerging face of Indian athletics. This nimble-footed girl was written off by other athletes due to body imbalance and an improper technique when she joined USHA in 2002. But Usha persevered. Recently, Tintu broke the 15-year-old 800 m record held previously by Shiny Wilson by clocking a time below 2 minutes. Usha believes that Tintu Luka will spring a surprise for all during the London Olympics next year.

But like any successful institution, USHA too faced its share of problems from unexpected quarters during its initial days. Apart from financial shortcomings, there was local agitation against the academy. Parents from local schools staged rallies demanding that students trained from USHA be barred from participating in school competitions. They felt it as unfair to their own children. It was here that Usha’s managerial ability to 20

rally behind her recruits came to the fore.

She convinced the locals about the wisdom in allowing her students to compete in major tournaments which would help in their all-round development. The locals finally saw sense.

With local support affirmed and her self- belief in managing her wards efficiently growing by the day, Usha began plans to take her academy to the next level. For this, she needed sponsors to help her expand. Already, the academy was overburdened since the cost of training a student including the educational, medical and food expenses came close to `1.5 lakh per year. Her pillar of support through these periods and even now has undoubtedly been her husband, Mr Sreenivasan.

They organised meetings with corporates using the brand name that was PT Usha. Also since many of her wards had already started hitting the limelight on the national athletics circuit, sponsors were forthcoming. Sunil Dutt, late actor and Minister for Sports, was the first to extend financial support to the academy by providing `50,000. And soon enough big corporate and resourceful individuals like the Malayala Manorama Group, Ms Sudha Murthy (wife of Mr N R Narayana Murthy, chairman, Infosys), Mr S Gopalakrishnan (co-founder and CEO, Infosys) and Mr Faris Aboobacker of Parrot Grove Group, opened their purse strings liberally for the noble endeavour.

Kerala State Industrial Development Corporation too pitched in to support Usha by allotting 30 acres of

land at its Kinalur Industrial Growth Centre.

Recently, Sobha Developers, a real estate group, sponsored the entire hostel block of the academy, while the Rotary District Club set up a world class fitness centre there. The hostel, which currently has rooms for 18 students, will soon be expanded to accommodate 200 trainees. Usha now plans to develop a world class eight lane 400 m synthetic track.

One would wonder how in this age of professionalism USHA has managed to be running strong even though other sports institutions in the State are in a stage of decay. For this part of the credit should also be given to the academy’s own band of management consultants. The students of IIM Kozhikode regularly provide management inputs helping the academy run on sound organisational principles. They also provide advice on ways to bring in the sponsors.

Today, the academy is not just an institution set up to suit the fancy of the general public or ease the ego of a retired sportsperson. Usha has a clear focus on what she expects out of the academy on a short and long term basis; an Olympic gold in athletics and a world class athletics training facility on the lines of Crystal Palace in London where she trained during her days as an athlete.

This resolve is felt among all aspiring junior athletes as well. They prefer trying their luck here to the trials conducted by other sports institutions in the state. The recruiting season of USHA sees as many as 400-500 children regularly queuing up while other sports recruiters barely manage a dozen. “Parents want to send their children here because they believe in USHA. Also, there is a sense of security that their child will be taken care of and not be exposed to the negativity of the world. Here, only athletics matters,” says Mr Sreenivasan.

She may have missed the bronze in the 1984 Los Angeles Olympics by 1/100th of a second, but USHA’s girls could soon compensate for that; coming home with a bag of medals, inscribed with the five interlaying circles. Usha believes in it. It’s time we do as well.

21

NEWS

Power pipe The Kochi-Kayamkulam gas pipeline will augment NTPC generation by 1,050 MW

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he augmentation of the Kayamkulam plant of National Thermal Power Corporation (NTPC) has received a major boost with the union environment ministry granting clearance to the gas pipeline proposed from the LNG terminal at Kochi to the plant. The clearance follows the Rapid Marine Environment Impact Assessment (RMEIA), which focused on the environmental impact of the project and suggested appropriate remedial measures at the planning stage itself. The expert panel set up by the ministry expressed satisfaction on the environment contingency plans in the project.

The 120 km long Kochi-Kayamkulam pipeline will be laid on the sea bed, and will supply 12.5 MMSCMD of regasified-LNG (R-LNG) to the power plants. The project is estimated to cost `906.44 crore and will be completed in 18 months.

NTPC is planning to set up a 1,050MW gas based power plant next to the existing 350 MW naphtha based power plant at Kayamkulam, using the gas. It is also planning to connect the existing naphtha based plant to gas and to further expand the capacity of the plant by another 350 MW, making the total capacity 1,800 MW. The pipeline will start from GAIL’s despatch terminal, located onshore at Kochi. It will move westward onshore through the Vypeen

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seashore. The portion of the pipeline in the shore approaches up to a water depth of 10 meters will be buried 2-3 meters below the sea bed to ensure that it does not affect the movement of ships to the port. GAIL is in the process of procuring land outside the battery limit of Petronet LNG Ltd for installing the despatch terminal.

The R-LNG will be filtered and then measured by ultrasonic flow meters at the despatch terminals.

The pipeline then moves southward and runs parallel to the shore till Kayamkulam. It will be laid on the sea bed at a water depth of 30-40 meters in this section. The offshore pipeline will have a coal tar enamel coating of minimum 5 mm thickness and concrete coating of 75 mm thickness.

This is expected to provide stability to the pipeline. At Kayamkulam the

NTPC is planning to set up a 1,050MW gas based power plant next to the existing 350 MW naphtha based power plant at Kayamkulam, using the gas. This, along with the expansion of the plant, will take its total capacity to 1,800 MW

The KochiKayamkulam gas pipeline is divided into three sections.

■ Onshore dispatch terminal at Kochi to Kochi shore (approx 1.5 km) ■ Offshore Pipeline from Kochi shore approach to landfall point at Kayamkulam (approx 117km) ■ Onshore pipeline from land fall point to receipt terminal, Kayamkulam (approx.

1.5 km) pipeline will turn eastward and touch the coast. It will continue in the same direction to reach the receipt terminal in the NTPC premises at Kayamkulam. The gas processing terminal of GAIL at the plant will have filtration, gas heating and pressure control facilities and a gas custody transfer assembly. The R-LNG received at the receiving terminal will be filtered and pressure regulated to supply gas to the NTPC power plant at desired pressure and temperature.

A 20 inch diameter pipeline would be sufficient for meeting the requirements of the 1,800 MW plant, at the desired R-LNG receivable pressure of 43-56 kg/cm2 at the transfer point at Kayamkulam. But GAIL is building a 24 inch pipeline to enable it to meet the gas demand in southern Kerala and also to cater to further increases in capacity of the power plant.

The pipeline will be monitored and controlled through PLC/panel based instrument in the control room.

In addition, supervisory control and data acquisition (SCADA) system will be used for remote monitoring and control. The SCADA system will aim at ensuring effective and reliable control and supervision of the pipeline from a centralised location. A real time leak detection system will be provided and integrated with the SCADA network.

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23

NEWS

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he limelight beckons advertisers from South India at the annual Pepper Awards in Le Meridian Given a choice, not many would prefer attending an awards function in Kerala to watching Dhoni & Co. script cricketing history with friends.

But a stroll through the premises of the convention centre in Hotel Le Meridian, Kochi, on April 2 would prove sceptics wrong. The 300-odd top honchos of the advertisement world who made it to the annual Pepper Awards 2011 made sure that the event lived up to its billing as South India’s premier advertising awards.

The Pepper Awards, instituted by the Cochin Ad Club, five years ago, pick up exceptional performances in categories such as Press Campaign, TV Commercial, Corporate AV, Cyber, Production House, FM Radio, Outdoor, Radio, Interactive – Webbased, POP, Direct Mailer, Photography, Packaging, Agency of the Year, Advertiser of the Year, Logo Design, Unpublished works, PR and Promos.

This year’s edition also had an exclusive section for participants from Kerala such as jewellery, real estate, textile, hospitality and Ayurveda among others. The award winners are presented with Gold, Silver and Bronze awards and certificates.

This year’s ‘Agency of the Year’ award, based on maximum points received in all categories of the competition, was bagged by Stark Communication from Bangalore while Karnataka Tourism and Classic Polo shared the ‘Advertiser of the Year’ award.

The first edition of the Awards saw participation from 30 agencies and just over a 100 entries. But this year, over 900 entries under 91 categories from 55 participants from all major cities including Bangalore and Chennai competed for the top honours. Says Ms Sumitha Tony who has been organising this event on behalf of the Club since its launch, “We had to personally convince and invite firms for participation in the early years. But today, these very firms and newer ones keep their entries ready to be dispatched to us as soon as the formal invitation is sent.” And the tribe

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Kerala Pepperoni The Pepper Awards, into its fifth year, grows in stature and looks to competing with top national events

grows.

Matching the high standards of the event was the presence of top ad professionals in the jury committee.

They included Agnello Dias (founder, Tarproot India), Priti Nair (founder, Curry-Nation), Raj Nair (Regional creative director, Contract Advertising) and Dinesh Warrier (digital media expert).

The profile of the judges panel lends the Pepper Awards an air of credibility, feels Mr Santosh K, who is a member of the creative team at Stark Communications, Bangalore.

“With the Pepper Awards being held in venues befitting its standards and better involvement, it could compete with the national level Goa Ad Awards very soon,” he says.

Mr Don Paynter, creative director with Mudra Communication, Kochi, is excited to find an event of such high standards being staged in Kochi. The well organised event is not just an

evening to bask in the recognition of his team’s works, but also an evening of fun and enjoyment. He feels that the awards have helped foster a healthy competition among Kerala ad agencies. By displaying their works alongside those from the metros, creativity from the State will only develop in the coming years.

The event is also an opportunity for smaller agencies from the State to get the due exposure and recognition for their work, which most of the time goes unnoticed. Mr Sudeepkumar T, president of the Ad Club looks forward to making the event a globally benchmarked premium event every year with increased participation in the coming years.

25

NEWS

Gateway to Malabar The newly-constructed 225 metre wharf has revived hopes of Azhikkal Port commencing operations soon

The Azhikkal Port promises to bring in economic development to the North Malabar region

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Kuruvilla Chacko

he year was 1966. The location, a fishing village called Azhikkal near Kannur. An intermediary port began operations here, holding promises of economic growth in the district. The industry, which included the thriving handloom and plywood sectors, was ecstatic about the critical infrastructure facility coming up there, as it would facilitate easy export of their products.

But it was not to be. Somewhere down the line, the port failed to keep pace with the growth around. Worse, it gradually slipped into decline. Proposals for its revival never fructified.

There is hope now, modest though, with the State government including it in the National Maritime Development Programme, funded by

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the Government of India. The much awaited dredging and wharf construction, part of the `1,750 crore project, are already underway. Once complete, it will enable medium sized vessels to dock here.

The 225-metre wharf, being constructed at a cost of `9 crore, will provide a convenient berthing facility for vessels. The dredging operations will provide a minimum depth of 5 metres, which could go up to 11 meters, at the mouth of the basin. The channel has a depth of up to eight metres in most areas (except at the mouth and in some pockets), which could come handy for further development of the port.

Breakwaters are being constructed to stabilise the channel and prevent silt deposition which made dredging difficult beyond 3.5 metres. While the

breakwater from the Azhikkal side has been completed, the one from the Mattul side is under construction.

The channel will be widened later from the present width of 70 metres to 320 metres, which is a convenient turning circle width for bigger vessels.

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he Azhikkal port, located between the New Mangalore port and ICTT in Kochi, was among the 17 notified ports to be developed under Public Private Partnership by the State Government. Mundra Port and SEZ Limited, which had bagged the order for developing the port, later developed cold feet. The project got a fresh lease of life after the government included it in the National Maritime Development Programme.

The port is expected to give a major fillip to the industrial progress of

Cement, sand to go cheaper T

he port will be a cure for the acute shortage of building materials such as sand and cement, especially at a time when the construction industry in the region is in a boom phase with the launch of the international airport and the first IT park. Inter-port transfer of these materials from Gujarat—at present they are brought via road—could reduce the prices substantially. “Cement will be cheaper by `25-30 per bag and tiles by 10 per cent,” says Mr Maheshchandra Baliga, president of the North Malabar Chamber of Commerce. “Once the airport and Cyber Park come up, it would further create demand for housing and industrial buildings. Huge quantities of construction materials will be needed for the next 4-5 years. The port will help ensure their supply and keep a tab on the prices.”

the north Malabar region. The textile, plywood and spices industry as well as trade sectors are looking forward to the completion of the project with excitement.

With a container freight station coming up at Mangattuparambu, the port will soon be able to handle container cargo as well, apart from the current facility for bulk cargo.

The port will be a godsend for the plywoods industry, says Mr P K Mohamed, managing director Western India Plywoods, the largest woodworking unit in India. “There are ships waiting with cargo for us to enter the port as it will save time and money for both sides. Once operational, we expect to do all our trade through this port,” he said. At present the industry, which imports around 5000 tonne of timber a month, uses the Cochin port. But lack of adequate container freight stations and customs clearance facilities at Kochi hamper operations, he said. “The frequent strikes at Kochi are another hazard as they mean heavy losses and huge operational costs,” he said. The company shells out `35,000 for transporting a TEU (twenty foot equivalent) from Kochi to Kannur apart from other costs on storage. “Once Azhikkal Port starts operations, we would be able to save crores of rupees which we can use to expand our operations and capacity,” Mr Mohamed said.

The port will also be a node for off-shore industries to sprout around

it. Says Mr Farook PP, a shipping agent in the region: “The 150 acres of sparsely inhabited land surrounding the port can house the proposed ship building unit of the Central government as well as the Coast Guard Academy.”

Petro chemical industries can be set up to help ease the pressure off Mangalore and Kochi ports which currently handle the petroleum imports to this side of the country.

There is also a possibility that a part of iron ore exports through the Mangalore port can be traded through the Azhikkal port. Even hill produce like spices, cashew and tea from the

neighbouring Coorg and Wayanad districts will find Azhikkal as a low cost shipping point.

Mr C Jayachandran, president of Kerala Textiles Export Organisation, said the success of the port and the economic progress of the region were mutually dependent. “At present there are more than 30 textile units in the district which trade through the Cochin port,” he says. “Their export of roughly 200 containers a month cannot fill even a single shipment, and so is usually clubbed with other container goods from the Cochin port.” Port operations will augment industrial activity which will help them optimise the services of the port, he says.

The Lakshadweep Association of Contractors and Vessel Owners are confident that bigger vessels of carrying capacity of minimum 4,000 tonne will dock at the port. Azhikkal, being the closest port to Lakshadweep, stands to gain from the daily trade of rice, pulses, sugar and other essentials worth `3-4 crore. At present the trade is routed through the Mangalore and Kochi ports. The port authorities plan to provide a portion of the wharf for exclusive berthing of vessels from Lakshadweep.

The Azhikkal Port promises to bring to Kannur what the Cochin and Mangalore ports did to those regions: a vibrant industrial growth.

27

IPL

Indian Paisa League

IPL debuts in Kochi bringing with it a slew of business opportunities

I

Kuruvilla Chacko

t couldn’t get bigger and better. The mother of all cricketing leagues, the Indian Premier League IV, is here. And the local team, Kochi Tuskers Kerala, bought for a whopping `1533 crore ($330 million), promises to bring in better infrastructure and investment opportunities to the State apart from just quality cricket.

The pre-season hype which has seen parties, road shows, video releases and back and forth updates on social networking sites is bringing in the much required vibrancy and colour that this upcoming metro so definitely lacks. And it’s not just Kochiites, even supporters from outside the district 28

want to be part of the latest festival visiting the State.

Ask Mr TC Mathew, secretary of the Kerala Cricket Association, about the response from other districts in the State and he replies, “During the conduct of international matches here, more than 40 per cent of the crowd comprises people from outside districts. With IPL packing in child entertainment, adult entertainment and all round excitement into a three hour time frame-all characteristics of a typical Malayalam movie, we expect the numbers to go higher.” And it did too.

For many who think cricket appreciation is something not to be found among Keraliites, IPL IV has changed that in its launch edition itself.

Business establishments are keeping their fingers crossed as the season has kicked off. With the ICC Cricket World Cup just having gotten over, they expect the feel good factor to roll onto IPL too. The State has been driving its economy on the evergreen caption of ‘God’s Own Country’ for more than a decade now. The $4 billion IPL will bring in the extra moolah by adding a new dimension to it. With a direct telecast to more than 150 countries, the IPL brings unmatched value for advertisers and other investors of the game. Is it any wonder then that even the international media consider it an important event worth covering?

While Forbes describes it as ‘the hottest sports league’ in Asia Pacific region, The New York Times considers it as the ‘league which became a symbol of a newly dynamic and confident India that was expanding its influence in the world’. With the presence of foreign dignitaries and media personnel, IPL offers the best opportunity to showcase the State to the world, at their expense, without spending an extra rupee.

But the question remains whether IPL can do as much good to a State like Kerala and a Tier II city like Kochi in particular, as expected from all the hype. Will the lack of infrastructure facilities for incoming spectators and tourists hamper the so called feel good factor and leave a negative taste in everyone’s mouth. Mr Mathew thinks positive, though. He is confident that everything will fall into place and the city will automatically embrace the required change. His confidence is echoed by the business community, though everyone feels a combined effort from everyone accompanied by optimism is the need of the hour. Fan frenzy that accompanies European soccer clubs needs to be replicated here as well for the concept to click. The success of IPL is based on regional loyalties and while this can be seen among the supporters of Chennai and Hyderabad, Kochi needs to start feeling the passion.

Sales of merchandise, apparel, conduct of festivities and even local leagues between clubs on the lines of the IPL format will make the game look larger than life and create the

much required hype. There is also scope to start a cricket museum and an exclusive Kochi Tuskers Kerala merchandise shop.

This will bring a carnival like atmosphere to the city and with it the start of a new business era which can transform the entire city just like the Commonwealth Games did to Delhi.

Or better still what the FIFA World Cup does globally every four years.

Despite being held in South Africa, Kerala partied with the highs and lows of IPL II in 2009 like it was happening in its own backyard. The result: white goods and jersey sales went through the roof. IPL IV which is a 45 day extravaganza provides a bigger opportunity as it is based in Kochi.

Mr Biju N, who handles the marketing for Sony India Limited in Kerala, expects a 50-60 per cent growth in sales of its LCD and LED range of TVs during IPL akin to what it experienced last year during FIFA World Cup. Panasonic had set a target of `75 crore during that same period last year. The IPL can bring in an equal amount or even more; the passion just needs to be sustained till the very end.

The tourism and hospitality industry also stand to gain, once Kochi gets into the imagination of the world through IPL. While April-May is considered as the lean period for inbound tourism in the State, cricket tourism will provide the much required fillip.

Imagine a 45-day long cultural festival with celebrity performances in different parts of the State on the days of the matches. Or special screening of away matches in the stadium on large screens, a concept as yet untried in the country. By selling tickets on an average price of `200, the authorities can collect as much as `40 lakh even if the stadium is half empty! With added business generated out of food and drinks served within the stadium, the total amount grossed could cross a crore. With more than 50 matches being played in the current edition, the money involved is enormous. All this without utilising the stadium facilities like floodlights to its full capacity! Other parts of the State could be added as part of an extended tour package, offering visitors an excuse to mix sports with leisure. Mr Riyaz

Ahamed, managing director of the Abad Group of Hotels, is confident of what IPL can do for the industry.

“Match officials, foreign crowds and celebrities always prefer deluxe hotels,” he says. Thus, while small hotels and lodges can cater to the price conscious regular crowds, even high-end hotels can expect good occupancy rates.

Advertising spend is also expected to break new barriers this season in the State. With the IPL being usually held at the start of the new fiscal year, local corporates and even new investors use this period to market their products effectively. Be it advertising within or outside the stadium, or even on essentials like paper plates, drinking water cups and napkin papers, the IPL is a basket of opportunities. Indirectly IPL will see Kerala’s booming gold and retail sectors registering even higher growth. Says Mr Raju Menon, managing director of Maitri Advertising, Kochi, “Some of our clients like V-Guard and Kalyan Silks have already started advertising during the IPL.” These companies expect IPL to increase the share of their business in the State in April-May, which accounts for nearly 25 per cent of all businesses in the year.

There’s also good news for those preferring to tap the virtual world over real world business prospects. Mr Mark Cijo of Brawny Code Techno Solutions, based in Kochi, believes that IPL has thrown up a whole new online trading zone for collectibles

apart from website applications for the netizens. Another money spinner is blogs dedicated to Kochi IPL team. A search on Google Keywords reveals more than 4 million searches for anything that has the word ‘IPL’ in it over the past one month while the word ‘IPL Kerala’ also attracts visitors by the thousands. Mr Praveen Paul, founder of Kochi Vibes, a popular blog website recently posted an article on the IPL Kochi team. The site received more than 15,000 hits on the day of release, which was 25 per cent more than the second most viewed article in the site on that day.

To date, the article has received more than a couple lakh hits. This translates into increased advertising revenues for the site holder. Also, active discussions and forums on the same have been well received in other social media sites like Twitter and Facebook. There is also potential for game developers and smartphone app providers to bank on creative ideas based on IPL. The IPL also has a futuristic role in improving the growth of cricket and sports in the State. Infrastructure like stadia and practice grounds in all districts as well as new academies require enormous amount of money.

The success of IPL will give the required impetus to these facilities and give birth to more international cricketers from the State.

Once IPL sets in motion these developments, the State can rightfully stake claim to a new logo awaiting itGod’s Own Cricketing Country.

“IPL packs in child entertainment, adult entertainment and all round excitement into a three hour time frame-all characteristics of a typical Malayalam movie,” says T C Mathew, secretary of Kerala Cricket Association

29

cover story

The Net Effect Intelligent and imaginative use of the Internet can take businesses a lot ahead. The arrival of social media has made the web an all-important brand building tool 30

T

Aby Abraham G K

hat the Internet and social media played a critical role in the removal of some of the dictators of the Arab world is a wellknown fact. The world wide web is not only dethroning rulers, but is democratising businesses also, by shifting the power from the businesses to the masses, its customers.

Have a doubt? Ask the franchisee of the Kochi IPL team.

They were in for a shock soon after naming the team ‘Indi Commandos’. A Facebook page, ‘Boycott Indi Commandos Kerala’, opened in no time and enrolled more members than that of the team’s official page.

Lessons learnt, the franchisee went in for an online voting and chose ‘Kochi Tuskers Kerala’ for the name.

It is not an exception; but is increasingly becoming a rule. More and more people turn to the Internet and social media as their reference point for decision making. And at a pace not seen earlier. When the Internet arrived in the nineties, it changed the global business scene, slowly though.

Companies, small and big, entered the web world with their offerings. The brick and mortar companies looked passé as dotcom companies hogged the limelight. The bubble, however, burst in no time. Once the noise settled, the two streams chose to co-exist.

It was one of the finest marriages of the old and new ever, helping each other thrive.

The net effect Websites have long ceased to be a

catalogue of products of a company.

It has become a lot more dynamic, interactive, commanding the widest reach to its clients/customers. It today builds brands, attracts new customers, helps understand the market better, creates new sales channels, enables better customer servicing and obtains feedback on products and services. It is one of the most efficient platforms for advertising and for building a community of users interested in its services. It helps the companies address a wide audience at a fraction of the cost of conventional methods. The web also has the ability to better target the audience. Interactive features communicate customer requirements better and provide them with a personalised solution.

How do companies in Kerala approach this revolution? Geojit BNP Paribas, one of the most tech-savvy companies, is an early bird too. The company, which was the first to launch on-line trading in India, has already got on the social media bandwagon.

“We are taking the new avenues very seriously and are not looking at the immediate returns. We know of its power,” says Mr Vipin Nadakkal, Vice President – Marketing, Geojit BNP

SEO allows companies to optimise their website with respect to search engines, so that they come up on top of the search results

Paribas. Mr Binu Mathew, marketing manager, Jairaj Builders, a leading builder of apartments and villas, says, “The website is the first reference for customers outside Kerala, and hence it is important to us.”

While several companies realise the web power, there are manywho, despite their leadership position in the market, are ignorant about what is happening around.

The phenomenon called search engine “I got a reference of a Kochi-based company looking for a consultant,” said Mark Cijo, CEO of BrawnyCode Techno Solutions “The company had a decent-looking website, but the director told me it does not come up when searched in Google. Companies with far inferior products and market share appear when someone searches, but not ours, he complained. Little did he know that the search engines have their own logic in throwing up results. The content was changed appropriately that it was picked up by the search engines. “It started giving him results,” says Mr Mark.

Building a website alone is not enough to attract customers to it. Unless the brand is a household name, and people know the web address, chances are that visitors will rather ignore it. After all there are millions of websites that compete for the attention of netizens and standing out in the crowd is not an easy task.

Search engines like Google help users navigate their way through this maze and find the required information. When a user searches for infor31

Search Engine

S

earch engines are programmes that provide an index of the content in numerous pages in the web for fast search and access. The process of building this index is called web crawling and the specialised programmes used are called web crawlers or spiders.

These programmes work in a really interesting way.

The fabric of World Wide Web is interwoven by the numerous hyperlinks from one webpage to another. The spider starts with some seed URLs to visit.

It identifies hyperlinks in those pages and adds those to the list of URLs to visit. It also extracts

mation on the web, the search engine scours the Internet to find pages.

Once the pages are found it ranks them according to the relevance of the pages to the searched keyword. Search engines have elaborate algorithms to rank the pages (see box). Coming on the top of the search results is very crucial for generating traffic to the site.

Professionals offer search engine optimisation (SEO) and search engine marketing (SEM) solutions which help companies to increase the rank of their web sites in the search results. SEO allows companies to optimise their website with respect to search engines, so that they come up on top of the search results, while SEM helps them place links on the top of the search results, when a user searches for the appropriate keyword.

“Earlier it was enough if your site was listed in the top 10 sites in the search results. But now with the top position going for sites who advertise themselves, it is required that your site come in the first five,” says Mr Sajith KG, CEO of ISPG Technologies In32

and stores data from the title, meta tags, headings and content parts of the page for analysis to decide how that webpage is to be indexed. In this way it crawls through the web following hyperlinks and builds a large enough index of the web.

While indexing a page, search engine determines the relevant keywords for that particular page based on its content. Keywords are the possible search queries which a user may search for in the future.

It also determines how relevant or popular the pages are using proprietary algorithms private to the search engine companies. The main factor that determines the relevance of a page is the number of external

dia Pvt Ltd, a firm offering SEO and SEM solutions to its clients.

Keeping the visitors interested, so that they explore the website more and come back later, after the first visit is over, is also important. Companies update the content on a regular basis and keep the navigation tools simple and familiar to make visitors feel at home at the site. “We ensure that the website contains pieces of information on current topics that would interest potential clients,” says Mr Mathew of Jairaj Builders. Some sites also give demos and guided tours to help visitors easily find out what they

Social media is a double edged sword. It tests the ability and confidence of businesses to give up control over their brands in a controlled manner to meet the aspirations of the customers

links or backlinks existing to the page. If a page is linked from many other pages and external sites it is obvious that the page contains useful information and is more relevant than a page with similar keywords and lesser links. Another important parameter is the content or copy of the page. The words in the headings and words which are frequently used in the copy which correlate with the anchor texts in the backlinks to the page have strong impact on the ranking of the page.

When a user searches for certain keywords, the search engine goes through its index to find the pages that fall under that particular set of keywords. Most relevant pages for the particular search query are placed on top of the results page for easy access. The title of the page and small excerpt from the relevant part of the content along with the link

are looking for.

Companies often ask users to register at the site because it helps them know the customer better. They also use e-newsletters to keep in touch with the registered users. Many companies offer something of value to customers to entice them to subscribe to their newsletters. Such lists, called opt-in lists can build up into a very valuable database over a period of time.

Instead of including all the content in the e-newsletter, companies often give only a topic teaser that directs readers back to the website to read the entire article. This allows the company to find the click-throughrate - the percentage of users who click on the link and is an indicator of the customer’s interest. Statistics on which articles got the clicks will tell the company what interests its clients and help it decide on what to write about in future.

E-mail and SMS marketing is another frequently used tool. It is extremely cheap and can be very effective too if done properly. Companies

to the page is made available to the user. These automatically generated search results are called organic search results.

Other than organic results search engines provide paid advertisements as search results which are often explicitly marked as sponsored links.

In this way search engines are the main gateway to the World Wide Web which provides useful information on the subject of interest to the user. With widespread popularity of search engines it becomes obvious that a webpage is visible to the public if it is visible on the search engine result page (SERP) for the keyword query the site is most relevant for. And that makes optimizing your website for optimum search engine exposure all the more important.

often follow up on e-mail marketing campaigns by sending automated bounce-back replies or by integrating the e-mail campaign with other channels, such as phone calls or direct mail.

Blogs Blogs are an effective, low-cost way used by businesses to market themselves. A blog (a contraction of the term weblog) is a web page, where people jot down their thoughts and opinions on a regular basis. A company’s website usually talks about its people, products and services, while a blog is more informal, and discusses current issues related to its business.

Blogs typically have a place for comments, creating a two-way communication between a company and its clients.

T

he recent addition to the online toolbox has been social media.

Social media uses the power of networking to create and share information. It engages users and encourages them to create and share content.

Social networking sites, blogs,

discussion forums, product review sites, etc are the new playgrounds for brands.

Net savvy citizens are mostly from the upper class of society with higher education and purchasing power.

Studies also show that the Internet is becoming a preferred source of information to the new generation as compared to print and television.

Online platforms allow people to connect to each other easily and create communities where like-minded people pursue their interests. Marketers have to move in to these communities, to places where the new generation spends time to engage them and gain mind share. They have to listen to and take part in the conversations in these forums and then customise their offerings to suit customer requirements.

Having a Facebook page is being considered more important than having a web site

Facebook has more than 50 crore active users, 50 per cent of whom logon to their accounts every day. Latest studies show that its market share has gone up to 85 per cent in India.

LinkedIn has touched the 10 crore user mark, with the user base increasing by 10 lakh a month. Twitter has around 17.5 crore members. These huge numbers stand testimony to the growing importance of social media.

“Social media is a part of life for people in the West. But in India, the users are still evolving,” says Ms Sumi Thomas, founder of Dropcap Media, a company that helps build up a social media presence. “Companies have to first decide on what they want to achieve from the social media,” says Ms Thomas. The social media presence has to be tailored to meet the goal.

The power of social media comes from the network effect. Once a person likes you in Facebook, he will be added in your loop and any update that you make on your Facebook page will be shown on the news feed for the person. Also the fact that a per33

“Earlier it was enough if your site was listed in the top 10 sites in the search results.

But now with the top position going for sites who advertise themselves, it is required that your site come in the first five,” says Mr Sajith KG, CEO of ISPG Technologies India Pvt Ltd

son has liked a particular page will be shown on the news feed of all his friends. They may in turn click on the company’s link and will be taken to the Facebook page, again creating another avenue for engagement. “My target is to get one lakh people who ‘Like’ our Facebook page,” says Mr Porinju Veliyath, CEO of Equity Intelligence, which advertises on Facebook. “To have that number of people listening when I talk is very powerful.”

The company already has around 7000 people who ‘Like’ its page and is adding 500 people per month.

Setting the ball rolling is the difficult part in this game. Once it is done, it would gather momentum on

its way and the rate of conversions will increase.

The Facebook page of companies should be different from the profile pages of individuals. Facebook allows companies to create a business page allowing companies allowing companies to control the experience for its visitors. Having a Facebook page is being considered more important than having a web site now.

Social networks are fast becoming an HR tool also for companies. Be it identifying prospective recruits or verifying the backgrounds of candidates, social media is an important source of information for companies. A person’s profile in a social network provides valuable information about the person. “A candidate’s Facebook page is like an image of the person, while the LinkedIn profile is akin to a resume, and the Twitter acelp count reflects the candidate’s h n ca n t o a g h r personality,” says Mr Krishna t a n yj essar formatio out c h Kumar, CEO of GreenPepper e t i n w Un tive In erial t Consulting India Ltd., HR i • a s n m Se etition hted and sm s g • i consultants. For individuals p i r r r e a m y i o m p c co nd plag f custo f o the social network provides Use ission a ation o • a platform to display their m m r r pe te info ders l a o skills and get noticed by v n i h r o n e i P nfus desig • r stak recruiters. othe er and co hasis on t p t u Advertisements also m l C ssive e • have made their mark in social netxce E • works. Earlier online ads had to be placed in specific websites, but now

eb w e h on t s t ’ n Do

34

social networks allow placing ads to different segments of the population, based on location, age, gender, interests, etc. Facebook ads are very popular and cost effective, compared to print ads for certain category of products and services. They also offer companies the ability to place ads targeting the right segment of the population. The ads shown on a person’s Facebook page depends on the profile information entered by the person. An ad shown on the Facebook page creates an impression in the mind of the viewers. The person might then click on the ad link and will be taken to the Facebook page of the advertiser. If the person finds the page attractive, he might ‘Like’ the page, completing the impression-click-like cycle for Facebook ads. Facebook gives you reports on the conversion rates in each stage and companies can use this information to modify their ad campaigns, making them more effective.

Social networking sites, blogs, discussion forums, product review sites, etc are the new playgrounds for brands

YouTube Product demo videos and promotional videos uploaded on social sites such as YouTube allow companies to communicate better with its customers. The sites also provide feedback on how your video was viewed, helping companies to refine their videos. The social media can be used to generate sales also. Dell offers discounts to its followers on Twitter and has already had sales of over $6.5 million over Twitter.

Change is the rule Social networking is an ever changing space. If Orkut was in trend a few months ago, Facebook has taken over the show today. There are many new sites that are trying to gain a share of your attention. But only a few succeed. So deciding the sites on which to be present on itself presents a challenge. A good choice would be to go for generic sites and at the same time build a presence on networks that complement your industry. For example, the travel site Wayn could be a good place for the travel and tourism industry to be present on, while HR companies would definitely need a presence on LinkedIn. It would be a good idea to monitor the traffic in the different sites and concentrate on the one’s that bring the most traffic.

The other side Even with all its advantages, social media is a double edged sword. It presents a great challenge to brand managers as was seen in the case of Kochi Tuskers Kerala. It tests the ability and confidence of businesses to give up control over their brands in a controlled manner to meet the aspirations of the customers. “A brand can be built or destroyed on social network. The quality of communication will determine the course of the brand. If companies devise a thoughtful strategy and execute it with perfection certainly social networks are a powerful medium to build the brand image,” says Mr Nadakkal of Geojit BNP Paribas.

Marketers are using the conversations in the social media to gain

Advantages of Social Media ■ Higher credibility ■ Higher levels of engagement due to interaction ■ More Reach ■ Better Targeting ■ Lower cost ■ Customisation ■ Immediate Feedback

deeper insights about their customers and the attitudes to their products.

“It is better to get feedback even if it is negative and correct yourself fast, rather than court disaster by being oblivious to feedback,” says Mr Krishna Kumar. Transparent and honest businesses could find the social media a place where people lap them up, while fraudsters won’t have a place to hide.

Monitoring It is not just enough to have a social media presence. As you are allowing users to create content on their own and post it on your page, proper monitoring of the pages is a must.

Guiding the discussions in a proper manner and deleting inappropriate content that may be posted are absolutely essential. Gathering feedback on the response of the public and fine tuning your response are also required.

Companies should be ready to invest time and money in this space, even though the returns from these will not be readily available. Since maintaining a large number of sites is difficult, tools like NimBuzz and HootSuite are available, which help in managing pages in different networks from a single point.

The costs involved in building up a social media presence would involve the initial costs in setting up the

Dell offers discounts to its followers on Twitter and has already had sales of over $6.5 million over Twitter

pages, and the costs for maintenance and monitoring. The results from the investment in social media will not come fast. Worse still, the measures for evaluating the success of the initiatives are still evolving. The measurement criterion has to be decided based on the goals of the social media initiative. For e-commerce sites, the criteria could be revenue generated, average order value, revenue per visit and the like, while for content companies the key indicators would be page views, subscriptions, registrations, etc.

The companies have to patiently build their community, before they can hope to see some tangible returns. After all, the social media is all about relationships and building relationships take time. But once a critical mass is reached, they won’t have to look back.

A lot of tools are available to measure the social media metrics.

Companies like Radian6 and Omniture provide comprehensive web analytics solutions that optimise the online spends and conversion rates.

Most social networking sites provide some form of analytic services.

Tracking The online space is very volatile and tracking it is a challenging job. The 24X7 nature of the web, and the vast number of people and platforms that are available to them to voice their opinion, makes the tracking job a nightmare. But companies should be aware that they are being talked about in the online communities. You also have to be mindful of the harm sites can do to your products. A bad remark by a customer can spoil the name of the company and influence other visitors to the site. There are software products available for this purpose.

“We have launched a product which can alert a company whenever a negative reference is made on it on the web so that they can timely remedial action,” says Mr Sajith of ISPG. Companies can also monitor what is being said about them on consumer review sites such as MouthShut.com. Fake pages created by rivals or enemies are another threat that corporates should be mindful about.

35

Art

All the world’s

a stage Serial entrepreneur Jose Thomas sets up JT PAC, the finest private centre for performing arts in South India

A

Kuruvilla Chacko

rt scents Kochi’s weekends now. Great maestros descend on Kerala’s commercial capital to enthral an assortment of art aficionados, amateur enthusiasts and elite connoisseurs. Or legends who exited the scene long back return here to be honoured by the current torchbearers.

Or folk artists, often neglected, showcase the power and beauty of their

art before an unfamiliar but receptive audience. Festivals, seminars and workshops nurture a horde of new converts.

An ambitious sarkari cultural project, you thought.

Welcome to Jose Thomas Performing Arts Centre, or JT PAC. Tastefully designed on the Choice School campus in Thripunithura on Kochi’s outskirts, JT PAC is the brain child of Mr Jose Thomas, an intuitive

“I foresaw a growing awareness among Keralites for art appreciation,” says Jose Thomas.

“I drew inspiration from the various theatres I visited during my business trips”

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businessman and serial entrepreneur, and Mohanlal, the gifted performer and renowned actor.

Arguably the finest private performing arts centre in South India, the 620-seater air-conditioned theatre has some of the best physical features. The ergonomically designed chairs on elevated platforms offer a comfortable, unobstructed view for all. Excellent acoustic management provides minimal distortion of voice while digital lighting, complemented by adequate spot lighting and soft halogen lamps aids aesthetic visibility of the performers on stage. Outside, the landscaped campus that can accommodate a thousand cars saves the visitors the usual jostling for space.

Ever since the curtain rose over it in February 2009, JT PAC has hosted more than 40 shows by artists of international repute. These include dramas Hamlet-The Clown Prince

by Rajat Kapoor, Black Comedy by Namrata Goyal, Antigone by Naseeruddin Shah and Broken Images by Alyque Padamsee; concerts by Pandit Hariprasd Chaurasia, Ustad Amjad Ali Khan, Colonial Cousins, Udit Narayanan, Beatles Mania, Mother Jane and Lucky Ali, and performances

by danseuses Shobhana and Lakshmi Gopalaswami. A four-day Kathakali festival, an international children’s film festival and a weeklong national theatre festival also took place in its hallowed precincts. JT PAC, which has an in-house art gallery as well, has since been listed as a star member of the International Society for Performing Arts.

The resident population with an admittedly dying reverence to art, and immigrants to the city which is emerging as an investment destination, have all welcomed the arrival of JT Pac. Like Mr Aravind R, who was a worried man when he was transferred from Hyderabad to Kochi. The software engineer was most disappointed because he would miss his weekend classical music concerts, since Kochi wasn’t famous as a performing arts centre. “But here I am now, at a theatre comparable to the finest in the world, listening to the world’s best Sarod players,” says Mr Aravind after listening to a rendition of a collection of evening ragas

by Ustad Ayaan Ali Khan and Ustad Amaan Ali Khan, sons of Sarod Maestro Ustad Amjad Ali Khan. “My weekend is made.”

The amazing ambience and facilities at the theatre is an added charm, he says. “I come here every second weekend when the theatre hosts shows.”

T

he theatre is a dream come true for Mohanlal and Mr Thomas, Chairman of the Choice Group having interests in real estate, logistics, education, exports and food processing. “It was a chance thought for me and a coincidence for Mohanlal,” Mr Thomas said about the birth of this exciting idea. “I foresaw a growing awareness among Keralites for art appreciation. I drew inspiration from the various theatres I visited during my business trips.” Mr Thomas broached the idea with his friend and actor Dileep, who suggested that Mohanlal, with his rich experience in the performing arts industry, would guide

Apart from introducing maestros to Kochi, JT Pac seeks to honour legendary artistes and nurture young talents

him through the project.

Dileep made the suggestion, hardly knowing that the three-time winner of the national award for acting was in talks with an investor to set up a similar centre at Thiruvanathupuram. Mr Thomas convinced Mohanlal to support his venture. And JT PAC was born.

Mr Thomas banked on the location of the theatre as one of the key elements of its future success. “It is located in the State’s economic capital, which is emerging as a prominent Tier-II city for investment,” said Mr Thomas. “At the same time, we are comfortably at arm’s length from the city rush.” The businessman in Mr Thomas also counted the sprawling campus of Choice School, run by a trust he heads. However, what made his job easy in convincing Mohanlal was the fact that work on JT PAC had almost been completed and it just needed the support of a patron to launch it commercially. “After coming on board as chairman, Mohanlal took on the role of mentor, guiding the theatre to its current position,” said Mr Thomas. “He is today the soul of the theatre. When he tells his friends with pride that he has his own theatre 37

in Kochi, it makes me beam with satisfaction at being associated with such a like-minded individual.”

Mohanlal shares the same enthusiasm: “JT PAC provides everyone access to quality performances and programmes.”

JT PAC, born out of pure passion and a vision to carry forward the legacy of art and artists from Kerala, was not envisioned purely as a commercial venture. “We view JT PAC as a vital hub for reviving ancient arts of the State,” said Mr Thomas. “It was our way of reminding ourselves that we have forgotten our tradition of honouring and supporting our artists.” The centre provides annual fellowships to 16 retired artists from the State. They are also provided with medical assistance and other support services. The recipients of this fellowship include Kathakali maestros Kalamandalam Ramankutty Nair and Kalamandalam Gopi, Carnatic singer Prasalla B. Ponnammal, Chenda artist Mattanoor Sankarankutty Marar and dramatist and poet Kavalam Narayana Panicker. The centre is also planning to offer scholarships to upcoming artists hailing from financially 38

weak backgrounds to pursue their interests.

“Also the prelude events we introduced last year are now considered to be a trend-setter,” said Thomas. These events performed before the start of the scheduled shows are the ideal platform to re-introduce to the modern society a variety of performing arts so particular to the State. These include Chavittunatakam, Thrithala Melam, Kombu Pattu, Tholpava Koothu and Pulluvan Pattu among others. The theatre plans to open itself for other purposes related to education and student cultural activities as well in the near future. It already conducts

The finest private theatre in South India has some of the best physical features.

Outside, the landscaped campus that can accommodate a thousand cars saves the visitors the usual jostling for space

theatre workshops and art awareness courses for students on a regular basis.

An extensively catalogued and globally accessible performing arts information bank and library at the centre is a major draw for researchers and students of performing arts. Also an initiative to create a closely knit community of self minded art patrons has been developed under a community sponsorship scheme. These transferable yearly memberships come in Gold and Silver categories.

Mr Thomas expects greater involvement from people for concerts by critically acclaimed, but commercially less popular artists’ as well. The theatre averages around 200 people per show, a number that cannot sustain the centre. He dreams of JT PAC holding daily concerts with people queuing up for its shows. Until then, it remains a challenge for him. A challenge he enjoys.

Like the performances at JT PAC. The theatre holds shows every second weekend and tickets can be booked online at www.jtpac.org or through telephone at 9349528057/9349528107

39

ENTERTAINMENT

On target Dileep the actor is also one of the highly successful producers in the Malayalam film industry

J

ust have a look into his profile and you would know that he has got that ‘Midas touch’. He started off as a mimicry artiste, moved to filmdom as an assistant director and always wanted to be an actor. He never had the chocolate boy looks or the flamboyance to make a million girls swoon. After doing some small roles early in the career, he became a hero and success followed him from then on. And the rest, as they say, is history. That is Dileep for you.

Dileep has in fact worked his limitations to his advantage and has used his image as the nice young man, next door, to the hilt. His comic timing is impeccable. He has set the cash registers ringing not just as a hero, but also as one of most successful producers in Malayalam film industry. Twenty 20, which he produced for the actors’ association AMMA, has found its place among the biggest grossers in Malayalam cinema. Grand Productions, Dileep’s production company, has also produced films Kathavasheshan,

Pandippada, Malarvady Arts Club and Metro.

In a chat with VIJAY GEORGE, Dileep shares his thoughts as a producer. Excerpts: You’ve been a hugely successful actor but how serious are you as a producer?

I love cinema and I have earned everything in my life from cinema.

As a producer, I do all that I can for the film, and my mantra while approaching a project is simple, ‘it should be sellable’. The viewers are aware about the gimmicks, and for them it is the story of the film that

Though everybody here always complains about the crisis in the industry, there is no denying the fact that cinema is a highly profitable business.

Dileep, the producer of Twenty 20, the all-time hit in Malayalam film industry, with its director Joshiy

40

As a producer, my mantra while approaching a project is simple: ‘it should be sellable’.

is really important. I like to have perfection in whatever I venture upon. Even if it is a small thing I would like to approach things in a dedicated way.

Isn’t production in Malayalam a highly risky business, given its limitations?

Though everybody here always complains about the crisis in the industry, there is no denying the fact that cinema is a highly profitable business. I have been hearing about crisis in Malayalam film industry for the past several years. But some veterans have told me that such talks have always been there. Perhaps the biggest issue here is that we do not have fresh stories. People come to the theatres only when they are offered something new and good.

Of course, Kerala is a small territory and when the cost of production exceeds the possible amount of returns, you are at risk. There are certain things that we need to keep in mind. The initials tend to be crucial. We have to maintain the theatres well. The government also

asked me if it isn’t a risk. Then, after a while, I was not sure if it would be completed. I hadn’t sold the rights before the production started. I started thinking about the business aspects only when it was ready to be released. I had the confidence that my colleagues would support me and they helped in completing the project.

It was a good experience and all that happened may be because I maintain a good relationship with all of them.

What prompted you to produce ‘Malarvady Arts Club’, which was scripted and directed by Vineeth Sreenivasan, a greenhorn, and had five new faces in the lead?

The USP of ‘Malarvady Arts Club’ was its ‘friendship element’. The five heroes are related only by friendship and still they feel like one. I have so many friends and I cherish their affection. I felt it would work. I am happy with the way the film fared at the box office. And I invest back in films if I get profits.

Sometime back, Mammootty talked to me about making a sequel to Twenty 20. We also have a storyline ready for a sequel, but there have been no serious discussions on it. has to help the industry. We have to keep in mind that this is a fullfledged industry and not some small scale business.

How involved are you in the projects while producing them?

Perhaps I have worked as a full time producer during the making of ‘Twenty 20’ only. Of course, during every project I get involved in every issue concerning it. I make decisions but it is mostly during my free time.

With our kind of market, I would be tense if I am doing a project which exceeds say `10 crore. I have seen how much ‘Twenty 20’, which was an all time blockbuster in Malayalam, collected at the box office.

There have been several issues connected with ‘Twenty 20’ and the project got delayed as well. After

all those issues, will you think about a sequel or another film involving virtually every actor from the industry?

(Smiles) I don’t know.

‘Twenty 20’ could be made thanks to the confidence and the support that my fellow actors in the industry had in me. And such a big director like Joshiy, scenarists Siby K Thomas and Udayakrishna, production controller Renjith and all the crew members worked hard for the success of the film. Sometime back, Mammootty talked to me about making a sequel.

We have a storyline ready as well, but there have not been any serious discussions on it.

Have you become more confident as a producer?

While I decided to produce Twenty 20, there were many who

You were not the hero in ‘Malarvady Arts Club’ or ‘Metro’, though you were the producer. (Dileep did a cameo in ‘Metro’). Is it difficult for an actor to take such a decision?

It’s some kind of a cycle and I am aware that I can’t do all the roles which I did earlier now. I want to do roles that suit me. When I knew that I couldn’t be part of those movies as an actor, I decided to remain just the producer. I feel that new actors should come.

Recently Christian Brothers, in which you were one of the heroes with Mohanlal, Suresh Gopi and Sarath Kumar, was announced to be releasing in around 300 theatres. Do you think such moves improve the prospects for the producers?

It all depends on the merit of the film and these days, initial collections tend to have such an important role. Such experiments are definitely welcome for the industry.

How do you plan for the future?

I don’t believe in planning things in life. In fact, I have this feeling at times that we all tend to take life a bit too seriously than we actually should.

41

Green zone

The cool office V-Guard sets an example with its green office building

A

Asha Jacob

n office where you can retreat to a rooftop garden for lunch?

No wonder the V-Guard corporate office in Vennala, Kochi, was bestowed the 2009-10 ‘Gold Leaf ’ award for its architectural excellence in the public and semi-public buildings category in the State. Instituted by the Indian Institute of ArchitectsKerala Chapter, the award honours the 13-storeyed “green building”, which occupies 1.2 lakh sq ft area and is set in 2 acres.

With global warming and depleting natural resources becoming a hot topic, eco-friendliness is gaining mo-

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mentum as a very real alternative, and green buildings are a way of neutralising the carbon points notched up by industrial activities.

V-Guard’s green corporate office, which started construction in 2006 and became fully functional in January 2010, aims to conserve natural resources, reduce pollution and generate minimum waste, adopt energy efficient practices and use less water.

“I was born and brought up in a village in Kerala, the pristine beauty of which still lingers with me. So my idea of a perfect office space was a building that is environment friendly,” says Mr Kochouseph Chittilappilly, Managing Director, V-Guard Industries, who also owns Veegaland and Wonderla, the well-known amusement parks in India. “This was the reason for building an office space in the suburbs, at Vennala, even though we had a plot in the heart of the city. Besides, the massive industrial activities cause a lot of carbon emission to the atmosphere polluting it, which needs immediate attention. This building is an endeavour, in a small way, to uphold the principle of the need for being eco-friendly for a better future.”

The building was designed to beat the heat on the south and west, which always get maximum sunlight during the daytime. So, each floor has a two metre-wide verandah lined with flower beds. The plants, as well as the verandah, help prevent sunlight falling directly on the walls. It reduces

the heat inflow into the workstations and keeps the interiors of the building cool even at noontime in the summer, cutting down the requirement for airconditioning. “The verandah bordered by the flower beds might be seen as a waste of space,” says Mr Roy Antony, the architect. “But it has proved exceptionally good in resisting heat. A major portion of the incident rays get scattered. Also, an office space with greenery all around provides a soothing effect.” A false ceiling with gypsum boards, which creates a void from the ceiling, helps reduce heat conductivity to the interiors.

Apart from a rainwater harvesting tank with a capacity of 3.3 lakh litres, water used for washing and cleaning purposes is directed to the ‘sewage treatment plant’ on the office premises, where it is treated and filtered and then used for irrigation purposes.

Drinking water requirements are met with through a well after passing through a reverse osmosis mechanism to ensure purity. Any overflow from the rainwater harvesting tank is also routed to the well.

“The daily demand for water in the office is around 15,000 litres. Irrigation requires another 20,000 litres a day, a part of which is met by recycling the waste water from the office.

So, in effect we need to use only 5,000 litres of water from the tank daily.

An automatic drip irrigation system has been set up to water the plants.

Our focus is on giving back more wa-

“I was born and brought up in a village in Kerala, the pristine beauty of which still lingers with me. So my idea of a perfect office space was a building that is environment friendly,” says Mr Kochouseph Chittilappally, Managing Director, V-Guard Industries

43

The wide verandas with plants reduce heat in the interiors

The rooftop garden which is also the dining hall

44

ter to earth than we consume” says Bijoy A B, Projects Manager, V-Guard Industries.

“We are self-sufficient in water,” says Elvin Paduva, Civil Engineer, V-Guard Industries. “We don’t depend on the corporation water supply system anymore and we try to adhere to the concept of minimal water wastage at every stage.”

The tiles used in the ground pavement have pores, which ensure that rainwater is directed to ground rather than flowing away.

One of the highlights of the construction is perhaps the fact that, there is no need to put on lights during office hours. The building wall covers only two feet on top and bottom; windows occupy the rest of the area, allowing maximum light and airflow, so fans are also used only minimally. The anti-glare coating on windows cuts off 80 per cent of heat.

A one foot space above the windows is made with perforated nylon sheet, which allows uninterrupted airflow in the building throughout the day, keeping the air fresh.

“The building is designed with the lift and the stairs in the centre, with the workstations around it. It helps in providing maximum ventilation inside,” says Mr Antony. “People are increasingly demanding offices and homes without air-conditioning, as they come to know the advantages such as lesser power consumption and pollution.”

According to Mr Bijoy, the initial investment for such a building is slightly higher, but the operational cost is much less compared to others. “Air-conditioning is restricted to highly indispensable areas, such as the data center and the electrical panel rooms, which amounts to less than 1 per cent of the whole built-up area,” he says.

“So, electricity bills are slashed to one-fifth, of what they would have been. Aluminium is used for framing purposes, as it has no maintenance cost. We try to uphold the principle of saving today for a better tomorrow.”

The furniture is made from recycled material alone. A 1,500 LPD capacity solar water heater serves the hot water requirement at the office.

The building is designed with the best safety measures.

Two stairs are constructed exclusively for the purpose of evacuation in case of an emergency. The fire safety system is the best in place with fire hydrants, smoke detectors and sprinklers to meet any emergencies.

The rooftop garden is a big attraction of this building.

Half the area, paved with tiles, is made into a staff dining room while the other half is a lawn. The building also consists of a play area and fitness centre for the staff.

“The sight from the rooftop is amazing. We can have a glimpse of the city from here,” says Bijoy.

The management is in the process of setting up a unit which generates electricity by harnessing solar and wind power. Once functional, the frequently used electric line connections would be switched to this, saving on electricity consumption.

Hope this office becomes a trendsetter for the future buildings to come.

Stock analysis

Thriving on chaos C

ontinuing our coverage of the performance of the shares of Kerala-based companies in the market, we look at the shares of broking firms in this issue.

JRG Securities Ltd

Geojit BNP Paribas Financial Services

Market Capitalisation: `542.86 crore Face Value : `1.00 Share price on 1 April 2011: `24.10 Geojit BNP Paribas Financial Services started as partnership firm acting as stock and share brokers in 1988. The company was incorporated as a public limited company in 1994. In 2007, global banking major BNP Paribas took a stake in the company and became its largest shareholder. Geojit BNP Paribas offers a wide range of trading and investment products and solutions – equities, derivatives, currency futures, mutual funds, life insurance products, portfolio management services, etc being some of them.

The Geojit stock had a steep rise from its historic levels during the boom period, touching a lifetime high of `125.3 on 17th Jan 2008, and came down to saner levels when the market tanked. It went to a low of `16.5 on 5th March, 2009. The stock has since recovered slightly to close at `24.1 on 1st April, 2011.

Geojit has been a phenomenal wealth creator during the past two decades, but the past three years haven’t been good for the stock. The company has given a total dividend of `1.95 during the period, but the stock trailed the market during the period.

Market Capitalisation: `59.38 crore Face Value: `10.00 Share price on 1 April 2011: `25.5 JRG Securities Limited started as a partnership called JRG Associates in 1992. The firm was incorporated in 1994, and grew into a broking house with a strong presence in South India. In 2007, Baring India Private Equity Fund II Ltd., a leading private equity firm of international repute acquired a majority stake in the Company.

The share price of the company peaked on 8th Jan, 2008 hitting a lifetime high of `126.35, a level it has not seen since. Within a year, the share price nosedived to a low of `17.2 on 27th Oct, 2008. Though it has recovered from the lows to trade at around `25, its performance has lagged that of the market.

An investor on JRG would not have made much money on the stock unless he had bought it during its lows in October 2008. In the best case scenario, the investor would have made a return of around 50 per cent. The company has also declared a total dividend on `7.5 in the past three years, and like Geojit, has trailed the market during the period.

Share price on 1 April 2011: `181.75 Vertex Securities Ltd is a broking firm which has about 100 offices across the country, the majority of them being in Kerala. Incorporated as a Private Limited Company in 1993, Vertex Securities was converted into a public limited company in 1995. Today Vertex is a member of the National Stock Exchange of India (NSE), the Bombay Stock Exchange, the National Multi Commodity Exchange of India Ltd (NMCEIL), the National Commodities Derivatives Exchange Ltd (NCDEX), and Multi Commodity Exchange of India Ltd (MCX).

The stock hit a then high of `61.65 on the BSE on January 8, 2008 only to recede to the low of `6.9 on April 23, 2009. It then rebounded to touch a lifetime high of `390.9 on November 8, 2010. Currently it is trading at around `181(closing price of `181.75 on April 1, 2011).

If you had bought this stock during its lows in April, 2009 you would have made an astronomical return of nearly 2500 per cent on your investment. Even a person who had bought shares at its peak in 2007 would have made a 200 per cent return, had he held on to the shares.

Vertex Securities Market Capitalisation: `109.03 crore Face Value: `10.00 45

Marketing feature

46

So long as it’s black What’s the colour that customers go in for while shopping? Who goes for what colour of car?

Update talked to marketers across the spectrum and found out some interesting trends

R

emember those photos of ‘Kapil’s Devils’ lifting the Prudential Cup, clad in all-white jerseys? In those days, rainbow had seven colours, cricket was an all-white affair, and white goods remained white.

Fast forward the visuals. Rainbow has now almost 16 million colours, as your computer tells you.

47

Dhoni and co dances with the World Cup and presents a riot of colours on the field.

And white good have ceased to be just white. Once upon a time, all the household appliances – be it the refrigerator, washing machine, airconditioner vent, microwave—were all white, so much so that they were called “white” goods.

“Refrigerators no longer come in white,” says Mr R M Kumar, Manager at Samsung Plaza, Ernakulam.

“We have some aged customers asking for white coloured refrigerators, but they are not available in the market.” The ones that move nowadays are those with grey/metallic shades.

That white coloured refrigerators get soiled easily is reason enough for many to shun them, he reasoned.

The colour indicates class, too, if one were to go by customer behaviour patterns. “Customers in the lower end, and those who seek lower capacities, go for black and bright coloured refrigerators,” says Mr Pradeep Kumar M C, showroom manager of Fridgehouse, M G Road, Ernakulam. “For the upper crest, it is always shades of grey and metallic colours.” Sales of refrigerators with designs on them are also picking up, he said.

The colour is still not the major differentiator, when it comes to airconditioners. “The first criterion for selection is power consumption,” says Mr Kumar. “People look for the star rating.” But beyond that air-conditioners are also showing an aversion towards the white colour. “The trend is for dark coloured air-conditioners, red in particular. People also go for air-conditioners that match their room colour,” says Mr Kumar.

But when it comes to washing machines it is all white. “All the front loading washing machines in the market are white or grey in colour,” says Mr Vinod Nair, Branch Manager, Seimens, Kerala. After all, “that which washes whitest, has to be white itself.” Companies often charge a premium for colours other than white. Dark coloured machines also make the room look smaller and cluttered. Not surprisingly, cloth dryers and dishwashers also follow 48

The top 10 global vehicle colours according to Dupont: Silver: 26 per cent Black/Black Effect: 24 per cent White/White Pearl and Gray: 16 per cent each Red: 6 per cent Blue: 5 per cent Brown/Beige: 3 per cent Green: 2 per cent Yellow/Gold: 1 per cent Others: <1 per cent the same trend. Microwaves too tend to be white. But cooking ranges usually come in black and stainless steel finishes. White and coloured ones are also available in the market. The trend towards colour is also catching up in mixers, with companies coming up with bold colours to attract customers.

“You

can have your car in any colour, so long as it’s black,” said Henry Ford, the man who made cars affordable to the masses. Ford who was the first to set up the assembly line for manufacturing cars had very little colour choice to offer his clients.

Today, the customer is spoiled for choice with a variety of colours in cars. The colour is something very personal to the owners. Culture, fashion, age, tastes, gender etc are thought to have an effect on the colour choice of car buyers.

“White and grey/silver are the fastest moving colours in the premium segment followed by black,” says Ms Smrithi Vinod, Front Office Manager of Audi Kochi. Bright colours like red are preferred mostly as marriage gifts, though this number is not large. There are customers who change their luxury cars annually, but they too stick on to white or grey. The staff at Koyenco BMW also agree that Malayalees be it young or old prefer the class of a white or grey.

The Global Automotive Colour Popularity Report recently released

by Dupont, the global automotive coatings leader, names silver, black and white respectively as the world’s most popular car colours. The popu-

larity of these colours varies across continents with white being the preferred colour in the US, Japan, India, Russia and South Africa. South America, China and South Korea prefer silver, while Europe pitches for black.

The Dupont report says that in India, white with a share of 29 per cent leads the colour choice for vehicles, closely followed by silver at 24 per cent. Brown/beige (11 per cent) comes up in third place, the first time it occupies such a high rank in all the regions surveyed. A recent study by Ford in Europe also confirms the emergence of earthly tones like brown and copper. Grey comes up at the fourth position with 9 per cent share, relegating black/black effect (8 per cent) to the fifth position, its lowest rank among all the regions.

The colour preference for cars also varies along with the segment and the age group of the buyers. Says Mr Rajesh M A, Asst. Manager, Sales with Hyundai, “The younger generation goes for black and other peppy colours. Light coloured vehicles are generally preferred in the small segment.”

Black may be a loser in cars, but it is the most preferred colour among electronic goods, be it mobiles or laptops. Women customers, however, opt for pink, blue and other colours; among mobiles in a range of `5,000-10,000. Mr Kevin Basil, a Nokia priority Dealer in Kochi, says that a major part of their sales are for black. From Kozhikode to Trivandrum though, smartphones have just two colour preferences-white or grey.

Mr Sadanandan of Focuz Computers vouches that 70 per cent of all laptop sales are black due to the colour’s resistance to fading. That the consumers—mostly corporates and youth—see black as a sign of sophistication is another reason. The Dell Store also registers maximum sales for its black laptops while the red and blue colours are preferred mostly by ladies or by designers. The range of laptops by Sony Vaio is preferred by customers as a luxury item for its variety colours but its sales are nowhere comparable to that of black laptops of other brands.

49

exercises

Energisers at the desk Forget ergonomics, exercises can help you control your aches A P Jayadevan

W

ith long hours and deskbound jobs, back and neck aches are common occupational hazards at today’s offices.

Not only does it affect the quality of work, but the pain can also eat into your after-work life.

All you need to do is spare a few minutes at your desk to take control of your body, and improve productivity and concentration. These exercises, taken from Yoga, are simple to do and relaxing.

Here is a simple five-minute exercise that will help you feel a difference within weeks.

Normal posture

This is the most important posture to understand, where the spine is straight and therefore, relaxed. Sit near the edge of the chair, placing your feet about a foot apart; they should be parallel, with no outward inclination. Heels should be placed right underneath your knees so that the knees and hips are bent at right angles. Slightly lift your rib cage and roll your shoulders back slightly, so your chest expands. Feel a slight arch to your lower back. Pull your belly button in very slightly and breathe smoothly. Hold this position for three to five minutes; concentrate on relaxing your body. If possible, do this at least two times in a day at the office.

Breathing Breathing is of prime importance in Yoga. A clear and even breathing pattern revitalises each cell with each respiration, and is a good stressbuster. Use “dead time”—when you are waiting for a download, or at the copier, or when you are on hold on the phone, or waiting for a meeting—to do deep belly breathing!

Basically, just load your lungs fully with refreshing oxygen. Normally, one doesn’t utilise his lung capacity to the maximum. This lowers oxygen supply to cells and in turn, lessens toxin elimination through exhalation, leaving one feeling lethargic throughout the day. It can be worse

50

for a smoker.

Deep belly breathing is simple.

Sit in the normal posture, with your palms on your knees. Start by relaxing the diaphragm, breathing deep starting from the belly, then the rib cage and up to the collar bone. When you exhale, do the reverse; release air from top, middle and then down.

Imagine that, with each inhalation, you are revitalising all your cells with pure oxygen (powerful prana) and with each exhalation, you are pushing out all the unwanted toxins— even negative thoughts—from your body! Do this ten to fifteen times at a time and repeat whenever possible.

Neck rolls The neck is the first victim of one’s incorrect posture at the desk. The solution is simple neck rotations.

■ Sit in the normal pose, with your

left shoulder, then back to chest and finally to the normal position. Repeat the process in the opposite direction.

Do five rotations to each direction.

One should do all the moves with full focus; he/she should feel the stretches over each muscle around the neck, and also focus the mind on relaxing the muscles.

Caution: Those who have severe neck problems like spondylosis should not do these without consulting their doctor.

Hand works

chin parallel to the ground. Place your palms on your waist. Look straight and inhale; now exhale, slightly turn your face to the right side, till your chin reaches over your right shoulder. Inhale and come to the normal position. Repeat the same to the left side, and repeat the process three to five times.

■ Draw a half circle over your chest with your chin; from the normal position, turn your face down till the chin reaches the chest. And now bring your chin towards the right shoulder, without lifting the face up.

Then back to the last position and repeat the same to the left side.

■ Sit in the normal position. Turn your face up to look at the roof, slowly bring down your chin towards your chest. Repeat five times ■ From the normal position, lower your right ear towards your right shoulder. Hold the position for twothree breaths, and focus on relaxing the left side of your neck thoroughly.

Return upright and repeat on the other side. Do this three to five times.

■ Finally, have a total rotation. From the normal position, lower your chin to the chest and then move it to right shoulder, then move it up to look at the roof. Then bring your chin to the

a) Shoulder rotations ■ Sit in the normal position. Let your hands hang freely at your sides; lift your shoulders upwards while inhaling. And then back as you exhale.

Repeat this five times.

■ Sit on an armless chair or stool.

Let your hands hang freely at your sides; lift your shoulders and slowly and move them forward in a circular manner. Do the movements in both directions. Repeat on each side for five times.

■ Sit straight. Stretch your arms straight. Now, flex them and place your fingertips on your shoulders.

With your fingers resting on your shoulders, move your elbows in a circular manner. Repeat this five times in both directions.

These simple exercises help remove stiffness of the shoulders. b) Wrist rotations Stretch your arms forward. Tighten your fingers, make a fist and release.

Relax. Make a fist and rotate the wrists gently in both directions.

Repeat five times.

■ Sit straight on an armless chair or stool and clasp your hands or interlace your fingers behind you at a normal sitting posture with the back straight. As you exhale, draw straightened elbows towards each other squeezing your shoulder blades together. Hold for two breaths. As you inhale, relax the straightened elbows and release. Repeat three times.

Work your legs Try to walk whenever possible, say to the hotel for lunch or to the next building or to the next floor.

■ Sit straight. Stretch your legs and tighten the whole leg muscles. Hold for three breaths and then release.

Repeat three times.

■ Stand straight. Flex one of your legs. Rotate the ankle gently in both directions. Repeat with other leg.

c) Hand stretches ■ Stretch your hands up while inhaling. While you exhale, drop them down gently. Repeat this five to ten times. The movement should follow your breath.

■ Sit straight. Bring both palms in front of your chest and interlace your fingers. Inhale fully and while exhaling, stretch your arms forward, with your palms facing outward. Inhale and bring your palms back to your chest. Now, in the same way, extend your arms above your head while exhaling. Now back while inhaling.

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Personal finance

A critical insurance A critical illness insurance policy protects your finances if you fall critically ill, the chances of which are on the rise

A

ll of us know the importance of life insurance: to protect our dear ones from the financial loss that our death may pose.

But consider this: the chances of our falling critically ill exceeds that of our death, till the age of 60. The incidence of critical illnesses such as cancers, organ failures, heart attacks and strokes is increasing steadily, due to the increasingly sedentary lifestyle and unhealthy food habits. And thanks to advances in medical science, the survival rates are also rising.

But even then, a critical illness often means financial death to the individual. In such a case, you might not be able to go to work and earn to provide for your family. Your life insurance policy will not help you as you are alive, still. The treatment costs for these diseases are also on the higher side. You may have to dip into the money that you have saved for your retirement or your childâ&#x20AC;&#x2122;s education in such as case. If you havenâ&#x20AC;&#x2122;t saved enough, your family might have to look after themselves and bear the extra burden of raising funds for your treatment. Your family could as well go bankrupt trying to fund the huge costs of your treatment in the absence of your income.

It is indeed a nightmarish scenario, the helplessness prompting many to pray for an early death.

All is not lost though. Help is available in the form of critical illness insurance. It allows you to substitute your income, with the amount 52

The treatment costs for critical diseases are high. You may have to dip into your savings intended for your childâ&#x20AC;&#x2122;s education/marriage or a peaceful retired life

you get from the insurance in case you fall critically ill.

A critical illness plan is a health insurance plan, but there are many differences between it and a typical health plan. It provides protection beyond the traditional health insurance policy. A typical health plan reimburses the expenses incurred by the insured for hospitalisation but in a critical insurance plan, the whole sum assured, irrespective of actual expenses, is payable lump sum after the diagnosis of any critical illness specified in the insurance contract.

The payment will stand even if the patient recovers from the illness and survives. The plan ceases once the benefits have been paid to the insured unlike a traditional health plan which continues even after a claim has been made on it. The number of illnesses covered is also limited under a critical illness plan. Hence a traditional health plan is not a substitute to a critical illness policy.

The payment could be made immediately on diagnosis of a specified critical illness or after a survival period, usually ranging from 30 to 90 days, if specified in the policy terms.

The insurance company will not pay anything if the patient dies within the survival period. There could also be an initial waiting period up to six months as specified in the policy.

Pre-existing diseases and diseases occurring within this period, from the commencement of the policy, may be excluded from cover.

Critical illness insurance is underwritten on the basis of factors such as age, gender, smoking status, past medical history, family history, alcohol consumption, and body mass index of the individual. Your critical illness policy costs more than your life insurance policy for the same sum assured. This is because the probability of you dying before the tenure of the policy is less compared to the probability of contracting one of the critical illnesses during the tenure of the critical illness policy.

So how much critical insurance does a person need? The answer depends a lot on the circumstances of the individual. One approach would

Illnesses covered by Critical Illness Policies Typically, a critical illness plan would provide cover for the below mentioned illnesses: • Aorta graft surgery • Cancer • Coronary artery bypass surgery • First heart attack • Kidney failure • Major organ transplant • Multiple sclerosis • Paralysis • Primary pulmonary arterial hypertension • Stroke be to assume that you would get back to work within a year and select the total income for a year as the coverage amount. But, to be fully secure your critical illness insurance should be more than your life insurance amount so that you can comfortably meet the financial challenges posed by your illness, and protect your family from financial insecurity caused by your inability to earn.

The critical illness cover is available only for the illnesses specified in the policy document (see box). So it is important that you look at the illnesses covered by the policy before buying a critical illness cover. Policies from various insurers vary with the number and type of diseases covered, and the features offered. Choose a policy that covers the illnesses from which you face a high risk, either due to your lifestyle or because it runs in your family.

Choose a policy that covers the illnesses from which you face a high risk, either due to your lifestyle or because it runs in your family

Critical illness insurance can be bought as a standalone policy or as a rider along with your life or health insurance. Stand alone critical insurance policies are year-on-year contracts, and the premiums associated with them are often not guaranteed and could rise as you age. The critical illness rider on a life insurance policy is good for the entire tenure of the policy. But regulations say that the premium on riders should not exceed 100 per cent of base premium.

Since your critical illness policy costs more than your life insurance policy, and you need more critical insurance than life insurance, you cannot buy adequate critical care insurance using riders. Hence it is better to opt for buying a standalone critical insurance policy.

Critical care plans are available with a cover ranging from `2 lakh to `20lakh and policy terms varying from 1 to 50 years. Today companies offer many extra benefits along with critical illness plans. There are plans which combine the benefit of critical care insurance along with other plans. ICICI Pru Crisis Cover provides the benefit on diagnosis of 35 critical illnesses, total permanent disability or death. SmartHealth Critical Illness Insurance Policy from Bharti-AXA general insurance gives individuals the option to choose a lump sum payment or reimbursement of hospitalisation expenses for treatment. ICICI Lombard Critical Care insurance provides cover for accidental death and Permanent Total Disablement on account of an Accident along with critical illness insurance. HDFC Critical Care plan provides cover for 30 different illnesses and the policy will continue, with reduced coverage, even after a claim has been made. Many policies also offer worldwide cover and free health check ups with each renewal.

Being a health policy, tax benefits under Section 80 (D) is available on premium paid for critical illness policies, up to a limit of `15000(`25000 for senior citizens).

Premiums paid for covering parents can also be claimed for deduction over the `15000 limit.

53

Personal finance

A magical compound The early bird benefits

O

nce upon a time, a wise man presented a beautiful chess board to a king. When asked what he wanted in return, he asked for grain placed in a particular order in the squares of the chess board. The first square was to have a single grain and each subsequent square double the value of the previous square – 2 in the second, 4 in the third and so on. The king readily agreed and ordered his soldiers to do the wise man’s bidding. They soon exhausted the storehouse of grains, with many columns remaining unfilled.

The earlier you start investing, the better your ability to harness the power of compounding

54

Welcome to compounding, widely rumoured to have been called “the most powerful force in the universe”

by Albert Einstein. In simple terms, compounding is the reinvestment of the income from your investments at the same rate of return to constantly grow your investment kitty. Thus, the invested money is constantly working to earn more money and ends up being a sizeable amount in the long term.

Time and the rate of return are the essence of compounding. The earlier you start investing, the better

your ability to harness the power of compounding. Consider two persons who both invest `2,500 every month, with a small difference. The first person starts investing at the age of 25, and the second at 35. If their investments fetch them a return of 15 per cent per annum, when they reach 60 years of age, the former would have `3.72 crore while the latter `0.82 crore only in the kitty. Even if the first person stops investing after 10 years, the second person will not be able to catch up with the former at the age of 60; the amount of funds

available for the first person will be `2.29 crore.

The number of grains in each subsequent square of the chessboard starts becoming huge after the first few squares are filled. The phrase â&#x20AC;&#x153;the second half of the chess boardâ&#x20AC;? was coined by Ray Kurzweil to denote this phenomenon, when the number of grains in a square starts increasing dramatically. By starting early, a person increases the chance to enter the second half of the chess board, thereby earning super normal returns.

Another factor that favours early investing is that people will not be bogged down by familial responsibilities and the related expenses, and hence can easily save a part of their income, if they wish to.

The rate of return on your investments also makes a big difference. A one per cent difference in the growth rates over the last two centuries is the difference between Africa and

America today. High inflation often eats into your savings and the return on your investments should be much higher than the inflation rate, if your investments are to grow. Equity and real estate are asset classes that have given returns that surpass the inflation rate. The BSE-Sensex has given an average return of 17.6 per cent per annum, over the past 32 years if you consider its current value of around 18,000 and the base value of 100 on April 1, 1979. `100 invested then in equities would have grown to `18,000 now, whereas an investment in a fixed deposit yielding 10 per cent per annum would only have given you `2,111. This just shows what investing in equities, which have a much higher growth rate than other investment avenues, can do to your investments in the long run.

In investing too, the early bird gets all the money, especially if it invests in equities.

The simple fraud Whenever someone talks to you about simple interest or flat rate, beware. There is no such thing as simple interest in the real world.

Banks often quote the simple interest to show an inflated yield in their advertisements for deposits, while the compound interest rate that they offer will be substantially lesser. When it comes to lending money too, financiers often quote the flat rate per year, and charge interest on the principal that you have already paid back during the year, thereby denying you the benefit of compounding. Credit card companies also charge a high rate of compound interest on customers who do not pay their bills fully on time, often leading them to debt traps.

A one per cent difference in the growth rates over the last two centuries is the difference between Africa and America today

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When my information changes, I change my opinion.

What do you do, sir?

John Maynard Keynes (1883-1946) The most influential economist of the 20th century.

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Everybody knows that technology changes business.

Today, the change flows through the net.

And the fact is, Kerala is the most networked State in India.

Of the 978 Panchayats in Kerala, 99% have broadband connectivity.

Information changes

Be updated

For subscription: +91 97444 17980 or subscription@economic-update.in ----------------------------------------------------------------------------------------------After all, our opinions ought to change!

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58

Kerala is known for its coconuts, but this vendor at the Panampilly Nagar, Kochi, gets his tender coconuts from Pollachi, Tamil Nadu. He picks the coconuts from the truck that visits him every morning on a sell-or-return basis.

The account is settled in the evening: he pays `16 for each coconut which he sells for `20. There are certain customers who insist on naadan (local) coconut, but often he has to send them back disappointed.

BUSINESS CALLED LIFE

V Sivaram

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Enterprise and Economic Update Kerala, a venture supported by KSIDC

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