Enterprise & Economic Update Kerala

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Vol.1 Issue 1 February 2011

Let’s do it RNI No. KERENG02297

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We value your feedback.

Please write to us at: letters@economic-update.in

Gujarati businessman once told me, “You Keralites are crazy people. You never innovate. You process pepper today the same way you did 2000 years ago: pluck it, dry it, pack it in sacks and pack off overseas.”

Well said. We must commend him for airing the general impression businessmen outside Kerala share about Malayali entrepreneurship. Or lack of it. And we must forgive him, too, for nobody told him that a company, started by a young and daring Keralite entrepreneur in 1972, is the global leader in the spice oleoresin industry today, pepper included. We have several of its kind commanding a premium position in the world market. Some others are well-respected for their products and processes.

While working on this newspaper, we faced this question often: do you have so much of industrial activity in Kerala to report on? Our answer is: yes. True, companies from Kerala don’t share the high table when India Inc meets. But nor do Indian companies at Fortune 500 dos! That only half a dozen Indian companies make it to that elite club does not stop the world from appreciating the potential of Indian economy. We share the same confidence about Kerala.

We feel Kerala now stands on the cusp of change. The State is investing in infrastructure as never before. It is ahead of many other Indian States in terms of its industrial infrastructure. It has three international airports; work on the fourth has started. It hosts India’s only international container transshipment terminal, in Kochi; and is planning a second in Vizhinjam. It is all set to usher in a gas-based economy. It has a high density of science and technology personnel. Other States envy its social infrastructure and development indices.

We believe Kerala has a great story to tell. And we see ourselves as its carriers. We will attempt to truthfully report what is happening in this State: entrepreneurship, investments, trends, policies, opportunities, patterns et al.

While we do so, we remind ourselves that economic development must take a just and equitable path. Resources must be shared, creativity encouraged and entrepreneurship promoted. We commit ourselves to standing by green technologies. Not because it is fashionable to do so, but because it is the only way for us to ensure that our children inherit what is their due.

I am happy to inform you that this newspaper is brought out with the support of the Kerala State Industrial Development Corporation, the Kerala government’s arm mandated to attract and nurture industries in the State. We share a common interest in the health and well-being of the Kerala economy, and its development as part of the larger India growth story.

After all, we do process pepper in a different way.

Read us at www.economic-update.in

K J Jacob Editor

Editor K J Jacob Copy Editor K Anitha 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 Chinchu Susan Thomas Edited and published by K J Jacob from Independent Media XI/173 B, Mulakkampillil Buildings, Kunnumpuram-Civil Station Road, Thrikkakkara, Kochi-682021 Kerala, INDIA Telefax: +91 484 2421231 Printed at Maptho Printings Near TVS Junction, South Kalamassery, Ernakulam-683 104 Tel: +91 484 2558 333 Subscription, advertisement sales@economic-update.in +91 97444 17980

Cover design : Anoop Radhakrishnan

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The gantry cranes at the Vallarpadam International Container Transshipment Terminal may soon become the symbol of Kochi like the signature Chinese nets. Incidentally, they are also of Chinese origin.

These cranes will also symbolise the economic progress of Kerala, and India, since they will be loading and unloading containers when mother ships come calling at India’s first ICTT. The terminal, situated at strategic proximity to international sea routes, will help companies save $250-400 per container, making them more competitive in international markets.

Prime Minister Dr Manmohan Singh laid the foundation stone for the `2,118 crore project on February 16, 2005. The project is being implemented in three phases. The first phase of the project, with 600 metres of quay and the capacity to handle 1 million twenty-foot equivalent unit containers, is expected to be launched in February 2011.

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Contents COVER STORY

28 Young guns aim high

Entrepreneurship beckons Kerala youth. Like never before. Some left their high-paying jobs with MNCs, some chose to experiment with an idea while some others went straight to the boardroom from the campus. They have overcome teething troubles and are on their way to making it big

34 Hedge Equities

Baby boom

Original ideas help the startup arrive in the highly competitive financial services world

30 Artin Dynamics

Switching it on

A group of geeks makes artificial intelligence its weapon to conquer the world

36 GreenPepper

Talent hunters

It pays to bring global best practices to a vibrant but uninitiated market. HR consultancy included

32 ubio

Right prescription

Making biotechnology work for the masses is not just charity. It’s good business, too

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38 ISPG

Woven on the Web

Everybody vouches for the Web as a business medium.

But smartness lies in making it make money for you

Contents 23 Let’s go MAD What drives young professionals and students to skip their weekend dos and work with underprivileged children?

44 A class apart

Tamil Nadu introduces imaginative schemes to ensure that all its children attend school.

Even the drop-outs come back

48 Treating it fine

IMAGE, an initiative of Indian Medical Association, ensures that biomedical waste is scientifically treated

51 Lighting a revolution

LED lights help big establishments slash power consumption and cut bills

53 It pays to pay up

11 THE MILKY WAY

Dairying brings life back to Elappully village in Pallakad where seven farmers ended their lives after crop losses left them in debt

18 Back in the race Kerala missed the first IT wave, and does not want a repeat of the same. The State is working overtime to get infrastructure ready for the industry

Keep a healthy CIBIL rating by paying your loan instalments on time. It will make credit easy and cheap

55 Adequate cover, affordable premium

Understanding insurance is key to the purchase decision. Know more about term insurance policies which companies seldom promote

16 Interview/Pamela Anna Mathew ‘No profit, no fun’ The managing director of O/E/N India Ltd does business more with her brains than her heart. She is as sensitive to her customer’s demands as she is to her employees. She is unequivocal on the role of women in society: “Women must see themselves as resources of the economy. If they don’t, it is criminal.”

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AT A GLANCE

Bad economics has Tunisian president flee: High unemployment, high food prices and corruption have claimed one governmental scalp. Ben Ali, Tunisia’s president for the last 23 years fled the country after a revolt by citizens. The protests started when an unemployed college-educated street vendor, set himself ablaze, after police seized his vegetable and fruit cart for want of a permit.

His suicide act, images of which spread through the internet and mobile phones, set in motion country wide protests.

Brazil Prez wants more government: Dilma Rousseff, Brazil’s new president, has promised to protect the most vulnerable in Brazilian society and govern for all. She also outlined her plans for tax reforms, environmental protection, improved health services, regional development, and measures to protect the economy from foreign “speculation”. Ms Rousseff is known to favour a strong State role in strategic areas, including banking, the oil industry and energy. Brazil is one of the fastest growing economies and recorded 8 per cent annual growth last fiscal.

US unemployment rate falls, a bit: The United States economy saw a 8

marginal improvement in its job market conditions in December. According to the monthly report of the Bureau of Labour Statistics, 1.03 lakh nonfarm jobs were added in December, bringing the unemployment rate down by 0.4 percentage point to 9.4 per cent, the lowest in 18 months. The jobs

efforts to cut government spending so as to reduce the deficit.

German economy rebounds: Germany stunned the rest of Europe by posting a 3.6 per cent growth in 2010, the highest after reunification in 1990. The growth follows a contraction of 4.7 per cent in 2009,

Please export, China tells US: Rejecting allegations of currency manipulation resulting in trade imbalance, China has told US that it welcomed greater US exports to it. Speaking at a business conference in Chicago, Chinese Commerce Minister Chen Deming hoped that US exports to China would more than double to $200 billion by 2015 as part of $500 billion in overall trade. “We still have work to do to get to that $200 billion,” Chen said. “Our two countries need to sit down and work it out so there won’t be such a huge trade deficit and trade surplus.”

The latest US data showed that the US deficit with China in 2010 was likely to top the 2008 record of $268 billion, even though the overall US trade gap shrank in November. were created in the leisure, hospitality and healthcare sectors.

Pentagon budget down by $78 billion: Economic recession has forced the US to cut its military spending, which grew significantly after the terrorist attacks of September 11, 2001. The Pentagon budget has been cut by $78 billion. The cuts are part of President Obama’s

the worst since World War II. Export recovery and increased domestic demand drove the growth.

Exports from Germany, the world’s second biggest exporter after China, grew by 14.2 per cent last year, against a 14.3 per cent decline in 2009.

Steve Jobs on sick leave: Apple Inc co-founder and chief executive Steve Jobs, a cancer survivor, has said he is taking a

medical leave until the end of June. Jobs, 53, said he has learned that his health-related issues were more complex than he had originally thought.

The news resulted in the Apple’s stock plunging 7 per cent. Jobs reportedly has had a hand in everything in Apple, from designing new products to their marketing. Investors fear that without Jobs, Apple will not be able to sustain its growth of the last decade.

Page to come back to the top at Google: Google co-founder Larry Page will take over as the chief executive of the world’s largest media company in April. Eric Schmidt, who has been in the job for a decade, will become its executive chairman.

The surprise news came as Google unveiled strong net profits in the last three months of $2.54 billion on revenues of $8.44 billion. Mr Page, 37, is returning to the job he had relinquished to Mr Schmidt, 55, when investors asked for a more experienced business leader. Mr Sergey Brin is the other co-founder of Google.

AT A GLANCE

Indian growth helps global recovery: World Bank President Robert Zoellick has said India’s high growth is helping global economic recovery.

When most economies shrank in 2008-09, India grew 6.7 per cent, followed by 7.4 per cent in 2009-10. It expanded by 8.9 per cent in the first half of the current fiscal, one of the highest rates.

IMF has said Indian economy will grow 8.75 per cent in 2010-11 and 8 per cent next fiscal. The rebound in agriculture and pick up in private consumption and infrastructure growth helped India’s growth.

IndiGo, Airbus ink largest deal: It is the mother of all aircraft deals. No-frills Indian airline IndiGo has signed an MoU with Airbus for the purchase of 180 aircraft.

The shopping cart has 150 yet-to-be produced eco-efficient ‘neo’ series and 30 standard A-320s.

The Neos will use 15 per cent less fuel and reduce emissions and engine

noise. IndiGo has sought government’s permission for launching global operations from mid2011 when it completes the mandatory five years of domestic operation.

IndiGo is the second largest domestic airline, along with Kingfisher, with an 18.6 per cent share. Jet Airways, with 25 per cent, flies at the top.

Exports grow 36.4 per cent, highest in 33 months: Price competitiveness and diversification to new markets such as Latin America helped Indian exports grow to $22.5 billion in December 2010, up 36.4 per cent.

This is the highest growth rate in the last 33 months.

Exports for the current fiscal will cross $215 billion against a target of $200 billion. Imports shrank 11.1 per cent to $25.1 billion, bringing the trade deficit in December down to $2.6 billion.

Now, Chinese in CBSE schools: If you can’t beat them, join them. The Central Board of Secondary Education will introduce Chinese as a subject in schools affiliated to it in class VI from April,

2011. Several factors have prompted the move: the Chinese busy taking Hindi lessons, around 150 Indian companies doing business in China and it being India’s largest trade partner. Most deals with Chinese companies are written in Chinese.

Auto sales up 30 per cent in 2010: The Indian auto sector registered an overall production growth of 32.69 per cent in 2010 over 2009. 17,076,659 vehicles were produced in 2010, up from 12,869,949 in 2009. Sales for the same period were up from 11,322,952 units to 14,824,072 units. Commercial vehicle sales rose by 45.24 per cent and passenger vehicles by 31.34 per cent.

RBI ups rates: The Reserve Bank of India (RBI) has hiked its indicative short-term policy rates by 25 basis points. The Central bank raised the repo rate — the rate at which banks borrow money from the central bank — by 25 basis points from 6.25 per cent to 6.5 per cent and the reverse repo rate — the rate at which banks park their funds with the

T K Kurien to head Wipro IT business: T K Kurien will head Wipro's IT business, India’s third largest software firm, as chief executive officer. Kurien, 50, is a chartered accountant with an engineering degree. He will also be on the company’s board as executive director. A turnaround specialist, Kurien has been with Wipro since February 11, 2000.

RBI — from 5.25 per cent to 5.5 per cent. However, it retained the Cash Reserve Ratio at 6 per cent.

Since mid-March 2010, the RBI has cumulatively increased the repo rate by 175 basis points and the reverse repo rate by 225 basis points. Additionally, the Central bank increased the CRR by 100 basis points.

Record food production: India is targeting a record production of 244.5 million tonne of foodgrain in 2010-11, as against the previous high of 234.47 MT seen in 2008-09. The production targets for rice and wheat are at a record 102 MT and 82 MT, respectively.

IT big boys fail to cheer: The third quarter results of major IT companies brought a mixed bag for the stock market. Top exporter TCS posted 30 per cent jump in net profit at `2,369.83 crore for the quarter on a revenue of `9,663.35 crore. It outperformed Infosys,

which reported a profit of `1,780 crore, up 14 per cent, on a revenue of `7,106 crore. Wipro’s net profit of `1,318.8 crore, on a revenue of `7,829.3 crore, shows a jump by 9.6 per cent.

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AT A GLANCE

Green nod for Vizhinjam: The Union Ministry of Environment and Forests has given in-principle clearance for the Vizhinjam deep water port project and fixed the terms of reference for the environmental impact study. The first stage of the project was expected to require an investment of around `2,500 crore. A committee led by the Chief Secretary is at present examining the 14 ‘request for qualification' bids for taking up the project. The work on the project is expected to begin in March this year.

State seeks `11,033 crore Plan: Kerala has finalised the Annual Plan for 2011-12 with an outlay `11,030 crore, up 10 per cent over the previous year. The Plan lays thrust on the social sector covering comprehensive health insurance, new schools to implement the Right to Education Act, higher remuneration for various weaker sections and a 10 per cent of the total outlay for the Women Component Plan. Substantial outlay has also been made for infrastructure such as roads and bridges, Kannur airport, inland water transport and Vizhinjam International Container Terminal.

Pilgrim rush boosts CIAL: The Cochin International Airport wit10

nessed an unprecedented flow of pilgrims heading to Sabarimala this year.

Around 500 pilgrims used the airport daily since the pilgrimage season began SBT business crosses one lakh crore: The State Bank of Travancore (SBT) has crossed the milestone of achieving 1 lakh crore-business by the quarter ended December 2010. The gross business turnover increased by Rs.16,156 crore year-on-year to reach Rs.1,00,454 crore. Operating profit went up by 17.89 per cent during the quarter to the level of Rs.328.68 crore, compared to Rs.278.79 crore during the same period last year. Net interest income went up by 24.77 per cent to the level of Rs 464.15 crore.

lowed by Bangalore and Chennai.

The airport company provided airport cab services to and from the temple during the season.

Fed Flash allows customers to remit money in real time using any of the branches of UAE Exchange to any branch of Federal Bank. Within minutes of the remittance, the creditor and the beneficiary in India will get an SMS confirmation.

Federal Bank launches Fed Flash: Federal Bank has launched Fed Flash, a real time account credit facility, in collaboration with UAE Exchange.

SIB net up 21 per cent: South Indian Bank reported a net profit of `75 crore for the third quarter that ended in December 2010, up 21 per cent. The bank registered a 26 per cent increase in total income at `672 crore for the quarter. Deposits grew at a robust 31 per cent to nearly `27,000 crore while advances grew at 29 per cent to `19,188 crore. Total business went up from `35,511 crore to `46,186 crore on a year-to-year basis, up 30.06 per cent.

on November 15. The figure reached 800-900 as the Makarasankranthi day approached. Majority of the pilgrims came from Hyderabad, closely fol-

Titanium sponge plant to go on stream: The country’s first Titanium Sponge Plant (TSP) coming up at Chavara will be inaugurated on

February 15. The TSP will initially have the capacity to produce 500 tonnes annually and this will be steadily increased to 1,000 tonnes. Titanium sponge is the raw material for the strategic metal titanium which has important applications in space and aircraft industries apart from bio-medical and shipbuilding industries.

ISRO funded the project and will purchase the entire production.

Centre clears second phase of KSTP: The Central government has cleared the second phase of the Kerala State Transport Project which envisaged an outlay of Rs 1,327 crore. The major roads proposed to be developed under the project are the Chengannur-Ettumanoor-Muvattupuzha stretch of the Main Central Road, PunaloorPonkunnam-Thodupuzha stretch of SH 8 and the Kasaragod-Kanhangad road.

TCS global training centre in Thiruvananthapuram: Tata Consultancy Services (TCS) will set up the TCS Global Learning Centre in Technocity, the third phase of Technopark coming up at Pallipuram, near Thiruvananthapuram. The `1,500-crore state-of-theart training and development campus will come up on 82 acres.

RURAL ECONOMY

THE MILKY WAY When farm crisis led to suicides, Elappully village in Palakkad inspired its people to take to dairying. And the white magic worked Aby Abraham G K

M

ajesh Kumar, 28, comes from a family of farmers. He was doing odd jobs after graduating in commerce in 2002. Though he wanted a source of regular income, he did not think of farming as a vocation. Until he started a dairy farm with 10 cows on a four-acre plot he bought in Elappully village.

The experiment paid off. And having tasted success at full-time dairying, the young farmer now plans to develop an integrated organic farm on his plot.

For Majesh, it was a way forward in life; for many others in the village, situated on the outskirts of Palakkad, the white revolution of sorts that visited it made the difference between life and death. It replaced the images of drought, crop loss and farmer suicides with a model for sustainable living. Today, as many as 4,500 of the 6,000 households in the panchayat-run

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dairy units. Milk production has risen four-fold to 16,000 litres per day. The milk cooperatives alone distributed `7.41 crore in cash to the farmers last year.

The project is an example of what can be achieved through cooperation among local bodies, government departments, officials, politicians and the general public. It won the Best Panchayat Award in the social reality show Green Kerala Express, aired on Doordarshan, for its efforts to improve the lives of the people.

When crops fail

Taking to dairying was not a fancy idea that dawned on them on a fine morning; it was the proverbial last straw for a people who were drowning in debt. In a village where paddy was the mainstay of the economy and the sole source of income for the farmers, crop losses meant neardoom. And it occurred, twice, in 2006. Seven farmers ended their lives in less than a year. People started leaving the village in search of jobs in the industrial areas around Palakkad.

The farm crisis also hit dairying, which was already on the decline. According to K Haridas, who, as then president of Elappully grama panchayat, led the white revolution, farm machines and chemical fertilisers had made cattle rearing obsolete.

The arrival of milk in pouches ended the last of its uses. And the young generation despised the strenuous life attached to dairying.

Farming and cattle rearing complemented each other in their ascent. They did so in their descent, too.

Seeing the collapse of the systems that sustained generations, the panchayath stepped in to see if it can be reversed. Officials of the panchayat, Kudumbasree Mission, Integrated Child Development Scheme and government departments such as agriculture, animal husbandry and dairy development put their heads together. They identified two problems that led to the crisis: the farm income, from paddy, was available only twice a year –after each harvest. The farm-

Value addition

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Dairying replaced images of drought, crop loss and farmer suicides with those of hope and future. Vinitha Balakrishnan, an undergraduate student, carries milk on her bicycle twice a day to the collection point

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he farmers in Elappully have tried to increase their income by making value-added products. They now supply paneer or cottage cheese, which can be easily made from milk, to hotels in Palakkad. A kilo of paneer, made from 10 litres of milk, fetches `480; if sold as milk, it would get just `180. Dairy units also supply curd, butter milk and payasam to marriage halls in the village, on order.

Farmers also gain additional income through the sale of dung and dung cakes. The village falls on the Palani-Guruvayoor-Sabarimala pilgrimage route and a pilot project to produce bhasmam from cow dung was successfully completed in the village last year. Gomutra from a native breed – the High Range Dwarf – is being supplied to Ayurveda factories in the vicinity. Biogas units and vermi compost units have also been set up in the village.

Dairying, now a respectable profession

Elappully’s own white revolution has brought in a new respectability to dairying. The farmers no more ‘rear cattle’, which used to be the vocation for the dull-wit, says K Haridas. “They run dairy units instead.”

In gum boots and casuals, Majesh Kumar tends to his cows and cowshed every day. The dairy unit will power his dreams to set up an organic farm ers had to sustain themselves for the rest of the year on this income and depend on loans in case of a funds crunch. Loss of crops due to the vagaries of weather added to their woes.

An additional source of income, and a mechanism to support them in case of a crop loss, would restore people’s faith in farming, they found.

Back to cattle

“After much brainstorming, we zeroed in on dairying,” said Mr Haridas. “Though dying, it was a vocation very familiar to the village folk.

It used to provide farmers a steady, though small, income.”

The panchayat and the Department of Animal Husbandry held awareness sessions to drum up popular support and participation.

“We convinced them that dairying would provide them a steady source of income,” Mr Haridas said. “We also stressed on the complementary

nature of dairying and agriculture, which helps reduce the input cost of farming.” The farm crisis in fact reinforced the importance of cattle in agriculture.

The panchayat designed a comprehensive plan for the revival of dairying. “We provided farmers with low-cost cattle sheds and feed, highyielding animals, marketing support and the option of making value-added products,” said Dr K Sudhodanan, veterinary officer in the panchayat, who spearheaded the campaign.

Stress on women

To start with, the panchayat commissioned trainee masons to repair about 900 cattle sheds that had fallen into disuse at a cost of `2,500 apiece.

It also sourced good breeds of cattle from Tamil Nadu.

Women were the main beneficiaries of the scheme. As many as 550 women and 280 Scheduled Caste

families got a cow each at subsidised rates under various government initiatives such as the MilkShed Scheme. Kudumbasree units got 105 cows.

The project came embedded with a series of offerings which instilled confidence in the people. They in-

The Elappully project consists of •

Supply of high-yielding cows

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Low-cost cattle sheds

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Fodder cultivation

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Low-cost feed

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Marketing

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Value addition

•

Honouring of farmers 13

Dr K Sudhodanan (extreme right) and K Haridas (second from right) receive the cheque for `1 crore from Chief Minister V S Achuthanandan after Elappully panchayat was adjudged the best in the social reality show ‘Green Kerala Express’ of Thiruvananthapuram Doordarshan

A friend, guide and philosopher

D

r K Sudhodanan, the face of the white revolution in Elappully, is a friend, guide and philosopher to the villagers. A popular figure among the villagers, he inspires them to take up dairying, helping them learn the ropes and stand on their own. He is the reference point for them on anything related to dairying – be it raising capital through loans, taking advantage of government schemes, getting good quality heifers, improvising to build low cost cattle sheds, reducing the fodder cost by finding alternative sources of fodder, or even identifying opportunities for value addition and marketing of dairy products. And of course, he treats the animals too, being just a call away in case a need arises. A true Karshaka Mitra, he adds shine to the award he bagged in 2006.

ferent kinds of fodder are weighed and blended to ensure adequate nourishment, was set up to make handling, transportation and storage easy. “TMR helps farmers to have better control over the feeding programme,” said Dr Sudhodanan.

“They can feed cattle the required nutrients depending on the stage of lactation.”

The committee found that farmers had to trek long distances to reach milk collection points. So it opened two more milk societies — run exclusively by women — taking the total number to nine. Today, there is a collection point every half km. Societies also ply vehicles to collect milk at a nominal rate of `1 per day per household.

The cost

In all, the panchayat spent `75 lakh on the project, which included funds from various departments and the block and district panchayats.

Quiet flows the milk

The concerted efforts were worth it.

Milk collection in societies, which cluded lessons in farm management — a tree used as fodder — among was 2,400 litres per day in 2006, and finance, provision of social secu- farmers,” said Dr Sudhodanan. “We touched 8,000 litres in 2007 and rity through insurance and pension, also coined a slogan ‘A handful of 12,000 litres in March last year. This and distribution of milking machines grass, a pot of milk’, to encourage is besides an approximately 30 per and farm equipment at subsidised cultivation of grass on vacant plots.” cent of total production sold privaterates. It also offered vaccination and It worked. People took to fodder ly in the local market and the share insurance cover for the used for home consumption.

Milk collection increased five times cows. Efforts to attract This has helped many the younger generation like Majesh Kumar. For othto 12,000 litres last year. Societies by promoting entrepreers like M Unnikannan, 33, alone distributed `7.5 crore neurship and mechanisait offered a steady income. tion were an integral part among the farmers The full-time dairy farmer of the project. raises 12 cows and makes a farming in a big way. Even volunteers profit of `5,000 a week.

Challenges of the National Service Scheme from Sulochana, 62, whose husband The addition of around 900 cows the Elappully Higher Secondary was the first farmer in the village to in the village led to new challenges School chipped in by growing grass commit suicide, said, “I got two cows — shortage of fodder and market- on two acres of land adjacent to the from the panchayat. I now get some ing of milk. That feed ate up close to school. The search for a low-cost feed fixed income, adding to my meagre 80 per cent of earnings from the sale ended when they chanced on a mix earnings from farming.” Her husof milk prompted the authorities to of beer waste and starch waste, freely band ended his life when crop losses search for an alternative. available from factories in adjoining failed him in clearing the debts he “We distributed 1.5 lakh seed- Coimbatore. had incurred during his elder daughlings of the CO4 variety of fodder A baling unit that makes total ter’s marriage. Sulochana is not yet grass and 25,000 saplings of Subabul mixed rations (TMR), in which dif- out of debt, but has managed to mar-

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ry off her second daughter recently.

The return of dairying kindled fresh hopes in farming and farmbased ventures. The area of paddy cultivation increased in the area and production went up 11.35 per cent between 2006 and 2010. Farms rearing poultry, Japanese quails and rabbits sprouted in the village. Kerala’s first emu farm is also located in Elappully.

A few like Mahesh Menon, who returned from Saudi Arabia after working for 20 years on various projects including those related to dairying, are experimenting with the idea in a big way. He has a farm as well as a dairying unit. “I bought 12 acres to develop a farm. It did not progress as soil quality was bad. I felt that a dairying unit will help me make the land fertile.” Mr Menon has 20 cows now, and plans to buy 20 more. Profits are not his motive for now.

The first heifer park in the State, with 20 calves, has also been set up in the panchayat. It is being run by Mrs Puniyakumari who was chosen the best woman entrepreneur in Palakkad district in 2007. The new concept, suitable for beginners in dairying, seeks to procure and raise high-yielding varieties of calves. The focus is on giving special treatment to the calves so that they grow into cows that give good yield. The calves are de-wormed regularly and fed on growth supplements like fish oil that is provided free by the government.

The grown up cows, when sold immediately after delivery, fetch up to `30,000 each.

for the past 5 years. “We also honoured good farmers, which helped create a positive attitude towards dairying among the villagers,” said Dr Sudhodanan.

Many in nearby areas are taking a cue from the Elappully endeavour.

Dairy farms are coming up in Kuttannoor and Kizhakkanchery too.

The success of the project, and its economic impact, vanquished money-lenders who once roamed the village and caught the farmers in debt traps. Banks offer milk farmers loans on easy terms on the guarantee milk societies give. “Pension and insurance offer social security,” says Mr Haridas, now a member of the block panchayath.

The success of the Elappully experiment lies not in that dairying brings in a lot of money. “It is not a highly profitable business,” said Mr Haridas. “The `7.41 crore given to the 4,500 families comes to just `16,467 per household a year. And the profit is pretty less. But people, especially women, earn on their own and support their families. It works wonders for their confidence and self-respect.”

Majesh Kumar must vouch for that.

Awards

2006

Karshaka Mitra: Dr K Sudhodanan Best organic farmer: Velayudhan Master, Eduppukulam Best dairy farmer: Mini Scaria

2007

Best woman entrepreneur: Puniyakumari

2008

Agriculture Technology Management Agency award for best farmer: Sooraj, Thenari Junior Chamber award for best young farmer: Majesh Kumar Best milk society in the Malabar Region: Elappully APCOS 2009 Ksheera Dhara: Mahesh Menon Mixed farming award: Prakash Menon, Mythri gardens, Elappully For the Panchayat Best Panchayat in Green Kerala Express (2010) Second Best Panchayat in State for Kudumbasree schemes (2010) Nirmal Puraskar (2009) Best Panchayat in Palakkad district for MGNREGS (2009)

Sulochana’s husband was the first farmer in the village to commit suicide owing to debt. She got two cows from the panchayat as part of the project. She is not out of debt yet, but managed to marry off her second daughter recently

Recognition time

The efforts of the panchayat, the veterinary doctor, the farmers and the cooperative societies in Elappully have not gone without recognition (see box). The latest in the string of honours is the award for the best panchayat in Green Kerala Express, a social reality show on Doordarshan. It has been selected the best panchayat in the Jilla Ksheerolsavam 15

INTERVIEW

‘No profit, no fun’

O/E/N India Limited, started in association with KSIDC in 1968, is a pioneer in electro-mechanical component manufacturing industry in Kerala. Pamela Anna Mathew took charge of the company after her father K A Mathew, the founder, passed away in 1986. Since her takeover, the company has grown in size and stature, and its turnover went up from `5 crore in 1986 to `60 crore in 2009.

Mrs Mathew also served as chairperson of the Kerala council of Confederation of Indian Industry, the first woman to do so.

In an interview with Asha Jacob, she talked about her tryst with business, her passions and future plans. Excerpts:

Y

ou joined the industry without a formal training in engineering. How has the experience been?

I joined O/E/N in 1973 as a trainee under my father, who was a strict disciplinarian. The rigorous training I got made me what I am today. I was trained in every segment of the business including the store and the factory. I may not be able to explain the product application to a customer, but I engage people who can handle it well. I am not an engineer, but I work with engineers. All that is needed is pure common sense.

How do you assess the growth of the company since your takeover?

We have made significant progress over the years. Our plan has been to grow 25 per cent every year, though we fell short of it for two years. We do not have exponential growth but our profit margins have been good.

And that is very important, may be more than the sales figures. Ultimately, we are in business to make 16

money and share it with stakeholders and put it back to the business.

If there is no profit, there is no fun in running a business.

How did you survive the economic recession?

We took stringent measures to survive the recession. We sent people on sabbatical and even cut salaries at various levels. We gave people who suffered from health issues and those who were about to retire in three years, the option to retire early.

Even though we could not achieve the target, we did not make losses during recession.

Your products compete in the global market. What is your USP? We deal with applications in the niche area. If we have a relay, we have got 50 variants for the same.

We customise our products a lot, and that is our USP. We look at a process order not from the economic point of view alone. We oblige even if the requirement is for one

piece. If we don’t, then we are not a good supplier.

We are an ISO 9001:2000 company.

We have systems in place to check for quality of products at various stages. We don’t compromise on quality as the products go in to critical applications, which demand very high precision.

What are O/E/N’s future plans?

We don’t plan to diversify our business. We will strengthen the areas where we have the expertise. We deal with an industry where precision matters the most. Any business which involves precision engineering, we would like to do it. We look forward to adding new products and new product applications.

Has there been a difference in the work culture over the years?

Definitely. We had employees who started their career with us and retired from here. Their commitment to work was remarkable. The youngsters of today have got abundant

What is your advice to women who wish to be entrepreneurs?

I urge capable or accomplished women to see themselves as resources of the economy. We have acquired a lot of knowledge and resources from our parents, teachers and peers and let us not let it go waste or die out. It is your responsibility to give it back to the society in which you are living. If you don’t, it is criminal.

It is not that you should run a software or hardware industry, but do something that you are passionate about, be it teaching or cooking. It is not that everyone should become an entrepreneur, but should contribute to society in the best way possible. confidence and exposure compared to those days. But the commitment level has steadily declined. They just want to switch their job once they finish 2 or 3 years in a firm. This makes even the trainers lose interest in training them in a specific area.

What are the growth prospects of electronics hardware industry in Kerala?

Kerala must look at the industry a lot more seriously as it does not require much land, is non-polluting, and can generate a lot of jobs. But there is a geographical disadvantage.

That we are at one end of the country results in logistical issues as most customers are from the northern states. But we have to overcome it.

What was your experience being the Chairperson of Kerala Council of CII? It got me a chance to interact with many people who do excellently well in their businesses, which made me realise that I know very little and

there is a lot more to learn. I started learning more after this. Learning is a never-ending process and you should learn till the end. I could learn the best business practices from many industrialists which I applied to my own firm. It really helped me grow the human being in me.

What are the challenges you face as a woman industrialist?

I come across this question quite often. There were a lot of challenges as an industrialist, but not one as a woman industrialist. I faced no discrimination as a woman, nor was I denied an opportunity. I don’t know whether it was because I pushed the way through or because of my age.

When I come across a problem, I don’t see myself as a woman but as an individual. If I am not capable of handling something, for example, the technical stuff, I engage people who are good at it. But I use my common sense in dealing with the issue.

How do you see yourself as an industrialist in Kerala?

Kerala has the advantage of a highly educated workforce.

Employees understand and adapt easily to the job. They are fast learners compared to those in our Karnataka unit.

As an industrialist, I am pretty happy about where we have reached now. However, running an industry in Kerala is not all that smooth; it is not like running one elsewhere. I have seen people here trying to stick to practices that are no more relevant. Though I respect everyone’s viewpoint, I cannot agree to ideologies being imposed on others. I keep telling my people that their contribution to the company should be given priority rather than their political views. And my stand has worked really well.

What are your hobbies?

I love to listen to music. I love cooking. I even find time to do craftwork and stitching.

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INDUSTRY FOCUS/IT

Back in the race Kerala readies 1,000 more acres and 10 parks for IT industry to catch the second boom Kuruvilla Chacko

K

erala does not want to listen to the hare and tortoise story any more, save for its kids.

Instead, it seeks to write a reworked version with the hare recouping the advantage it had frittered midway.

Kerala had got off to a flying start in the IT race, launching the first dedicated park in the country. Technopark in Thiruvananthapuram was opened in 1991 whereas Hitec City, which acted as a magnet in attracting global leaders to Hyderabad, came five years later. With a high density of science and technology professionals, a teledensity that was far ahead of the national average, an environment that stimulates creativity, an infrastructure that tempts companies and living standards that can easily seduce the best of talent, the State was fancied an easy winner.

But it was not to be. Kerala failed

to sustain the momentum and the IT boom bypassed the State. When its neighbours built industry and reputation, Kerala lost its way somewhere.

Having woken up, the State is trying hard to make up for the lost time. It is busy working on the weak points and strengthening its strengths. It has laid down a wellthought out plan to improve the in-

“Five years ago, we had little to offer a company: neither buildings nor land,” said Dr Ajay Kumar, who, as Principal Secretary (IT) until recently, oversaw a three-fold leap in infrastructure. “Today, there are close to 1,000 acres of land in the State on offer to the IT industry. Companies have a choice to make among built-up space, developed plot for construction or plain land for de-

Kerala is working systematically on improving the infrastructure, soliciting new investment and launching schemes that can make the human resource pool more attractive frastructure, solicit new investment and launch schemes that can make the human resource pool more attractive.

The State has seen a turnaround of sorts when it comes to IT infrastructure in the last few years.

velopment.” In the next five years, the State will see close to `10,000 crore investment in IT infrastructure alone, he said. “There will be investment by the government as well as the private sector,” he said.

The State government plans

Infopark Cherthala is being developed on the hub and spoke model. (Inset): Chief Minister V S Achuthanandan inaugurates the first phase of the park

IT grows here Kerala has close to 1500 acres dedicated for IT infrastructure.

Of this, construction has been completed on 363 acres. Land acquisition and construction are at various stages on 1,127 acres.

FUNCTIONAL IT PARKS

Parks under construction

Land

in acres

Technopark, Thiruvananthapuram Phase II

86

Technocity, Thiruvananthapuram

450

Infopark, Kochi Phase II

160

Technopark, Thiruvananthapuram phase III

92

Technopark, Kollam

44.46

Infopark Ambalapuzha

100

Cyberpark, Kozhikode Cyberpark, Kannur

Cyberpark, Kasaragod

UL Cyberpark, Kozhikode Total

43

25.61 100 26

1127.07

Kerala has five functional IT parks with a built-up area of 9. 85 million sq. ft.

Technopark Thiruvananthapuram Phase-I: The first dedicated park for IT companies.

Opened in 1991, Technopark is spread over 156.4 acres. It has a built-up area of 4 million sq. ft.

Infopark, Kochi Phase-I: Spread across 100.86 acres of land, the Infopark has a built-up space of 5 million sq. ft.

Infopark, Cherthala Phase-I is on 66.62 acres of land with a built-up area of 1 lakh sq. ft.

Infopark, Koratty Phase-I: 30 acres has been acquired for two phases.

The first phase with 40,000 sq. ft built-up space is now functional.

Muthoot Technopolis, KOCHI. The first private IT park is located at the Cochin Special Economic Zone. It has a builtup space of 3.55 lakh sq. ft.

Kinfra Neospace, the first IT park in the Malabar region, is built in the Kinfra Food Processing Park at Kakkancherry near Kozhikode. Neospace has a campus of 10 acres and a built-up area of 85,000 lakh sq. ft.

to spend `2,000 crore to set up IT parks in the next two years. Private IT parks such as UL Cyberpark in Kozhikode are also expected to add to the infrastructure in the State.

Most of these facilities are being developed as SEZs and will have both IT space and the social infrastructure required to support it. One can reach an international airport from each one of the parks in an hour’s drive.

They are also connected to the National Highways.

The government plan follows the hub & spoke model to develop infrastructure. The Technopark at Thiruvananthapuram, Infopark at Kochi and the CyberPark at Kozhikode form the three IT hubs in the State, with the parks in the districts form-

ing the spokes. The Technopark is developing an IT park at Kollam, the Infopark is promoting the Koratty, Cherthala and Ambalapuzha parks, and CyberPark at Kozhikode is developing Kannur and Kasaragod as its spokes. When complete, the total number of operational IT parks in the State will increase to 10 in two years.

The State has also designed a three-tier infrastructure for the industry. If the Technopark at Thiruvananthapuram, Infopark at Kochi and Cyberpark at Kozhikode, and the private IT parks in the cities form the first tier and the spokes at the district level form the second tier, the rural IT parks - Technolodges constitute the third tier.

From US with work Kerala floors IT professionals from all over

Risk and reward: Shilen Sagunan, MD, Arbitron India

M

r Surjeet Dev has been working in Kochi for the past four years. Hailing from West Bengal, Dev arrived in Kochi as a senior executive of a software firm. He moved to Arbitron India, the Indian arm of US media research major Arbitron Inc., when it set up shop here two years back. “I thoroughly enjoyed the 20

tourist spots in God’s own Country in the last four years,” Mr Dev, now director, said. “And of course, my work, too.”

Dev is one among the legions of software professionals from all over the country who have discovered the charms of the city in the recent past.

When Arbitron wanted to es-

The Technolodge scheme envisages developing IT infrastructure in rural areas. Under it, the Kerala State Information Technology Infrastructure Limited (KSITIL), the government agency mandated to develop IT infrastructure in the State, takes over idle government buildings in villages on a 90-year lease. KSITIL spruces them up with plug and play facilities and leases them out to IT and ITES units.

That ITES sector owes its growth to the availability of English-speaking people at a low cost and appropriate infrastructure forms the basis of the project. However, the industry, faced with a crisis as big cities report shortage of manpower, increased attrition and infrastructure bottle-

tablish an office in India, which it viewed as a future strategic market, it chose Kochi as the base. And the decision has paid off well for the company. In the past two years, Arbitron India has grown to 200 people and plans to expand its strength to 400 in the near future. “A good share of the high end technology work for Arbitron is done from the Kochi centre,” says Shilen Sagunan, managing director of Arbitron India.

The decision to start a centre in Kochi was not an easy one for the company. “There were a lot of misgivings about the State in the parent company, but I was able to convince them of Kerala’s advantages,” says Mr Sagunan. “Kerala is an ideal place to do creative, high end work. Keralites are people who challenge things, people who can rationalise and work in cross functional teams. They are ethical and take on responsibilities.

These qualities make them suitable for doing high end work.”

“My hunch was that the problems with industrialisation in Kerala – availability of land, pollution and labour issues do not apply to this industry,” says Mr Sagunan. And the

necks, is looking at smaller cities and towns for growth.

Around 53 per cent of the IT employees in Kerala come from rural areas. If Technolodges provide them employment in their villages, then the companies gain from lower cost of infrastructure, lower attrition levels and the ability to operate in three shifts as the employees stay nearby.

The employees would also benefit from the support system in the form of parents and the extended family.

They can also save on living costs and on the time for commuting. The village economy and its social life will get a boost with people staying back in the villages.

The government plans to set up 10 Technolodges in the first stage.

Two of them at Perinad and Kadakkal in Kollam district are already op-

erational. The Perinad Technolodge has come up on a 2,200-sq ft building that has been renovated at a cost of `17 lakh and furnished with nine cubicles, each with a seating capacity of 10 people. It also has a pantry and a conference room. Broadband net connectivity, three-phase power with backup facilities, water supply and a dedicated parking area have also been provided. The Kadakkal facility with 2000 sq. ft space can house 70 persons. The State is planning to increase the number of

Technolodges to 100 in the near future.

The infrastructure projects, coupled with the State’s large human resource pool — the State's 100plus engineering colleges produce about 20,000 graduate engineers a year — are set to help the State benefit from the resurgence in the IT industry. That the State with 3 per cent of the total population supplies 7 per cent of the country’s IT professionals will work as additional point of attraction.

last two years have proved him right. it schools, hospitals or other recre- system for bus routes.”

The success of Arbitron India has The company has not lost a single ational facilities,” avers Mr Sagunan.

And his colleagues readily agree enriched the IT ecosystem in Kerala work day in the last two years. The parent company is extremely happy with him. “The climate, the educated, in many ways. It has prompted some with the performance of its Indian friendly people, the greenery, the low of its clients also to set up office here. unit. So much so that the CEO of cost of living, easy commute, etc are “We regularly outsource some of our the Arbitron listed “Setting up of the factors that attract people here,” says work to clients. It is important that Kochi unit” as one of the 10 achieve- Mr Dev. “Initially it was difficult to we have reliable vendors and service ments that the company has made in get north Indian vegetables here. But providers,” says Mr Sagunan. It also Kochi has changed very fast. Now offers paid internship to students the year 2010.

“People are the key resource for all the necessities are available in su- from reputed engineering colleges in our organisation. Durthe State, many of ing my travels across whom will go on Arbitron was initially sceptical about the globe, I had met to join the compalocating its India operations in Kochi. many people, who were ny. Arbitron India Two years later, its CEO listed “Setting willing to relocate to is also associating Kerala if a professional with the educaup of the Kochi unit” as one of the 10 work environment, tional institutions achievements of the company that year high end work and in the State. “We are setting up a attractive compensation was given,” says Mr Sagunan. permarkets around Kakkanad. One Centre of Excellence for Media and Around 50 per cent of the employees thing that is lacking is a nice res- Market Research at the National Inof Arbitron India are from outside taurant, where we could take guests stitute of Technology, Kozhikode,” Kerala. “People are willing to relo- to. Commuting to the city during says Mr Sagunan. The centre will cate to Kerala. The notion that IT rush hour for lunch takes up a lot of acclimatise students with the work employees need the so-called ‘hip time. And reading the name plates of done at Arbitron. The company also life’ is a wrong one. Kochi has the buses is a problem as all of them are hopes to build up industry–academia social infrastructure that can attract in Malayalam. It is time that the au- collaboration for research activities talent from all parts of the world, be thorities came up with a numbering at the centre.

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CORPORATE SOCIAL RESPONSIBILITY

I stepped into the classroom and this is what I saw: kids running all over the place, playing, teasing each other, jumping around... I was a bit wary, for there was a very real chance of a naughty kid landing on me.

There were some other youngsters too, standing around, patiently chatting with some of the kids. How can these people be so COMPOSED? I thought. After some time, the children settled down, immersed in their books.

Were these the mischievous kids I saw just a few minutes ago?

The youngsters were no longer lounging around. They were now in their roles as teachers, gently explaining the intricacies of the English language to their rapt audience. Is this the MAD moment which I came to report on?

It’s give back time folks, let’s go

D A M

Young professionals and students love to skip their weekend dos and work with MAD, an organisation that puts nearly impossible demands on its volunteers

Asha Jacob

US first lady Michelle Obama interacts with MAD volunteers and children in Mumbai. To her right is Jithin C Nedumala, managing director, MAD

T

“We want books.”

hat was an unlikely demand for inmates of an orphanage to make, but those from YMCA Boys Home at Thrikkakkara, a Ko-

chi suburb, opted for a difference. It floored the visitors, a group of undergraduate students. They indeed went back to the children with books, and later asked them to write a simple re23

The tough tasks on hand do not deter the volunteers. They excite them, instead.

That is because MAD has a structure that empowers each volunteer to bring out the best in her view of what they had read.

“They could not do it,” said Jithin C Nedumala, one of the visitors. “We read in their eyes a deep-seated urge for education. We also realised that they won’t be able to compete with the children coming out of regular schools. They were destined to pick up menial jobs after their 10th standard. We felt we must make a difference to their lives.”

The visitors — Jithin C Nedumala, Sujith Abraham Varkey, Kavin KK, Santosh Babu, Jithin John Varghese and Gloria Benny — went in for a brainstorming session with friends who shared their anxiety.

And MAD, or Make a Difference, was born.

MAD, started in 2006 with 20 volunteers and 80 children has now branched out to 10 cities in India — Kochi, Pune, Mumbai, Nagpur, Delhi, Thiruvananthapuram, Mangalore, Bangalore, Hyderabad and Chennai — with a network of 800 volunteers working with 2,500 children in orphanages, slums and colonies where poor people live.

Determined to make a difference, the group took the reverse engineering route while charting out its work plan: they want the children to succeed in life; education is key to success; English is the gateway to best education. And computers help optimise it. MAD readies all of these for the children.

Cambridge University Press (CUP) is the Knowledge Partner of MAD in its programme. CUP offers study materials which are part of Cambridge’s English for Schools Curriculum at highly subsidised rates. ZOHO, a US-based software development company, pays for the set consisting of a student’s book, a workbook and a teacher’s book.

The five year programme CUP designed starts with class 5. Those who clear a baseline test in English can start with the Cambridge syllabus while others learn a primary syllabus which includes alphabets.

MAD volunteers conduct twohour classes for the students twice a week. The first task is to improve the children’s communication skills.

Building self-confidence and personality development also get top priority. The syllabus is activityoriented and covers various aspects of learning such as reading, writing, speaking and listening skills.

It teaches English through puzzles and crosswords. Yearly internal assessment tracks the improvement of students.

On successful completion of the course, the student gets a certificate, the First Certificate in English, accepted by major universities and corporates. It increases the employabil-

Dipa Suresh, a content writer, (in pic with children) is so attracted by her work with MAD she drafted her daughter Dia also for it.

“We are perhaps the only mother-daughter duo in MAD,” she quips

24

Shahnaz Mohamed Thahir, an electronics engineer with Geojit Technologies, finds her assignment exciting. “The children who would not have talked one full sentence now speak confidently, even with strangers,” she said. ity of the student.

“We provide them quality English education from class 5, which throws open a large number of career options once they finish their class 12,” said Sanjana Kuruvilla, an entrepreneur and a board member of MAD. “We organise trips for kids to industries, hotels, and other work sites so as to provide them with firsthand knowledge on their functioning. We intend to provide them the life skills that help them stand on their own feet.”

I

t was the steady growth in stature and recognition of the work done that prompted US first lady Michelle Obama to invite MAD volunteers to meet her while on a visit to India last November, and shower praises.

In the four years since its inception, MAD has evolved into a vibrant network of dynamic young volunteers.

It has a solid structure with a national core team co-ordinating the activities of all the centres. Most vol-

MAD is not a network of young enthusiasts who come together to showcase their charity instincts. Instead, it is an organisation which puts nearly impossible demands on its volunteers. “A volunteer is required to spend 100 hours a year,” says Mr Nedumala. “If it falls short of 80, then she has to go out.” Each volunteer gives a commitment to work for a minimum period of one year.

“It is a big responsibility,” explains Mr Nedumala, “because the children look up to you for what you teach, do, talk and wear. In a way, you become their role models.” The volunteers know that they are working together for a good cause and enjoy every bit of that responsibility.

The tough tasks on hand do not deter the volunteers. They excite them, instead. That is because MAD has a structure which empowers each volunteer to bring out the best in her through training, action and assessment.

Each MAD chapter has its own administrative structure which includes President, HR head, PR head, etc. Every centre has a Centrehead and the volunteers.

They have the freedom to design innovative programmes conforming

unteers are professionals or students.

“Anyone who can spare 2 to 3 hours a week is eligible,” said Mr Nedumala, managing director, MAD. There are 10th standard students and 60-year-old homemakers as MAD volunteers.

The selection Feel like associating with MAD? process itself is quite If you have specific skill sets, you can help with foolproof and tough. the camps and other programmes. You can also Candidates’ energy donate money: it can be a one-time donation, level, commitment or a fixed monthly sum. Visit www.makeadiff.in and command over the language make the selection criteria. MAD focuses to the broader MAD agenda. Reaon developing leadership qualities sons Mr Nedumala, “A volunteer’s of the selected volunteers and cre- responsibility comes from the freeates leaders out of ordinary students dom that she enjoys. The volunteers or professionals who become the run the centres, not us.”

It would be just exciting for a change that they want to see in society. It also trains new recruits in 22-year old graduate to get to design teaching, class control and handling programmes which could change students and then assigns them to a the lives of several children. “This particular centre. The volunteers also gives them a kick, and they find it go through the Certificate in Eng- more valuable than weekend films or lish Language Teaching to Adults shopping with friends,” said Mr Nedumala. “Besides, it gives them great test.

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MAD conducts recruitments drives twice a year. The candidates’ energy level, commitment and command over English make the selection criteria. satisfaction when they see the results of their efforts. The volunteers know they are working for a good cause and they enjoy every bit of that responsibility.”

Shahnaz Mohamed Thahir, president of the Cochin 1 chapter of MAD, concurs. “The children who would not have talked one full sentence now speak confidently, even with strangers,” she said. An electronics engineer, Ms Thahir works with Geojit Technologies Limited in Kochi. Binny V A, a web developer who also handles the PR section of the Kochi unit of MAD, shared his experience: “The children who used to back out when foreigners came to their institutions now themselves take the initiative to talk to them.”

MAD is a sign of the sense of urge among the youth to give back to society when they can. They find MAD one of the best ways to do so. Athira S Kumar, a law student, working in Valsalya Bhavan centre of MAD at Anchumuri, said: “Selfsatisfaction makes me work with MAD. I work with children who are literally orphans. Seeing their interest in learning and the improvement they make are my rewards. The children make such an impact that once you start working with them you will 26

not feel like quitting, she said, adding, “They care a lot for you, even though most of them lack parental love. And we become kids for the time being.” One also gets to witness the rare sight of the children asking for weekly tests to assess themselves, Ms Athira said.

The volunteers have such an aura among the children that some want to emulate them. A girl in Valsalya Bhavan centre said she wanted to go back to her village after higher studies and do social work.

Every activity at MAD offers an exciting return for the volunteer.

“We once took the kids on a trip to an airfield,” said Ms Kuruvilla. “The next day, one of them came up and told me that she wanted to join the Armed Forces Medical College! We get feedback from school authorities that children perform much better in their academics after we started working with them. Such reports lift our spirits no end.”

It is not that it is all hardwork at MAD. The annual conferences in which all the volunteers come together are real fun time. “One can see the bursting out of creativity at our meets,” said Mr Nedumala. “Each one of us in fact looks forward to such meets.”

Even professionals who associate with MAD on specific programmes vouch for its spirit. “The children’s thirst for knowledge can amaze you,” said Sumi Thomas, a media professional who has held a career workshop for MAD students. “MAD has already helped them a great deal as most of the girls who attended the workshop were fearless speakers themselves. Leading the workshop was one of the most exciting things I have ever done. It feels good to take time out to do something selfless that is still so rewarding.”

The volunteers get a certificate from MAD on completing one year with it. People who join as volunteers can go up to VP positions and take up administrative jobs. Now, institutions such as the Indian School of Business, Hyderabad, give credits for MAD volunteers who are looking for admission to its courses. “We are proud of the fact that two of the MAD volunteers got selected to ISB this year,” said Mr Nedumala.

MAD has an Employee Volunteer Programme (EVP), which brings in new recruits through onrequest MAD presentations in colleges and corporates. One can also register one's name on the website, www.makeadiff.in. “We conduct recruitment drives twice a year to select volunteers,” says Ms Thahir. Volunteers are also brought in through the E1B1 (Each one Bring one) method, in which each volunteer brings in another volunteer to MAD. “The greatest good you can do for another is not just to share your riches but to reveal to him his own,” said Benjamin Disraeli. There are several ways of accomplishing the task. A MAD one included.

On my way back home, I realised why these kids love their chettans and chechis so much. Because these chettans and chechis belong to those special few who cared for them and were willing to spare the time to Make A Difference to their lives.

KSIDC NEWS

Defence Minister A K Antony launches the works for the National Institute for Research and Development in Defence Shipbuilding at Chaliyam in Kozhikode. Additional Chief Secretary (Industries and Commerce) T Balakrishnan, Union Minister of State for Railways E Ahmed, KSIDC Managing Director Alkesh Sharma, M K Raghavan, MP, Industries Minister Elamaram Kareem, Leader of Opposition Oommen Chandy, Union Minister of State for Home Mullappally Ramachandran, Revenue Minister K P Rajendran and Forest Minister Binoy Viswam are also seen

Setting sails

NIRDESH to develop technology, skill sets for designing and building warships

T

he launch of the National Institute for Research and Development in Defence Shipbuilding (NIRDESH) at Chaliyam, near Kozhikode, comes as a fitting tribute to a region which is known for its naval connection and the ancient tradition of shipbuilding.

NIRDESH is expected to attract the best brains from all over the country and usher in a new era of industrial and academic activity.

NIRDESH is one among the series of projects which the Central government has promoted in Kerala in recent times. Central investment in the State had almost come to a naught for decades—the last central PSU to open a unit in Kerala was Hindustan Newsprint in Vellur, Kottayam in 1978. However, it has picked up of late with several PSUs opening units in the State. Among them are the manufacturing facility of BEML Ltd in Palakkad and a unit of HAL in Kasaragod.

The foundation stone for NIRDESH was laid by Defence Minister A K Antony on January 4, 2011. The

project, estimated to cost ` 600 crore, is coming up on 40 acres given by the State government, and is expected to be completed within two years.

NIRDESH aims at developing the technological base and skill sets required to design and develop warships and submarines, a task which is becoming increasingly complex and technology intensive. It will conduct research in all aspects of warship and submarine design and develop indigenous technology to make the country self-reliant in the field. The insti-

tute is expected to catapult India to the league of nations with global institutions such as Defence Advanced Research Projects Agency in the US. The establishment of NIRDESH will pave the way for the growth of many related ancillary units in the State. Nearly 15,000 different components, needed for the completion of warships are expected to be developed at NIRDESH. Industries Minister Elamaram Kareem has stated that the State government will set up a park for defence-related industries in the vicinity of the institute.

Alkesh Sharma, Managing Director, KSIDC, said the institute would create large-scale direct and indirect job opportunities for youngsters pursuing courses in naval architecture and shipbuilding.

Kerala promotes infra projects

T

State seeks investment from overseas investors

he State government presented four key infrastructure development projects before investors at the Pravasi Bharatiya Divas, recently held in New Delhi. They are the Kannur international airport, the North-South high speed rail corridor, Kochi-Coimbatore-Mangalore dedicated rail route for freight transport and the defence park in Kozhikode. Industries Minister Elamaram Kareem, Additional Chief Secretary (Industries and Commerce) T Balakrishnan and KSIDC managing director Alkesh Sharma presented the opportunities at an interaction with overseas investors at the meet. The other major projects in which the investors showed interest were the Medicity and Educity projects in Malappuram and the Life Sciences Park in Thiruvananthapuram.

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COVER STORY

Fantastic

Five

K J Jacob, Aby Abraham G K, A P Jayadevan Every generation produces its own leaders—be it in politics, administration, academics or business.

While Kerala has excelled in almost every other field, it never created icons of entrepreneurship. The bright seldom found it the best career option. A secure job, all the more welcome if it was in government, was considered the ultimate expression of success by the masses. Ambition was scoffed at.

28

But the trend is in for a change. Kerala produces its own thought leaders in business now--home-grown youngsters who dream big and work hard to make their dreams real.

Their emergence is a solid reason for celebration, since it indicates a shift in thought patterns.

But when we set out to map this change, we found that evaluating companies which have a potential to grow real big in the near future was no simple task.

The search began with a look at companies that were launched in the last five years, by entrepreneurs who were young – well within their thirties. This exercise threw up a list of around 20 companies.

Assessing them on their merit was the next step. We sought the help of Dr Sam Thomas of the School of Management Studies, Cochin University of Science and Technology. He designed a set of criteria for selecting the best of the lot.

The parameters included the quality of the management team, the product, the market and the competition. Excellence of key management personnel, their commitment, educational background, experience, presence of complementary skills and their underlying goals for venturing out on their own were assessed.

Clarity on their offerings, their advantages and limitations, the anticipated gains to their customers in short and long term were studied.

Offerings that had a natural sales appeal and a global audience were preferred.

The size of the market and its readiness to accept the product and the timing of the product launch were other factors that were considered. The ability to differentiate the product and compete in the market and built-up barriers to competition were considered.

In the end, we picked five companies which made the cut on these parameters.

We make no claim that companies that do not figure on the list are not good.

But we promise that those featured have set course for higher goals.

We would also like to mention that of the five companies, four were started by first generation entrepreneurs--a disciplined lot who entered the world of business on their own. This is a welcome development.

We have chosen not to discuss the financials as most companies are still in the investment phase.

The list sadly lacks representatives from two sectors for which Kerala is known the world over: tourism and Ayurveda. We found either minor players with little imagination or those following some conventional patterns of business.

Dr Thomas, an alumnus of NIT Calicut and IIM Bangalore, has also given his take on the companies on page 40. “All these entrepreneurs can sustain their advantage, provided they invest heavily in research, and let their organisations grow beyond them,� he writes.

Welcome to the world of the Fantastic Five.

29

Artin Dynamics

Switching it on They came straight to the board room from engineering college campuses. Now going global with artificial intelligence products

“

The World is Flat,” quipped Thomas Friedman on seeing the playing field being levelled by technology and globalisation. Look around and one would see that a lot of companies that touch our lives today – a la Facebook – are technology startups that took advantage of this shift. But the fact also remains that few Indian technology products have hit it big in the global market.

But if the news emanating from Technopark-based Artin Dynamics is a signal to the future, then it is time we celebrated the success

of a rare entrepreneurial venture in the technology sector. With a $26 million contract for the next three years in the UK market for SPARA, its power-saving product suite, the company working in the artificial intelligence space is all set to make it to the big league.

Artin Dynamics is a story of five geeks coming together to pursue their passion: technology. “We didn’t study in the same college, and had not even met each other before,” says Mr Nelvin Joseph, CEO. “But we knew each other because we used

to bag prizes in tech-related competitions and festivals in colleges. We started calling each other over the phone and gradually found out that we had similar career ambitions.”

All of them were determined not to take up a regular job after college and settle down.

So when they finally met together over a weekend, they were pretty clear on what they were going to do.

Artin Dynamics was born a week later. That was in 2008.

Mr Joseph had nursed his dream about making it big in artificial in-

Why Artin Dynamics ● ● ● ●

Products for area with high growth potential Strong, cohesive management team Very strong order book and product portfolio Well-assessed and appreciated project plan

PLAYING IT COOL: Nelvin Joseph (standing), with co-founders (from left): Sanjay K Menon, Nitin Prabhakar, Sharon Jose and Avinash Prabhakar 30

Stopping power loss How many of us switch off our computers when we leave our offices for the day? These machines consume power even when they are shut down, if they are connected to the power supply. This is because only the processor and the main section of the computer are shut down, and the power supply section continues to consume around 11W of electricity.

This amounts to about 8-9 per cent of the power consumed by a computer in use, and it accounts for 26 per cent of the total power consumed by the machine, say studies. telligence. “And we were equally passionate about conservation efforts,” he says. They zeroed in on power conservation and the means to achieve it using technology.

The company applied for incubation in Technopark Technology Business Incubator (TBI) and the application was accepted in just three weeks – making it the fastest company to enter the TBI cell.

The founders used their own funds and those garnered from their friends and relatives to start the business. The company also received funding from Department of Science and Industrial Research, Government of India, for its research projects. Later on, venture capitalists also invested in the company.

Within six months of incorporation, Artin Dynamics came out with SPARA, its first product that tries to cut down on phantom power losses (see box). SPARA, Swedish for save/ spare, has the hardware and software modules that automatically turn off the computer when it is not in use.

SPARA’s artificial intelligence-based system identifies the individual usage pattern and maps it to the user’s machine. Based on this information, it predicts the periods when the computer will be left idle – for example when the user goes for lunch – and cuts off supply. “The product can cut the electricity consumption by a third, on an average,” says Mr Joseph.

The company already sells its products in the US, Europe and the Middle East. It has already bagged five national and three international patents. It earns revenue by licensing its technologies to OEMs like UPS manufacturers, who retrofit their product with customised modules of the product. The company also conducts research on a contract basis.

Artin Dynamics is also developing products which focus on the household segment. Its new products try to save power in households by switching off power supply to a wide range of electrical appliances that are plugged in but not in use.

Artin Dynamics is the only company from Kerala operating in the Clean Tech category. It is a member of Climate Savers Computing Initiative, committed to purchasing energy-efficient PCs and servers for new IT purchases, and to broadly deploying power management. The company recently won the award for the Best Emerging Enterprise in the Clean Tech segment at the Sankalp Awards, 2010.

“Artificial intelligence is a vast field with not many players. We intend to grow by offering our services in other verticals like telecom, security, etc,” says Mr Joseph.

With its sights set on the global market and firmly rooted in Indian ethos, Artin Dynamics seeks to be the foremost company in the artificial intelligence domain.

The company aims to be an employee-friendly, environmentfriendly and socially responsible organisation. It handpicks its employees, with most recruits coming in through references. Being a research oriented organisation, it gives a lot of freedom to its employees. There are no fixed working hours, for one. “We believe that if people are passionate about their work, they will do it without any compulsion.

Hence we allow people to work in their areas of interest,” remarks Mr Joseph. From just four people at the start, the company has grown to 26 people now.

“We plan like pessimists and act like optimists,” is Mr Joseph’s take on their management style.

Surely a good way to go about it. And grow.

Factfile

Located at Technopark, Thiruvananthapuram Entrepreneurs: Nelvin Joseph, Nitin Prabhakar, Avinash Prabhakar, Sanjay K. Menon, Sharon Jose Background: B-Tech from different colleges Products: SPARA – a suite of artificial intelligence-based products to save power, energy conservation and management products, rapid deployment products, smart living products Services: AI-based automation consulting, automation R&D, green consulting and services, energy management and conservation consultations.

No of people employed: 26 www.artindynamics.com

There are no fixed working hours in the company. “If people are passionate about their work, they will do it without compulsion. We allow people to work in their areas of interest,” says Nelvin Joseph, CEO 31

ubio Biotechnology Systems

Right prescription Test a single drop of blood for 14 types of cancer. Do it at the nearest primary health centre for less than `1,000. Sounds incredible, right?

Focused: Faisal Siyavudeen (left) and Dr V I Bishor

M

aking diagnosis of dreaded diseases easy and affordable for all people is a laudable idea. It is great business, too. And two young men have almost reached there.

It was a chance talk between a veterinary surgeon and a mechanical engineer about designing a simple tool that can make diagnostic tests accessible, affordable and accurate. A pared down version of the high-end ones available in the West can do the job, they found.

For Dr V I Bishor, a product of Indian Veterinary Research Institute, Izatnagar, and his partner Faisal Siyavudeen, a mechanical engineer-turned IT professional, it was a challenge they threw up on themselves. Mr Siyavudeen left his high-paying job at Cisco Bangalore and joined Dr Bishor to set up ubio Biotechnology Systems Pvt. Ltd. in 2008. At the Biotechnology Incubation Centre in the Kinfra Hi-Tech Park, Kalamassery, the duo planned to develop mass market biotech products with special emphasis on diagnostics and healthcare.

In the last two years, ubio has crossed every milestone its founders marked for it.

• A biochip using low-cost multiplex diagnostic assays is awaiting a patent. It can detect infectious diseases, cancers, auto-immune diseases and causes for allergies. Renowned institutions such as the Regional Cancer Centre, Thiruvananthapuram, collaborate with it in the research on cancer diagnostics.

• The biochip reader will soon hit the

Why ubio ● ● ● ● 32

Confluence of three high technology areas: IT, biotechnology and electronics Products for a niche segment Focus on research and high-end products and services Early bird advantage

T

How it works

he flagship product of ubio — a new generation biochip for the clinical diagnostics market — is expected to hit the market in a few months. A biochip is a collection of miniaturised test sites, arranged on a solid substrate. Each of these test sites contain disease causing antigens, the presence of which in the human body are to be tested. These antigens stimulate an immune response in the human body, producing antibodies. When a blood sample is introduced to the biochip, the antigens in the biochip react with the corresponding antibodies, if any, in the blood and forms compounds that can be traced using colouring dyes. Different antibodies in the

•

•

market. It is cheap at `50,0002 lakh as against `40 lakh when imported. Even a primary health centre can afford it!

Its quickVet brand offers bovine, canine, feline and avian tests. The cattle pregnancy test helps optimise reproductive performance by detecting pregnancy within 21 days of insemination. If the result is negative, the farmer can breed it again without losing an estrous cycle.

It has developed antibiotic residue tests for the food processing industry. It is also manufacturing conventional diagnostic kits for OEMs and provides consultancy for setting up biotech labs.

u

bio is the confluence of three technologically intensive fields – biotechnology, electronics and information technology. Dr Bishor had worked on human health issues related to animals while Mr Siyavu-

blood causes the formation of different such compounds in the biochip. The biochips are then read by a biochip reading machine. The imaging system in the reader acquires biochip images and sends them to the software module for analysis.

The ubio SpotOn Biochip analysis software interprets the images from these biochips and provides the test results. The multiple test sites in the biochip allow different tests to be conducted at the same time, using a single sample. The biochip reader also has a counterfeit protection system that detects fake biochips, ensuring the validity of the tests.

The company is in the process of getting patents for its inventions. deen brought in years of experience in IT, CAD/imaging and medical biotechnology industries.

From the beginning, the company was clear on its focus: adapt technology to Indian conditions, and make cheap and technically prudent products. “Imported biochip readers with high-end features make tests expensive,” said Mr Siyavudeen.

“We plan to sell the biochip readers at an affordable price to the PHCs. Biochips will be priced at `1,000 and we hope it will bring us business.”

“Raising funds was an issue,” said Mr Siyavudeen. “Banks refused to fund a start-up operating in a virgin area. Fortunately, some professionals came forward. ” The funding by DSIR allows ubio to develop a prototype of its cancer biochip and conduct early clinical trials. The proposed product is expected to be accessible through primary and secondary care facilities in India, making early cancer detec-

tion affordable to even the poor.

“The life of an entrepreneur is quite tough,” said the duo.

“Quitting a decent job to become an entrepreneur was a difficult decision. We thought we shall give it a shot. We could still go back to our professions, should it fail.” Fortunately, their families stood with them throughout. The support from government agencies was commendable, too. “Perhaps the officials turned sympathetic towards two young men who had left their good jobs.”

Like all entrepreneurs, the duo learned the art of multi-tasking and cost cutting. “We cut costs wherever we could. We even designed our own products, as those in the market were too costly,” said Dr Bishor.

Way to go.

Factfile

Located at Kalamasserry, Kochi Entrepreneurs: Dr V I Bishor, Faisal Siyavudeen Background: Bishor, veterinary surgeon, research in animal and public health; Siyavudeen: B.Tech in mechanical engineering, worked with MNCs, including Cisco, as software engineer.

Products: New generation biochip and biochip reader for clinical diagnostics. quickVet - Bovine and Canine Veterinary products; Antibiotic residue tests for the food processing industry; Human diagnostic tests – MagicPink (pregnancy detection kit), Rapid tests for Dengue, chikungunya, Leptospira and Typhoid Products in the pipeline: Biochip diagnostics for childhood leukemia, Biochip for cancer screening Initial investment till now: `85 lakh www.ubio.in

From the beginning, the company was clear on its focus: adapt technology to Indian conditions, and make cheap and technically prudent products 33

Hedge Equities

Baby boom Equity culture caught the imagination of Keralites in the 80s. Today, the State hosts some of the most respectable stock broking companies.

Hedge may be the baby among them; but shows signs of rapid growth

A

t 30, Alex K Babu has seen it all.

The managing director of Hedge Equities cut his teeth in the family business of seafood exports when it was going through its toughest times of all. And just when

Hedge Equities was conceived out of his love affair with the world of finance, the world economy crumbled.

“I have seen the worst in both the businesses,” chuckled Mr Babu. “And hope the best will follow.”

It should, going by the recov-

ery of the financial markets and the way he nurtures Hedge Equities. An engineer by training, Mr Babu had a thorough exposure in finance at Baby Marine, one of the leading seafood exporters in Kerala. He found that the capital market is the place

Why Hedge ● ● ● ●

Stress on developing market, creating brand Focus on quality of human resource Well-planned growth strategy Very strong, transparent management team

Future ready: Alex K Babu 34

where tough guys play the game, and planned his foray. By 2007, when the Sensex was around 20,000 and was going up and up, he was ready with his plans to enter the market.

But the scamsters in US subprime market poured cold water on his plans. The Wall Street melted, and as on cue, the Sensex tanked.

Mr Babu waited for sometime, and when it started hurting, took the plunge. When he launched Hedge Equities, the Sensex was at 13,000.

It soon touched its nadir, at 8000, in two months. “The timing was the worst for a stock trading company to kick off,” he said. “But we had solid plans to grow.” Buvanendran, his CEO, and Bobby J Arakunnel, COO, shared his opinion.

Thanks to a strong capital back up, the company countered the recession with an aggressive marketing campaign and by expanding its network. It set up 50 branches in the first six months and recruited quality people to man them. It was a risky step that paid off. When the market recovered, Hedge gained from the brand recall it had created.

The company has weathered the storm and is going forward strongly.

It has opened 120 branches in Kerala in the last two years, against an initial target of 50. Hedge owns most branches, unlike most peers who prefer the franchisee model. “This gives the company more control on the kind of service it gives to its clients,” reasons Mr Babu.

Equities are the asset class that gives the highest returns over the long term. Kerala is one of the early States in the country to hitch to the equity bandwagon when it picked up steam in the nineties. However, only 3 per cent of the population invest in equities. Hedge Equities

is hedging its bets on this paradox.

“There is room for all of us in this market,” says Mr Babu, discounting fears of stiff competition. “We have to expand the market by educating people.”

The futuristic plans it has designed in every segment it wants to grow in differentiates Hedge from other players. HedgeYuva, one such programme, aims at inculcating equity investing habits in college students. As part of the programme, organised in association with finance clubs in colleges, faculty from Hedge conduct presentations on equity investment and a quarterly review of the investment portfolios. “They start following the market, and the economy, once they invest even a part of their pocket money in shares,” said Mr Babu. HedgeYuva is now operational in 40 colleges in the State.

The Hedge School of Applied Economics is an attempt to ensure supply of the right talent. The school offers comprehensive training courses to people interested in seeking a career in the financial services industry. “This will help us ensure that we have the right talent capable of giving the right advice to clients,” said Mr Babu. “We have to raise them to the next level to reach our aspirations.”

Trading by clients fetches revenue but Hedge does not encourage it. It wants them to invest for the long term and benefit. “We will benefit when the value of their investments grow,” said Mr Babu. It has limited the leverage given to its clients to just five times the capital available to discourage people from speculating too much. “We train our people on a regular basis so that our philosophy gets imprinted in them.”

Hedge believes that the financial services sector will bloom in the

Factfile Based at Kaloor, Kochi Entrepreneurs: Alex K Babu Background: B.Tech in Mechanical engineering, CUSAT. Director, international finance and marketing, Baby Marine Exports Products: Equity broking, commodity broking, currency futures, wealth management services Products in the pipeline: Gold Loan/NBFC No of people employed: 400 www.hedgeequities.com coming years and is preparing for that big opportunity. “We want to become a complete wealth management firm in future.We are strengthening our capabilities in this space by adding senior people,” said the managing director. “There is a lot of opportunity in that space. People are not aware of the investment avenues that optimise their risk return tradeoff. Businessmen also require sound financial advice.” It also plans to enter the gold loan market in the near future under the banner of Hedge Credits and Finance.

The company, which has till now concentrated on Kerala, now wants to cross the border. But carefully.

“The big cities such as Bangalore and Mumbai need a different approach than what we have at present. We are finalising our plans to enter those markets,” Mr Babu said. These markets, which have a dominant philosophy that runs against the grain of Hedge’s, will be the real test for the fledgling company.

Hedge believes that the financial services sector will bloom in the coming years and is preparing for that big opportunity.

The futuristic plans it has designed in every segment it wants to grow in differentiates Hedge from other players 35

GreenPepper Consulting India GROUP ACT: Krishna Kumar (extreme left) with his colleagues

Talent hunters Kerala, despite its robust education system and the vast resource pool, is not a dream home for HR consultancies. GreenPepper builds its business on a vast, unexplored territory

F

rom the ‘legendary’ Mr Nair who served Neil Armstrong tea upon landing on the moon to UN Under-secretary General and Director-General at World Bank, Keralites work in all parts of the world, in myriad sectors in all capacities. Kerala, with its strong foundation in education, offers a vast pool of human resource for organisations.

But who recruits them all?

It could be a paradox that most Keralites collected their appointment letters through the odd travel 36

agent who doubled up as HR consultant, or directly from the company, delivered by the postman. This is because the business of HR consultancy is quite alien to this land of smart people. Most HR consultants

in the State stop at collecting and forwarding resumes.

GreenPepper Consulting India Pvt Ltd. has brought in a refreshing change to this scene. The Kochibased company, established in 2007,

Why GreenPepper ● ● ● ●

Use of technology for operational efficiency High quality and motivational level of people Adaptation of best operational practices Concentration on client satisfaction

is a one-stop shop for recruitments, HR solutions and practices, training, capacity enhancement, soft skills and career consultancy.

“We have introduced the best global practices here,” said Krishna Kumar, CEO. “The recruitment process is not just about resumes. It is a very human process, which involves a lot of skills. Of course, technology is a big help.” The new approach worked well for the company. From the six clients with which it started, GreenPepper now serves 142 clients in 26 industry verticals spread across all major cities in India and the Middle-East. Its own headcount has gone up from six to 17 now.

The company has trained its people to understand the skill sets each candidate brings with her. “We have around 20 people walking into our offices every day, looking for a job,” said Krishna Kumar. An executive engages each candidate in a career conversation to find out her aspira-

Factfile Located in Kochi Entrepreneur: Krishna Kumar Background: Ma Foi Management Consultants, Cluster Head - Human Resources, Bharti Airtel Ltd ICFAI University, Hyderabad Products: Staffing, training, consulting, services for individual job seekers No of people employed: 17 www.greenpepper.in

tions and skill sets and evaluates her on a set of parameters relevant to the preferred areas. Those who are found wanting in critical skills that hamper their successful entry into a job can join Career Smart, a programme which helps candidates strengthen their weak areas and improve their prospects. “We don’t threaten the candidates. We treat them with respect, instead,” he said.

“Our executives brief the candidates very well about the prospective employer, its work culture and the nature of the job, giving them an insight into what they can expect on joining the company. This helps reduce the chances of them leaving the company soon after joining.”

Nimbleness is the key to success in the service industry and GreenPepper scores on this front. It claims its response time is very small. The client will get a response within 8 hours if the requirement is for junior level recruits and within 48 hours if it is for senior executives. In addition, GreenPepper also makes its executives available on call throughout the day for its clients.

Training and upgradation of skills are the value added services GreenPepper offers its clients. It has organised French lessons for executives and client interactive training sessions for large groups. “We trained over 1,200 over-the-counter sales force personnel at a leading textile dealership recently,” Krishna Kumar said.

Clients and candidates are important. So are the people who interact with them. GreenPepper is keen on developing the skill sets of its employees. The executives are trained to understand the industry and the

company for which they recruit, and match the requirement of the job and the skills of the applicant. Every morning the entire team gathers to discuss the developments in each vertical. This helps the team update itself. “We want them to be GreenPepper style consultants,” he said.

Even during the recession, when the company found the going tough, it did not lay-off a single person. But attrition has been high. “Our staff are sought after in the industry,” the CEO said.

The company makes extensive use of technology to bring efficiency into its operations. It has developed iGreen, a software which helps it document and track details of the candidates. The software has a module which helps executives evaluate each candidate. The details about the clients also go into this system. “We have a database on the companies as well,” said Krishna Kumar.

Technology helps GreenPepper expand its reach across the nation without investing in offices in diverse geographies. It makes use of video conferencing facilities and video resumes for evaluating candidates based in far off locations. “We would like to increase the number of profiles in our database and reduce our turnaround time even more by improving productivity. But the greatest challenge will be to scale up and provide recruiting solutions for the top and middle levels of organisations,” said Krishna Kumar.

The CEO shared his dream: “We want to be the most respected HR firm in the country in 5 years.

The future looks promising for GreenPepper if it continues to live by it credo, doing what it enjoys.

Executives brief the candidates very well about the prospective employer, its work culture and the nature of the job, giving them an insight into what they can expect on joining the company. “This helps reduce the chances of them leaving the company soon after joining,” says Krishna Kumar, CEO 37

ISPG Technologies India

Woven on the Web Survey the market during the day, and do projects in the night. Be nimble footed. If this is the way to stardom in the Web space, ISPG has done it all. And more

B

e at the right place at the right time and do the right thing is the recipe for success.

K G Sajith, founder and CEO of Kochi-based ISPG Technologies India Pvt Ltd, entered the Web world at the right time, identifying its potential as the marketing medium of the future.

Five years into operation, ISPG is Kerala’s most successful web marketing company. Started with five people, it today employs close to 300 people in five development centres — three in Kochi and two in Bengaluru.

Its three divisions — web design and development, web marketing and software-as-a-service (SAAS) based products — record a healthy annual growth; and the company is all set to grow three digits this year. It is one of the largest revenue generators for Google in India; the world’s largest search engine has recognised ISPG as its Indian affiliate.

ISPG has customers all over the world. The United States accounts for 45 per cent of its business, while Australia contributes 25 per cent and India 10 per cent. The company runs marketing offices in Bengaluru, Gurgaon, Manchester and Seattle, US. ISPG provides a wide array of web marketing services like search engine optimisation, search engine marketing, banner advertisements, 38

e-mail marketing, social media marketing, etc. It is also developing products such as web-based CRM, web-based ERP, lead management solutions and mobile applications.

It plans to offer software solutions to customers as a service. “We are developing quite a few SAAS-based products and are betting big on this space,” says Mr Sajith.

“We believe that the Web as a medium has immense potential in marketing. It has the advantage of providing advertisements that are personal, interactive and relevant to the people, visiting the site,” says the CEO, with an eye on future.

M

r Sajith not only knows how to be at the right place at the right time, but also how to exit the wrong place at the right time. He dropped out in the third year of his diploma in textile technology course.

He left the multi-level marketing of textiles, ‘unable to be part of the unethical nature of the business.’

“When I realised the true nature of the business, and saw people losing money, I left it, compensating my clients in whatever way possible,” he says.

Computers proved to be the right choice and he learnt the basics fast. On gaining confidence that he had learned enough, he decided to

test his skills in the market. Armed with a `38,000 computer which he bought with his brother’s help, Mr Sajith entered the cyberspace. “I started with website design,” he recalled. “I would go for marketing in the day and work on the projects during the night.”

Quality and on-time delivery are issues relevant even today as they were then in the IT industry. He proved his mettle on both fronts, and there was no looking back. He scoured the Internet in search of clients and when he found the order book overflowing, he outsourced work.

If the Internet worked well for him, it should work well for others, too, he reasoned to himself. Mr

Eyeing growth: K G Sajith

Why ISPG ● ● ● ●

High growth area Visionary focus, smart management Excellent team Measured growth path

Factfile Located at Kochi Entrepreneur: K G Sajith Background: Sajith dropped out of final year Diploma in Textile Technology course Products: Web design and development, web marketing, mobile applications Products in the pipeline: SAAS, Web-based CRM No of people employed: 268

www.ispg.co.in

Sajith started marketing his services through the Internet and soon formed ISPG – a moniker for Internet Sales Promotion Group. The company started operations in 2005 with a five-member team.

“From the start we were clear that the Web would be our focus,” says Mr Sajith. “The Web as a me-

dium has many advantages over conventional media. With increased bandwidth, and more and more people being connected to the Internet, the Web will become the biggest media.” ISPG offered its services on the Web and grew at a fast pace during the period.

The growth was not without problems. “In those days I used to deal with all the clients. I found it difficult to entrust the clients to my employees. But it posed a problem as the number of clients kept growing,” he recalled. The lack of a second rung of leadership soon struck the company when it expanded to a new office.

Problems in setting up the office and stabilising operations hit the company hard. Most of the employees in the new office quit the company and it soon ran into financial problems.

“Concepts like delegation were new to us. We were learning things on the job, the hard way,” says Mr Sajith. Even during those tough times, most of the employees stood with the company, helping it overcome those difficulties and get back on the growth track. At present, ISPG has a core team of 22 people. “These people have been with us through the bad times. We put a premium on employee loyalty,” he says.

The Web is a very volatile space, with changes happening at a very rapid pace. “What we have achieved is very small, when compared to others,” says Mr Sajith. “But we hope to grow at a fast pace by being nimble and aggressive.”

With the grit and perseverance of its founder, ISPG must get there.

“Concepts like delegation were new to us,” said Sajith, CEO. “We were learning things on the job, the hard way. But even during the tough times, most of the employees stood with the company, helping it overcome difficulties and get back on the growth track.”

39

Run baby, run Startups have a tricky way ahead. They have to outpace themselves to stay the course Dr Sam Thomas

E

ntrepreneurs are visionaries.

They find a rare use in a common technology, or a simple application for a complex technology. They go one step ahead of the ordinary. They experiment, and take risks. And more often than not, fortune favours the brave. Had Azim Premji chosen to do only the stuff he had known, Wipro’s turnover would have been 15 per cent of what it is today.

The entrepreneur faces a difficult task compared with the rest. He has proved his mettle when he beat competition. But the moment he settles down with his success, then the performance starts wilting. Failure follows. So, an entrepreneur’s constant 40

competition is with oneself. He has to outpace himself at every moment and at every turn if he were to emerge the winner.

How would one outpace oneself ?

It is easy to give in to the temptation to rest on one’s laurels or to get carried away by successes. But he cannot but resist the temptation. He also has to keep the feet firmly on the ground, and be in touch with reality.

It is not too much to ask.

All the entrepreneurs whom you come across in these pages can sustain their advantage, provided they invest heavily in research, and

let their organisations grow beyond them. As their organisations grow, the operations will become more complex and will require functional expertise to succeed. Letting go of total control is never an easy process, but it is imperative for growth. After all, a small piece of a big cake is better than a big piece of a small cake.

The success of Artin Dynamics lies in its ability to use a complex technology to provide a simple solution useful to the masses. The entrepreneurs have brought artificial intelligence that existed in the realms of fiction to the lives of the common

man. A unit of energy saved is more than a unit of energy produced. Their product suite SPARA has the potential to save the much needed energy, all over the world, reducing costs and pollution.

Artificial Intelligence might help Artin Dynamics establish a toehold in the world of business. But it will definitely need human intelligence to stay there. Scaling up into more complex applications would require it to invest in research and in industry experts capable of handling such complexity. After all when these products mature and competitors

catch up, there should be new products ready to take over the show.

GreenPepper is an HR consultancy that is powered by the innovation it has made in the process of matching candidate profiles and jobs. The internet revolutionised the process of collection of resumes

by HR firms and quite a few companies rode this shift successfully.

Matching profiles is the next step in the HR chain, and GreenPepper has succeeded in adding value to this process, with the help of iGreen, the proprietary software. The success of the company will depend on its ability to manage its knowledge of the candidates and the companies, by refining this system on a continuous basis. This would help the company attain scale by moving to a system centric service from a people dependent one. A focus on quality rather than the quantity of the service is essential for the company to build on its successes.

Hedge Equities has chosen a field that already has a number of large, distinguished players. The confidence it showed to take on the bigger players during tough times shows that the company has done its homework well. Equity broking is not a new business in a country, which had its first stock exchange way back in the 1800s. But figures show that only 3 per cent of the population invests directly or indirectly in the stock market even now. The share of equity holdings in India’s household savings is a paltry 10 per cent compared to 45 per cent in the US. The number of financial products available to investors in our market is also very less.

Clearly India’s financial markets have to go a long way before it matures.

Hedge Equities is clearly hedging its bets on this paradox. Its efforts at market expansion by educating the public and catching the investors young, through HedgeYuva is aimed at the untapped 97 per cent of the market. Till now, the company has done well not to fall for the lures of

the franchisee route, while expanding its operations. This has helped it maintain its quality of service and build its credibility. But its propensity to act out the local provider part might limit its growth in an industry that is undergoing consolidation, both operationally and geographically. The ability to offer the whole gamut of financial services and quality research at par with global standards will decide its destiny.

The Web is a maze in which most people lose their way. ISPG is a company that has been able to keep its focus and navigate the web successfully. While its peers designed websites, ISPG went one step ahead and tried to optimise the benefits that its clients would get from the Web. It has developed a viable business model unlike the technology model on which many other firms focussed.

It is a living proof of the saying that ‘a technology entrepreneur need not be a technology expert’. The company has been able to grasp the changes happening in the ever changing space, and stay ahead of the changes.

But it operates in a space where secrets don’t exist and competitors who can replicate its strategies abound.

Hence it will have to continuously innovate to maintain its growth rate.

The healthcare sector in India is in a boom phase. The world today knows that Indian doctors and hospitals offer quality healthcare at cheap rates. Ubio is a company that adds to this mix by making advanced diagnostic technologies available to all, at a low cost. The company does this by adapting the technology to local needs thereby reducing the cost involved drastically. The low cost of its diagnostic kits is sure to have a phenomenal effect on the healthcare sector of the country. But the moot question is whether the reduction in features will have any effect on the quality and reliability of the test results. That question will be best answered by the market, when the product is launched.

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health

WAKE UP TO SLEEP Cutting down on your sleep is not the best way to meet looming deadlines. Instead, a good sleep helps you perform better

A

It is a misconception that the lbert Einstein, it is said, “I would love to sleep more,” he said liked to sleep for 10 hours at in an interview to a news channel not brain and the body shut down durnight unless he was working long before his death. It was widely ing sleep. The “sleeping brain” does hard on an idea. And if it were so, he reported that sleep deprivation led to many vital activities that help one his sudden and untimely demise. maintain good health and function would make it rather 11.

Whether you are an Einstein or at optimum levels, besides restoring Over to 2009. Ranjan Das, 42, CEO of SAP-Indian subcontinent, not, studies say a good night’s sleep brain function.

A lot of hormonal and dies of a heart attack. Mr metabolic activities take Das, the youngest to reach During sleep, heart beat and blood that position, was a fitness pressure dip by about 10 per cent; this place when one is asleep.

Deep sleep accelerates the freak and a marathon runis important for a healthy heart release of the hormone ner. adrenalin that stimulates The scientist believed that a good night’s sleep refreshed makes you feel fresh the next morn- growth and helps repair cells and his mind and helped him to be more ing. Your memory will be sharp and tissues. Lack of sleep can cause neucreative. His dreams helped him you can cope with stress better. In ro-chemical imbalances and affect invent. Unfortunately for Mr Das, fact during sleep, the brain develops growth, especially in children.

The body’s energy levels are also sleep was almost a luxury. He used new insights, and finds solutions to directly related to sleep. The less you to sleep only four to five hours a day. problems.

Sleep benefits

● You can learn something better if you have had enough rest, and you can remember it better if you get good sleep. ● Sound sleep can speed up your thinking process.

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● During sleep, the body produces more hormones that strengthen the immune system and help fight infections. ● Repair and regeneration of tissues happen during sleep.

sleep, the more likely you are to be obese and diabetic.

For a healthy heart

hours. Those aged between 25 and 49 have twice the chance of blood pressure shooting up if they sleep less. If it is less than five hours a day, the risk of heart attack goes up further.

As an Irish proverb goes, “a good laugh and a long sleep are the best cures in a doctor’s book.”

Have a siesta It’s when you sleep that you are Do you love to take a nap in the relieved of the stress and strain that afternoon? Don’t feel embarrassed accumulates during the day. During about it any more. Studies have provsleep, heart beat and blood pressure en that it can increase productivity dip by about 10 per cent; this is im- and alertness. portant for a healthy heart. An article The biological clock regulates our in the Journal of American Medical sleep timings. It speeds up producAssociation says that too little sleep tion of the sleep-inducing hormone, can result in calcium build-up in the melatonin, when darkness spreads. arteries, which will result in the for- This reduces in the morning, but rismation of plaques that could break up and cause heart atDeep sleep accelerates the tack and stroke. release of the hormone Sleep deprivation can lead adrenalin that stimulates to hypertension. It also causes inflammation of endothelium, growth and helps in the the lining of the arteries, adrepair of cells and tissues versely affecting blood circulation. These can increase the risk of heart malfunction, leading to es again between 1 p.m. and 3 p.m., heart attacks early in life. making one feel sleepy. So it’s good “Prolonged sleep deprivation can to sleep then, for 15 to 30 minutes at lead to stress, which in turn may lead the most. to high blood pressure and heart failure,” says Dr Vinod Thomas, cardi- Drive safe Do you yawn repeatedly, find it ologist with Sunrise Hospital, Kochi. difficult to keep your eyes focused “The amount of sleep you get is as or fail to recollect the last few miles important as its quality. An adult rewhile you drive? Then it’s high time quires seven to eight hours of sleep a you hit the bed. day, and children at least nine.”

Sleep has a direct impact on acIf you sleep less than five to six tivities such as driving. Lack of it hours a day, chances of your blood impairs reflexes, leading to accidents. pressure increasing are much higher You get easily confused when you are than those who sleep more than six

For a good night’s sleep • •

• • •

•

Follow a strict schedule. Retire and get up at a set hour every day.

20 to 30 minutes exercise, done four to five hours before bedtime will help you get good sleep.

Avoid drinks with caffeine, cigarettes and alcohol.

Relax. Have a warm shower or read a book before you go to sleep.

Don’t keep lying in bed if sleep evades you. Read a book or listen to music. Avoid watching TV as it makes the brain more alert.

Eat more bananas, almonds and oats. They have been found to induce sleep.

deprived of sleep. Driving when you feel sleepy is as bad as driving under the influence of alcohol. It would affect your judgement, especially with regard to speed.

• Take adequate rest before you start driving • Avoid driving between midnight and 7 a.m., the time we feel most sleepy • Have someone to chat with while you drive • Take short breaks frequently during long trips • Avoid caffeine as it will not keep you awake for long

Prolonged sleep deprivation can lead to stress, which in turn may result in high blood pressure and heart failure, says Dr Vinod Thomas, cardiologist

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NEWS FROM NEIGHBOUR

A CLASS APART The Thippanur village in Coimbatore district is known for brickkilns. Most kiln workers here never went to school but their children, seen in the picture, enjoy their life in the world of letters

Tamil Nadu, India’s sixth most populous State, is staging a silent revolution: it sends its children to school like never before. The State, which till now has been a pool for unskilled and manual labourers, will soon begin exporting future-ready professionals Kuruvilla Chacko

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welve-year-old Krishna reads her English textbook aloud as her mother looks on proudly. She wants to be a doctor and take care of the sick in Dasiri Palli, her village in Krishnagiri district.

Her mother, a tailor, has never been to school. But she wants her daughter to achieve what she couldn’t.

Muthu Velu from Kattiganali Pudur, in the neighbouring village, glances at the vastness of the fields 44

on returning from school. His father, lage Volunteer Force (VVF). Vola farmer, never had a chance to study. unteers of VVF, set up to assist the The sixth grader aspires to be a farm- government in implementing educaer’s friend, an agricultural scientist. tional schemes, contact the parents, Away in the district capital, an understand the reason, remedy it icon in the District Collector’s office and ensure that the child is back in computer is ready with the daily at- school. tendance register of the children. If Welcome to the images that dot Muthu Velu, Krishna or any of the Tamil Nadu’s villages. India’s sixth children do In the last one decade, the number of not attend the class for a few children attending school in Tamil Nadu days in a row, has more than doubled. the Collector alerts the Vil-

most populated State is revolutionising its education sector, especially at the primary level. In the last decade, it has doubled the number of children attending school from 51,00,000 to 1,06,34,455. The Net Enrolment Ratio (NER) in the age group of 6-14 touched 98 per cent last year, the highest in the country.

The dropout rate today is 1.02 per cent, a sharp decline from 12 per cent in 2002.

“We had the problem of child labour earlier,” said Thangam Thennarasu, engineer-turned Minister for School Education. “We have introduced several schemes to take care of the daily needs of the people. They no more need to send their children to work. They send them to school instead.”

C

hoosing not to be complacent in its achievements in the industrial sector and in attracting investments, the State focussed on education in the last decade. It went about vigorously implementing Sarva Siksha Abhiyan, the Centre’s ‘education for all’ initiative; and designed its own ‘Back2school’ programme.

Under these two schemes, children in government schools and SC/ ST students in aided schools are be-

The ‘Back2school’ programme aimed at enrolling more students, says its architect Dr Santhosh Babu. “We decided to focus on quantity as well as quality. After all, Dr APJ Abdul Kalam didn’t get quality education, but he made the best of what he got.” ing provided bags, books and other amenities, apart from free education.

Parents are offered incentives and even financial aid to encourage them to send children to school. Special provisions are made for disabled children and girls under the Kasturba Gandhi Balika Vidhayalaya scheme. Also, SC/ST girls are provided with food and accommodation facilities. Children who used to work get a monthly grant of `100 once

They all go to school now 98%

1,06,34,455

51,00,000

43,486

54,572

59%

12% 1.02%

they join school.

Along with efforts at drawing children to school, the infrastructure too was improved considerably.

The number of schools, which was 43,486 during 2001-2002, rose to 54,572 in 2009. As many as 1,274 new primary schools were set up and 2,790 primary schools upgraded to upper primary between 2005 and 2009.

Krishnagiri, where education levels rose rapidly, alone saw the opening of 134 schools during this period.

Dr Santhosh Babu, who as Collector of the backward Krishnagiri district designed the ‘Back2school’ scheme in 2007, said it primarily targeted at bringing the children to school. “The need was felt to enrol more students. We decided that instead of focusing merely on quality, we should look at the quantity as well. After all, Dr APJ Abdul Kalam didn’t get quality primary education, but he made the best of what he got.”

Parents too were willing to send their children to school if their financial requirements were met, he said.

For the effective implementation of the scheme, the district was 45

Sumaya (in white dress) with her friends at the hostel

Back to the world of dreams Sumaya A

I

was just 11 when I lost my father. We used to live on his meagre earnings from his work in a brick factory. After his death, we went through really hard times. My mother went to work in the fields.

I dropped out of school and started helping her out. All my dreams about studying and earning a good job were shattered.

Two years later, the government came out with the Kasturba Gandhi Balika Vidhayalaya scheme. It was meant for children like me who worked as labourers and for those who were uneducated. My mother seized the opportunity.

I was back in school, and the scheme took care of my needs: uniforms, books and bag. I have also been provided with accommodation in a hostel, where girls like me have each other for support. I did not have to even pay fees.

Now I feel that life has given me much more than what I expected.

There are many like me who have benefitted from the scheme.

I joined school after a long gap, and hence I felt that other children are ahead of me and I would not be able to learn as quickly as them.

But the active teaching methods at school made it possible for me to

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catch up with them.

Interactive video classrooms are quite interesting; we are also shown live models of objects. Special emphasis is given to English, computers and extra-curricular activities.

Training is offered in yoga, kung fu, crafts and other vocational subjects.

We make decorative items and stuffed toys, which well-wishers buy to encourage us. Every year, a select group of students is taken on a sponsored tour to various parts of the State. I got a chance to visit Trichy and Tirunelveli last year.

Studies have now become the most important thing in my life.

I see it as a means to achieve my dream of becoming an IPS officer.

I want to be a responsible citizen, and contribute to society in whatever way I can. I want to make best use of my knowledge. Once I am competent enough, I want to teach my mother whatever I learn in school. It’s her dedication to see me doing well that has kept me going all these years.

I am more confident of myself and my role in society, thanks to education.

(Sumaya A is a class VIII student of Panchayat Union Middle School in Dasiri Palli, Krishnagiri.

As told to Kuruvilla Chacko.)

divided into 10 blocks. The newly set-up VVF of young people ensured enrolment of children in any of the schools in the district. Today, members of this force make regular household visits to track the academic development of children. The Collector and the Chief Education Officer also got a new software developed and installed in their computers which helped them track outof-school children in the district.

Krishnagiri is now one of the most child-literate districts in the country, with NER in the age group of 6-14 surpassing 90 per cent. It had a literacy rate of only 59 per cent as per the 2001 census, with at least

Today, there are many government schools which have ISO certification 10,000 dropouts at the primary level.

After seeing its success, the government is implementing the scheme across the State.

The various developmental schemes ensured that the children ceased to be the bread-earners of the house. Women like Shabana, 42, are happy that they no more have to send their children to work. “My 12-yearold daughter Heena is back in school after two years, and the government gives her whatever she needs. There is no need for me to toil as hard as earlier. I want her to fulfil her dream of becoming a doctor.”

It is the assurance of a job that has inspired many a parent to send their children to school. A few believe that educating the child will educate the entire family. Maheshwari, 37, a farm labourer, feels that education will help her daughter manage her family better once she grows up.

This sense of confidence and empowerment among people is an indication of things to come. The State is

Children are exposed to activity-based learning system with the help of models and charts. They are also offered training in yoga, kung fu, crafts and other vocational subjects. (Below): Children work on computers. making efforts at the grassroots level to develop its human resource potential.

From numbers, the government has now shifted focus to quality. It has roped in UNICEF and the British Council to train teachers and administrative staff in latest teaching techniques, and to hone their soft skills in English and computer literacy. It also introduced an activity-based learning system and active learning methodology which helped the children learn with the help of models and charts. Today, there are many government schools which have ISO certification.

The thrust on education is changing the State’s social profile, too. In the past, the rich merchants, traders and farmers in villages attached little importance to education. For the poor, sending their children to school was never a priority; they sent them outside the State for physical labour, instead. No wonder that the villages did not have good schools, and the quality of education in rural schools was poor.

This is all set to change now.

“Children in the State want to study,” says Aruna Rathnam, education specialist with UNICEF. “Peo-

ple increasingly believe in education.

Literacy rate, especially with regard

By providing education, the State aims to create a talent pool for future to English language, is showing a negative trend in several States, but it is improving in Tamil Nadu. The number of dropouts is definitely on the decline.” She said the 2011 edu-

cation census will show Tamil Nadu at a whole new level.

“By providing education, the State aims to build a viable talent pool for future. Ten years from now, Tamil Nadu will be the most child-literate State in the country,” says A Bhaskaran, Chief Education Officer of Krishnagiri.

Tamil Nadu is on course to score high by helping its children dream.

Some big dreams, at that.

47

GREEN ZONE

TREATING IT FINE With the aid of cutting-edge technology, IMA offers a green remedy to the sickening problem of biomedical waste

The segregated bio-medical waste is first put in labelled, colour-coded bags and collected in barrels. These barrels (inset) are transferred to the treatment plant in specially designed closed vehicles.

Aby Abraham G K

W

hat happens to that syringe with which you were injected an antibiotic? Or to gloves, catheters and wound dressings that are carelessly thrown around? Is anybody reusing that?

These questions need not plague you anymore, thanks to the Common Bio-Medical Waste Treatment and Disposal Facility (CBWTF) at Kanjikode in Palakkad. It is part

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of the IMAGE (IMA Goes Eco Friendly) initiative launched by the Indian Medical Association.

Kerala has 5,654 institutions of-

tonnes of waste daily, much of which is hazardous and requires specialised treatment.

In the not-so-distant past, such

The treatment facility at Kanjikode handles 17 tonnes of biomedical waste a day, which is about 70 per cent of what is produced in the State fering healthcare in modern medicine. Together they have 1,15,792 beds, more than 10 per cent of that in the country. They produce 24

waste was disposed of in an unscientific manner, posing grave health risks. Some of the hospitals had incinerators, but there was no standard

practice for waste disposal. It was often mixed with general waste and disposed of or dumped in landfills.

This was because individual treatment facilities, being capitalintensive and requiring specialised resources, were unthinkable for small institutions. Moreover, proliferation of such plants in the cities is undesirable; it can make monitoring and regulation difficult.

It was in this context that IMA set up the facility which is being managed by GJ Multiclave, a firm that specialises in bio-medical waste management, and runs such plants in Chennai and Hyderabad.

“The IMAGE plant, the largest CBWTF in India, and the only one owned by IMA, is considered to be a model plant in the country,” said Dr C K Chandrasekharan, chairman of IMAGE. It serves all 14 districts of the State, and has the highest number of affiliated hospitals. The plant handles 17 tonnes of biomedical waste daily which comes to around 70 per cent of that produced in the State.

The users share the cost for running the plant. A one-time affiliation fee is used to meet the capital expenditure; and service charges, which are levied on a per bed basis, cover the operating expenses of the plant.

The bio-medical waste generated in hospitals includes human anatom-

God’s Own Dump Yard?

A

daily bath and a clean home – an average Keralite’s idea of cleanliness stops here. People have no qualms about dumping waste on the streets or draining them out to waterways. The cities and villages are turning into dumping grounds for every kind of waste. Modern treatment plants are equipped with the technology to treat waste without harming human beings or the environment, but we seem to be averse to them.

Kerala has just one of the 157 CBWTFs in the country to process biomedical waste, while neighbouring Tamil Nadu has 11. Also, Kerala has only one of the 27 Common Hazardous Waste Treatment, Storage and Disposal Facilities in the country. It is 20 years since Kerala launched the first Technopark in the country, but it still does not have an e-waste processing facility. The distance from God’s Own Country to “God’s Own Dump Yard” isn’t too much, and we have traversed much of it. ical waste, animal waste, microbiology and biotechnology waste, waste sharps, discarded medicines and solid waste like tubings and gloves.

Each of these has to be treated separately with the help of appropriate techniques.

“IMAGE collects biomedical waste from hospitals within 24 hours of its generation, and transports, treats and disposes of it scientifically within the next 24 hours,” said T Jayaraj, administrative officer of the plant. The result – no heaps of waste, no stench.

The first step in the process is

IMA wants to set up a plant each in northern and southern Kerala. “We need people’s cooperation for this,” says Dr C K Chandrasekharan, chairman, IMAGE

segregation. IMAGE trains the hospital staff in categorising the waste, thereby ensuring that segregation takes place at the source itself. The segregated waste is put in labelled, colour-coded bags and collected in barrels by IMAGE vehicles everyday.

These are then taken to the transfer stations where the barrels are transferred to trucks that carry them to the treatment plant. These closed vehicles are specially designed to ensure that the waste does not spill.

The treatment plant is nestled in the foothills of the Western Ghats, away from human habitation. It has forests on three sides forming a green belt.

Each category of waste is weighed separately and recorded here. The labels on the bags help identify the source of poorly segregated waste.

The records of the kinds of waste received, treated and disposed of by the plant are collated in an annual report and submitted to the State Pollution Control Board.

The plant has state-of-the-art incinerators, autoclaves and shredders. Incinerable waste is completely burnt in a two-stage process, at 800 to 1,050 degrees Celsius. The residu-

49

The treatment plant has state-of-the-art incinerators, autoclaves and shredders. It is nestled in the foothills of the Western Ghats, away from human habitation. It has forests on three sides, forming a green belt Treatment Plant (ETP). The treated water is reused in the plant.

The secured landfill area in the plant has ash pits to temporarily store the ash from the incinerators and dried sludge from the ETP before they are moved to the Hazardous Waste Treatment Facility of Kerala Enviro Infrastructures Limited. The pits are built using bricks and cement. There is concrete at the bottom to prevent Kerala has just one of the 157 CBWTFs the ash from getting mixed in the country to process biomedical with soil. Auwaste. Tamil Nadu has 11! toclaved metal sharps like neeplastic, rubber and metal items, and dles and blades are stored in sharp then shredded into pieces to avoid pits to prevent reuse.

The huge demand for its facility reuse. These shredded pieces are then has seen IMAGE expanding its casent for recycling.

The plant has a vehicle wash area pacity on a regular basis. Its growth for disinfecting the vehicles that has been phenomenal – from serving transport waste. Waste water and ef- just 23 institutions with 490 beds to fluents are disinfected at the Effluent 2,573 institutions with bed strength al ash is moved to the ash pit, and the gases are filtered through advanced pollution control devices before being let off through a 30-metre high chimney. The other kinds of waste are completely disinfected and decontaminated by steam sterilisation at a temperature of 121 degrees Celsius and a pressure of 1.5kg/cm3 in two vacuum autoclaves. The autoclaved waste is sorted to separate

50

of 64,045 now in a span of seven years.

IMA has been trying to set up plants in other regions as well, but has met with opposition from the public. “Many big States have CBWTFs in every city,” said Dr Chandrasekharan.

“They have enough barren land to set up the plants. But in Kerala, finding land is a huge problem owing to the hostile attitude of the local population.

Having small plants for a cluster of hospitals will be the ideal option. It would also reduce the time required for transportation and disposal.”

IMAGE is planning to start two more CBWTFs, one each in the southern and northern regions of the State to serve these areas better, but needs the cooperation of the public, he said.

Kerala, which prides itself on its high healthcare standards, should certainly welcome such efforts.

GREEN ZONE

Lighting a revolution Big establishments turn to LEDs to slash power consumption and help cut power bills Kuruvilla Chacko

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o the untrained eye, it looks like another of those Christmas lights, albeit brighter.

For those having understood its significance, it is the holy grail of future lighting applications that comes attached with a guarantee to a reduced power bill.

From lighting the world to powering entertainment and electronic gizmos, the world of a light emitting diode (LED) is an endless possibility waiting to be explored. Incorporating a host of features and powerful appli-

cations, the small device has caught the fancy of enthusiasts around the globe.

Kerala too follows the global trend in switching over to LEDs. Organisations and business establishments with regular and long-duration lighting applications have already started discovering its advantages.

Like the Santhigiri Ashram in Thiruvananthapuram. The ashram, which has for long been relying on halogen lamps for its colour lighting purpose, is readying itself for the switch to LEDs. The change has not been without reason. The project’s

lighting consultant and an ardent devotee of the ashram, Mr M P Salim, said: “We felt the need to replace the harshness of the existing halogen lamps and create an aura of peace within the ashram.”

The LEDs brought not only an aura of peace, but substantial savings, too. The ashram had planned to use 180 metal halides of 1000W each. The 180KW project required an additional transformer costing `80-85 lakh.

But, the choice of LEDs reduced the energy demand to just around 20KW, obviating the need for a transformer.

Though the initial investment for pro-

The Santhigiri Ashram had planned to use 180 metal halides of 1000W each. But, the choice of LEDs reduced the energy demand to just around 20KW, obviating the need for a new transformer.

51

curing the LED lamps was high, the ashram has retrieved the costs even before the project is over.

The total cost of ownership of LED lights is low compared with halogen or even CFL lamps. The LEDs also brought in another advantage: “The 1000W halogen weighs 25kg whereas the replacement LED weighs just 2-3kg. The advantages surely weigh in favour of LEDs,” said Salim.

These advantages are playing a crucial role in its growth in the commercial sector, with several businesses discovering its benefits. Textiles major Emmanuval Silks, Thrissur and jewellery retailer H Venkatesh Naik Jewellers, Kochi, are among others who have opted for LED to light certain display areas in their shops. According to Mr Fayaz Babu, marketing manager of 3S LED in Kochi which handled the lighting makeover at the store, the changeover to 6W LED lamps from the existing 50W halogens and to 1W

The LED advantage... ● Low energy consumption: One tenth that of an incandescent

and one third that of a CFL. Saves on power bill. ● Longer life: 50000 hours against 10000 hours of CFL lamp. ● Very less heat emission. Reduces cooling needs. ● Smoothing light. Better display of products. ● Tolerant to irregular on/off periods. No need for constant replacements. ● Low carbon emission. ... and disadvantage ● High initial investment. ● Spurious products flooding the market.

ment quickly.”

Emmanuval Silks recovered their investment in 1.7 years while according to Mr Salim, the ashram did it even before the LED lamps were installed completely. An LED module might cost 10-15 times that of a CFL of similar light intensity, but once the initial investment is recovered, it is savings all the way, as the ashram is set to find out, Commercial establishments such as he adds. Also its high life - 50,000 supermarkets, hotels, malls and hours compared showrooms world over find shift to to 10,000 hours of a CFL - and LED lightings a worthy investment tolerance to irregular on/off periods mean that the LEDs from the 15W zero watt lamps consumer needn’t look for constant has resulted in more than 80 per cent replacements. energy savings for Emmanuval Silks.

With the global lighting order The non-emission of UV rays by LED looking at phasing out traditional lamps also helps ensure the quality of lighting sources, companies like the items on display.

Philips have brought out innovative LED also helps one to latch on to products such as the mood changing the green brigade. It has a lower carLED lighting systems.

The system can bon footprint as it consumes much less be adjusted to suit the consumer’s difenergy – one tenth that of an incanferent moods wirelessly, creating the descent and one third that of a CFL. right ambience for the occasion.

Currently LEDs are suitable for LEDs are also being brought industrial and commercial applicaout into full public view. Automotions which require lighting for long bile lamps with LED lights are nondurations regularly. Said Mr Salim, glaring and radiate better light onto “LEDs are being increasingly used in the road, increasing visibility and supermarkets, hotels, malls and other road safety.

Projects using LEDs for business establishments which require lighting street lamps and government lighting for a long duration. The low energy consumption and the lower institutions such as the one in Perincooling needs due to less heat emis- gottukurissi panchayat in Palakkad sions help regain the initial invest- are being launched. Add to that the

52

launch of the world’s first organic LED which runs directly on AC power, unlike the present day LEDs that rely on bulky drivers.

Though the high cost can be countered by finding effective applications, spurious photocopies cause concern. The life of an LED depends on how well it can dissipate the heat at its junctions. The lumen output of products from manufacturers with little expertise can diminish quickly, resulting in an unexpectedly low life and a dent in the image of a product waiting to gain public acceptance.

Improper auxiliary systems reduce its efficiency to just 30 per cent. Of the LEDs manufactured worldwide, only 40 per cent get clearance from the American National Standards Institute. “It’s the remaining 60 per cent that finds its way from the dumping grounds into the flea markets and eventually to consumer homes,” says Mr Babu. “By compromising quality for costs, consumers might just do themselves more harm than good.”

To counter the attack of spurious products, the global LED industry has brought out specifications called Zhaga standards to ensure that quality is maintained and the sale of cheap duplicates countered.

The LED industry is plugging all loopholes to secure the device’s pole position in the starting grid for the race ahead. For a developing country like India, it’s time to join in riding the LED wave.

PERSONAL FINANCE

It pays to pay up Paying your loan instalments on time will improve your credit score and facilitate easier credit at lower rates in future

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enders decide on interest rates on loans after providing for bad debts that can be reasonably expected to occur. Hence bad debts, in general, cause lending rates to be higher. In effect the honest customer has to pay a higher interest to cover for the loss that the lender makes on the loans given to the defaulters. To avoid bad debts, lenders conduct thorough checks on the background of prospective clients before giving them credit. Some of the parameters verified are – income, stability of job/income, other outstanding liabilities, collateral, age of the person, family status and education. But this method is not foolproof. A customer might not reveal all the outstanding loans that he has to pay. Worse still, there was no mechanism which would allow the lender to verify the facts, or see the

history of repaying loans taken ear- Its database has over 165 million relier as these are usually spread over cords of transactions. CIBIL collects different institutions. credit-related data of consumers and All this has changed with the commercial establishments from formation of The Credit Information its members and collates them into Bureau (India) Limited (CIBIL) Credit Information Reports (CIRs) in 2001. The Credit InformaHigh outstanding on your credit card tion Compaand the habit of revolving credit, nies (Regulation) Act, 2005 instead of paying up, could severely has empowered erode your credit rating CIBIL to collect the data from lenders, collate it and then share for each individual customer. These it within the group. The act allows CIRs can be accessed by members of banks to submit data to CIBIL with- CIBIL. out obtaining the permission from The CIR helps the lenders get a its borrowers. CIBIL currently has complete picture of the credit hisover 300 members including banks, tory of the applicant. It includes financial institutions, credit card identification information about the companies, housing finance compa- borrower and details of all the credit nies, NBFCs and cooperative banks. facilities availed like repayment history, amount overdue, number of inquiries made on that borrower by different members, suit-filed status, etc. The CIR does not contain any information about the applicant’s income, bank accounts, or any other assets held. Nor does it provide any opinion on whether credit should be given to the customer. The CIR provides factual information about the customer, which can be used along with other information available to the lender to decide on the customer’s creditworthiness.

The information provided in the CIR can be summarised into a credit score - a number which represents the creditworthiness of a person.

CIBIL has tied up with TransUnion, 53

a global leader in analytic and decision services - to bring out two credit scores in India - The CIBIL TransUnion Score and The CIBIL TransUnion Personal Loan Score.

Lenders, such as banks and credit card companies, use credit scores in assessing the credit worthiness of a person. The decision to lend and the terms of the loan – credit limit, interest rates, security required, etc depend on this assessment. In future, organisations like mobile phone companies, public utilities, insurance companies, employers and even landlords may ask for the credit score before deciding the terms of service.

CIBIL is all set to create a competitive market place for credit in the country. Lenders would compete for the business of customers with a good credit score. They will offer differential interest rates to customers based on their credit history. The difference in EMI of a home loan for `20 lakh payable in 20 years at 11 per cent and 10 per cent interest rates is `1344. Over the period of the loan, this difference adds up to `3,22,560, the prize for having a good credit history. Good customers will get credit faster at better terms.

Those with poor credit histories might find it difficult to get credit, even at higher rates.

Fiscal discipline is the key to improving your credit history. The best way to improve your credit history is to re-pay your loans on time.

This requires keeping credit at levels that can be easily serviced from your income. High outstanding on your credit card and the habit of revolving credit, instead of paying up, could severely erode your credit rating.

Opening unwanted credit accounts

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The American Experience

merica has 3 consumer credit reporting agencies – Experian, TransUnion and Equifax. Americans can get one free credit report from each of these bureaus. Consumer complaints have to be investigated and resolved within 45 days. The information in these credit reports are summarised into a credit score. The most popular credit score model, by Fair Issac Corporation (FICO), considers 5 factors - Payment History, Amounts Owed, Length of Credit History, Types of Credit and Newness of Credit in determining the credit score. These factors are given different weightages depending on the person’s credit profile to calculate the credit score, ranging from 300 to 850, the higher the better. This credit score is considered when you apply for any credit, try to lease a house, or take a mobile connection. The interest rates can vary by up to 4 per cent for customers who qualify for credit with different credit scores. A person with a credit score below 620 is considered sub-prime and can expect credit only at very high rates of interest. It was the default on the loans extended to these people at high interest rates, which triggered the credit crisis in America. and constantly looking out for credit could reflect badly in your CIR. Closing an account on which you have missed your payments will not remove it from your credit report, or improve your score.

CIBIL is working with other utilities like telecom operators to collect your payment records from them. So paying all your bills on time will also help improve your credit history.

Even though the system has many advantages, it has its drawbacks too. CIBIL relies on data from its members to make the CIR about the customers, who don’t have any say in the process. Customers often dispute the claims made by lenders, especially credit card companies who are accused of levying exorbitant charges. Such charges, if unpaid, can be reported by the lender to CIBIL and can mar the credit report of a person, often denying credit altogether or making it more expensive

and difficult to get.

Another issue is the time taken by the banks in sending data to CIBIL. You might have paid an outstanding loan amount, but your CIR might not reflect that information due to the delay in updating CIBIL’s database. At present most of the data gets updated on a monthly basis.

If your CIR shows incorrect information, you can request your lender to make the necessary changes in the records and inform CIBIL. It would be prudent to get your CIR from CIBIL periodically and check it for errors, so that you can take corrective action immediately, rather than waiting until the credit that you urgently require is rejected.

Individual customers can now access their CIR directly from CIBIL by submitting the CIR request form along with the identity proof, address proof and a demand draft for `142. Plans are afoot to also make the report available on the Internet.

Lenders will offer differential interest rates to customers based on their credit history. The difference in EMI of a home loan for `20 lakh payable in 20 years, at 11 per cent and 10 per cent interest rates is `1,344.

Over the period of the loan, this difference adds up to `3,22,560, the prize for having a good credit history 54

Insurance

Adequate cover, affordable premium The purest form of life insurance, term insurance helps you buy adequate cover, at a low cost

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f you contact a life insurance advisor for a policy, chances are that he will suggest one which combines investment with insurance.

But that might not be the right kind of insurance for everyone, and can do more damage to your financial plans than any other financial product today.

The idea behind life insurance is very simple: it protects your dear ones who are financially dependent on you, from financial insecurity in the event of your untimely death.

Life insurance companies collect premium from a large number of persons, and pay the unfortunate few, who lose their bread winner. While

the loss of a life cannot be compensated, the financial loss can be covered through insurance.

So how much insurance do you need? If your insurance has to cover the financial loss due to your death, the sum assured should equal the present value of all your future earnings – also called Human Life Value

(HLV). A thumb rule is that persons in their 20s have an HLV about 30x income, 30s 20x income, 40’s 15x income, 50s 10x income and above 60 1x income. So, for a 35-year old person, earning `5 lakh a year, the HLV will be `1 crore and will need an insurance of a similar amount to cover all the financial losses due to

A 35-year old person can purchase a 20-year term insurance cover of `1 crore for `11,900 a year. The annual premium for an endowment policy for a similar sum assured will run into lakhs

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Buy Term, invest the difference

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ife insurance premium is calculated on the basis of mortality tables, which give the probability that the person of a particular age will die before his next birthday. The premiums of both the term insurance products and the policies which combine investment and insurance are calculated based on the same table. For term insurance policies, the premium paid less commission is used to cover your life. For whole life policies, a similar amount is deducted from your premium for insurance cover and the rest is invested by the company to form a corpus. This corpus is given back to you in various forms such as return of premium, money back, survival benefits when the policy matures.

The problem with combining investment and insurance is that the returns on these policies are usually low and there is not much transparency in the investments made by the insurer. This has led to many financial advisors advocating the “Buy term, invest the difference” strategy. The proponents of this view say that it is much better to buy adequate cover using the much cheaper term insurance and use the saving to invest on your own. That way you can retain control over your investments and at the same time cover yourself adequately. As you age and complete your responsibilities, you can do away with the insurance and rely on your savings.

But critics beg to differ. They say that people opt for term insurance because they cannot afford plans that combine investment and insurance, or are cutting down on spends. So they won’t have much ‘difference’ to save. Even if they have the money to save, chances are that they are not disciplined enough to save on a regular basis, and will spend whatever money they have. Moreover, investments in insurance plans receive favourable tax treatment, allowing you defer taxes till maturity. Such plans are a way of forcing people to save, so that they have a substantial amount to bank on when they retire.

his/her death.

If you opt for an insurance plan that combines investment and insurance, for `1 crore, then your annual premium would be more than your salary. But don’t despair. Term insurance plans offer a simple solution. A term insurance policy provides coverage for a fixed term, after which the policy expires. The premium charged on the plans depends on your age, term of the plan and the sum assured. A 20-year term insurance policy for a sum assured of `1 crore, for a 35-year old person costs only `11900 plus taxes per year (ICICI Pru iProtect Option 1). If the insured person dies during the term, the beneficiaries get the death 56

benefit. The policy has no surrender value and no money is paid to the insured person on survival, when the policy expires.

Term insurance can be divided into two – Annual Renewal Term

tion which allows you to convert to other plans at the expiry of the term.

Such plans are designed for people who cannot afford to pay the larger premium required for a whole life or endowment assurance policy, but hope to be able to pay for such a policy in the near future.

A loan cover term insurance plan targets people who have taken loans. The sum assured in such a plan is equal to the outstanding loan amount, and all outstanding loans covered will be paid by the insurer in the event of the death of the insured.

A joint term plan is another option. Here both the lives are insured.

This plan is useful in the case of joint loans. The company will pay the sum assured and terminate the policy, on the death of any one of the two lives assured.

The coverage in your term insurance policy can be extended, by attaching suitable riders. Some of the riders available with term insurance policies are critical illness, waiver of premium, accidental death and dismemberment, accelerated sum assured, partial and permanent disability and hospital cash.

Some plans have a return of premium option. The premium on such plans is usually much higher than that of pure term plans. Such plans are akin to those which combine insurance and investment.

Most of the life insurance companies in the country offer term insurance products. The term usu-

Sum assured in a loan cover term insurance will be equal to the outstanding loan amount and Level Term. With the annual renewal term, the premiums increase each year, as the insured person ages.

The premiums for the level term insurance remains the same through out the term. Most of the term policies in India are level term policies.

Some term policies have the op-

ally ranges from 5–40 years, with the minimum entry age being 18 years and the maximum entry age 65 years.

Term insurance is ideal for young persons, who have limited income to spare and liabilities like home loans to cover. It is the cheapest way to buy a substantial death benefit.

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The families catch mostly mystus and crabs, which fetch them `60 and `100 per kg respectively. On a lucky day, they get up to six kg in two or three outings of two hours each. On an average, a family earns `5,000 a month.

A little boy, his hands hung around his mother’s neck, smiles as his father sweeps water off a boat made with plastic sheets, bamboo and coal tar.

The craft has surely never undergone a buoyancy test but lolls easily on the water that is at least 20 feet deep.The trio are one among the several families that come from Mysore and amble around the rivers and lakes of Kerala on their boat or kotta vallam, catching fish using nylon nets.

Incidentally, the boat, of an approximate girth of 5 meters, is also known as Kalapaani since actors Mohanlal and Tabu roamed around in a similar one in the namesake film.

The Business Called Life

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River Periyar, Varappuzha, Ernakulam

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