Enterprise &Economic Update Kerala by independent media

Vol.1 Issue 9 October 2011

Nourish it

RNI No. KERENG02297

Editor K J Jacob Principal Correspondents Aby Abraham G K A P Jayadevan Senior Correspondent Kuruvilla Chacko Sub-Editor Asha Jacob Design and Layout Renu Arun Website Suhas K Ranju Thomas Sales and Marketing Jose Thomas Printed, published and owned by K J Jacob and published from Independent Media, XI/173 B, Mulakkampallil Buildings, Kunnumpuram-Civil Station Road,Thrikkakkara, Kochi,Kerala-682 021 Phone: 0484-2421916 and Printed at Sterling Print House Pvt.Ltd. Door No: 49/1849, Ponekkara-Cheranelloor Road, Aims Ponekkara P.O., Kochi - 682 041 Phone : +91 484 2802522, 2800406 *Editor: K J Jacob For subscription, Advertisement : sales@economic-update.in Tel: +91 99475 39023 We value your feedback. Please write to us at: letters@economic-update.in Read us at www.economic-update.in Cover design : Anoop Radhakrishnan

*Editor responsible for selection of news under the PRB Act.

ver the decades, Kerala has created a brand image in tourism; it is also known for its authentic Ayurveda. The State has been quite a success in nurturing enterprises in both the sectors, though a lot more is there to achieve. God’s Own Country does appear on the radar of the traveller if he embarks on either Ayurveda or a holiday. A sector with the highest potential to piggyback on these two is health tourism. Healthcare professionals from Kerala work all over the world. They include eminent physicians, surgeons and technicians. The quality of paramedical and nursing staff from Kerala is renowned across the globe. With an open and educated society, decent social infrastructure, exceptional connectivity in terms of international airports and an excellent law and order situation, Kerala is eminently qualified to replicate its success in Ayurveda, on a larger scale. However, one key element is missing: facilities of international standards. True, we have hospitals that we can showcase to an international traveller in terms of quality, but when it comes to scale, our assets stand no chance. Even other States in India, including our neighbours, have major players and reputed brands setting up large hospitals and related facilities. World over, all major health tourism destinations grow on the large scale of operations. Health tourism is a challenge and an opportunity, coming as a combo offer. That the sector creates a lot of jobs is a perfect reason for the State to step in and examine ways to encourage it. As there are strict norms for hospital waste management, the government can ensure that the facilities don’t pollute our environment. Analysts point out that the healthcare sector, unlike other service industries, has a long gestation period. Patients don’t rush in just because there are expert doctors, state-of-the-art equipment and a futuristic building. It takes time for every hospital to develop trust among the population. The government can consider offering concessional tariffs for utilities such as power and water for a limited period of time. It can also consider investing in them by making land available, with a rider that the hospitals make their facilities available to the local population as well at an affordable cost. (This, however, can be tricky; the experience of the Delhi government where it had to seek court intervention to enforce the condition does not inspire confidence.) The government can take comfort in the fact that unlike most other States, in Kerala, the facilities have been set up mostly by home-grown entrepreneurs. It’s a sector worth nourishing.

Contents COVER STORY

26 Arrival zone Though Kerala has made a name in the worldâ&#x20AC;&#x2122;s tourism circuit, it was unable to attract health tourists as it had very little infrastructure in terms of world class hospitals to offer. This is set for a change. Several major hospitals in the State are working on huge expansion plans while new ones are being announced. Together, they will make Kerala a health tourism destination

The billion dollar smile

Excellent hospitality coupled with world class infrastructure can attract health tourists from even developed nations. A report from Thailand

Contents 16

The time is now

The opening of Nasscom office and the Centreâ&#x20AC;&#x2122;s decision to promote Tier-II cities augur well for Kerala IT

38 Online

Insurance

Buying online is a cheaper and easier option for customers 42

The mind weapon

21 Organic

farming

More people take to organic farming in the State but lack of ample marketing avenues dampens their spirit

Sharpen the mind so that you organise yourself better 45 Spice

& sugar

Synthite Industries is a pioneer in CSR initiatives

Tech Strokes 34 Digital nerves

ERP can make companies smart to keep pace with market The Otherside 40 Man vs animal

Who do we feed with all those grains? And subsidies? 5

Infopark, which has anchored Keralaâ&#x20AC;&#x2122;s IT dreams in Kochi, is on an expansion mode. After the first phase in which it built 5million sq ft built area, it has launched Phase II on 160 acres. Of this, 30 acres have already been granted SEZ status. When complete, the phase II will have 1 crore sq ft of built up space and will be able to offer work space for 1 lakh people. The first

building will have 3.5 lakh sq ft space and will be ready for occupation by March, 2013. Infopark is planning to develop the place along with co-developers. It will also offer space to companies who wish to build the campus on their own. The business apart, the place promises to be a treat for the eyes, too!

Your cover story on the opportunity gas brings to Kerala was an eye-opener. That gas has so many applications was news to me. Its availability could be a boon to the fertiliser and power sectors and to a host of other industries in the State. Let us hope that the availability of gas would provide the much needed vigour to industries in Kerala. For city dwellers like me, the city gas distribution project could mean the end of the wait for gas cylinders. It could also mean lesser pollution in the cities as vehicles shift to the environment friendly fuel that gas is, aided by lesser cost compared to other fuels. The government should take steps to open CNG stations for the public also, rather than restricting it to KSRTC alone, so that private vehicle owners can also benefit from it. K Venugopal, Kochi

much sway, a safer place for small investors too. This should help the exchanges in their effort to become a super market for all financial products. I appreciate your efforts in bringing such useful information of the changing trends in the financial markets to us. Jacob Pothen, Kottayam

I have noticed that your magazine has dedicated a page to track the projects being announced in the State. The general public no longer takes these announcements at face value, given the inordinate delays that inevitable happen in our projects. But a whiff of change is in the air, with professionals like Mr E Sreedharan running the show now. I would suggest that you publish a score card of the projects once every six months or so, so that we can know the good apples from the bad. N Krishnan Nair Thiruvananthapuram

project looks much more credible now. The approval from the Central government is the main hurdle for the project today. Kochi cannot afford any more delay on this front. It is time that our leaders across the political spectrum launched a joint effort to ensure that the metro dream comes true soon. I live in the suburbs of Kochi and travel 16 km everyday to my office in the city. The to and fro commute eats up 2.5 to 3 hours of my time every day. And the overcrowded buses leave me tired by the time I reach the office. The Kochi Metro is my only hope for reducing the time for travel and the rush in the buses. Eventhough the metro will not touch the suburbs, I hope it will decongest the city where most of the traffic jams occur and reduce the rush in the buses. The demand for extension of the Kochi Metro, even before the project has been approved and construction started, is proof enough that Kochiites see it as the only reliable option for commuting in future. Rajesh George, Kochi

After years of dithering, Kochi Metro seems to have started its journey. With much of the land required for the project already acquired and innovative ideas for raising funds, the

Our stock exchanges have become much friendlier to the investors in recent times. Consistent efforts by the regulators have made the markets where manipulators held

The rise in price of rice has once again made paddy farming a profitable vocation in the State. And it is heartening to note that small farmers in Kerala are grouping together to transform farming as a profession. This is the need of the hour as small individual farmers will not be able to afford the machines that are very much needed in these times of labour shortages. Pullazhi Kole Padasekhara Samithi leads by example on this front and richly deserves the Nelkathir award bestowed on it. M Krishna Kumar Thrissur Having children and raising them is one of the most joyful activities in life. But Keralites have long traded happiness for wealth. Now the State risks being old before it becomes rich, much like China, which has been enforcing a one-child norm, for some time now. And in the process it could lose both its wealth and happiness. Thanks for pointing this out. B Santhosh Kumar Thiruvananthapuram Your column on family planning made an interesting reading. At a time when Kerala is busy discussing the issue, it was noteworthy that you could provide the other side of the story. I have a different suggestion: instead of producing more children, we must allow free movement of humans, like the way we allow capital, so that we can face the challenges without adding to the burden of mother earth. Cheriyan George Kochi

The New is built on METCON Metcon TMT bars revolutionized the construction sector in Kerala with its technology, strength, durability and value-for-money. When many brands Ductile inner layer (Ferrite pearlite)

claimed themselves to be TMT, Metconâ&#x20AC;&#x2122;s German CMCS technology made the silent yet assertive

Tough outer layer (martensite)

statement in consistency.

Metcon. Trusted TMT steel of Kerala

Customer Care: 94470 65360 | email: metcon@gmail.com

I say!

Before visiting Kerala, we didn’t know that work days of companies in Technopark were not affected by hartal. Such perceptions must change. My idea of the State changed after visiting this place Rajendra Pawar, chairman, Nasscom, after inaugurating the industry body’s office at Technopark, Thiruvananthapuram

We are committed to create 90,000 jobs as per the framework agreement. It will attract Foreign Direct Investments and talented people to the State. And it will create the right opportunities for many start-ups to grow Mr Abdullatif Almulla, Group CEO of Tecom Investments, after a meeting of the board of directors of SmartCity Kochi It is true that industrialists are scared to invest in Kerala. I thought let me try and see whether it will work or not… If I succeed, many more people will come and invest in Kerala. So far, I have not experienced any problem Ravi Pillai, NRI industrialist, on the investment climate in Kerala

Today, we see the beginning of dream realised. A dream in which every student in every corner of the country will have access to technology that defines the 21st century. Today, we reach for the sky and achieve what others said was impossible Kapil Sibal, Union Communications and Information Technology Minister, after launching the $35 tablet computer Akash With recent growth and development coming to Kerala, the State is now not just a tourist destination but an emerging hub for IT/ITeS/BPO companies V K Mathews, executive chairman, IBS Group, on the opening of Nasscom regional office

AT A GLANCE

Occupy Wall Street hits Europe too

The ‘Occupy Wall Street’ movement, started off in the US against the investment bankers who allegedly took home fat pay cheques at the cost of suffering millions, went global with protesters turning out by the thousands for largely peaceful demonstrations in many European capitals. Rome, Paris, London, Madrid, Brussels, Frankfurt and Stockholm saw massive protests. Wall Street Journal reports that the month-old movement has $3,00,000 in the bank and participants find satisfaction in its widening impact. Obama plan to cut deficit by $2 trillion US President Barack Obama has proposed a plan that will reduce the budget deficit by $2 trillion over 10 years. The plan proposes to raise $1.5 trillion in new taxes and save $580 billion from cuts to mandatory benefit programmes. Aimed at the wealthy, Obama’s tax plan includes about $800 billion realized over 10 years from repealing the Bush-era tax rates for couples making more than $250,000, places limits on deductions for wealthy filers and ends concessions for oil and gas companies. 12

Tax to curb unhealthy eating In a first in the world, Denmark has introduced a ‘fat tax’ on foods such as butter and oil with the aim of curbing the consumption of unhealthy foods. The tax will be 16 kroner ($2.90) per kilogram of saturated fat in a product. The country aims to increase its average life expectancy, which is at present 77 for men and 81 for women, by 3 years over the next 10 years aided by this measure. Hungary recently introduced the ‘Hamburger law’ which imposed a new tax on soft drinks, pastries, salty snacks and food flavourings. IBM topples Microsoft The declining fortunes of the PC industry are affecting Microsoft’s standing also. The company slid to the third position in the list of the most valuable technology companies with IBM overtaking it for the first time since 1996 to occupy the second position, after Apple. IBM had sold its PC business in 2005, to focus on corporate software and services. Apple had successfully shifted track to other devices such as iPhones, iPods and iPads to become the most valuable technology company in the world overtaking Microsoft last year. Wanted: Bullion vaults The investment demand in gold has created a problem of plenty for bullion vaults

across the world as investors are willing to pay up to 1 per cent of the value of the gold each year for its safekeeping. The World Gold Council estimates that investment demand accounted for 38 per cent of the total gold demand in 2010, compared to just 4 per cent in 2000. Investors in gold backed ETFs bought 2,236 tons of bullion since 2003 and gold prices have more than doubled since the end of 2007. It is estimated that a total of 31,100 tonnes of gold are held by investors. Germany warns aid package no panacea German Chancellor Angela Merkel has warned against hoping that all of Europe's debt woes would be resolved by a package of measures, likely to be agreed soon. Germany and France have said that they had agreed on broad outlines of a package that included recapitalisation of systemically relevant European banks and leveraging the euro zone bailout fund to give it more firepower. Asian execs earn more than Europeans Global staffing consultancy Mercer says that Asian executives currently earn more than their European counterparts and might overtake even their American counterparts by 2013. It says that executive pay is increasing in the Asia-Pacific region, especially in countries such as China, India, Indonesia, Vietnam, Philippines and

Malaysia. In 2011, executive pay in Asia increased by an average 7 per cent compared to just 2.5 per cent in Europe and 3 per cent in the US. BofA loses no 1 rank Bank of America has lost its title as the largest bank in the US to JP Morgan Chase after it started restructuring itself. CEO Brian Moynihan wants to make the bank more efficient and profitable even if it meant reducing its scale of operations. The bank which currently employs 2,88,000 people will cut 30000 jobs reducing costs by $5billion by 2014. JP Morgan Chase has $2.29trillion in assets now compared with $2.22trillion of BofA and also leads in the number of branches and total deposits. Suzuki-VW alliance in trouble Suzuki Motor plans to end its two year old alliance with Volkswagen, which intended to help Suzuki get access to the costly hybrid and diesel technology. In turn Volkswagen’s presence in the Indian small car market would have been bolstered by the alliance with the market leader here. The move came after Volkswagen accused Suzuki of violating their partnership pact by forging a diesel engine deal last June with Fiat, its long-time engine partner. Suzuki had earlier accused Volkswagen of trying to take control of the company.

AT A GLANCE

Moody’s downgrades SBI’s rating Moody’s Investors Service has downgraded State Bank of India’s bank financial strength rating (BFSR) to ‘D+’ from ‘C-’. The agency cited the bank’s increasing NPAs as the main reason for the downgrade. The bank had reported NPAs at 3.52 per cent of loans in the June Quarter, the highest level in 3 years. SBI’s Tier-I capital ratio is 7.60 per cent currently, as against the 8 per cent mandated by the government. The central government which holds 59.4 per cent stake in SBI is planning to infuse `4500-6000 crore to raise its Tier-1 capital. India unveils cheapest tablet India recently unveiled Akash, the world’s cheapest tablet computer costing $35 a piece. The tablet, a brainchild of human resources minister Kapil Sibal and a team of technologists from IIT Rajasthan was made by Datawind, a UK-based company. Intended for use by students, the device will first be made available to colleges at a subsidised price of `1,750 apiece ($35) as part of the government’s plan to make ICT an integral part of education. The government will also waive duties to help minimise the cost of production, estimated to be `3000. GAIL makes first US acquisition GAIL has made a firm

step towards increasing its presence in the Americas. It is buying a 20 per cent stake in Eagle Ford deposits in Texas, a shale gas area operated by Carrizo Oil and Gas Inc, for $95 million. The deal includes a 20 per cent share in eight wells that produce about 2,350 barrels of oil-equivalent a day. GAIL Global (USA) Inc, a wholly owned subsidiary of GAIL, will invest $300 million in Eagle Ford shale assets over the next five years. India to make 10 million IT pros The Central government's draft policy on information technology, 2011, aims at creating 10 million new skilled IT professionals by 2020. It proposes setting up centres of excellence to produce at least 3,000 PhDs. The policy targets a revenue of $300 billion by 2020 from the IT and ITES industry, of which $200 billion is to come from exports. The industry is worth $88 billion at present, with exports accounting for $59 billion and employs 2.5 million people. It proposes fiscal benefits to small and medium enterprises and start-up ventures, and to attract investments in Tier 2 and 3 cities. ` fall may burden Indian companies The fall in the rupee against the dollar is all likely to impact Indian companies who have borrowed externally as they would have to shell out

more for repayment. The rupee is among global currencies that have seen maximum decline in recent months, falling 9.7 per cent in the last three months, the sharpest since 1992. “It is a matter of some concern that we depreciate so much in so short a time but we have to put that into perspective,” RBI deputy governor Subir Gokarn said. Indian exports up 44 per cent After growing 82 per cent in July, India’s export growth slowed down in August. It registered a 44.25 per cent growth year-on-year to $24.3 billion during the month.

Imports also rose rose 41.82 per cent to $38.4 billion in the period leaving the trade deficit at $14 billion. The economic problems in US and Europe, India’s main markets, are expected to dampen export growth during the rest of the year. Mining Bill wants profits shared The Mines and Minerals (Regulation and Development) Bill, 2011, approved by the Union Cabinet, stipulates that coal companies share 26 per cent of their net profits with the project affected people, while miners of other major minerals pay an

amount equal to the royalty paid to the States. The mining industry has come out against the provisions in the Bill which is estimated to cost the industry `10,000 crore annually. FIIs pull out money from India After pulling out nearly `8000 crore in August, FIIs have pulled out another `2000 crore in September from the Indian capital markets leaving the indices and the rupee reeling in the red. Overseas investors purchased securities worth `64,868 crore and sold securities worth `66,734 crore in September, leading to a net outflow of `1,866 crore during the period. The ongoing debt crisis in the euro zone and weakness in the US economy are cited as reasons for the pull out. Electronics policy targets $400 billion The recently-unveiled draft National Policy on Electronics, 2011, aims at making India the hub of electronics production. It targets a turnover of $400 billion for the sector by 2020, up from $20 billion in 2009. The current rate of growth can only provide India with a production worth $100 billion in 2020 as against a demand of $400 billion, making the country rely on $300 billion worth of imports, a figure higher than oil imports. It also aims to produce about 2,500 PhDs annually by 2020 and to create 2.8 crore employment opportunities. 13

AT A GLANCE

Kerala to double power generation The 12th Five Year Plan (2012-2017) of Kerala will have an outlay of `1.05 lakh crore, which marks a near three-fold increase from the 11th Plan outlay of `40,422 crore. The approach paper for the Plan, approved by the newly-constituted State Planning Board, would focus on agriculture and allied sectors. It also seeks to double power generation through a mix of hydel, wind, and thermal generation projects. It would also go in for a massive housing and road infrastructure improvement drive and wants to raise the State's earnings from IT. State to get IIT in 12th Plan The Centre has decided to set up an Indian Institute of Technology in Kerala, State’s education minister Mr P K Abdu Rabb has said. “The minister of State for human resources E Ahamed has confirmed that the Centre has agreed to set up an IIT at Palakkad. The State has been working hard to get an IIT and this would be a major boost to the State’s education sector,” Mr Rabb said after meeting Mr Ahamed in New Delhi. CSL plans ship repairing unit

Cochin Shipyard Limited has proposed setting up a second ship repairing unit in Kerala. A high level meeting held to discuss the proposal considered Vizhinjam and Poovar in Thiruvananthapuram and Azhikkal in Kannur for setting up the `1,500 crore project. Vizhinjam is the front runner for the project in view of the seaport coming up there. The proposal for a ship repairing facility has been hanging fire for quite some time as the order book of CSL has been overflowing of late. Kerala first total banking State Kerala has been declared as the first ‘total banking state’ in India. The total financial inclusion plan (FIP) that ensures banking facilities to all the families in the State, has been implemented successfully in the State. Every household in the State currently has at least one bank account and the facility for need-based credit. The State Level Bankers' Committee had been working for the last four years to bring banking services to all quarters of the State. Cochin port cuts rates The Cochin port is offering a 30 per cent concession in vessel-related charges (VRC) to foreign container feeder vessels calling at the International Container Transshipment Terminal. The concession will be for

a period of six months starting October 1, 2011. The move is aimed at increasing the number of feeder vessels servicing the Kochi port, which will in turn help reduce the delay in clearing the transshipment containers at the terminal. CSB opens biometric ATM Catholic Syrian Bank has installed its first biometric ATM in the State at Ozhur village in Malappuram district. Biometric ATMs identify a depositor through biometrics allowing even an illiterate person easy access to it. Developed by Vortex Engineering Private Ltd. in collaboration with IIT Madras, the ATM also offers has features such as weather information, commodity prices and stock prices. The bank plans to install 50 biometric ATMs in the current financial year. Banks report fall in credit outgo The rising interest rates seem to have reduced the interest of companies in the State in loans. The loan portfolio of commercial banks fell four per cent in Ernakulam district, the commercial hub of the State, in the AprilJune period. The districtlevel Banking Review Committee says that the total loan disbursement dropped from `38,621.88 crore in January – March, 2011 to `36,967.03 crore in April-June, 2011. The loan disbursement has

not recorded a fall in the recent past in the district which accounts for 40 per cent of the total business in the State. Dhanlaxmi Bank launches forex card

Dhanlaxmi Bank, a Thrissur-based scheduled bank, has launched Forex card - a foreign currency denominated, re-loadable prepaid card -to benefit international travellers. Travellers can load the card in US dollars, pounds and euro in India.The card would enable purchases at more than 27 million VISA-enabled pointof-sale terminals or cash withdrawal at any of the 10,00,000 VISA ATMs worldwide. The forex card would be made available through the branches of the bank. SAIL plans titanium sponge plant Steel Authority of India Limited is conducting a techno-economic feasibility study for setting up a titanium sponge plant at Kollam. The business model for the project will be finalised based on the feasibility report. The State government has also proposed forming a joint venture with National Mineral Development Corporation for mining and beneficiation of illmenite and other associated rare earth minerals.

Information Technology

The time is now

The climate couldn’t get better for the State to attract investors in the IT sector Nasscom chairman Rajendra Pawar opens the office of the industry body at Technopark, Thiruvananthapuram. It is its first office outside a metro city

t looks like opportunity knocks, again, on Kerala’s IT door. The State, which missed the bus despite having launched Technopark, the first dedicated IT infrastructure in the country, witnessed a series of events that happened in quick succession and catapulted the State on to the IT radar like never before. The opening of an office of Nasscom, the powerful industry body, in Thiruvananthapuram, the launch of the second phase of Infopark in Kochi and the commencement of physical work, albeit in low key, of the longawaited Smart City project in Kochi, happened in a span of 30 days. And to cream it all, the Central govern16

ment’s draft IT policy, released recently, gave a policy impetus as it favoured small cities for the future growth of the industry. That Nasscom (National Association of Software and Services Companies) has started its office in the State is proof of the image

Nasscom president Mr Som Mittal said Kerala was one of the most ideally-suited States for IT/BPO industry

makeover that the State is undergoing. The office at Technopark, Thiruvananthapuram, is only its eight in the country and arguably the first in a non-metro city – New Delhi, Bangalore, Chennai, Kolkata, Mumbai, Hyderabad and Pune being the other cities with Nasscom offices. It was not just a question of opening of an office. Almost all the big boys of India’s IT industry flew down to Thiruvananthapuram and marvelled at the facilities Kerala offered. They included TCS chief executive officer and managing director Mr N Chandrasekaran, Wipro Technologies CEO Mr T K Kurien, Accenture chairman and coun-

try managing director Mr Avinash Vashistha, Cognizant Technology Services president and managing director Mr R Chandrasekaran, Microsoft India chairman Mr Bhaskar Pramanik, L&T Infotech CEO Mr Sudip Banerjee, Dell India president Mr Ganesh Lakshminarayanan, Hewlett-Packard India managing director Ms Neelam Dhawan, BT India chairman Mr Arun Seth and MindTree CEO & MD Mr Krishnakumar Natarajan. And the most remarkable comments came from Nasscom chairman Mr Rajendra Pawar, who is also the chairman of IT education major NIIT. Referring to the need to project the changing perception of Kerala among industry leaders and pointing at the need to market Kerala’s facilities well, Mr Pawar said, “Untill we came here, we didn’t know that no workday of Technopark was affected by hartal.” Pawar said he was impressed by the picturesque campus of Technopark, which he earlier believed to be ‘photoshop’ tricks. Mr Pawar, however, had a piece of advice too: The social infrastructure of the State must change to attract more employees. “We cannot generate the entire man-power from within the State. The middle managers must come from other parts of the country. The State must have facilities to attract them. There must be better educational institutions for their children and other facilities for their spouses,” he said. The Nasscom executive members shared the perception that the State must work towards changing the negative impression on Kerala. Nasscom president Mr Som Mittal said Kerala was one of the most ideallysuited States for IT/BPO industry. Hosting such meetings is an important step in bringing the State onto the IT map of the country, said Mr VK Mathews, executive chairman, IBS Group. “It is indeed a rare occasion to have so many of the top IT stalwarts in Kerala all together.” That the launch of the construction of the much delayed SmartCity in Kochi has happened around the

same time might be a coincidence, but it will help Kerala solidify its image as an IT destination. Work on the SmartCity Pavilion, a 6000 sq ft structure that will house the project office and display the features of the project to potential investors, has already started. The company has already earmarked `2000 crore for the project and the work on the main building is expected to start soon. SmartCity is planning road shows in major industrial cities to attract global players, starting from the country’s IT capital Bangalore, this December. Mr T Balakrishnan, additional chief secretary in charge of IT, has already said that SmartCity will be one of the major projects Kerala will showcase at the ‘Emerging Kerala’ investor meet, scheduled for April 2012.

Mr T Balakrishnan, additional chief secretary in charge of IT, has already said that SmartCity will be one of the major projects Kerala will showcase at the ‘Emerging Kerala’ investor meet, scheduled for April 2012

“Kerala IT has reached the tipping point in its operations. Kerala is now being considered as a serious player where industry can confidently invest,” says Mr Gigo Joseph, CEO of Infopark Kochi, which recently started work on its second phase on 160 acres of land. The Central government’s new IT policy could not have come at a better time, that too with suggestions that will vastly promote Kerala’s interests. One of the key proposals of the policy is to incentivise setting up IT industry in Tier II and Tier III cities. This should turn the focus of investors to these cities and help the State which leads the pack among

the Tier II and Tier III players in the country. The Nasscom meet has already had its impact on the State, with three member IT companies deciding to set shop in Kerala. The promotional efforts of SmartCity are sure to put the spotlight on the State.

hat Kerala has many advantages when it comes to the IT industry is well known. It has the human resources, the connectivity – both in terms of bandwidth and physical connectivity in the form of roads, railways and airports - and the social infrastructure required for the industry. The State pioneered the concept of IT parks in the country by setting up Technopark, Thiruvananthapuram in the early 90’s. These factors, along with the high quality infrastructure and the low cost of operations should have made the State a preferred destination for IT companies. But it was not to be. Luck happens when opportunity meets preparation, so goes a saying. Concerted efforts on the part of the State government have made the State better prepared to meet the opportunities that come along in the sector. With 10 IT parks spread across the State and more in the pipeline and more than 1000 acres of land available in the parks, Kerala today offers investors ample space to set up their businesses and grow. All the domestic IT majors – TCS, Infosys, Wipro and CTS to name a few – have a presence in the State and are expanding their operations here. TCS is setting up a global academy on 82 acres of land in the Technocity campus at Thiruvananthapuram at an investment of `1,000 crore. Infosys had opened its software development block this year in its 50 acre campus at Technopark Phase II. CTS has signed up for extra space in Infopark, Kochi while Wipro and TCS are building private campuses in Infopark. The momentum has indeed built up. It is important that the State focus on the task at hand to claim its rightful place on the IT map of the country. 17

When my information changes, I change my opinion. What do you do, sir?

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

Everybody knows that technology changes business. Today, the change flows through the net. And the fact is, Kerala is the most networked State in India.

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

Information changes

Be updated

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

project tracker will have a capacity of 4.1 million tonnes a year, with LPG accounting for 0.68 million tonnes and bunkers and POL products accounting for 3.42 million tonnes. The terminal will come up adjacent to the LPG storage facility being built by Indian Oil Corporation at Puthuvypeen and is expected to be commissioned in the third quarter of 2013. Work on SmartCity pavilion commences The work on the much delayed SmartCity project at Kochi has started with the ground breaking ceremony for the SmartCity Pavilion. The 6000 sq ft structure would house the project office and showcase the facilities offered by it and is expected to be complete in 14 weeks. The work on the first phase of the project is expected to start soon after. At the function

Group CEO of Tecom Investments, Abdullatif Al Mulla said that `2,000 crore had been set apart for the project, the first phase of which is expected to be complete in two years. The company is planning to conduct road shows for marketing the project. The road shows slated to begin this December will target world class firms. Multi User Liquid Terminal at Kochi The Cochin Port Trust has shortlisted five companies â&#x20AC;&#x201C; BPCL, Mundra Port and SEZ, IOT Infrastructure and Energy Services, Gammon Infrastructure Projects Ltd and IMC Limited â&#x20AC;&#x201C; for setting up the Multi User Liquid Terminal (MULT) on a design, build, operate, transfer model for a 30-year concession period. The `200 crore project 20

Kinfra to hand over land for Kannur Airport The Kerala Industrial Infrastructure Development Corporation (Kinfra) will soon hand over 1276.03 acres of land it has acquired to the Kannur International Airport Ltd (KIAL) for starting construction. The construction of the 3400-metre long runway is expected to begin in 2012, after the environmental clearance is received and flight operations are expected to start in 2014. Kinfra has appointed M/s Unicorn (India) Pvt Ltd, Gurgaon as the consultant and the techno-economic feasibility study has been completed. 782 acres of land would be acquired in the second phase of the project. Vizhinjam by 2015, says Ports Minister Work on Vizhinjam International Seaport and ICTT will start in a few months and the first laden vessel will sail out from the port by 2015, Kerala Ports Minister K Babu told the State Assembly. The Vizhinjam International Seaport Ltd (VISL), the special purpose vehicle for the implementation of the `4,000 crore mega deepwater sea project, is awaiting security clearance for the two final bidders who have submitted the technical and financial bids. In the meantime, the

government is working on getting the physical infrastructure ready by the next financial year, the minister said. Kochi Metro to get nod soon: Sreedharan

Delhi Metro Rail Corporation managing director Mr E Sreedharan has said that Kochi metro rail project would get final approval within a month and the project will be completed by 2016. A total of 22 trains with three coaches will run between 23 stations, he said. Meanwhile, the Union Urban Development ministry has approved the revised project proposal and prepared a draft note for the Cabinet. According to the revised proposal, the project would follow the Chennai metro model. The State and Central governments would have equity participation in it. The initial work on project has already started with the Ernakulam North over bridge being pulled down. Cyber City plan gets government nod The State government has approved the master plan for the Cyber City SEZ project of HDIL. According to reports, the company is waiting for no-objection certificates from the aviation authorities and the Naval Armament Depot to start work on the `500 crore project. The first phase of the project comprising 2 million sq ft is expected to be completed within two years from the start of the work. The project envisages constructing 10 million sq ft built up space in three phases and creating 65,000 direct jobs in seven years at an investment of ` 2,000 crore.

AGRICULTURE

Jose Aramchery, a certified organic farmer, says exports will materialise only if there is scale

The evergreen revolution T

Aby Abraham G K

he going has not been easy for Mr Jomy George, an organic farmer who has been practising zero-budget farming in the two-acre farm at Kanakkari, near Kottayam, for the past decade. The early years saw him watch helplessly as virulent pests devastated his farm as he stuck to his decision not to use chemical pesticides.

But perseverance pays. Today, organic farming has made the plants in Mr George’s farm healthy enough to deal with pests. “The banana stem weevil, which abounds in adjacent fields under conventional farming, does not touch my plants,” says Mr George. And better knowledge gained from experts in the field and the growing tribe of organic farmers in the State has helped him deal with pest attacks organically and ef-

fectively. “It has been four years since I applied fertlisers in my farm,” says Mr Jose Aramchery, pointing to the coconut palms rich in fruit near Kakkoor, Ernakulam. “There is no difference in the yield even if I don’t apply fertilisers. Why should I, then, use them?” asks the career farmer who ditched his green card in favour of his homeland. An avid farm enthusiast, his passion to learn more about 21

farming saw him go organic in the early 80’s. These farmers are part of a chain that attempts to make Kerala come the full circle in agricultural practices. Until the advent of chemical fertilisers in the early periods of the last century, it was organic farming all along. It was an organic chain, literally as well as figuratively, with elements such as cattle, leafy compost and home-made pesticides forming the parts. The Green Revolution, credited with bringing food security to India, changed it all. The Green Revolution was anything but green. It did much damage to the country’s biodiversity, replacing traditional varieties with high yielding ones which required high levels of inputs such as water and fertilisers and were highly susceptible to pests. However, dabbling with chemical fertilisers and pesticides for about seven decades appears to have at least a section of farmers recognise the advantage of going organic. Like Mr George. And his tribe is increasing. Updated statistics are hardly available; however, according to Kerala State

The ideal farm has a five tier structure – big trees form the top tier, smaller trees the second tier, shrubs the third, climbers the fourth and plants which spread on the ground the fifth. This will prevent sunlight falling on the ground and help beneficial organisms thrive in the soil Biodiversity Board, about 7,000 farmers practise organic farming in the State as per NPOP standards, covering a total area of 5750 hectares in 2007. These figures exclude noncertified organic cultivation area. An organic farm is a system in itself. A variety of flora adorns Mr George’s his farm – coconut, nutmeg, cocoa, banana and pepper being the main crops. The farm also abounds in fruit tree and medicinal plants. He also has a pair of the local

Mr Bijumon Kurien, managing director, Plantrich, says his organisation identifies market opportunities and passes on the relevant information to the farmers so that they can decide on the crops to raise

cow breed – Kasaragod dwarf which provides manure and bees that assist in pollination. “The idea is to have a five tier structure – big trees forming the top tier, smaller trees the second tier, shrubs the third, climbers the fourth and plants which spread on the ground the fifth,” says he. “This will prevent sunlight falling on the ground and help beneficial organisms thrive in the soil.” The organic business model is not an easy one to follow. The shift from conventional farming to organic farming is a painful process. Yields tend to dip in the initial period when the plants have no resistance to pest attacks. Organic pesticides are available but the range of products is much lesser than that of conventional ones. Farmers also need to be educated on the nuances of organic farming. To access markets abroad, farmers require certifications valid in the respective countries. Getting these certifications is a costly affair and only the bigger players could afford it. But there are other advantages, too. The costs involved in organic farming are much lesser than in conventional farming. The prices of agricultural inputs such as chemical fertilisers are going through the roof, but organic farmers escape the pain. “The only input I get from outside is the coir-pith which I purchase for `75 a tonne, and convert into manure. I don’t till the land, and hence save on labour costs also,” says Mr George. Marketing Most of the certified organic farms in the State cultivate spices, which are exported to markets where awareness levels about pesticide residues in food are high; the products find it difficult to get a toehold in the domestic market. “There are not many takers for organic products in the local market, and we do not get a premium for the products,” says Mr George. Even though he is a certified farmer, only nutmeg, pepper and cocoa go to the export market. They fetch him a 30 per cent premium

to the local market price. The other produce like coconut and bananas are sold in the local market to customers who fail to understand their value. In fact people prefer products that have a good appearance and colour, something that chemicals can easily provide. “Sometime we have to sell it at a discount,” Mr George said. Exports, however, happen only when there are large quantities. “Exporters once offered to pay three times the local price for ‘Njaalipoovan’, a variety of banana, but I couldn’t supply the quantity they asked for,” said Mr Jose, a certified organic farmer who was the winner in the Karshakathilakam award and the runner up for the KarshakaSri award in 2000. “I had a similar experience with coconuts also. You need to have at least a truck load of produce to serve the market.” There are a few players who work with farmers, reaching them organic inputs and training. Kottayambased Plantrich involves itself in all activities in the chain from educating farmers, conducting research in organic inputs, manufacture of organic fertilisers, pesticides, etc, food processing and marketing of organic produce. “We identify market opportunities and pass on the relevant information to the farmers so that they can decide on the crops to raise,” says Mr Bijumon Kurien, managing director. “We suggest multi-cropping as it diversifies the risks.” Plantrich, through Manarcadu Social Service Society (MASS), an NGO affiliated to it, has taken the lead in implementing the participatory guarantee system, a peer certification process developed by Organic India Council in association with the International Federation for Organic Agriculture Movements(IFOAM). The simplified certification norms for the domestic market enable even small scale farmers to get organic certification and market the produce under the ‘India Organic’ brand. “Today we have 25 clusters of farmers, spread over the districts of Kottayam, Idukki, and Wayanad,” says Mr Kurien who is also the president

Jomy George prepares organic manure using coir pith, the only input he gets from outside of MASS. Plantrich also brings out organic food ingredients under the brand ‘Only Organic’. There is not much awareness among the public regarding the advantages of organic produce. Consequently the market for organic products is non-existent except in the metros. “We export most of our products to the US, Europe and Middle-East. In India they are sold only in the metros through super market chains. The big retail chains have a separate section for organic products in their outlets in the met-

The organic shop in Kochi run by Organic Kerala Charitable Trust that sells cereals and other items with higher shelf life has started retailing vegetables on a daily basis

ros.” But there is a glimmer of hope for organic farmer as the local markets are slowly waking up to the idea of going organic. Awareness levels about the ill effects of pesticideladen food are increasing among the consumers in at least the urban areas of the State. Says Mr Sabu Kurien, a stock trader who does organic farming as a hobby, in a once acre plot near Kochi. “Customers, mostly doctors, come to my farm to buy the produce when I harvest it.” Organic stores are coming up in major cities of the State – Thiruvananthapuram, Kochi, Thrissur, Kozhikode—all have organic stores today. The organic shop in Kochi run by Organic Kerala Charitable Trust that sells cereals and other items with higher shelf life has started retailing vegetables on a daily basis. “We have farmers who produce the vegetables organically, but they don’t have an outlet to sell the produce. This was our motivation to start retailing vegetables,” says Mr Jaikrishnan Nambi, chairman of the Trust. 23

BUSINESS CALLED LIFE

Jomon, in his late twenties, is a rubber tapper in Purappuzha in Ernakulam district. A college drop-out, Jomon took to tapping seven years ago. He hits the plantation, with a searchlight fitted on his head, by about 3 in the morning. He taps about 300 trees a day by 8 am. The scarcity of labourers and the relatively high price of rubber have reflected in the wages tappers get. At present, they get `1.75 per tree.

cover story

Arrival zone

The lobby of the new block of Baby Memorial Hospital, Kozhikode

With several major hospitals in the State working on huge expansion plans and new ones being announced, Kerala is seeking to play a larger role in health tourism

K J Jacob

r Philip Augustine’s mobile phone rings at regular intervals. Most callers, ministers included, ring up South India’s leading gastro-enterologist not seeking an appointment or an update of a patient under his care; but to know if one of their relatives or friends, and sometimes themselves, can get a room in his Lakeshore Hospital, Kerala’s first corporate hospital. “When we launched Lakeshore in the nineties,” says Dr Augustine, the managing director of the hospital, “people were apprehensive if there would be people will27

The proposed Aster Medicity, being promoted by Dr Azad Moopan ing to pay a premium. We started attracting patients not only from Kerala, but even abroad in no time. We broke even in record time and are now launching a massive expansion plan.” Lakeshore marks the change Kerala’s healthcare industry has witnessed in the last decade. While the State’s famous healthcare system, serviced by the public and private nursing homes and hospitals, pulled on, the corporate sector thrived with the arrival of hospitals in several parts of the State. Today, the State hosts seven hospitals accredited by the National Accreditation Board for Hospitals and Healthcare Providers (NABH). (That there are two government hospitals in the list shows the strength of the public healthcare system as well.) With the arrival of the several hospitals that offer healthcare on global standards, the State is pitting itself for a bigger pie in the global health tourism. The State already has a presence in the global map thanks to the authentic Ayurveda it offers; 28

now it wants to compete with other States also. The India scene In a report titled, ‘Emerging Trends in Domestic Medical Tourism Sector,’ a leading industry body said more than 8.5 lakh foreign patients visit India every year, and the industry records 40 per cent CAGR. The number of visitors is estimated to go up four times by 2015 and the turnover is expected to be $ 2.4 billion. The Kerala advantage Patients from the Gulf regularly visit hospitals in Kerala as they are familiar with the people. Patients also come from European countries, the United States, Sri Lanka and Bangladesh. “About 200 people—means a flight— from Nigeria land in India for treatment everyday,” says Dr Hafeez Rahman, managing director of Sunrise Hospital, Kochi. “Patients from Maldives, GCC, Germany, African countries and the United Kingdom visit us,” says a spokesman of Kerala Institute of Medical Sci-

ences (KIMS), Thiruvanathapuram. Apart from Nigeria, Uganda and Kenya are the two other countries in Africa from where patients come to Kerala. The recent global meet on health tourism, organised by the CII in Kochi, was bullish about attracting more visitors to Kerala, said Dr Augustine, who was the head of the organising committee. What do they come for There are a number of diseases for which patients seek treatment in Kerala. They include orthopedics, neurological diseases, gastrointestinal diseases, heart diseases, and plastic and cosmetic surgeries. Dentistry has been one of the most sought after sector. There is a lot of demand for dental implants, said Dr Rajkrishnan of Dr Rajkrishnan’s Dental Clinic, Thripunithura. “Our services match the best in the world in terms of equipment used and skill of surgeons,” he said. And the cost is very less: an implant which costs anywhere between $5000-6000 abroad will cost less than $1000 if

done with us.” Root canal therapy is also increasingly in need, he said. The cost advantage The most important reason for patients to come to destinations such as Kerala is cost advantage. “The costs are at least less by 30 per cent across the board,” said Dr Augustine. “In certain cases, it will be more.” (Pl see box) The opportunity The opportunity to make it big in health tourism knocks on Kerala in a big way, according to heads of hospitals who are planning massive expansion of their hospitals in Kerala. Says Dr Augustine: “As much as 40 per cent of the US population has no insurance; even for those who have, the benefits are being cut. In the UK, the National Health Service is so choked that people have to wait for a bypass surgery for 4-5 years.” Kerala is known the world over for its Ayurveda and tourism destinations, he pointed out. “We need to take advantage of this.” If the State and hospitals can work towards ensuring global facilities, it would be able to attract patients from all these countries,” he said. It will also augment the flow of patients from West Asian countries, which are already part of Kerala medical tourism. Dr Azad Moopan, who is planning a major investment by setting up Aster Medicity in Kochi, says the State has tremendous possibilities to become a major destination for health tourism. Kerala has a great number of healthcare professionals across segments, well-settled in various parts of the world, he pointed out. “They are there in US, Europe and the gulf countries. They all have been accepted in their countries. I have interacted with doctors from Kerala who have settled in the US,” said Dr Moopan. “They would love to relocate to Kerala for a variety of reasons. For some, it is the pure joy of returning home; for some others, it’s education of their children. Another group has already heard the India growth story and wants to be part

Kerala is known the world over for its Ayurveda and tourism destinations, and we need to take advantage of this, says Dr Philip Augustine of Lakeshore Hospital Procedure

Cost in the US(USD)

Cost in India(USD)

JOINT REPLACEMENT Total Knee replacement (single)

45,000

7,000

Total Knee replacement (double)

80,000

10,500

Hip Replacement

65,000

8,500

of it. If there are good hospitals and facilities, they will be ready to work here. They will not only bring their world class experience, but also the goodwill. Patients from the countries where they work now would not hesitate to come here,” Dr Moopan said. The patients look to India for cost advantages. “We can even offer the services at a discount compared to other Indian cities, making it a better destination,” he said. The recent global meet on health tourism, organised by the CII in Kochi, was an enquiry in this direction. Most participants were bullish about

Kerala, said Dr Augustine. Future projects Almost all major corporate hospitals have already initiated expansion plans or have announced them. Several new groups also have announced their plan for the State, seeing the potential Kerala holds in the sector. Lakeshore Hospital is planning to invest `750 crore in four years to prepare a total of 1250 rooms. It is adding 150 rooms to the present hospital. Talks are at an advanced stage for setting up a 100-room hospital in Kochi. To top it all, the hos29

pital finalised plans for setting up a major centre of global standards near the existing facility. “We will have not less than six Institutes of Excellence of global standards coming up at the new centre. They include oncology, gastro-enterology, cardiac care, nephrology and urology, radiology, orthopedic, trauma care and sports medicine,” Dr Augustine said. Regenerative medicine is another area with a lot of potential, he said. Dr Moopan, who played a major role in the setting up of Malabar Institute of Medical Sciences, the first NABH accredited hospital in Kerala, is a major player in the GCC nations. He has already initiated work for setting up Aster Medicity on global standards on 30 acres of land in Kochi. The first phase of the project envisages setting up a 540-bed hospital and nine centres of excellence. It will also have a medical convention centre, a four or five star hotel and a shopping area. The group is also setting up a medical college with 150 seats for MBBS. “All put together, we are planning an investment of `1,500 crore in Kerala in the coming years,” Dr Moopan said. Baby Memorial Hospital, Kozhikode, recently doubled its capacity by adding a new block with 400-odd rooms that meet international standards. From the recep-

tion to the diagnostic facilities to operation theatres and cafeteria, the hospital now has an international appeal. “We are a tertiary referral hospital now,” said Dr K G Alexander, managing director. The 300-bed Sunrise Hospital is adding a new block with 150 rooms and facilities to house specialty departments. It is setting up a 400-bed hospital in Alappuzha. The group which runs a hospital each in Dubai and Nigeria is setting up one of the largest private healthcare facilities in Mumbai. In all, we are planning to invest `4,500 crore in 10 years,” said Dr Rahman. The Medical Trust Hospital, one of the earliest players in the sector is also planning major expansions which include setting up the Medical Trust Institute of Medical Sciences, which will host a medical college as well. A spokesman of KIMS hospital said the group is looking forward to acquiring hospital properties in South India, particularly in Kerala and Karnataka even as it explores possibilities of setting up new hospitals in Kerala and Tamil Nadu. The challenges The protagonists, however, caution against going overboard about Kerala’s prospects. “If we are to attract

Medical practitioners from Kerala are willing to come back to their homeland. They will not only bring their world class experience, but also the goodwill. Patients from the countries where they work now would not hesitate to come here, says Dr Azad Moopan

What to be careful of: Dr Raj Krishnan of Dr Raj Krishnan’s Dental Clinic has had foreign patients for more than a decade. Today, almost 40 per cent of patients who visit his clinic are from aboard. Dr Raj Krishnan lists certain ‘mustdo’s while dealing with patients from abroad. Be prompt. Patients from developed countries value promptness a lot. Ensure that you reply in 24 hours to a query. Prompt delivery of all services is very critical for all patients, especially those from abroad. Be professional: Most patients are very-well studied about their illness. So be very professional in answering their queries. Time management is also very important: stick to the schedule that you have already given the patient. Be specific: Explain the specific procedures that the patient is likely to undergo once they land here. Tell them about the restrictions, if any, they might have to undergo. Be honest: Inform the patients about the facilities that you have here. Also intimate them of a rough estimate of costs. They do not mind minor variations. If there is a major change, intimate them before initiating the procedure. Do the follow up: The patients will be happy if you can arrange for a prompt follow up. You may be able to use your overseas connections for this.

While setting up facilities, from operation theatres to cafeteria, hospitals are increasingly following global standards

patients with high spending capacity, we need to augment our infrastructure,” said Dr Moopen. “We in fact, are not yet ready to receive guests,” insists Dr Hafeez Rahman of Sunrise Hospital. “This is true not only of health tourism, but also for tourists. The attitude of the people has to become friendlier.” He says there are limits for us to follow the Thailand model as there may be certain practices which are unacceptable to us. “However, it does not cost us a lot to be more friendly and pleasant to the visitors. They expect usto be friendly. They would take our detached manners as arrogance,” says Dr Rahman. Dr Rahman says development in health tourism has to be carefully planned. The hospitals also will have to improve infrastructure. “In fact, there are only a couple of hospitals in India with JCA accreditation; Kerala has none. If we want to raise our standards to meet JCA norms, we would have to invest a lot more. This would mean raising the service charge commensurately. It may not be a smooth affair, given the sociopolitical environment we have,” says Dr Rahman. All the major players seek governmental support for the growth of the industry. “These are long gestation projects, in which profits are hard to come in the initial years,” said Alex K Babu, head of Hedge Equities, a financial services company. “Unlike most other service sector industries, there is strong brand loyalty in healthcare. A good facility and a team of expert doctors are no guarantee for business. Patients’ trust is built over years.” Dr Moopen also airs the same view. “At MIMS, we paid a dividend after seven years.” He demands that the government offer power, water and other basic facilities at concessional rates. “It can charge normal rates the moment we turn profitable,” says he. “For us, profit is only a byproduct.” The sector has high potential for creating jobs, he pointed out. “Our project alone will create about 8000 jobs.” 31

Cover story

The billion dollar smile Exceptional hospitality makes Thailand a leader in Asian medical tourism

Vijo Varghese

hen it comes to hospitality, a simple smile at the right time is worth more than the most exotic of luxuries. And there are few countries that have understood this better than Thailand. The ‘land-of-smiles’ has been a global destination for tourists from way back in the ’60s. But as competition strengthens in the region, Thailand is intensifying its focus on the one segment where hospitality is probably crucial: medical tourism. Thailand is ranked first in Asia for medical tourist numbers, which amounted to about 15 lakh in 2010, out of which 5 lakh people travelled specifically for medical purposes. That is more than double the figure in 2007. And the treatments offered range from organ transplants, cardiac, orthopaedic treatments to dental and cosmetic surgeries. Thailand's medical tourism boom

came out of the economic crisis in 1997. During the 90’s boom, the demand for upmarket medical care by the locals grew, but the crisis that followed affected even the wealthiest in the country. Many hospitals that had invested heavily in advanced equipment saw a drastic drop in revenues. In the face of declining revenues, Bumrungrad International Hospital, one of the largest, brought in a new

Thailand made a virtue out of a crisis. During the 90’s boom, hospitals upgraded their systems, but the 97 economic crash drained even the wealthy. In the face of declining revenues, they turned to international patients

management team from outside the country to manage its programme for international patients and to lead the hospital out of its financial difficulties. Under this new management, Bumrungrad became the first internationally accredited hospital in Southeast Asia in 2002 and pioneered the medical tourism business. Today, the hospital has more than 1000 beds apart from deluxe rooms and VIP suits. It is estimated to treat more than 1.2 million patients a year. Other hospitals like Bangkok Hospital and Samithivej Hospital followed suit, making Thailand the medical tourism hub that it is now. Over the years the government saw the potential of the medical tourism market - it creates greater revenues as people tend to stay longer after their medical treatment. In 2003, the government led by Thaksin Shinawatra launched a project to turn Thailand into a regional medical hub. Since then, the medical tourism industry

Bumrungrad International Hospital began it all when it brought in a new management team from outside the country to manage its programme for international patients. Today, it is one of the largest hospitals in the region, treating 1.2 million patients a year.

has received constant support from the government. In October 2010 the government launched www.thailandmedtourism.com, which informs and educates medical tourists about hospitals and the treatments available there. A market analysis of the medical tourism business by the consulting firm McKinsey & Company in 2008 found that cost was not the main priority in considering a foreign country, rather advanced medical treatment was. Although prices in Thailand may be higher than in India, they are comparatively cheaper than in the US. While an aortic valve replacement costs more than $100,000 in the United States, for instance, it would cost between $20,000-25,000 at Bumrungrad Hospital. A hip or knee replacement surgery which would cost about $40,000 in the US costs only $14,000 at Bumrungrad. Besides good doctors and the most modern medical treatment, what drives Thailand’s medical tourism is genuine hospitality. Even as a simple tourist destination, Thailand, a non-English speaking country, beats its neighbours Malaysia and Indonesia, hands down, despite them being geographically somewhat similar. The genuine smile you get from the fruitseller on the street can brighten your day, and that matters. But there is one key weakness that Thailand has had to work over: the lack of English speakers. With Thai being the primary language in every school and university, majority of graduates in Thailand don’t speak much English (unlike India and Singapore, the country’s key competitors in medical tourism). The way around this problem comes with intense training and strong support from

In October 2010 the government launched www.thailandmedtourism.com to inform tourists about hospitals and the treatments available

the government. Every new recruit, whether she is a nurse or a radiologist, is given long-term English language training and made familiar especially with all the key words that are used in the medical industry. Couple that with the exceptional ‘willing-to-helpwith-a-smile’ attitude of Thais and you’ve got an unbeatable formula. A recent addition has been customer relationship agents from various countries to help in translation. The leading Bangkok Hospital has customer relationship executives from 26 different countries, not to forget that food requirements are also tailormade for the patients needs. It even created a specific cadre of executives, the International Medical Services (IMS), to cater to foreign customer needs.

Why the smile ■ Thailand is ranked first in Asia for medical tourism ■ 15 lakh medical tourists in 2010 ■ $1 billion in revenues ■ Treatments range from organ transplants, cardiac, orthopaedic treatments to dental and cosmetic surgeries ■ One fourth the cost compared with US/UK ■ Major share from Gulf countries The Thai government states that 43.6 per cent of medical tourists come from the UAE. Surveys show that although they can afford medical care in the UK or even the US, they choose Thailand due to its hospitality (especially after the September 11 attacks). Observers attribute this genuine hospitality to the influence of Buddhist religion (99 per cent Thais are Buddhist) and its relative affluence. From a modern perspective, however, the pay-off for being ‘nice’ is tremendous. Being an NRI who grew up in Thailand, I have seen the impact of the hospitality on many occasions. From the moment you enter a hospital in

Bangkok Hospital has customer relationship executives from 26 countries. It also meets customised food requirements of the patients. It even created a special cadre of executives to cater to foreign customer needs Thailand like Bumrungrad, Bangkok Hospital or Samitivej, you never feel a moment of being lost. Right from the security guard at the door to the guest relationship officer to the receptionist, to even the maid cleaning the floors, there is a feeling of being catered to. It’s this integrated hospitality management that makes the guest or patient experience so exceptional. From the moment the patient enters the hospital grounds, his experience is managed and monitored. Small things make the difference, like the guest relationship officer who stands outside his or her cubicle with open arms and a “Let me make you feel better, how can I help” chest badge. Or a hospital-branded toy for the unruly toddler, while mommy talks to the doctor. And many more. What’s very common for medical tourists in Thailand is to enjoy the country as they recuperate. Hospitals work closely with tourism operators to ensure that their patients get the ‘complete’ Thailand experience. So instead of being stuck in a hospital room in the city, many tourists are transferred to villas or beach side resorts. Hospitals in India could benefit greatly from taking a cue from some of the leading hospitals in Thailand. After all, a smile apparently is really worth a million dollars, or in this case, a billion. For, Thailand’s income from medical tourism in 2010 is estimated to have been $1 billion! The writer, a journalist, used to work with The Nation. 33

Technology

Digital nerves ERP can make companies smart to keep pace with market

W Starting this issue, we bring you a column by entrepreneur and management expert Mr S R Nair. With three decades of experience in marketing, entrepreneurship and technology, Kochi-based Mr Nair runs Team Frontline Limited and Team e-biz Limited, both engaged in IT, in system integration and IT services. Active in professional movements, Mr Nair had chaired Kerala Management Association (KMA), The Indus Entrepreneurs (TiE) and Indian Society for Training & Development (ISTD) Kochi chapter. The column aims at introducing the latest from the world of information technology to entrepreneurs of Kerala to enable them to achieve business benefits by leveraging the same.

ith globalisation and competition hotting up, companies are increasingly required to deliver on their commitments ahead of time. They need to process the inputs and respond to the market demands without delay. Companies meet this challenge by creating an infrastructure with built-in intelligence or what is called a digital nervous system (DNS). Equivalent to a biological nervous system, DNS is planned and built on a combination of hardware, software and connectivity, so that it can receive market stimuli, process them and trigger a response at the earliest. As time goes by, this digital process will grow and mature to link up every aspect of an organisation’s thoughts and actions. A DNS is a well-laid network of computers, telecom, software, connectivity and information utility devices. The centre of this digital nervous system is the enterprise resource planning (ERP) software. With customer relationship management (CRM) application and supply chain management (SCM) features added to it, it gives the organisation the necessary competitive teeth. Why ERP? An integrated transaction oriented information system ensures the seamless flow of data among the different business functions of the enterprise, resulting in improved administrative and operational efficiency. Its absence could result in the companies floundering or getting stuck. They also face ■ High lead time in business pro

cesses ■ High cycle time in business transactions ■ High inventory ■ Poor utilisation of financial resources ■ High stock out ■ Poor productivity It will be reflected in performance as poor utilisation of enterprise capacities and resources, unsatisfied customers and suppliers, inability to handle competitiveness, poor flexibility in demand supply management and the inability to plan growth and future. These are typical death knell challenges to companies. With such issues in place, organisations will find it difficult to recover and grow. Entrepreneurs need to understand this business reality well before such issues strike the organisation. Many companies have implemented some financial accounting software, either bought or developed in-house, that takes care of statutory reporting requirements. These bare software solutions hardly give decision-makers the information that enables them to proactively strategise the growth and future of their organisations. However, a planning and control-oriented information application system such as ERP ensures improved coordination among different business functions enabling the enterprise to be more dynamic and intelligent in decision-making. An understated advantage is that ERP allows Indian companies access to, and an option to adapt, the time-tested business benchmarks and global best practises. In an increasingly globalised world,

crease the efficiency of companies but also give high return on investment. Intangible benefits ■ Improvement in customer responsiveness, order management and production planning ■ Optimisation of inventory ■ Automation of the import process with item valuation ■ Product-wise cost tracking with consolidation of financial information ■ Integration of cost and financial books, elimination of the need for reconciliation between the two, improvement in account transactions ■ Real time tracking of material price and usage variances, efficiency variance.

this is an area companies must not overlook. Functional modules Activities that come under functions of a company consist of a functional module. Financial accounting, inventory management, invoicing, HR management, production planning, costing, maintenance management, sales & distribution, customer relationship management, supply chain management etc. are the examples of the functional modules. They are seamlessly integrated in an ERP package. The entire data of all these functional modules reside in a single database engine and therefore the organisation does not suffer from data disintegrity arising from multiple unconnected databases. From a user prospective, an ERP package is all about a central database connected to the user front-end through rules (standards and benchmarks) and tools (software utilities).

Tangible benefits ERP offers some visible advantages. Substantial reduction in inventory; increased productivity of manpower and machines and better financial closure cycle top the chart. The others are improvement in cash management and reduction in transaction costs and wastage. Combined, they not only in-

An integrated transaction oriented information system ensures the seamless flow of data among the different business functions of the enterprise, resulting in improved administrative and operational efficiency

Points to ponder One must ensure that the ERP package is localised with respect to areas such as local taxes and statutory levies. It is important to look for ERP packages with concurrent license. Compared with named license, concurrent license offers tremendous cost advantage (saves up to two third of the cost). One should also opt for a package which is easy to use, and the one which does not call for installing an entire new IT hardware infrastructure. A company has to train the management and the staff to face the changes. ERP implementation is achieved through a top down drive approach. The whole exercise will fail if the CEO is not part of it. A very senior manager, a CFO or CIO, with the required level of empowerment needs to be made co-ordinator of the implementation. If ERP implementation is deemed as an onerous task, then implement it in phases. Take up easily implementable functional modules first and move on to complex ones later. When do you go for it Andy Grove, former chairman of Intel Corporation, talks about a strategic inflection point (SIP) in a company’s growth. According to him, the company will either go up north or deeply down south once it reaches the point. 35

report card State Bank of Travancore

SBT has reported a net profit of `116.95 crores for the second quarter of the year, down from the `163.6 crore it reported in the same period last year. Total deposits increased by 16.36 per cent to `62,372 crore from `53,602 crore a year ago, while advances rose by 18 per cent yoy to `48,480 crore. Total income for the quarter increased to `1776.89 crore up from `1372.91 crore reported in the same period last year, a 29.43 per cent growth. But expenses recorded a 32.95 per cent growth to `1477.37 from `1111.25 during the period, due to higher interest charges, affecting the net interest margin. This along with higher provisions and a higher tax outgo, affected the profits of the bank. The net NPAs for the quarter also increased from 1.17 per cent in Q2, 2010 to 1.77 per cent in Q2, 2011. This point is the right time to evaluate the existing information system infrastructure. An intelligent information system such as ERP will have multiplier effect as it adds to the business acumen of senior management whose decisions decide the future. There is no hard and fast rule on when to go for an integrated business solution. It could be when the CEO feels that profit figures will not match the estimation or when business fails to grow on the expected lines. It could also be when he feels restricted by his IT infrastructure in billing out products fast to the market, in spite of the business growth the company is experiencing. The intuition will become stronger when he is not able to get intelligent reports of his business or when the existing reports are not giving him the possibility to take critical business decisions. When it worked A South India-focussed IT distributor with multiple stocking and bill36

South Indian Bank

went up only marginally by 6 basis points qoq, leading to an expansion in NIM. Its Net NPAs also register a qoq decline of 8.2 per cent.

Federal Bank SIB has come out with its second quarter results. It set a new record, reporting a profit of `94.95 crore for the quarter, as against `76.3 crore in the same period of the previous year. The interest income for the quarter stood at `877.25 crore, against `579.53 crore reported in the previous year. But the companyâ&#x20AC;&#x2122;s profit growth has slowed down in line with the industry trend, even though it has managed to do better than its peers. Its net profit grew at 24.4 per cent year on year aided by expanding net interest margins. The bank improved its yield on advances to 12.1 per cent, a 150 basis points yoy increase, by passing on higher interest costs and increasing the share of high-yielding gold loans. At the same time, the bankâ&#x20AC;&#x2122;s cost of deposits

An understated advantage is that ERP allows Indian companies access to, and an option to adapt, the time-tested business benchmarks and global best practises. In an increasingly globalised world, this is an area companies must not overlook ing points faced major challenges of inventory management. Because of the high rate of obsolescence of IT products, items stuck at any point cut profitability. The legacy software never offered the management an overall, real-time picture. Lack of integrated inventory information stopped it from moving the inventory between locations for faster liquidation to meet

Federal Bank has reported a 36.15 per cent increase in net profit for the second quarter to `191.16 crores from `140.4 crore reported in the same period a year ago. Total income increased to `1,484.79 crores, from `1122.38 crores reported in Sep, 2010. Expenses also increased to `1,123.52 crore from `737.40 crore, leading to a reduction in net interest margin by 10 basis points to 3.8 per cent. The operating profit also declined from `384.98 crore reported in Q2, 2011 to `361.27crore in Q2, 2012. But a decrease in provisions due to the reduction in net NPAs from 0.68 per cent to 0.58 per cent of assets helped the bank shore up its net profits. seasonal requirements. After implementing an ERP solution which had integrated inventory and billing system, the management could view its stock at all points on online and real-time basis. The distributor could reduce the overall quantity of inventory at multiple stocking locations and could move inventory between locations easily. The said company was able to achieve return of investment (RoI) on ERP within 12 months of its implementation. Corporates, particularly the SMEs, who face the heat of competition and cost stand to benefit by applying technology to become more customer-focused, more process oriented and by incorporating global standards in its business process. Many SMEs in Kerala are leveraging information technology for profitability and growth; those companies that shut their doors on technology will get pushed aside. It is time the CEOs realised this.

Personal finance

Insurance goes online Buying online is a cheaper and easier option for customers

few years earlier, buying insurance meant being approached by an agent and being canvassed into a policy whether it suited one or not. Insurance was more of an investment and tax saving instrument then. Then came competition and people started getting pesky calls from salesmen who would try to make a sale. There were a lot of products in the market but insurance was still a complicated product which had huge financial implications for unsuspecting customers. Agents were interested only in selling policies that earned them a good commission. Low cost products like term insurance that could provide adequate cover at affordable rates were discouraged. The emergence of the internet as a sales medium has changed the game though. Now insurance companies could sell policies directly to the customers bypassing the agents. And customers have become aware about the need for insurance and know what they want. The average cover in life insurance policies sold online is much higher than that sold through conventional channels, where mis-selling of insurance 38

Advantages of buying insurance online â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘

Lower premiums Can compare competing products and choose one Ease of purchase

Process for buying insurance online

he first step is to choose the plan – the insurance cover required and the term of the policy. You can also choose riders if they are available. For vehicles, some insurers provide you the option of selecting a voluntary deduction to reduce the premium. Once you enter your basic details like age and sex and choose the plan parameters, the premium is calculated and displayed on the screen. You have the option of varying the parameters to suit your requirements Once you are satisfied with the quote, you can go to the next step which involves filling up the required information. Be sure to give correct and complete information so that you can avoid disputes later. The next step is to make the payment. You will need a credit card or net banking account to make the payment. Once the payment is made you have to mail the required documents like identity proof to the company. In case of health insurance the insurer might ask you to undergo medical tests. In case of vehicle insurance, the cover will immediately start once you make the payment, if your previous policy hasn’t expired. You will also get the benefits from your previous policy like no-claim bonus, even if you change the insurer.

as investment and tax saving instruments happen. The average life insurance policy issued in 2010-11 had a cover of just `1.93 lakh, while the term insurance plans sold online have an average cover in excess of `50 lakh. Most of the types of insurance products are being sold online today – be it life insurance, health insurance, travel insurance or vehicle insurance, you can get it all on the net. But the preference is for simple products such as plain health insurance, auto insurance and term insurance. Sophisticated products are still require the service of agents and are sold through conventional channels. Almost all the insurance companies in the country today offer online insurance. Reducing costs and offering competitive rates were key to the success of the new insurance companies in a market dominated by the public sector giants with their vast network

“The average cover in life insurance policies sold online is much higher than that sold through conventional channels”

spread across the nook and corner of the country, brand name and the trust that comes from the long years of service and backing from the government. And the internet provided them the perfect channel to reach the young, educated and wealthy Indian. The seven life insurance companies that offer online term plans have issued more than 14,500 policies with a combined insurance cover of about `9,100 crore, in the past 6 months. The Life Insurance Corporation of India, the market leader which shied away from selling policies online till now, is also joining the band wagon. It is coming out with an online term insurance policy that will be cheaper than its conventional policies. The big advantage of online insurance policies is that they are much cheaper than policies sold through conventional channels often charging 40-60 per cent lower premiums. The low premium on online insurance comes from two factors. The first is that companies save on commissions paid to agents, when they deal directly with the customer and pass on these savings to the customer. The second is that the risk associated with an online customer is lesser than that of other customers, as they are an educated lot and have access to better healthcare.

“The big advantage of online insurance policies is that they are much cheaper than policies sold through conventional channels often charging 40-60 per cent lower premiums”

Some companies even limit the availability of the online term plan to select cities. Another advantage is the ease with which a policy can be bought. You key in your personal details to get the quote, make the payment and the cover starts(see box). Contrary to popular perception, companies make no distinction when dealing with the claims made by online customers. But customers should ensure that they give complete and correct information while applying for the policy. Providing incorrect information is the only ground on which insurance companies can reject claims made on the policy. The online channel might not displace the agents fully, but they will have to change with the times. Gone are the days when they could merrily go around mis-selling policies. Their work will now become more specialised. Sales of products like ULIPs where a lot of complexity is present will still need the service of an agent to explain the nuances of the product to the customer. Again, the agent will be expected to service the policy by acting as an intermediary when claims occur. The internet has also spawned its own genre of intermediaries. There are many online brokers today who provide products of different insurers under the same roof. Sites like policybazaar.com enable customers to compare the offerings of different insurers and then make a choice. Such services are expected to drive competition in the market and drive down prices again. 39

Man vs animal Who do we feed with all those grains? And subsidies?

ood security has been a prime concern for all conscientious governments. The issue took on an added importance since Malthus theorised that food production will fail to keep pace with population growth. The Food and Agricultural Organisation (FAO) observes October 16 every year as the World Food Day to highlight the importance of the topic. Corporatisation of agriculture and development of new technologies such as genetic engineering are being bandied out as solutions to

the problem, especially when the effects of the green revolution are tapering off. The government of India is planning to introduce the controversial Biotechnology Regulatory Authority of India Bill in the winter session of Parliament that will promote the introduction of GM crops in the country. To capitalise on rise in price of food grains, global majors are turning to agriculture, buying huge tracts of land in impover-

It takes 7, 4 and 2 kg of grain to produce one kg of beef, pork and poultry, respectively

ished African nations. All these in the name of food security, a legitimate concern that should worry us all. Indeed as the population increases, the demand for food will naturally increase. The world population is expected to grow by a third to reach 9.1 billion by 2050, even as a billion people in the world still remain undernourished. FAO estimates that food grain production will have to increase 70 per cent by then to meet the demands of the population. At first look, it might seem that increasing food production is the only way out of starvation. But a closer look reveals the other side. More than a third of the total grain produced in the world is used to feed livestock: the 1 billion pigs, 1.3 billion cows, 1.8 billion sheep and

More than a third of the total grain produced in the world is used to feed livestock: the 1 billion pigs, 1.3 billion cows, 1.8 billion sheep and goats, and 13.5 billion chickens that end up on our plate goats, and 13.5 billion chickens that end up on our plate. One wonders if all the talk is about ensuring the food security of these humble creatures. As affluence triggers a shift in eating habits, more and more grain will be diverted to the meat industry. Per capita meat consumption in the world doubled in the last 50 years, and is expected to double again by 2050. Humans eat animals, so raising them for meat cannot be faulted. But raising animals on grain is an inefficient proposition even after they are injected with growth enhancing hormones and confined to enclosures–designed to restrict movement and energy loss. It takes 7, 4 and 2 kg of grain to produce one kg of beef, pork and poultry, respectively. And animals are supposed to eat grass. When fed on feed, which is often a mixture of grain and animal protein, in stifling conditions, diseases result. As much as 70 per cent of the anti-microbial drugs in the US are consumed by animal farms. Animal farms are bad for the environment, too. The direct emissions from the meat industry – methane and nitrous oxide that are 25 and 300 times dangerous than carbon dioxide – account for 18 per cent of the green house gas emissions and the transportation industry, which contributes another 13 per cent, pales in comparison! More damage is caused when forests are destroyed to create pastures and crop land for these animals. Overgrazing leads to loss of fertile top soil and eventually desertification. The animals also produce large quantities of faecal waste which accounts for 70

per cent of water pollution in the US, even as the meat industry consumes 50 per cent of the water resources. And the energy required in processing and storing meat is much more than that for whole grains. Clearly, reducing meat consumption is as important to saving the environment as reducing fuel consumption or recycling waste. Excessive consumption of meat also creates health problems in humans. Pesticides and hormone residues accumulate in meat – studies show that meat has 14 times pesticide residues as plant foods – and are thought to cause cancers. Increasing meat consumption is also thought to be the main reason for the increase in diseases of the heart. Man has recently found out another use for food grains – as fuel, which again has a huge effect on the availability of food for humans. They are being used to produce ethanol

that can be mixed with petroleum to produce bio-fuels. Today, a quarter of the grain produced in the US is used to produce bio-fuels. This could feed 33 crore individuals for a year. Many scientists say that the energy required to produce bio-diesel is greater than the energy they give. But the mismatch in the prices of oil and grain makes it profitable to use grains to produce fuel. The quantity of grain diverted to produce fuel will depend on the price differential between oil and grains. In effect, the food grain prices will be linked to the oil prices from now on. Price rises will result as has been happening of late making food more unaffordable to the poor. The World Bank estimates that rising food costs pushed 70 million people into extreme poverty during 2010–11. The current world food grain production is 2200 million tonnes a year – a per capita production of above 300

kg. This is sufficient to feed a population of 10 billion, the expected world population in 2100, if food grains are not diverted for other purposes. But the talk on food security will probably continue for a long time to come. More food production means more business for agricultural inputs such as seeds, fertilisers and pesticides. More diseases translate to business for pharmaceutical companies. And what would our hospitals and insurance companies do if people didn’t fall ill? Foregoing all these profit-making opportunities doesn’t make business sense. Organic farming considered a sustainable alternative for agriculture just commands 1 per cent of the share of agricultural land after all these years, while GM crops with a seedfertiliser-pesticide lock in account for 2 per cent of the land under cultivation. The environmental, health, and social costs of these are ignored. Global food yields are declining and climate change threatens to disrupt agriculture. That makes it all the more important to turn to sustainable ways of living. A change in eating habits in favour of a plant-based diet is the need of the hour. The sustainable option is to disincentivise the meat factory. But often the reverse happens. The meat industry accounts for three quarters of the food subsidies in the US. Real costs, including environmental and social, are excluded from the meat price leading to a situation where it becomes cheaper when compared to fruits and vegetables. We have all the food that we need and more in this world. Avoiding starvation just needs a lip service of a different kind – reducing the quantity of meat that is let in through them.

The current world food grain production is 2200 million tonnes a year – a per capita production of above 300 kg. This is sufficient to feed a population of 10 billion

Meditation

The mind weapon Sharpen the mind so that you organise yourself better A P Jayadevan

hat does meditation mean? It is a deep enquiry into oneself, trying to understand it from different angles and realise the real self. This special, deeper understanding transforms the total personality. It attempts at peeling off all the layers of conditioning that has happened in one's life. Yoga sutras, the basic text on meditation, describe the thinking faculty’s two facets as mind (manas) and

intelligence (buddhi). Mind, it says, is of doubts and delusions (samsaya viparyayaatmakam manah); and intelligence is that which is decisive and

How do you use the mind to sharpen the mind? Acharyas have the answer to the question. “It’s like using a diamond to cut a diamond and shape it”

doubtless (nischayatmikaa buddhih). The mind and intelligence are, interestingly, described as the faculties of the same mind. When the mind functions as manas, it is of a wandering nature with doubts and delusions. For people who have to manage an organisation, it is the precision in thought that matters. It cannot wander around; instead, it has to be decisive and doubtless. Decisions must be firm, orders must be logical. For this, one needs to train the mind to function as intelligence (buddhi). Medita-

tion is the best available tool for that. But how do you use the mind to sharpen the mind? Acharyas have the answer to that question also. “It’s like using a diamond to cut a diamond and shape it.”

ost people are conditioned in different ways by life’s experiences. It is true that not everyone understands its real traits, potentials, and tendencies. Spiritual traditions suggest meditation as the key to unravel them all. The question is, how to enter the world of meditation? How can one explore and understand one’s inner, deeper layers of mind through meditation? It is suggested that one should not wait for answers to all questions before starting meditation. Instead, one should start the process, and learn on the way, and the answers would come as one progresses. All that one has to have is a willingness to practise with full attention. It is a wonderful experience, where you understand and train your mind, using your mind. Essentials For practising meditation, you need ■ A good, clean and calm area (it can be at home), devoid of disturbances. If you are living in a city, then try playing some soothing music so that you can avoid other sounds. (Music is helpful even otherwise as it soothes the nerves and help them relax.)

In meditation, mind is getting trained to focus on a single object without distraction. The whole energy is focused to a single point, which makes mind more sharp and clear, and the benefit is more for the ‘intelligence’ part of the mind

■ An ambience for the right mood. Incense sticks and flowers can do magic on this count. ■ A cushion, not too soft, or a comfortable chair. How to meditate ■ Sit straight on the cushion/chair in a comfortable position. Yoga postures such as lotus pose or simple leg folded pose are advised. Ensure that the spine is straight. This can be ensured by keeping the body above the hips perpendicular to the surface. ■ Gently close the eyes. Take deep breaths. ■ Imagine sitting in a divine ambience. Feel the nature around you: the breeze, the music or whatever that helps to create the mood. ■ Now, bring full attention to the body. Before starting meditation, one has to ensure that the whole body, even the tiniest muscles, is relaxed so that the body also becomes part of the process. Acharyas have suggested that the mind would not wander if the body is totally relaxed. ■ There are simple techniques that one can use to ensure that the body is in a relaxed state. One among them is to make the mind travel through the body, part by part. One may start from the toes. Imagine the toes, one by one and touch them with the mind. (recall, we are sharpening the mind with the mind!) Go up, to the foot, upper and lower sides and give a gentle pat. Then ankle, calf muscles, knee joint, up to the hip. Then start with the other leg. Make sure that you have seen, felt and touched each and every muscle, bone and joint in your legs. This way, touch every part of the body including internal organs, one by one, up to the top of your head and put them to ease. In the beginning, you may feel difficulty in concentrating. Thoughts may distract you, some body parts may resist or show pain. Do it as good as you can. It could take up to two weeks of regular practice to do it with a degree of perfection. And once when you realise the advantages, you will love doing it. This exercise can be

You have plenty of choices; beginners often concentrate on breathing. If one is religious, then the favourite deity can be the object. There are people who pick up ideals and feelings such as compassion and love to concentrate on. Mantras or chants are the choice of some. Music or favourite songs are chosen by many performed even lying on the floor, or while sitting on a chair. ■ Once the body is relaxed, and the mind becomes calm, then you move to the next step, and begin meditation. As the first step, you may select an object to focus on. You have plenty of choices; beginners often concentrate on breathing. If one is religious, then the favourite deity can be the object. There are people who pick up ideals and feelings such as compassion and love to concentrate on. Mantras or chants are the choice of some. Music or favourite songs are chosen by many. Beginners may not be able to concentrate for long. But in due course of time, one will be able to sit for long. In meditation, mind is getting trained to focus on a single object without distraction. The whole energy is focused to a single point, which makes the mind more sharp and clear, and the benefit is more for the ‘intelligence’ part of the mind. Once you fit yourself ‘in’ to meditation, you will be directed from within, without errors. Mind is the most powerful weapon upon this planet earth. The most destructive, and at the same time, the most constructive. It depends upon the choice one makes. Even sky is not a limit to a determined mind! (To be continued) 43

CSR: Synthite

CVJ Foundation, the CSR arm of Synthite Foundation, helps Swami Vivekananda Medical Mission conduct regular medical camps and distribute food supplements as it fights anaemia among the tribal children

Spice & sugar

Oleoresin leader Synthite Industries runs a professional organisation to implement its corporate social responsibility schemes

Kuruvilla Chacko

t’s a paradox that the tribals of Wayanad, inheritors of a biodiversity hotspot, should suffer from anaemia. But the fact is that most girls from the tribal hamlets in the hilly district fall prey to the de-

bilitating disease which could mar their growth into able-bodied adults. There are several governmental as well as non-governmental agencies which are working with the tribals to help them come out of it. “The best way to fight the disease is to add iron tablets and food

supplements to their diet,” said Dr Anuj Singhal of Swami Vivekananda Medical Mission (SVMM), an NGO based in Kalpetta. “We have been distributing them to 900 people, mostly girls, for the last 10 months and the results have been very good. Now our target is to bring 45

Initially, the tribal community was sceptical of the medical camps and free medicines. But slowly through awareness programmes initiated through schools, we won them over,” said Mrs Aleyamma Jacob, chairperson of the Foundation

help to 2,000 girls, and have already enrolled 1,400 of them.” And the ammunition that helped the NGO fight the war against the disease came from an unexpected quarter: Synthite Industries Limited, the Ernakulam-based global leader in spice oleoresins. “When we heard about the disease and the good work SVMM was doing there through one of our company consultants, we decided to chip in,” said Mrs Aleyamma Jacob, chairperson of CVJ Foundation, the corporate social responsibility arm of Synthite. “We donate `45,000 per month for such medicines. Initially, the tribal community was sceptical 46

of our medical camps and free medi- other professional commitments, cines. But slowly through aware- now run the organisation. A closeness programmes initiated through ly-held company, Synthite deputed schools, we won them over,” said Mrs members of the family to the CSR arm. It started with Mrs Jacob as Jacob. The mission in Wayanad is the chairperson and Mrs Elvy Ninan as latest, and one of the several projects secretary, with the latter post seeing a the Foundation has undertaken over change once every two years. “With the years. One of the largest indus- women at the helm, the trust had a trial houses in Kerala, Synthite took more humane face to it and was able to structure its up corporate sopriorities better,” cial responsibility One of the largest says the current schemes long besecretary of the fore it became a industrial houses in catchword in corKerala, Synthite took up trust, Mrs Lisa George. porate jamborees. corporate social Over the last It all started with two years, the offering compreresponsibility schemes trust has investhensive health inlong before it became ed close to `2 surance coverage a catchword among the crore on various for about 1600 schemes. “The families below corridors of corporate focus of our acpoverty line in jamborees tivities earlier the Kadayiruppu had been in and village in Ernakulam district where the company around Kolencherry- our native is headquartered. Slowly it expanded place, and the site of various plants the scheme and reached out to peo- of the group in Kerala,” said Mrs George. But ever since the restrucple outside the area. “The company was serious about turing took place, the group has giving back to society from its incep- helped rebuild 83 homes and providtion and the top officials did what- ed educational assistance for 83 stuever they could in the early stages,” dents in the fields of nursing, engisaid Mr George Paul, director. “The neering and other graduate streams, health insurance project was one apart from funding needy students among them. But slowly we realised at the MOSC Medical College, Kothat we would not be able to take it forward in the way we wanted un- With women at the helm, the Founless we form a separate entity for it.” dation is able to structure its priorities The 75th birth anniversary of Mr C better, says Mrs Lisa George, secretary V Jacob, chairman and founder of the group, in 2008 offered a perfect occasion to launch a dedicated wing. “We launched the CVJ Foundation, and the first project was to construct 75 houses for the poor in the area,” said Mr Paul. The Foundation selected the beneficiaries from widows, handicapped and other equally underprivileged people in and around Kochi and Kolencherry. The Foundation is perhaps the pioneer in introducing professional management in CSR initiatives. An independent board of administrators, each of who could invest time to its activities unconcerned about

C V Jacob, chairman, Synthite Industries, hands over the symbolic keys of the new ward the CVJ Foundation built for the Kadayiruppu Government Hospital, to then Health Minister P K Sreemathi. Inset: the newly-built ward.

“We plan to diversify our activities to other parts of Kerala, and to neighbouring States which house our plants. This way we can support the farmer and his family, thereby helping cement a stronger bond,” says Mr George Paul, director, Synthite lencherry. All this without compromising on transparency. “The student beneficiaries are asked to produce a certificate from the principal/headmaster to ensure their continued presence in the institution. We even make it mandatory for patients seeking our assistance to produce a letter of approval from the doctor treating them. Only after this do we transfer the money, and that too in the name of the hospital involved,” said Mrs George. Close to `60 lakh has been spent over the past two years on medicines, monetary aid for surgeries and other health benefits. The biggest monetary support was for the renovation of the Kadayiruppu Government Hospital at a cost of `87 lakh, including `5.25 lakh for the X-Ray unit and

related accessories. The Foundation constructed additional wards so that poor patients get treatment under better conditions. It also rebuilt the mortuary. Building a house for Mr V K Rajeev in Palluruthy in Kochi was another major initiative it undertook recently. Mr Rajeev, an auto driver, had met with an accident which virtually paralysed him. With only an aged mother to help him, he had very little hope left when the Foundation offered to build a house on one-and-half cents which he inherited. “It was really fulfilling to see him wear a contented look on his face despite his paralysis and other miseries plaguing him,” said Mrs George. “Our act of goodwill had confirmed his strong belief in God. Here was a man whose testimony of faith was there for everyone around to see.” So what does Synthite have in store for the future in terms of CSR activities? “Initiatives for the farmer,” Mr Paul tells determinedly. “We want to professionalise our CSR activities further and involve more of our employees in a systematic manner, for the benefit of spice farmers who have been the foundation of our industry over the years. It’s time we did something for them as well.” Most of the money the Foundation spends come from the coffers of the company. “We earmark almost `1 crore a year for the Foundation,”

said Mr Paul. The company is looking to associate with NGOs to work closely with its spice and flower farmers, especially in Karnataka and Tamil Nadu. “We plan to diversify our activities to other parts of Kerala, and to neighbouring States which house our plants. This way we can support the farmer and his family, thereby helping cement a stronger bond,” he adds. “Even our employees look forward to more such involvement, since the fund collection they engage in currently for the cancer ward at the General Hospital in Kochi, gives them a sense of satisfaction at contributing to a good cause.” Synthite has proven to the world that it is best in extracting the goodness in spices. It is extending it to humans, too.

Synthite wants to professionalise its CSR activities further and involve more of its employees in a systematic manner, for the benefit of spice farmers who have been the foundation of the oleoresin industry over the years

Kerala statistics

Power Sector in Kerala P

ower plays a vital role in the industrial and economic development of a State. As the economy grows, the demand for power also follows suit and hence production also has to be increased accordingly. Hydel projects are the main source of power in Kerala. Thermal power plants also provide a big share, while the share of non-conventional energy sources such as wind is negligible. About a third of Kerala’s power requirement is satisfied from the central pool. Kerala State Electricity Board (KSEB) is responsible for the generation, transmission and supply of electricity in the State. Total installed capacity for power generation in Kerala amounts to 2845 MW, but the maximum power availability is only 2090 MW. Of this 2033 MW is generated from hydel stations, 781.6 MW comes from thermal projects, while wind energy contributes 30.05 MW. Kerala has been allocated 1381.7 MW of power from Central Power Generating Stations such as NTPC, NLC, and NPCIL, which augments its power generation.

Power Projects in Kerala Project

Major Hydro Electric projects MW

Idukki

780

2398

Sabarigiri

335

1338

Idamalayar

380

Sholayar

233

Pallivasal

37.5

284

Kuttiyadi

225

583

Panniar

158

Neriamangalam

77.65

295

Lower Periyar

180

493

Poringalkuthu & PLBE

244

Sengulam

182

Kakkad

262

Total

1940.15

6850

Kallada

Small Hydro Electric projects 15

Peppara

11.5

Malankara

10.5

Madupatty

6.4

Malampuzha

2.5

5.6

Lower Meenmutty

3.5

7.63

Chembukadavu - 1

2.7

6.59

Chembukadavu - 2

3.75

9.03

Urumi -1

3.75

9.72

Urumi -2

2.4

6.28

Kuttiyadi Tail Race

3.75

Maniyar - Captive Power Plant (CPP)

Kuthungal – CPP

Ullunkal - IPP

(Independent Power Plant)

Thermal Power projects Brahmapuram Diesel Power Plant (KSEB)

106.6

606

Kozhikode Diesel Power Plant(KSEB)

128

896

KPCL (Naptha - IPP)

20.4

140

BSES Kerala Power Ltd. (Naptha - IPP)

157

1099

RGCCPS-NTPC, Kayamkulam (Naptha)

359.6

2158

Other Power projects Kanjikode Wind Farm - KSEB

Agali Wind farm– (IPP)

13.8

26.6

Ramakkalmedu Wind farm– (IPP)

14.25

27.46

MP Steel Co-Gen (IPP)

67.67

Power projects in the pipeline Project

Installed capacity

Energy Source in Kerala

Proposed hydel power plants

Pallivasal Extension

Adyanpara

3.5

Athirappally

163

Sengulam Augmentation

Sengulam Tailrace

3.6

Chathankottunada II

Poozhithode

4.8

Vilangad

7.5

Thottiar

Mangulam

Pasukkadavu

ydel power is the biggest source of power in Kerala. Hydroelectric power development in the State started with Pallivasal Hydro electric project in 1940. Sabarigiri and Idukki power projects commissioned in 1966 and 1976 are milestones in Keralaâ&#x20AC;&#x2122;s hydel power generation. The hydropower base in Kerala is dependent on the monsoons and shortage in rainfall can lead to a power crisis.

Maniyar tailrace (Ranni- Perinad)

Details of Power Availability as on 31.03.2010

Perumthenaruvi

Peechi

1.5

Chimony Barapole

Kakkadam poil-I

2.5 21 5

Kakkadampoil-II

Achankovil

Chinnar

Proposed Gas based power plants Brahmapuram Diesel Power Plant (KSEB) expansion

1000

NTPC Kayamkulam expansion

1450

Puthuvypeen

1200

Cheemeni

1200

Proposed Wind power plants

NTPC Wind power

200

Power generated by KSEB

7240.38

Power Purchase from CGS

8440.39

Power Purchase from IPPs(BSES, KPCL, etc)

772.13

Transmission

Kerala gets a major share of its power from outside the State. Hence it is imperative that the State has a good transmission facility to bring power from outside and distribute it within the State. After considering the purchase of power from the central pool, the thermal power accounts for 62 per cent of power availability in Kerala.

Transmission facilities in Kerala (As on 30.9.2010) Capacity

400 KV

220 KV

110 KV

66 KV

Substation (Nos)

123

Lines (Ct km)

260

2701

4002

2387

33 KV

111

1400

Total

338

10490

`:50 US:$5 RNI No. KERENG02297 Enterprise and Economic Update Kerala, a venture supported by KSIDC