Seasonal Magazine - December 2014 - Issue by John Antony

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VOLUME 13 ISSUE 12 DECEMBER 2014

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Editorial MAGAZINE

Seasonal www.seasonalmagazine.com

Managing Editor Jason D Pavorattikaran Editor John Antony Director (Finance) Ceena Senior Editorial Coordinator Jacob Deva Senior Correspondent Bina Menon Creative Visualizer Bijohns Varghese Photographer Anish Aloysious Correspondents Bombay: Rashmi Prakash Hyderabad: Iqbal Siddiqui Delhi: Anurag Dixit Director (Technical) John Antony Publisher Jason D Pavorattikaran

he answer is so simple that everyone knows it - we need investments first because that creates jobs. But who said it? Perhaps all your favourite politicians have said it, more than once. But who has proved it beyond a reasonable doubt? Not many. Not any economists, and definitely not any businessmen or politicians. Today, starting from the West, the theory that it is investments that create jobs is finally being understood as dumb, and is in the process of being junked.

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Investments happen with the sole objective of making profits, and if profitcreation warrants job creation, it will create jobs. But soon, the profit seekers are looking out to maximise their profits, and the constant search is for how to cut more and more jobs to maximise profits. Multiple studies done in developed countries like US shows that highly successful businesses, that have endured for the last 50 years, have been net job destroyers than net job creators. This brings us to the second problem with investments, which is its inextricable links with technology. Investments have always happened, from time immemorial, to bring in new costlier technology that automates

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What we really need, investments or jobs? what humans do. The deadly combination of investments and technology creates 100 high-paying jobs by eliminating 1000 fair-paying jobs. India Inc is on a roll due to the soaring equity markets due to the influx of foreign funds, which are here to make a quick buck. Needless to say, the bulk of this FII inflow is targeted towards the most ‘efficient’ industries of India Inc, like its IT, Banking, and other such service sectors. Is that what we really need? Every year, 10 million young Indians join the workforce, whether they are skilled, semi-skilled, or unskilled. If all that we have to offer them is the kind of hightech jobs offered by the services sector, imagine the catastrophe. It is high-time that the services industry that has hogged the limelight ever since the economic liberalization of the 90s, be brought down from its high pedestal. Sure, it contributes 60% to the GDP, but that is only contributing towards creating a rich minority, and not addressing the majority of job seekers. Because, despite its 60% contribution to GDP, the services sector that includes IT, banking etc accounts for only 27% of the workforce. The highly glossed over IT sector is still to provide

for even 5% of the total jobs. These are the kind of sectors that attract investments, not because they create jobs but because they limit jobs or even eliminate jobs in the long run, thus creating extraordinary profits. Contrast this with India’s manufacturing sector, that even while accounting for only 16% of the GDP, has created 12% of all jobs. Imagine, what would happen if India can grow its manufacturing sector’s GDP contribution to 32% or 48%. That alone will solve much of India’s socioeconomic inequalities. It is not a major challenge for India. In fact, Deloitte already ranks India as the fourth most competitive manufacturing destination worldwide, and forecasts that our country will swiftly become the second most competitive destination by 2018, just behind China. That is, in spite of the huge disadvantage India offers

No country is like no other, India especially so. 94% of all Indians still find employment in the informal or un-incorporated sectors, and we add 10 million unskilled or semi-skilled job aspirants to the aspiring workforce each year. We need to end the glossing over of miniscule white-collar job creation and incentivize large-scale blue-collar job creation.

by way of ease of doing business! Fortunately, Prime Minister Narendra Modi has already recognised this potential, as can be seen from his timely Make-in-India campaign. But there is more to this disparity between investments and jobs. An even bigger role than that of manufacturing can be played by agriculture. Because, even while accounting for 14% of GDP, farming employs 50% of our population. And the secret for this sector’s job creation efficiency is nothing but the fact that this is the sector that has been least touched by investments and technology. What all these boils down to is simple. What we need for equitable

development is not more investments to drive up the GDP and stock markets. What we need is initiatives and incentives to create millions of satisfactory jobs in job-creating sectors like agriculture, manufacturing etc. No country is like no other, India especially so. For instance, who will believe that 94% of all Indians find employment in the informal, unincorporated sectors? We need to incentivize agriculture, we need to incentivize manufacturing, we need to incentivize entrepreneurship, we need to incentivize innovation, we need to incentivize minor activities like tourism, entertainment, amusement, travel etc. Above all, we need to incentivize net job-creating activities. In agriculture and manufacturing, the incentives should be specifically to boost exports. Like US & China, our farms and factories should supply to the whole world. We need incentives in entrepreneurship and innovation because, it is a known fact that new businesses create more jobs faster than established businesses. Non-core activities of an economy like tourism, entertainment, amusement, travel services etc need incentives, as they thrive on creating new or hitherto non-existing jobs, even in matured economies. Let us stop running after investments, and keep our focus sharp on creating countless well-paying sustainable jobs. John An Anttony 5 Seasonal Magazine

Smart City

GIFT City Gathers Momentum as Developers Pump in Rs. 4500 Crore

host of real-estate developers, including the likes of Mumbai's Hiranandani, Bangalore's Brigade Group, and Pune's BU Bhandari Landmarks will be pumping in Rs 4500 crore of investments in developing residential and commercial complexes within the Gujarat International Finance Tech-City (GIFT) project which is being developed as the country's first smart city near Gandhinagar in Gujarat.

"The real-estate developers will together be investing about Rs 4500 crore in building residential and commercial complexes within GIFT," said RK Jha, director of Gujarat International Finance Tec-City Company Ltd, which is a joint venture between state-run Gujarat Urban Development Company Ltd (GUDCL) and a private firm Infrastructure Leasing & Financial Services Ltd (IL&FS). This is the biggest influx of real-estate developers to be attracted to the GIFT project so far. The GIFT authorities have already made allotments to Pune-based BU Bandari Landmarks for developing

1.8 lakh square feet of residential space which will initially include 350 apartments. The other residential developer who has been given land for development is Ahmedabad-based Sangath Group who will be initially be developing one lakh square feet of residential structures.

Most of the residential schemes that will come up within GIFT will be high-end. "We will also be constructing 400 units of affordable housing for people who will be working in GIFT. We plan to built these units (of about 380 square feet each) and lease it out to the workers," the official said.

"We are currently in the final stages of approving the applications of Bangalore's Brigade Group who is planning to develop 12.8 lakh square feet of which only two lakh square feet will be residential. The other application is of Mumbai-based Hiranandani Developers Pvt Ltd who is looking to develop three lakh square feet of commercial space in the SEZ area of the GIFT city," Jha added.

Meanwhile, over 60 percent of the space in the first 28-storied tower - highest building in Gujarat - that was inaugurated by Prime Minister Modi in January 2013 has been sold. "About 5 lakh square feet of space in this first tower (total of 8 lakh square feet) has already been occupied. We currently have 14 banks in this tower and we expect the tower to be sold out by December," Jha said.

"The authorities are trying hard to get foreign banks like Bank of America, Citibank or Goldman Sachs on-board."

The GIFT authorities will open bookings for the second tower (8 lakh square feet) in November this year. "This building we plan to sell to foreign banks and insurance companies," Jha said adding that the authorities were trying hard to get foreign banks like Bank of America, Citibank or Goldman Sachs on-board. (Credit: Avinash Nair for Financial Express) SM

9 Seasonal Magazine

Contents Q2 Results Analysis

DEFYING GRAVITY!

84 Ex-Apple CEO John Sculley looking to start NBFC in India

John Sculley, CEO of Inflexionpoint, an investment and acquisition technology firm, is looking to start an NBFC in India called Extend Credit, which would look to provide working capital credit for “middle-class economy businesses” in the country,

The Pecking Order in Richness, When it Comes to Central Ministers

Indian stocks may see a repeat of the 2004-07 bull run in the coming years based on improved political fundamentals, said Jim Walker, former chief economist, CLSA, and the founder of Asianomics.. Seasonal Magazine 10

Meet the Diamond Merchant Everyone's Talking About

A diamond merchant in Gujarat has gifted over 1,000 employees cars, homes and jewelery as Diwali bonus in a stunning act of generosity. Savjibhai Dholakiya says his workers deserve big rewards for their hard..

Prime Minister Narendra Modi has assets worth Rs 1.26 crore, according to details of assets and liabilities of the Union Council of Ministers uploaded on the PMO website recently. While finance and defence minister Arun Jaitley turns..

Rajan Needs to Cut Rates Aggressively, Says Top Economist

The rush of Q2 results is almost over. Meanwhile, since the results started getting published from mid October, to now, market has run up steeply. Sensex has surged from a ‘low’ of 26,000 to a high of 28,334, during this period, with the broader and sectoral indices rising even higher. Is it finally time to pause and ponder whether the rally is justified? There are pundits who justify the 9% rise in Sensex within a month, on the 13% consolidated YoY rise recorded in the net profit of around 3700 companies whose results that have come out. That is surely earnings expansion, but there are several indications that all is not well with this growth. First is that, YoY sales growth has been much lower for these 3700 companies, at just 3.30%. What that signals is that Other Income must have surged, and a quick tally shows that it is indeed true as Other Income growth on a YoY basis stands at over 21%. It reveals..

Must-read Savings Tips from 4 Greatest Investors

Dholera's Challenges to Start Moving The new Land Acquisition Act requires consent from at least 70% of owners of the land before the government or companies can buy it for infrastructure projects. Since January, when the previous govt passed the Act, not one large tract of land has been acquired for development.

Contents45 Developers Pump in Rs. 4500 Crore into GIFT City

A host of real-estate developers, including the likes of Mumbai's Hiranandani, Bangalore's Brigade Group, and Pune's BU Bhandari Landmarks will be pumping in Rs 4500 crore of investments in developing residential...

The Global Fashion Guru Who Learnt Designing in India

Indian stocks have been on a tear this year and the government's plan to implement its budget early could provide a further boost.

Children are being increasingly deprived of the time, space and freedom to play and learn at their own pace. Indeed, this should be deemed to be their birthright.

Why Modi's Plan to Revive Failed Factories is Controversial

India Too Gets Ready for the Mammoth Internet-ofThings

The government is working on an ambitious plan to create a $15billion (roughly Rs. 92,000 crores) 'Internet of Things' industry in the next six years. Internet of Things, or IoT, can be loosely described as a network of inter-connected devices

Tommy Hilfiger, world famous for his classic American designs, has a deep connection with India. Over three decades back Hilfiger started his career, not in America but in Shahi..

We’ve No Time Please, We’re Children

Can Pre-poning Budget Implementation by a Quarter Boost Indian Stocks Further?

Indian Companies Start Building Their Own Solar Power Plants Fed up with constant electricity cuts and government-enforced "power holidays", Indian IT firm ValueLabs has turned to the sun beaming down on its head office for help.

Has OPEC Lost its Ability to Set Oil Prices?

OPEC's glory days of fixing global oil prices may be at an end. US shale oil will replace the Organization of the Petroleum Exporting Countries as the first-mover "swing producer," according to a recent Goldman Sachs report, meaning that OPEC is losing its power to set global prices for..

At British India Corporation's textile factory in Kanpur, four men sit in a control room watching computerised gauges eight hours a day. When they are done, another group takes over, and then another, for 24 hours a day – much as they might at any major

Luxe Auto 78

Lamborghini Huracan Seasonal Magazine 12

Harley-Davidson CVO Limited

Kawasaki ER-6n

The Ferrari 458 Speciale Aperta

Contents

She Inc. In this age of equal opportunities, does the Woman-on-theBoard needs to be celebrated? Ask men and women for their opinion, and the answers are likely to amuse. Most men we talk to, convey the idea that it is easier for women to climb the ladder. Women’s opinion, on the other hand, can vary. While junior or middle-level women executives tend to believe that it is equal opportunities for the fairer sex, those women who have actually climbed the ladder to the very top, tend to disagree. They all agree that it was tougher for women earlier, but even now the challenges for women are multi-fold compared with men. Seasonal Magazine tends to believe them, as they are women who have actually walked the talk. And most importantly, even with the recent influx of ‘independent’ women directors in listed companies, barely 7% of company directorships in India Inc are occupied by women.

One Guy Who has Worked in Google, Microsoft, & Facebook,

Dima Korolev has worked at some of the biggest technology companies in the world, including Google, Microsoft, and Facebook. Now he's moved on to startups.

Swachh Bharat & Clean Ganga CSR Funds Now Tax Free

Widening the activities coming under CSR ambit, contributions made by corporates towards Narendra Modiled government’s two key initiatives — Swachh Bharat and Clean Ganga — will now be considered as social welfare spending work.

Luxur uxuryy

106

Seasonal Magazine 14

Indian-born Sunder Pichai Moves Up to Second Rank in Google

Google CEO Larry Page has appointed Indian-born Sundar Pichai to head the company’s products business as part of a big reshuffling move in the..

102

MCX India - The Trust is Back

The past 15 months have been nothing less than tumultuous for The Multi Commodity Exchange of India Ltd. What started off from the imposition of Commodities Transaction Tax (CTT), gathered momentum after the payment crisis at National Spot Exchange Ltd..

Leadership

Meet India's New Financial Services Secretary & RBI Director In yet another secretary-level change, government has appointed Hasmukh Adhia, a 1981 Gujarat cadre IAS officer, as the new Financial Services Secretary replacing G S Sandhu. He has also been appointed as a Director at RBI. Adhia has been a member of Modi's core team for almost ten years now and was principal secretary from 2004 to 2006 in the then chief minister Narendra Modi's office. This is the third secretary level change in the Finance Ministry after Former Revenue Secretary Rajiv Takru was shifted to Department of North Eastern Region and Former Finance Secretary Arvind Mayaram was first shifted to Tourism Ministry and later to Minority Affairs Ministry.

Here is all you need to know about Adhia: 1. Adhia at present is the Additional Chief Secretary of the Finance Department in the Guajrat government. Prior to this, he was Principal Secretary Education Department from till January, 2013 and Principal Secretary to the then Chief Minister, Gujarat from May 2004 to May 2006. 2. He had also held the position of Industries Commissioner, Managing Director, Gujarat Industrial Investment Corporation as well as Vice Chairman & Managing Director, Gujarat Industrial Development Corporation 3. Adhia has a post graduate degree in accounting and a gold medallist from IIM. He also has a doctoral degree in Yoga from Swami Vivekanada Yoga University, Bengaluru and is currently a member of the board of governors of Indian Institute of Management, Ahmedabad. He had earlier undergone workshop training at Maxwell School of Public Affairs in US based Syracuse University. 4. Ahmedabad Mirror reports that the 'Karmayogi' (a teachers' training Seasonal Magazine 16

programme) and 'Kanya Kelavani' (for women's education) programmes are said to be Adhia's projects and he is said to enjoy direct access to Modi. The report also said that Adhia is known for no-nonsense attitude and does not cede to any vested interests. 5. Hasmukh Adia has written two motivational books titled 'My notes to my Self.' The books deal with govt administration and practical tips for all bureacrats to help in day-to-day governance. SM

Hasmukh Adhia

Meritocracy Raghuram Rajan

Raghuram Rajan Adjudged Best Central Banker of 2014 eserve Bank of India Governor Raghuram Rajan has been conferred with the Best Central Bank G overnor award for 2014 by Euromoney magazine. The magazine said Mr Rajan's tough monetary medicine combatted the storm ravaging the deficitridden economy in the recent emerging market crisis. "Now, he is battling vested interests to arouse a sleepy financial system for over one billion people," Euromoney said, adding, "Remarkably, the internationally-renowned economist, who earned acclaim for his warnings in 2005 of an upcoming global crisis of sorts, has, for the past year been true to his word." Rajan received Euromoney's Central Bank Governor of the Year Award 2014 in Washington Seasonal Magazine 20

on October 10, the RBI said in a release. "As he confronted capital outflows, the rupee at record lows, and over-blown but palpable fears India was marching towards an Asia-crisis style abyss, Rajan duly administered tough monetary medicine to ailing bond and currency markets," the magazine added. In January 2003, the American Finance Association awarded Mr Rajan the inaugural Fischer Black Prize for the best finance researcher under the age of 40. The other awards he has received include the global Indian of the year award from Nasscom in 2011, the Infosys prize for the Economic Sciences in 2012, and the Center for Financial Studies-Deutsche Bank Prize for financial economics in 2013. Bank of Mexico Governor Agustin Carstens was the winner of the award in 2013. SM

Summit

AMERICA TO BACK ITS ENERGY COMPANIES IN VIBRANT GUJARAT Energy, be it conventional or renewable, is a key sector, that the US delegation will be focussing on.

Anandiben Patel, Chief Minister of Gujarat

ess than a month after Prime Minister Narendra Modi's visit to New York and Washington, the US has offered to be a partner country in the Vibrant Gujarat Investors Summit (VGIS) 2015. US Consul General in Mumbai, Thomas Vajda told reporters on Friday that a formal communique has already been sent to Chief Minister Anandiben Patel about his country's willingness to participate in the VGIS's seventh edition. Earlier, Japan and Canada had been partner countries of the previous VGIS editions when Modi was the Gujarat chief minister. Modi had often flagged this event to project Gujarat as an ideal investment destination. The upcoming summit, which is to be held between January 11 and 13 in Gandhinagar, has already enrolled Japan, Australia, Singapore, the UK, the Netherlands, Canada and South Africa as partner countries. The US interest to participate in the event comes as a huge fillip to Gujarat investment-wise and Modi politically

since Washington had earlier given the VGIS a miss through all its six editions. Vajda, who was here to attend a seminar on 'Urban Design and Planning', said Gujarat had come up as a sought-after destination among the American companies. "We recognise the importance of Vibrant Gujarat summit as a platform to support the India-US economic engagement. There is increasing interest in the US about economic opportunities in India. Within India, Gujarat has a reputation of a very hospitable destination to attract investment," he said. "Through Vibrant Gujarat, we intend to bring our companies here and at the same time also want to showcase the US as a destination for education, business and tourism. We have offered our interest to serve as a partner country through a letter sent to the Chief Minister and hope that it will be accepted," the diplomat said. The American firms participating in the Summit have expertise in many sectors, which go beyond infrastructure and

smartcity projects, Vajda said. Citing expert observations, Vajda said India's total infrastructure investment requirement hovers around $1.5 to two trillion. "US firms possess expertise and interest in certain sections of infrastructure projects, including smart cities. They are geared up to contribute to meet India's infrastructure needs," he said. The American companies are keen to engage with India and Gujarat in several sectors, the Consul General said. "Energy, be it conventional or renewable, is a key sector. Sun Edison is already working with the state government for solarbased projects. Other sectors include defence, health and skill development," Vajda said. "There are already 18 US firms having their presence in Gujarat. When Modi was in the US, he met several heads of companies. They are now very optimistic about India," he added. During his 'Make in India' pitch, Modi had promised to do away completely with red-tape for investment. "If that happens, I am sure that more US firms will come to India," Vajda asserted. SM 21 Seasonal Magazine

Gadgets

Xiaomi Pole-vaults to Be World's 3rd Largest Smartphone Maker

Phones from Xiaomi still haven't arrived in the U.S., but the company's booming sales in China have been enough to make it the third largest smartphone vendor in the world. iaomi reached the ranking, behind Apple and Samsung, in the third quarter, said research firms IDC and Strategy Analytics. The Chinese vendor only began selling phones three years ago but it has quickly risen to become a leading vendor in its home market, by offering feature-packed Android phones at affordable prices. In the third quarter, Xiaomi had a 5.3 percent share of the smartphone market, still far behind second place Apple, which had a 12 percent share, according to IDC. But unlike its rivals, Xiaomi posted tripledigit year-over-year growth in smartphone shipments, of 211 percent, making it the fastest growing among the top vendors. It is the first time Xiaomi has entered in the top five smartphone rankings, IDC said. During the quarter, the company began selling its latest flagship phone, the Mi 4, a device that has all the latest specs, but with a selling price starting at 1999 yuan (US$326). Xiaomi this year has also begun expanding to other foreign markets, including India, where its phones have routinely sold out in online sales. "What remains to be seen is how quickly the company can move beyond its home territories to drive volumes higher," IDC said in a statement. As for the leading smartphone vendor Samsung, the Korean company continued to struggle amidst heated competition from Apple and Chinese rivals including Xiaomi, Lenovo and Huawei Technologies. In the third quarter, Samsung's market share was 24.7 percent, down from the 35 percent share it had a year ago, according to Strategy Analytics. Samsung's smartphone shipments could Seasonal Magazine 22

Lei Jun, Founder, Xiaomi

pick up later in 2014, with sales of its new Galaxy Note 4 and the Galaxy Note Edge, Strategy Analytics said in a statement. But in a Thursday earnings report, the Korean company said it expects competition in the market to remain stiff. Rival devices are already taking a toll on the company's earnings. In this year's third quarter, Samsung said its operating profit from its mobile devices division dropped by 74 percent from the same period a year ago. This was partly due to reduced prices for its older models, and more consumers buying its middle and lower-end smartphones. Apple, on the other hand, is still growing, with its third quarter smartphone shipments up 16 percent year over year,

IDC said. At the end of the third quarter, the company began selling its new iPhone 6 and iPhone 6 Plus in select markets. Helped by iPhone 6 sales at the end of the quarter, Apple posted its largest third-quarter smartphone shipments ever, IDC said. Older iPhone models, such as the 5s and 5c, however, made up most of the shipment volume during the period. In total, vendors shipped 327 million smartphones worldwide, up 25.2 percent from a year ago, according to IDC. Much of the smartphone demand is coming from emerging markets, where growth is over 30 percent. Developed markets, meanwhile, are posting single-digit growth, IDC added. SM

Economy

Rajan Needs to Cut Rates Aggressively, Says Top Economist Indian stocks may see a repeat of the 2004-07 bull run in the coming years based on improved political fundamentals, said Jim Walker, former chief economist, CLSA, and the founder of Asianomics. ut he was critical of Reserve Bank of India (RBI) Governor Raghuram Rajan and said it was time interest rates were cut "aggressively". "I worry about the new governor's fixation with inflation accounting. Like his Western counterparts he is mixing up consumer prices with true inflation, which is money and credit in the system," Walker said in an interview. "The deceleration in money and credit aggregates over the last three years has ensured that CPI (consumer price index) and WPI (wholesale price index) will not be a problem in the near term, i.e. the next two-three years. It is time to start cutting rates aggressively." Walker was among the first to initiate a 'buy' call on India in 2013 when valuations were low. Since then, stocks have surged with the Narendra Modi-led BJP having come to power with a strong majority. The upside will persist, he said. "As CPI inflation comes under control fast, falling interest rates in 2015 will fuel the bull market," he said. "We would certainly be looking at a threefour year bull run in the BSE 500 before it becomes a bit more mature and therefore more difficult to make headway. We would be happy with 20-25% returns over the next two years at least." But he doesn't see Europe or Japan filling the vacuum as the US ends its bond-buying programme. Seasonal Magazine 24

year basis, it would be banks and infrastructure companies." As for the country's economic prospects, he sees a turnaround after a prolonged slump that saw growth hit decadal lows and was below 5% in the last two years. "I am still very optimistic about India. The real economy has just bottomed out and is only now showing signs of reviving. I expect this to be a 5-10 year upswing. We are not basing this view on a revolutionary approach from the government: just more efficient decision making, streamlining bureaucratic procedures and focusing on growth-oriented policies. Indian companies' ability to make money will do the rest." A revival in growth and other factors will mean more overseas flows coming India's way, he said. "Next year, even if US rates rise, Indian rates will be falling," he said. "This will attract capital to a growing, recovering economy. And the capital attraction will be real and long term in order to position in a growing economy where earnings are accelerating." He doesn't expect much by way of currency fluctuations. "The rupee will move in the range 61-63 (to the dollar). We do prefer to look at the real effective exchange rate rather than the rupee-dollar but on that basis the rupee is undervalued at the moment," he said. "This means that, even if Indian inflation is slightly faster than that in the US, the rupee should be relatively stable in nominal terms." When it comes to the approach of the central bank, Walker was full of praise for one of Rajan's predecessors.

Jim Walker

"Europeans and Japanese will not make up for US QE (quantitative easing) in the same way, however," he said. "In both of these regions, the preference is to buy bonds over equities. The QE from these places will be searching for fixedincome yield rather than equity performance. Indian sovereigns would be a major beneficiary if the market were open." He's looking at specific sectors in terms of investment, depending on the time horizon. "In the next 6-12 months, we would still be wanting to buy industrial cyclicals and capital goods companies with a view to holding them. On a two-three

Budget 2015-16

CAN PREPONING BUDGET IMPLEMENTATION BY A QUARTER BOOST INDIAN STOCKS FURTHER? INDIAN STOCKS HAVE BEEN ON A TEAR THIS YEAR AND THE GOVERNMENT'S PLAN TO IMPLEMENT ITS BUDGET EARLY COULD PROVIDE A FURTHER BOOST.

omments that the Indian government aims to implement its new budget from 1 April (three months early) should only add to the positive sentiment," said Chris Weston, market strategist at IG. "The Nifty 50 index still has great upside potential. Naturally there will be corrections, but buyers continue to step in and pay up for the earnings with improving fundamentals," he said. India's Nifty 50 surged 32 percent year to date and is Asia's best performing index. By contrast, the second-best performing index, the Shenzhen Stock Exchange Composite index, is up only by 28.72 percent, while last year's standout, Japan's Nikkei, is only up 1.5 percent. The e l e ct i o n of P r i m e M i n i s te r Narendra Modi in May and his promise to boost India's flagging economy through much-needed reforms underlie India's stock market rally. In July, Modi announced a budget of structural reforms

aimed at reviving growth. A decision to speed up the budget implementation process by three months - announced last week - could see some of these measures rolled out sooner than expected. "What investors are realizing is that, in a world that is pretty short of growth, you are seeing the best opportunities in India," said Geoff Lewis, global market strategist at JP Morgan Asset Management. "It's an economy that's turned around cyclically and also we are seeing a positive response to 'Modinomics,'" he said, referring to Modi's plan to unblock stalled infrastructure projects, attract foreign investment and revive economic growth. India's economy expanded a faster-thanexpected 5.7 percent year on year in the April to June quarter, recovering from its lowest growth rate in a decade in the previous quarter. "If you compare against long-term averages in terms of price-to-

earnings ratios, we think the Indian stock market is one of the stories where the fundamentals are still strong, so will be relatively supported," added Lewis. Stocks on the Nifty 50 index are trading at an average price-to-earnings ratio of 16.62 times earnings. Other analysts doubt that speeding up the budget implementation will greatly impact equity markets. "The scope for any near-term gains from the budget may be checked because some of it has already been unveiled," said Vishnu Varathan, market economist at Mizhuo Bank. The external environment poses the greatest risk to Indian stocks' good fortune, he added. "If we don't see euro zone growth recovering sustainably there could be enough cause to question the optimism on India's prospects," he said. "Obviously the Bank of Japan's move has contributed to the momentum in global equity markets, but if that momentum starts to waver we could see a bit of a pull back." SM

Seasonal Magazine 26

ommy Hilfiger, world famous for his classic American designs, has a deep connection with India. Over three decades back Hilfiger started his career, not in America but in Shahi Group, an export house in New Delhi. Again, he got funding to start the Tommy Hilfiger brand not from Amercians but the Indian Murjani Group, based in Hong Kong. He came to India 35 years ago. "I have learned about fabrics, tailoring, the make, embroideries, how to make incredible fashion here in India," he says. The American design guru says Kurta Pajamas are his favourite Indian wear and he wears them during summers. On taking Indian fashion abroad, Hilfiger says Indian influence can be seen in his designs. He in fact also started designing womenâ&#x20AC;&#x2122;s kurtis and says they sell very well. For him, Sonal Kapoor is the ultimate Bollywood star. He says she is a part of the Hilfiger family and shares a nice relationship with her. Below is the verbatim transcript of Tommy Hilfiger's interview with Nayantara Rai on CNBC-TV18: It's yyour our 10th anniv er sar w the anniver ersar saryy, ho how ear earss been in India? ten yyear I never expected us to be as successful in 10 years time. I never expected us to be so embraced by the Indian people in such a short amount of time. It is a pleasure, it's been amazing.

Made in India

dif oun trie diffferen entt ccoun ountrie triess? That is true, although we adjust some fits every once in a while but nothing really dramatic it's really the same line world wide. Wha es TTommy ommy Hilfiger TTommy ommy Whatt mak make ? Hilfiger? Hilfiger The person or the brand? Bo th o e will go with the Both off them. W We son fir st? person first? per The person - I am excited about what I do; I have been doing it for very long time. I came to India 35 years ago. It

So tha sn't mak e lif e ea sier thatt doe doesn't make life easier for yyou, ou, bec a use y ou don't ha v e o beca you hav tto loc aliz e , y ou don't ha v e t o ha v localiz alize you hav to have special de sign f or en design for dif difff e rren entt Seasonal Magazine 28

Wha aking Indian de signs Whatt about ttaking designs ou eevver done tha sea s, ha ersea seas, havve yyou thatt over or thought about it? I have Indian influence in my designs worldwide everyday. Whether I do embroideries or madras or checks many of it is made here. We have a

THE GLOBAL FASHION GURU WHO LEARNT DESIGNING IN INDIA

Wha ould yyou ou sa our le Whatt w would sayy yyour lesssons om India? havve been fr from ha First and foremost I have learned that the Indian, the young people in India, are dressing the same here as they are in the rest of the world. The world is flat, the same in Rio, Shanghai, Rome, New York, Paris all the people are dressing the same. They have worn jeans; they have worn casual wear so we are here in the right place at the right time.

found that the young Indian people wanted the same fashion that I was selling worldwide, which is a real big lesson for me. Because I thought maybe we would do some kurta pajamas and may be we do some local looks but it is not that way at all.

was my first design journey. What I was actually dreaming of building a brand I came to India and I designed my very first collection here. So I have learned about fabrics, I have learned about the tailoring, the make, the embroideries, I have learnt about how to make incredible fashion here in India for many years. What I also learned was that I can get anything I want, I can manufacture anything I need here. I am importing a lot still and when I started opening stores here 10 years ago I really

very big export business out of India. I may be one of the largest apparel designer, manufacturers exporting from India in a world. And is tha o ccon on tinue ou see thatt going tto ontinue tinue,, yyou tha on tinuing? thatt ccon ontinuing? I see continuing because I see the Indian fabrics and fabrications and textile industry becoming much more sophisticated on a world class level. India is a tte extile hub; w e ccompe ompe we ompette with China and Banglade sh. So in yyour our Bangladesh. opinion wher e doe and? where doess India st stand? I think India is growing leaps and bounds and I think the fact that there is flexibility in this country is amazing. I think it is a primarily English speaking so that helps with the world economy when you are exporting to many countries. However I love the essence what India has to offer. And wha t, ho w w ould yyou ou whatt is tha that, how would cap tur e tha e? ture thatt eesssenc sence aptur My brand is made up of lots of checks and cottons really lots either handloom fabrics or powerloom fabrics done in multi colours and nobody can compete with India on that. You ar e sa ying people ar ound the are saying around world w an ow ear the same thing wear wan antt tto lik ew ew er e discus sing the w orld ar e like we wer ere discussing world are t. So wha ou do yyou ou tr avel fla flat. whatt do yyou tra ar ound yyou ou see wha e are around whatt people ar wearing lik e ho w do yyou ou go about like how doing it? I travel the world all the time. I look at what people are wearing but I also have a sense as to what they want next. Even though I say every one is wearing the same thing but every individual puts it together in a different way. They style themselves in a different way. Some people wear tshirts with jeans. Some people wear blouses with jeans some people wear may be jacket and the sweater with the jeans, some people even wear the jeans with the necktie and a dress shirt and a blazer to work. So jeans are worn and casual wears are worn in many different ways. But I am looking ahead always and I am thinking okay what does that customer wants next and that customer wants bright colour, 29 Seasonal Magazine

comfortable, fashion that is wearable, affordable, stylish, fits well and at the same time if you are wearing a bright colour you might want to wear with the neutral so we have both. We have wide array of colour, a wide array of neutrals and basics and classics with fashion sort of coming in and out of the store on regular bases. So when I go to the Tommy Hilfiger stores it's more of a casual brand for me per se. Did yyou ou eevver think o o off ge gettting in tto formal w ear ? wear ear? Formal wear is defined in many different ways. We sell dresses, we sell tuxedos, we sell neck ties, we sell dress shirts, we sell sometimes longer gowns. We do everything except for the evening wear. Although may be we make something special for Hollywood stuff or the red carpet or one offs like that. But we do basically day in to evening but on the casual side.

You just men tioned tha ou lik e tto o mentioned thatt yyou like st yle ma time elebritie style mayy be some sometime timess ccelebritie elebritiess for the rred ed ccarpe arpe t; w ould yyou ou lik e tto o arpet; would like st yle any Bolly wood st ar style Bollyw star arss? Sonam Kapoor is sort of the ultimate. I think she is not only a Bollywood star but she is a Hollywood star. She is a fashion star and she is a wonderful person. So for me, she is the ultimate and I know she likes our clothes I know she is worn it before and she plans to wear them in the future. So we have a very nice relationship, she is in our family she is in the house of Hilfiger so to speak. So we are very happy to be associated and collaborate with her.

Sonam Kapoor is sort of the ultimate. I think she is not only a Bollywood star but she is a Hollywood star. She is a fashion star and she is a wonderful person. So for me, she is the ultimate and I know she likes our clothes I know she is worn it before and she plans to wear them in the future. So we have a very nice relationship, she is in our family she is in the house of Hilfiger so to speak.

So Sonam K apoor done Kapoor done,, wha whatt about a male Bolly w ood ac t or ? Bollyw actor? Which one would yyou ou lik e t o st ar ? like to star ar?

Which ha elebrit hass been the most fun ccelebrit elebrityy for yyou ou tto o st yle fr om ar ound the w orld style from around world and why ? why?

Actually when I have Sonam, I don't want anybody else right now because I want the focus to be on her as it should be.

For many years, we have been styling celebrities music stars mainly, Katy Perry, Britney Spears, Jennifer Lopez, Lenny Kravitz, David Bowie, Rolling Stone. We have been very involved with styling celebrities mainly in the music business but also from Hollywood, sports stars and we were really the first to do in early eighties. But if I have to pick one, I would probably say that Katy Perry has been pretty exciting. Katy was developing her own style when we actually figured it out what she should be wearing next and for recent times it was exciting dressing her. We dressed Nicki Minaj not long ago; Jennifer Lopez looks great in anything we put on her. Zooey Deschanel a very big TV star in US, she wears her clothes well. But I also like dressing normal people because it makes me feel that we are doing the right thing for brand. No w ttell ell us ho w TTommy ommy Hilfiger Now how bec ame TTommy ommy Hilfiger e ho ww as became Hilfiger.. Lik Like how wa the journe w did it st ar t? journeyy, ho how star art? As I said I started in India designing fabrics and designing materials. 35 years ago I came to India and I designed my first collection in India. I made it in a small factory in Delhi which is now a large factory. It is Shahi International owned by the Ahuja family. I worked in a factory with a dirt floor and ten tailors. Now they have 90,000 employees and they are a giant manufacturer, the largest in all

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of India I believe. What I learned from there was that there are people who care about what they do, how they sew a garment, how they finish a garment, how they finish the fabric. I took all those ideas back to the US with me and I sold them and as I expanded my brand, I expanded the production worldwide. And then I expanded the brand to become a global lifestyle brand. But always with the idea that it was sort of American classic cool, which now turned into global casual wear. We have developed a lifestyle brand because we make men's, women's and childrenâ&#x20AC;&#x2122;s accessories, hand bags, shoes, eye wear, fragrances, watches, home wear. So we are a full lifestyle brand. So ho w w ould yyou ou dif en tia how would difffer eren entia tiatte it toda om le alvin Klein or a letts sa sayy C Calvin odayy fr from Rafael LLa aur en or an E sprit. Wha uren Esprit. Whatt do you ha o mak e sur e tha ou ar e make sure thatt yyou are havve tto alw ays dif en tia alwa difffer eren entia tiatted? We have a DNA that is different. We believe in great colour, great quality, great fit but difference than many of the rest is the great pricing. It is very important in this age to have affordable luxury, a designer brand with affordability. With people today who are working hard and trying very hard to make ends meet, they don't want to spend all their money on clothes. They want nice clothes, they want nice style, they want something new but they want to be able to afford it and be able to wear it season after season after season. So wear classic but with the twist. It is classic enough to stay in your closet for years to come and to be worn years to come and a lot of brands are here today gone tomorrow, there is a style that's happening now but is out of style next year that is too trendy. So I say style is forever, fashion is fleeting. You should own classics that endure the test of time and can be worn with anything anytime.

As I said I started in India designing fabrics and designing materials. 35 years ago I came to India and I designed my first collection in India. I made it in a small factory in Delhi which is now a large factory. It is Shahi International owned by the Ahuja family. many years when buying when people were saying why are you not more expensive why don't you do luxury or why arenâ&#x20AC;&#x2122;t you doing what they are doing in Paris and in Milan and my answer to them was that I don't want to make clothes that belong in a museum, I don't want to make clothes people can't wear or afford. I want to make clothes for lots of people to wear and enjoy.

Ha ving said tha orld Having thatt when the w world changed post LLehman ehman Br other as Bro therss w wa it ea sier ffor or yyou ou bec ause yyou ou said easier beca yle e eevver gr een if I w er e tto o your st style yless ar are ergr green wer ere sa t? sayy tha that?

So yyou ou didn't ha o rrein ein our self havve tto einvven entt yyour ourself in 2008.

As of 2008 our business became stronger and I think because people saw the value in buying our brand and

I did not reinvent myself. I only finetuned what we were doing and we are continuously chasing better quality -

better buttons, better threads, better zippers, better pocketing, better fit every thing has to be better. Everything has to be made with a higher quality standard season after season. So yyou ou w er e just bec oming a bigger wer ere becoming per tionist? perffec ectionist? I would say that - that is a very good way to put it out, a bigger perfectionist and I have a lot of perfectionists around me, I have an amazing team of people who are working everyday fine-tuning and making sure that this brand is moving ahead, evolving and socially responsible. 31 Seasonal Magazine

One o off the criticisms against a lo lotts e of br ands is the w ay the clo the brands wa clothe thess ar are manuf ac tur ed. So is TTommy ommy Hilfiger manufac actur tured. a br and tha war ea ar brand thatt is socially a aw are ass ffar as tha thatt goe goess? We are the most socially responsible because we have inspectors going to all the factories at all the time and at the same time one of the reasons we are still with the Shahi Group is that they have 90,000 employees and they have the gold standard in India for taking care of their workers as the matter of fact over 55 percent of their team is women and they protect and cherish those women and take care of them. You look at their wages. You look at the entire operation you will be incredibly impressed.

We started the Tommy Hilfiger brand in India 10 years ago. We were waiting for the right time. If we had started earlier maybe we wouldn’t have been accepted, we wouldn’t have found the right locations, we wouldn’t have been strong enough as a brand to come in and do what we needed to do. When you come in to a country you have to set up a great store or stores, you have to hire staff, you have to advertise and you have to do all the right things in order to launch it properly. So it was the right time 10 years ago.

You said tha ou ar e w orking with thatt yyou are working the Shahi Gr oup in India, 90,000 Group emplo w many ccoun oun trie employyee eess ho how ountrie triess do you eexpor xpor o fr om her e? xportt tto from here

So yyou ou st ar our ccar ar eer in India. star artted yyour areer Do yyou ou w an o ttell ell me ho w yyou ou how wan antt tto reached India in the fir st plac e? first place

We are in 92 countries. We are manufacturing in 55 countries. We are probably one of the largest exporters of garments of India back to Europe, to US, South America even in China. We are one of the largest exporters out of all of Asia.

I met a man with a factory who invited me to Mumbai in the very beginning and I had ideas for design but I didn’t know what I was doing and I didn’t know anything about the business. I just knew that I wanted to build my own brand some day and design some cloths for my small jeans shop in New York. So I went to develop a line with him and spent months designing clothes, and tailors and seamstresses made garments for me and it really put me in business. And ho w did yyou ou st ar t. Y ou st ar how star art. You star artted with a small jeans shop in Ne wY ork? New York? I was 18 years old and I came from a family of nine children. So we all had to work at an early age and earn our own money. But I had saved USD 150 from working in a petrol station at night and it was my idea to buy jeans off the streets of New York and then sell them to my friends, my school mates. I did that and then I opened a small, tiny shop called People’s Place. I wanted to be the clothier to the people and I started in the jeans business, but then I started designing my own jeans and then I started designing my own shirts and sweaters and jackets and as those ideas caught on I thought at that point I should build my own brand and when I told my

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family and friends I wanted to build my own brand they all laughed. They said there is no way you could do this and I said watch me. I will do it because I will surround myself with great people and I will try my hardest. So w did yyou ou ge or So,, ho how gett the funding ffor it, ho w did yyou ou build it? how Mr Mohan Murjani, an Indian gentleman who was living at Hong Kong at the time owned a company called Gloria Vanderbilt Jeans and he and I met in Hong Kong. He offered to back me and he offered to be my partner. So we became partners in the early 80s and started the Tommy Hilfiger brand together. So yyou ou rreally eally ha onnec tion havve a deep cconnec onnection with India if yyou ou think about it? I really have a deep connection with India. And though yyou ou ha havve only been in busine e ffor or 10 yyear ear earss? businesss her here We started the Tommy Hilfiger brand in India 10 years ago. We were waiting for the right time. If we had started earlier maybe we wouldn’t have been accepted, we wouldn’t have found the right locations, we wouldn’t have been strong enough as a brand to come in and do what we needed to do. When you come in to a country you have to set up a great store or stores, you have to hire staff, you have to advertise and you have to do all the right things in order to launch it properly. So it was the right time 10 years ago. And ho w did yyou ou bump in how intto Murjani? I met him through his family. I met his brother Dilip first and we became friends and he said you must meet my brother Mohan. Mohan and I hit it off immediately as friends first and we are still friends today and it is 30 years later. No w tha ou ha Now thatt yyou havve, in a sense if I ma o Apa mayy sa sayy so so,, sold the busine businesss tto Apaxx and C alvin Klein eettc do yyou ou ha e Calvin havve mor more time on yyour our hands ? hands? I am really busier than I have ever been because the business has grown tremendously since that and I am involved in all of the creative direction and vision of the brand and at the same time we are opening stores all over the world and when we open a

store I go and visit it, I love meeting the people, the customers, seeing the customs of the country. One day we will be in Copen Hagen and other day in Mexico City and other day in Delhi. But do yyou ou no w ha e time tto o now havve mor more do wha ou ac tually lo whatt yyou actually lovve which is de signing, ma ybe yyou ou don’t ha o designing, maybe havve tto worr orryy so much about the busine businesss side e about de signing, is side,, it is mor more designing, tha w it is looking out no w? thatt ho how now It is more about the entire vision of the brand and the overall strategy but to me it is all fun. I love the fact that I learned at an early age to pay attention to the business and to learn about the business of the business and a lot of creative people are only creative and then leave the business up to other people. I loved learning about all of it and to wake up in the morning and think that I could be engaged in all of the above was very exciting because may be I am a perfectionist.

Bec ause most pr ofessionals ha Beca pro havve a big pr oblem in being able tto o delega problem delegatte. If I ma om mayy sa from sayy some o off them suf sufffer fr Ob se e–c ompulsiv e disor der Obse sess siv sive–c e–compulsiv ompulsive disorder (OCD)?

The succession plan is really all about the executives on the team right now who are made up of the CEO, COO, etc. It is a professional business really owned by a parent company, a conglomerate PBH and as a public company they have succession plans in sight for every one of the top executives.

No, I do trust them.

Do yyou ou eevver do secr et st or e visit secre stor ore visitss?

Par don me if I am cheek ardon cheekyy.

Yes, I do. Sometimes I pop into a store and I don’t even let them know I am there. I sort of walk in and walk out.

Is it ea or yyou ou tto o delega eassy ffor delegatte? Yes, it is, because I trust my people. I have been very lucky.

No, I understand completely because it runs in my family but I would say that I am a control freak up to a certain point but I do trust my people and I have an amazing team. So if I give them direction I know they are going to do a great job. And is tha eam mainly yyour our friends thatt tteam and ffamily amily or is it pr ofessionals ? pro sionals? Professionals. Is yyour our ffamily amily in ed? invvolv olved? My family is not involved. My family was involved often on but it became such a big business I thought my family will get lost in it. So my family are doing many different things. So do yyou ou w orr ving worr orryy about no nott ha having suc cession plan or do yyou ou ha succ havve suc cession plan? succ

a a

The ec ognise yyou? ou? heyy don’t rrec ecognise When they recognise me of course I have to admit to the fact that I am doing a secret store visit but I like to

"Mr Mohan Murjani, an Indian gentleman who was living at Hong Kong at the time owned a company called Gloria Vanderbilt Jeans and he and I met in Hong Kong. He offered to back me and he offered to be my partner. So we became partners in the early 80s and started the Tommy Hilfiger brand together."

see what is going on and actually I am pleasantly surprised most of the time. Ar e yyou ou some time ed? Are sometime timess shock shocked? No longer, but years back when we were just starting out I was sometimes shocked at the housekeeping and how the clothes were displayed but now we have such systems in place, people are following the overall system very well. Iw an o end this bbyy a sking yyou ou which wan antt tto asking is yyour our ffa avourit e garmen t? ourite garment? Kurta Pyjama. Do yyou ou ha ur havve a pair o off K Kur urtta Pyjama? I have many pairs. Do yyou ou sleep with those those.. It is supposed tto o be a good night wear ? nightw ear? To be honest with you I have them for the summer and I wear them on a hot day and I end up sleeping in them. Do yyou ou think yyou ou will eevver sell TTommy ommy Hilfiger’s K ur ound the Kur urtta Pyjama Pyjamass ar around world? I have put Kurtas in the line for women. This was four seasons back. We had embroideries on them but for men who are wearing jeans and casual wear, they would rather not wear Kurta Pyjamas. SM 33 Seasonal Magazine

Development vs. Land Rights

DHOLERA'S CHALLENGES TO START MOVING Conceived in 2007 when Modi was chief minister of Gujarat, the state's first Super City, Dholera, has failed to take off with momentum, so far. The new Land Acquisition Act requires consent from at least 70% of owners of the land before the government or companies can buy it for infrastructure projects. Since January, when the previous govt passed the Act, not one large tract of land has been acquired for development.

fields now bearing wheat, cotton and cumin, Prime Minister Narendra Modi promises to build a city rivaling the most advanced in the world. Farmer Ganpatbhai Chauhan doesn’t believe a word of it. “They say this will become like Singapore, our land will turn into gold,” said Chauhan, 45, sitting on a rope cot on the veranda of his house in the village of Sarasla, showing the notices he has received to vacate about a third of his 22 acres. “It’s all lies. Losing my land will ruin me.” The cluster of mud houses with clay-tiled roofs is one of 22 villages in the flat alluvial wheat basket of Modi’s home state Gujarat that is earmarked for Dholera, a city designed to be larger than Berlin when completed in about three decades. The government sees 100 such urban centers transforming the fortunes and image of the nation, which accounts for almost one of every five people in the world. Farmers see an attempt to seize their land cheaply. It’s a standoff that has hampered India’s development for decades. Since January, it’s become even worse. That’s when the previous government passed an Act requiring consent from at least 70% of owners before the government or Seasonal Magazine 34

companies can buy land for infrastructure projects. Since then, not one large tract of land has been acquired for development. “It’s an impasse,” said Rajya Vardhan Kanoria, chairman of the Task Force on Land Reforms and Policy at the Federation of Indian Chamber of Commerce and Industry (Ficci) in New Delhi. “All land acquisitions are suspended. It’s not helping anybody— neither industry nor the farmers.”

for ArcelorMittal and Jindal Steel and Power Ltd. Without them, Modi’s plan to accelerate India’s urbanization by upgrading cities and building new ones won’t get off the ground.

Road Block:

“Even if companies raise the offer price to win over farmers, it’s almost impossible to acquire the land because of a complicated regulatory process that can take four years or more,” said Kanoria, who is also chairman of Kolkata-based Kanoria Chemicals and Industries Ltd, which has factories in Gujarat and Andhra Pradesh states.

More than Rs.1 trillion of projects are stalled as a result, including Rs.60,000 crore of roads, 20 new coal mines by state-run Coal India Ltd, and steel mills

The poster child for the land impasse is Dholera. Conceived in 2007 when Modi was chief minister of Gujarat, it’s to be the heart of a Japanese-backed $90

years of being able to seize land cheaply, said Niranjan Sahoo, an analyst at New Delhi-based Observer Research Foundation, an independent think tank.

billion industrial corridor stretching 1,500km between Delhi and Mumbai, India’s two biggest cities.

Super City: Billed as “a new Gujarat within Gujarat,” the development zone would triple industrial output and quadruple exports from the region, according to its website. A new port and airport and modern highways and rail links will attract automotive, electronics, biotechnology and other industries, according to the plan.

Cheap Deal: “The mindset of companies and authorities hasn’t changed,” he said. “They still want to take away land at a very cheap rate.” Eight of 20 major projects, worth Rs.1.65 trillion, were shelved in 2011 and 2012 because of the failure to acquire land, Icra said a September 2013 report. Work on 81 national highway projects stretching 8,126km has yet to start three years after the contracts were awarded.

The vision has failed to overcome reality. Villagers have blocked the project for years. In 2009, Modi introduced a special investment-region law to speed things up, allowing the government to seize 50% of farmers’ land and compensate them with developed property elsewhere. So far, nothing has been done beyond sending letters to the farmers, asking them to vacate part of their acreage. Near the entrance to Chauhan’s village, home to about 100 families, a large printed poster hanging on a wall warns officials to stay out. In June, encouraged by the new federal law, the farmers took their case to court. What they’re fighting over is some of the most fertile soil in Gujarat, a plain about 100km south of the state’s biggest city of Ahmedabad and near an inlet of the Arabian sea where a port for the new city is planned.

Destroying Villages: The only buildings are the farmers’ simple houses. Authorities say they will begin work on roads and drains by March. “The government will be forced to scrap this project as they are acquiring land bypassing all norms and procedures,” said Sagar Rabari, secretary of the Khedut Samaj, a farmers’ association. “They can’t build cities by destroying villages and snatching away people’s livelihoods.” For Gujarat officials tasked with persuading farmers to sell, the new law requiring group agreements has made a difficult job harder.

“The whole land pooling and readjustment is a tedious process,” said Ajay Bhadoo, chief executive officer of the Dholera SIR Development Authority in Gandhinagar, Gujarat’s purpose-built state capital just north of Ahmedabad. “We will keep on pursuing them to vacate their land.”

Reluctant Landowners: Part of the problem is that each of India’s 29 states now has to adjust its own laws to conform to the new federal act, a process that could take years. In the meantime, landowners are holding off from selling in the hope of higher prices, said Sheetal Sharad, an analyst at New Delhi-based ratings agency Icra. “Land acquisition has become the single largest roadblock for infrastructure development,” Sharad said. “There is lack of clarity on how to proceed following the federal law.” India’s land laws have bedeviled development for decades as consecutive governments courted votes of the nation’s 800 million rural residents. Previous rules forced owners to sell land if it was considered to be in the public interest. The laws were widely abused, leading to clashes between farmers and officials that fueled Maoist rebellions in some mineral-rich states. The standoff is exacerbated by buyers’ unwillingness to pay higher prices after

The new Act was supposed to make the process more transparent. Land can be acquired for projects that involve a public-private venture once 70% of the affected farmers agree, or 80% in the case of the government obtaining land for a private company to build power stations, ports or other infrastructure. Social-impact assessments and resettlement and rehabilitation packages also are required.

Gaining Strength: “The Act has given us strength to fight,” said Vighji Singh Patel, a farmer in Shela village who may lose half of his 40 acres to the Dholera project. “If they’re determined to buy it, let them acquire our land under the new law.” Modi’s government is trying to amend the Land Act in line with his Gujarat laws. That won’t be easy because his Bharatiya Janata Party (BJP) doesn’t have enough seats in the upper house of parliament and some parties will reject the proposal as too anti-farmer, said Sahoo at Observer Research. Meanwhile his Dholera dream remains stalled. The Gujarat high court has issued notices to the state and federal government asking them to respond to the villagers’ petition. “We’d like to sell our land on our own terms,” said Patel, the farmer in Shela village. “If you want to buy it, come to us and negotiate the price directly.” SM

(Credit: Bibhudatta Pradhan for Bloomberg) 35 Seasonal Magazine

Strange

Why Modi's Plan to Revive Failed Factories is Controversial At British India Corporation's textile factory in Kanpur, four men sit in a control room watching computerised gauges eight hours a day. When they are done, another group takes over, and then another, for 24 hours a day â&#x20AC;&#x201C; much as they might at any major industrial plant. The problem is, nothing is produced there.

he strange tale of British India Corporation is an example of how political patronage and India's strict labour laws keep publicly owned companies going long after they are insolvent. Now Prime Minister Narendra Modi, who campaigned in this year's general election on a promise of "minimum government, maximum governance", is preparing to invest more taxpayer money in ailing state-owned factories in a bid to turn them around. While the government has announced the closure of six publicly owned companies, Minister for Heavy Industries and Public Enterprises Anand Geete said last month that about two-thirds of 64 loss-making firms can be revived with more money. The government has set up a committee to examine ways sick public companies can be resuscitated, including using cash reserves from profit-earning state firms to provide lifelines to the loss-making ones, according to officials in New Delhi. The committee will report its findings in two months. The moves have disappointed those who want Modi to force through economic reforms, however painful. He Seasonal Magazine 36

might reply that past success in reviving "zombie" enterprises as chief minister of Gujarat state gives him the right to try on a national level.

supporters would like in introducing policies many say are needed to revive an economy growing at its slowest rate in nearly a decade.

"I am shocked they are considering putting more money in," said Mohan Guruswamy, chairman of the Centre for Policy Alternatives and a former official in the finance ministry.

So far, there has been little movement to roll back the previous government's subsidy programmes or repeal a law allowing retroactive taxation that has alarmed global investors.

"The litmus test of whether Modi is a reformer is what he does with these companies, not what he does on allowing more foreign investment. Unfortunately, it looks like he will avoid taking unpopular decisions." Since winning India's first parliamentary majority in three decades in May, Modi has not been as ambitious as his

"I am shocked they are considering putting more money in," said Mohan Guruswamy, chairman of the Centre for Policy Alternatives and a former official in the finance ministry. Mohan Guruswamy

"POSSIBLY THE WORST COMPANY IN THE WORLD": In theory, British India Corporation sells army uniforms, rugs, blankets and tweed jackets, but it stopped manufacturing nine years ago after finishing its last order. Since then, the company, based in the gritty northern city of Kanpur, has lost about $50 million. British India Corporation employs about 1,800 people. All the employees come to work, everyone gets paid, earns a bonus, there are overtime shifts, promotions and job changes. There are bungalows for the managers, flats for workers, a hospital, schools and a subsidised shop. The gardeners, engineers and painters keep the grass trimmed, the machines in working order, and signs freshly painted.

"This could easily be the worst-run company in India, maybe the world," said Satyendra Nath, 58, head of the tax department, who spends his days reading the newspaper or watching television because there is no work to do. "Often, I think: what have I done in a previous life to end up working here?" India put key industries in the hands of state-run monopolies in the years after independence in 1947, borrowing from Soviet thinking that late-industrialising countries needed to use state intervention to transform their economies. A quarter of the country's 277 staterun firms, which produce everything from condoms to scooters, have lost about $16 billion over the last decade, according to government records. At least 20 loss-making companies owned by the central government have stopped production or have almost no activity yet still pay staff full salaries, according to an official at the Board for Financial and Industrial Reconstruction, the agency charged with expediting restructuring or liquidation. Indian ministers are reluctant to close these zombie companies because it will lead to job losses, which in turn could cost them votes.

India's labour laws, which the World Bank says are the most restrictive anywhere, also make it hard to sack staff for any reason other than criminal misconduct. So it can take decades for a severance package to be agreed. For India, which has the world's highest number of starving children and people who can't read, paying the factories' running costs and salaries diverts money that could be spent on healthcare and education. However, Modi may adopt a plan for the loss-making state companies he used in Gujarat, where he was chief minister. By giving boards more independence from ministers and using cash injections from the government, Modi was able to turn 20 publicly owned companies into profit in his 13 years as leader of the state. "When Modi came to power in Gujarat he was determined to revamp the public sector companies, a majority of them were making losses," said P.K. Laheri, the former top bureaucrat in Gujarat who served as chairman of some of those state companies. "He did not want his ministers or politicians to play an active role in running them."

GOOD FOR NOTHING: British India Corporation, which hasn't made a profit since 1989, is among the companies being earmarked for revival, officials in New Delhi said. To pay off its debt and buy materials to restart

production, the company would need an investment of $65 million, according to managers at the factory. At the company's redbrick mills, where there is a four-sided clock tower built a century ago and silver weaving machines line the long factory floors, millions of dollars of never-used equipment sits decaying; a symbol of the mismanagement that has mired the company in crisis. In 2005, after a $13 million taxpayer rescue, the factory managers spent the money on high-end weaving machines imported from Switzerland. But the plan to raise another $21 million by selling land to buy yarn and wool was never approved by the politicians so the machines have never been turned on. Still, at 6:30 every morning, workers begin arriving for their shifts. Once the personnel department marks their attendance, they hang around talking with friends, complete odd jobs such as cleaning, or return home to see their families. Employee Chandra Lal, 55, who has worked at the factory since 1987, says some of his colleagues have become alcoholics as they struggle to deal with the boredom. He says they are unlikely to find new jobs after years of inactivity. "I have forgotten how to use my arms," Lal said. "Earlier we were respected members of our community. Now we are good for nothing, just like the factory."

(Credit: Andrew Macaskill and Manoj Kumar for Reuters) SM 37 Seasonal Magazine

In Top Gear

Indian Companies Among WEF's Global Growth Companies

Seventeen "fastest growing" Indian companies, including Just Dial and Sobha, have been invited to join the World Economic Forum's Global Growth Companies (GGCs) community comprising 370 firms.

he selected companies are: 4G Identity Solutions, ANI Technologies, Avesthagen, Bandhan Financial Services, Centum Electronics, Finolex, Flipkart, Forbes Marshall, InterGlobe Enterprises, Justdial, MakeMyTrip, Nash Industries, Persistent Systems, Radikal Foods, RBL Bank, Sobha, and Transasia Bio-Medicals. These companies were nominated on the strength of their ability to become future

global leaders and represent a broad spectrum of sectors, including banking, retail, information technology, chemicals and energy, WEF said in a news release. The honoured companies received awards at the ongoing India Economic Summit. "The World Economic Forum is proud to recognise these 17 champions that are at the forefront of driving responsible economic growth, job creation

and entrepreneurism in South Asia," World Economic Forum Managing Director and Head of New Champions David Aikman said. Nomination as a GGC provides companies with an opportunity to join the larger GGC community of over 370 companies worldwide. These companies contribute to the Forum's meetings, projects and knowledge products, which in turn support them on their path to achieving responsible and sustainable growth. GGCs are fast-growing companies with the potential to become global economic leaders. The nominated GGCs represent a broad cross-section of industry sectors but share a track record of exceeding industry standards in revenue growth, promotion of innovative business practices and demonstration of leadership in corporate citizenship, WEF added. SM

Seasonal Magazine 38

Ministerial Assets

The Pecking Order in Richness, When it Comes to Central Ministers Prime Minister Narendra Modi has assets worth Rs 1.26 crore, according to details of assets and liabilities of the Union Council of Ministers uploaded on the PMO website recently. While finance and defence minister Arun Jaitley turns out to be the richest with assets totaling Rs 72.10 crore, urban development minister Venkaiah Naidu has the least assets totalling Rs 20.45 lakh. odi's assets include Rs 38,700 in cash, bank balance and deposits worth Rs 1,32,698 and Rs 17,00,927 respectively, Rs 20,000 in bonds, Rs 2,35,000 in NSC, Rs 1,99,031 in insurance policies and jewellery and precious items worth Rs 1,20,980. He owns a house in Gandhinagar worth Rs 1 crore. Interestingly, Modi has made no mention of his spouse Jashodaben's assets, only filling up the columns against her name

with the words "not known". As many as 17 of the 22 Cabinet are crorepatis. The five non-crorepatis include Naidu with Rs 20.45 lakh worth of assets, food minister Ram Vilas Paswan with Rs 39.88 lakh assets, labour and employment minister Narendra Singh Tomar with assets worth Rs 44.90 lakh, health minister Harshvardhan with assets of Rs 48.54 lakh and chemicals and fertilisers minister Ananth Kumar with Rs 60.62 lakh in assets.

Figuring in the richie-rich club are women and child development minister Maneka Sanjay Gandhi, daughter-in-law of former Prime Minister Indira Gandhi, who has assets to the tune of Rs 37.68 crore. Minister of state for coal and power Piyush Goyal has declared assets worth Rs 31.67 crore, and following close is minorities affairs minister Najma Heptulla with assets of Rs 29.70 crore. Union home minister Rajnath Singh has declared assets of Rs 2.56 crore, while

Prime Minister, Narendra Modi, Rs 1.26 crore Seasonal Magazine 40

external affairs minister Sushma Swaraj owns assets worth Rs 2.73 crore, besides some agriculture land in Palwal, Haryana.

Sushma Swaraj, Rs 2.73 crore,

Law and telecom minister Ravi Shankar Prasad has declared assets to the tune of Rs 14.91 crore, while food processing minister Harsimrat Kaur Badal is worth Rs 12.82 crore. Union transport minister Nitin Gadkari has assets of Rs 3.34 crore.

Rajnath Singh, Rs 2.56 crore

While railways minister D V Sadananda Gowda is worth about Rs 4.34 crore, his junior Manoj Sinha has assets worth Rs 29.82 crore.

Venkaiah Naidu, Rs 20.45 lakh.

Water resources minister Uma Bharti has declared assets to the tune of Rs 1.62 crore, while tribal affairs minister Jual Oram, who is the tribal face of the Modi Cabinet, has assets to the tune of Rs 1.77 crore. Civil Aviation Minister Ashok Gajpati Raju has assets worth Rs 3.32 crore.

Ravi Shankar Prasad , Rs 14.91 crore,

Micro, small and medium enterprises Minister Kalraj Mishra has assets to the tune of Rs 72.11 lakh, while Prakash Javadekar has assets of about Rs 1.05 crore.

Harshvardhan, Rs 48.54 lakh

Agriculture minister Radha Mohan Singh has assets to the tune of Rs 2.47 crore, while social kustice and empowerment minister Thawarchand Gehlot has assets worth about Rs 2.08 crore.

Ananth Kumar, Rs 60.62 lakh

Tribal affairs minister Jual Oram, who is the tribal face of the Modi Cabinet, has assets to the tune of Rs 1.77 crore, while civil aviation minister has assets worth Rs 3.32 crore. Najma Heptulla, Rs 29.70 crore.

Human resource development minister Smriti Irani has declared assets of around Rs 4.15 crore, while heavy industries minister Anant Geete is worth Rs 1.66 crore.

Maneka Sanjay Gandhi, Rs 37.68 crore.

Minister of state for northeast Gen VK Singh, who is the former Army chief, has declared assets worth Rs 68.76 lakh, while Commerce minister Nirmala Sitharaman has assets to the tune of Rs 1.03 crore. Ram Vilas Paswan, Rs 39.88 lakh

Minister of state in PMO Jitendra Singh has assets of Rs 2.67 crore while MoS home affairs Kiren Rijiju is worth around Rs 66.55 lakh.

Narendra Singh Tomar, Rs 44.90 lakh

MOS heavy industries P Radhakrishnan has declared his assets at around Rs 7.11 crore, while MOS tribal affairs Mansukhbhai Vasava has assets worthRs 69.49 lakh.

Harsimrat Kaur Badal Rs 12.82 crore.

Sudarshan Bhagat, the MOS for social justice and empowerment, has assets worth Rs 44.51 lakh. SM

Piyush Goyal, Rs 31.67 crore, 41 Seasonal Magazine

Unigue

One Guy Who has Worked in

Google, Microsoft, & Facebook, Compares His Former Employers Dima Korolev has worked at some of the biggest technology companies in the world, including Google, Microsoft, and Facebook. Now he's moved on to startups. e's lived all around the world, from Moscow to Zurich and from New York to Seattle. And he's witnessed some striking differences and similarities in all of his stops along the way. Starting in 2007, Korolev spent a couple of years at Google working on search quality and Gmail reliability. He then moved on Microsoft, where he continued to work on search quality - just for Bing, as well as airfare prediction. Within a year he decided to shift to Facebook, participated in the company's BootCamp, and worked in spam for a bit before deciding large corporations were a thing of the past and moving on to the startup world.

They try to build things quickly and don't really aim at establishment processes, which are sustainable in the long run. Facebook tries hard to look like a small organization and they succeed.

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After a stint with a startup called Public Verification, Korolev decided to move on to his current gig at Staance, the "digital age soapbox" which is trying to be the place where hot issues are discussed. Through all of his experiences, Korolev has amassed a lot of insight on what it's like to work at different tech corporations, so we decided to reach out to him to tap into his learnings. Here is our lightly-edited interview: Q: Of the three giants - Google, Microsoft, and Facebook - which would you say is the best place to work? It really depends on the level you're at. Junior versus senior versus executive or partner are very different. Google is an amazing place for a junior engineer to

learn. Their culture is so awesome and sustained that no matter how deep or shallow one's knowledge is, the first 918 months in Google would be priceless. They would get to work with people way smarter and more experienced who are really willing to help. The best practices and procedures will be apparent after a few months at Google. When someone asks me about taking a job at Google after college I would always say yes. I would say yes to any big company, but Google makes me smile. Q: So what's the culture like at Facebook? They try to build things quickly and don't really aim at establishment processes, which are sustainable in the long run. Facebook tries hard to look like a small organization and they succeed. Culturewise, it feels like a startup. There's not much structure in engineering. There aren't procedures in how to work with the code and site. You can really think of Facebook as a lot of independent teams who are using their own methods to keep it running. Some people love it. It's not really my style. If one's goal is to be surrounded by like-minded hackers and impact what happens tomorrow, Facebook is a good place. Q: And how did Microsoft differ from Facebook and Google? Microsoft is really the place that cares. You can feel that. Once you join they company, they want you to stay, and they're there to support you. They expect people to be long-term productive on

the scale of years. At Facebook you pretty much are expected to be in the flow and working on things by month three for sure. At Google it's probably month five or six. At Microsoft, I know people who are just getting up to speed after a year. And that's fine. But at the end of the day those who want to run projects have this freedom and influence to actually change things. Anyone who is ambitious enough to push ideas, Microsoft is a great place to be. They will deliver, not as fast as Facebook or Google, but the deadlines are different. It's not as pressuring as Facebook and Google. Q: Is there a difference between the hierarchies and organizational structures at the three companies? At Google and Facebook, pretty much every week there's an all hands meeting with the CEO, and if you have a question it's not hard to have it answered by Mark

If a product requires refocusing, that's also fine. In a startup, people are usually more committed. But it's often a curse. or Sergey. At Microsoft, it's pretty hard to get questions answered by higherups. If you try asking about understanding the future and prospects, you have to be on a high enough position to get there. The upper management would often not feel the urge to communicate with the division. Q: I'm sure working at a startup was completely different, what was that like? If it's apparent to everyone that a project has to go where it's going, there's really no difference between a startup and a large corporation. At the end of the day, Dima Korolev

a large organization will offer you resources. In a startup, you're on your own, but when you know what to build and how to ship it, it's very similar. When it doesn't go well, when the project must be changed, when the team is for some reason falling apart, people are leaving, when some new technology appears which has to be leveraged or made aware of, that's where the differences start. In a large company, if a project requires more resources, the company understands those resources will be found. If a company feels a project needs to be shut down, it will do it without much loss of morale. If a product requires refocusing, that's also fine. In a startup, people are usually more committed. But it's often a curse. The areas of responsibility often intersect more. But if something goes wrong in most cases there's going to be time pressure, most often financial pressure, and most of the time they would have to work harder. They would start working on things they could not imagine doing. Engineers might start doing business, advertising, all those things get mixed up. Often times it works out, although it certainly drains the team. Many times it just doesn't work, which then you have to find a new job. Q: Do you prefer the culture of a startup to a large organization? Professionally, I prefer startups because I like to be surrounded by people who are not just working 9-5 but prefer to get things done. In terms of scope of work, overall culture, and making sure the spirit is sustained intact for quarters and years, large companies are better. It's really hard to scale a startup to years, while with a company like Microsoft, Google, or Facebook, it's just there. You don't need to go through small steps. It's already there. Q: What is one of the most important things you learned at your first startup Public Verification? Despite all the hard work, it's not enough to build a product that fits the original vision. You need to be really agile and adjust to the market, and none of our team was willing to do marketing research. We always assumed certain ideas would work. We built four sub projects, we didn't do any proper marketing, and eventually the projects died. SM 43 Seasonal Magazine

Magnanimity

Meet the Diamond Merchant Everyone's Talking About

These are my employees. They will not let me suffer losses.

This is God's blessing that I have come this far from zero. I had nothing.This is God's gift. I have experienced it in my life that I will not have less if I give.

So we thought that we should have a loyalty programme. In 1991 when we started the company, our exports were worth Rs. 1 crore, now it's close to Rs. 6000 Crore.

It is the law of nature. When I sow one seed, I'll have hundred.

Our employees are responsible for this growth.

You are speaking to a person who has had little formal education but I read everyday, learn everyday. I inspire myself, motivate myself.

We analysed the work done by these 1200 people and realised that they had a major role in taking us forward.

I have studied till the 4th Grade. I dropped out of school when I was 12 and joined the diamond industry. All four brothers put together will not make a graduate. My youngest brother is the most educated - he made it to the 10th Grade.

People should hear about these 1200 people and be inspired. Everyone should feel responsible for their own work. People have skills but they need motivation. We had our own method of choosing people. My son has done an MBA from New York and has been working with

me for 6 years. Everyone got together and analysed who are the people responsible for our growth. We know who has added what value to the company. We had decided on a budget of Rs. 50 crore. What we have given them is nothing compared to the effort put in by these people. The employees who I gave gifts to - I did their kind of work in Surat for 10 years with my brothers. You ask me whether I am a communist. I don't understand what 'communist' means. Is there a Gujarati word for it? I have learnt whatever little Hindi I know speaking to people like you. In the next five years, you'll see how this impacts the diamond industry. I wanted to give cars to everyone but then we found out that about 200 employees don't have their own houses. Then we found out that there were 500 people who had both houses and cars. So we then thought we should give them jewelery for their wives. Wives support the workers who work here. We do not give priority to wives in Gujarat so we thought this should be our priority. I am happy that you've highlighted this effort. I did not expect it. I think people will be inspired by this move. Even in your industry, the mindsets will change and you'll have higher salaries.

Savjibhai Dholakiya Seasonal Magazine 46

I'm a very ordinary man and you've made me very big.

I wanted to give cars to everyone but then we found out that about 200 employees don't have their own houses. This stadium belongs to our factory because I saw Ganguly play cricket in London.

pilgrimages to Haridwar. We're indebted to their parents too.

My workers play cricket and I sit in the pavilion and watch them.

When you give money to someone, the responsibility of the person who takes that money increases.

We have a gym, a steam-sauna facility. We have other sports facilities where managers and workers play volleyball together. Whether the government gives us an exemption in taxes or not doesn't matter. Paying your taxes will not kill you. These 1200 people have contributed over Rs. 10 Crore to taxes. I have decided to call diamond-cutters 'diamond engineers' because they may not be educated but they work better than engineers. And we want to call the workers who polish diamonds 'diamond artists'. These people earn Rs. 70-80,000 a work. They're people who earn by their talent and skill. I have workers from 21 states in India and 361 villages. Everyone's parents know me because I take them on

I'm in what is called 'social business'.

will be profitable. I'm trying to show businessmen what they can do. I'm also telling all workers to work hard like my workers do so that your bosses are compelled to act...

I am a businessmen. I want more therefore I'm paying more. I'm not doing anyone a favour.

No one from the Surat diamond industry has told me what I'm doing is wrong... I am a trader - I give first and then I take... some people do it the other way round.

I have with three others bought a plane to start charter service for Surat. The idea is to give a service not profit. But you see in the next five years this too

By God's grace, none of the 28 members in the family go against what I say. My wife or brothers have never disagreed with what I do. I had given three Maruti cars as gifts 18 years ago. They cost Rs. 52,000 each and I had no money then.

This is God's blessing that I have come this far from zero. I had nothing.This is God's gift. I have experienced it in my life that I will not have less if I give.

We have never sacked people but there are 2 or 3 per cent people who sometimes do not fit our criteria - but some of them get training and come back and we hire them again. I train my workers - they do not chew tobacco, they respect their parents... My factory is not to make diamonds, it makes men. Credit: NDTV SM 47 Seasonal Magazine

Galgotias University Bags Award for Academic Excellence & Placements Greater Noida based Galgotias University and Galgotias Educational Institutions have created a sound framework to emerge as a winner delivering productive education for its students. Chancellor Suneel Galgotia, CEO Dhruv Galgotia, and Vice Chancellor Dr. BV Babu have left no stones unturned in their pursuit to attract better quality of faculty and students and provide them with one of the best academic facilities in India. No wonder then that, once again, a prestigious award has come searching for GU.

Seasonal Magazine 48

algotias University has won the Dataquest award for Best Private University in Academic Excellence & Placements. The award was handed over by Infosys cofounder NR Narayana Murthy to Chancellor Suneel Galgotia and CEO Dhruv Galgotia during a glittering ceremony at Bangalore in early November. Last year, GU had won the Dataquest award for Best Private University in Academics & Global Linkages, and the Galgotias had received the award from Narendra Modi, who was then the CM of Gujarat. The GU promoters shared the spotlight, this time, with other award-winning luminaries like Kunal Bahl of Snapdeal, Saurabh Srivastava, co-founder of NASSCOM, Arundhati Bhattacharya of State Bank of India, and Dr Arvind Gupta, Head of the IT Cell of BJP. The excellence strategies at Galgotias University include significant scholarship programs, co-designed degree/PG courses by IBM, KPMG etc; grooming programs by Toyota, Infosys etc; and exchange programs with international academic giants like Purdue, Goethe, Georgia Tech etc. No wonder then that placements have been 100% at GU. Within the restrictions of being a selffinancing institution, Chancellor Suneel has pursued one of the most pragmatic quality policies ever seen in this sector. Central to Galgotias’ quality policy is the fact that admissions are solely based on merit. Galgotias University has no management quota. 100% of the seats are filled up on merit from those who have applied. Galgotias favours students who have scored high in plus-two board exams and state or national level entrances like JEE and CAT, as well as GU‘s own GEEE. The result is that GU gets the best available quality. To better the available quality of students, Galgotias’ strategy has been to offer a significant and transparent scholarship

structure to attract the higher rung of students. Though there are different categories of scholarships on offer at GU, the most significant has been a 50% tuition fee waiver as scholarship for students securing up to the 4000th rank in the IIT/JEE Examination. This offer alone speaks volumes about the commitment to quality at Galgotias. The next most significant scholarship on offer is a 25% tuition fee waiver as scholarship for students securing 93% aggregate/PCM and above in class 12 or 80% marks in graduation. It is clearly an offer that can enable many talented students to study at Galgotias. Besides all these, top performers in GU’s own GEEE entrance exam too are eligible for scholarships. GEEE rank holders 1 to 50 get a 75% tuition fee waiver for all the four years. GEEE rank holders 51 to 100 get a 50% tuition fee waiver for all the four years. And GEEE rank holders 101 to 250 get a 25% tuition fee waiver for all the four years. GU empowers its students to pursue a multidisciplinary approach from the undergraduate level onward. It is one of the few universities to have implemented the Flexible Credit System (FCS) for undergraduate programs of engineering. The 180 credits of an engineering program are divided among the courses of Engineering (66%), Science (20%), Humanities (8%) and Management (6%). Chancellor Suneel Galgotia and CEO Dhruv Galgotia have also worked hard to forge several MoUs and student/faculty exchange programs with some of the most renowned universities in North America, Europe, & Australia. These include Purdue University, Goethe University, University of North America, Anglia Ruskin University, Georgia Tech, Chifley Business School of Australia, Kent State University, University of Maryland Smith School of Business, Northern Illinois University, and University of Arkansas. GU has performed excellently with 100% placements for the first four a ca d e m i c ye a rs w i t h t h e m o s t recruitments for the last years being done by Infosys, Wipro etc. 49 Seasonal Magazine

Investing

“Learn From Losses, Not Successes”

Bill Gates (Networth $81.3 B)

“Start Investing as Early as Possible”

Carlos Slim Helu ($79.6 B)

MUST-READ SAVINGS TIPS FROM 4 GREATEST INVESTORS

The world savings day recently passed by, right in the middle of soaring financial markets and festive celebrations. While we attach feeling for happiness & joy with spending, saving is often viewed as sacrifice. The psychological urge for instant gratification is often very strong. This article is a tribute to some of the greatest billionaires of our times who have shared their wisdom for inspiring others. “Success is a lousy teacher," says Bill Gates. Success seduces smart people into thinking they can’t lose”, which is something that everyone should keep in mind no matter the situation. Most people have had financial successes and difficulties, but it’s important to remember to learn from the losses and difficulties. It’s easy to remember successes and the easy paths, but instead you should remember your losses and difficulties in order to prevent them from occurring again in the future. Seasonal Magazine 50

"Well, when I was very young, maybe 12 years, I began to make investments," says telecom magnate Carlos Slim Helu. Influenced by his businessman father, Carlos also learned early about tracking his savings and expenses on a savings note book, a simple yet very powerful habit he still recommends. Fortunately in the digital age, we can practice this habit using online trackers.

Warren Buffet ($ 65.8 B)

"No matter how great the talent or efforts, some things just take time. You can't produce a baby in one month by getting nine women pregnant," says Warren Buffett the world's greatest investor of all times. India is poised to become an economic super power in next 1020 years. If you want to profit from the India story you need to stay invested for the long term. If you dance-in and dance-out frequently out of stock markets, and investments in general, you may miss out on this opportunity. Be patient, money doesn't grow overnight. Always remember the power of compounding. It bears fruit with time.

“Know Your Risk”

George Soros ($24 B)

"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong," says legendary trader and investor George Soros. Once you decide to start saving, the next important question is where to park these funds. Spending time in understanding your risk appetite after carefully thinking through life goals and current financial state will determine your investment decisions. This is an important area where people shy away from taking professional help and take financial decisions on 'gut' feel not realising the downside risk. Your saving habit should be accompanied by basics of personal finance such as creating an emergency fund and proper insurance cover for life & health. So, learning from losses, starting early, knowing the risk and staying invested for long term are ageless advices which if followed like a habit can make a big difference in our lives.

51 Seasonal Magazine

(By Prashant Jain, Marketing Head, Moneycontrol.com)

“Think Long-term and Be Patient”

Parenting

WE’VE NO TIME PLEASE, WE’RE CHILDREN CHILDREN ARE BEING INCREASINGLY DEPRIVED OF THE TIME, SPACE AND FREEDOM TO PLAY AND LEARN AT THEIR OWN PACE. INDEED, THIS SHOULD BE DEEMED TO BE THEIR BIRTHRIGHT.

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What is a childhood without cuts, bruises, stained or torn clothes and a few tears If kids do not fall, how will they learn to pick themselves up They may daydream, draw or doodle, but they are also learning. They may kick, hop, skip, fall, fight and make up, but they are still learning. Please let them learn. Please let them play. y own seven-year-old daughter recently asked me for a hand sanitiser to take to school, to “quickly clean hands before I open my dabba”. “Why quickly?” I asked. It took me some time to realise that she was in fact responding to my repeated questions on why she was often not finishing her lunch in school. “If we go down to wash our hands, we do not have enough time to eat. Sometimes I have just a couple of bites and the bell rings.” “But what about playtime?” “We aren’t allowed to go out of the class — if we eat fast, we can play ‘stone-paperscissor’.” That explained the unfinished food, the loss of weight and appetite, and the almost permanent slouch I was noticing in my child since the start of the academic year. A couple of students who come to me for English classes reported similar treatment being meted out to them in their respective upscale CBSE schools. I write from Central India, but the situation must be similar in other parts of the country, where schools are systematically over-scheduling kids when it comes to academics and cocurricular activities (read CCE worksheets, “project work”, “formative and summative assessments” and sundry competitions), and shrinking recess hours to accommodate vast and ambitious curriculums that “raise the bar of learning”. Children have their own sense of justice, and the feeling of revolt at being playdeprived is palpable when they open up to me. School managements, often with the active collaboration of ill-informed and overambitious parents, have been insidiously but determinedly robbing our children of a most basic need to play, explore, create and chill, at their own time, in their own space. We are talking of thousands of schools, pre-schools, “day-care” and “activity centres” across

India that cite complex theories of learning, show brilliant images of neural connections develop at breakneck speed till the age of six, quote educationists from Maria Montessori to Howard Gardner to justify the need to shove new concepts down the throats of millions of children. Parents are spoilt for choice — i-math, calligraphy, sanskaar or the ubiquitous art and craft — and convinced they are raising a generation of child prodigies by minutely chalking out every moment of their day.

Indian schools are systematically over-scheduling kids when it comes to academics and cocurricular activities - CCE worksheets, “project work”, “formative and summative assessments” and sundry competitions - and shrinking recess hours to accommodate vast and ambitious curriculums that “raise the bar of learning”. By depriving our children of physical space, good old sand pits and water play with buckets and shovels, we are robbing them of the only window they have to expand their awareness of space, develop their motor reflexes, their sense of touch and their own emotional space. No instructions are needed for sand and water play, and yet these, along with moulding play dough, constitute the most therapeutic of all activities. Through free play — and here I am talking good old catch-catch, khokho, kabaddi or hopscotch — they learn to distinguish between fair and unfair play, to take risks and to resolve conflicts, to form teams and show empathy. Such kids are clever, not cunning, non-violent yet not risk-averse!

What is a childhood without cuts, bruises, stained or torn clothes and a few tears? If kids do not fall, how will they learn to pick themselves up? Are school managements and teachers catering to overprotective parents or to their own need to avoid a mess and the hassle of managing turbulent tots? In either case, they shouldn’t be running schools in the first place. If kids are not given the time to share goodies and ideas over relaxed meals, how will they ever develop social skills? Authentic interaction rather than instruction is what hones social skills. What better place than a school where peers and resources are aplenty! Finally, what of the child’s mental space? To get those great grades, answers or keywords are dictated in notebooks which kids regurgitate on their worksheets. Students are thus being robbed of the freedom to make mistakes and learn from them, of the ability to think on their feet, to organise their thoughts and use their own language and logic. How will this generation “Make in India” when they cannot even string up a decent sentence together on their own. Unarmed and unmasked, the heartless robbers pursue their heist in broad daylight, relentlessly robbing our children of the time, space and freedom to play and learn at their pace, a freedom that should be every child’s birthright. Children do not have a voice, and schools, ministries of education and sometimes parents do not have a heart. And so the burglary goes on unchecked. When will we realise that children do not just twiddle their thumbs and waste away if given some downtime? They may daydream, draw or doodle, but they are also learning. They may kick, hop, skip, fall, fight and make up, but they are still learning. Please let them learn. Please let them play.

(By Kermaan Satha Munshi for The Hindu)

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Oil Slide

Has OPEC Lost its Ability to Set Oil Prices? OPEC's glory days of fixing global oil prices may be at an end. US shale oil will replace the Organization of the Petroleum Exporting Countries as the first-mover "swing producer," according to a recent Goldman Sachs report, meaning that OPEC is losing its power to set global prices for crude. audi Arabia, the world's largest oil exporter, no longer has "the ability to push prices lower than the production costs of US shale" because any cuts from the kingdom would "accommodate the further expansion of US shale, as well as reduce Saudi profits," Goldman said. The shift in pricing power became apparent to Goldman when U.S. shale's spare capacity, at around 5 million barrels per day, exceeded Saudi Arabia's spare capacity of 1.5 million. Spare capacity refers to the amount of crude a country is able to produce in 30 days in case of an emergency. This trend has been a long time coming, but the tipping point started this year with significant cuts in West African oil exports to the US, said John Kilduff, energy analyst and founding partner of commodities investment firm Again Capital. US shale oil has replaced West African imports, which have been redirected to Asia. The balance was further tipped toward the US when production rebounded in Libya and Iraq despite political instability, adding to an already oversupplied market, Kilduff added. OPEC pumped 30.6 million barrels of crude oil per day in September, a jump of 400,000 barrels from August that was driven by the Libyan output rebound, found Platts, a global energy information service. OPEC's loss in pricing power is a consequence of not taking US producers more seriously and cutting prices earlier for clients, said Phil Flynn, senior energy market analyst at Price Futures Group. Seasonal Magazine 54

"Only a year ago, OPEC was still in denial, but with the slowing global economy, they can't laugh off U.S. production anymore," Flynn said. By 2019, US shale oil production will jump to 9.6 million barrles per day, from 8 million now, according to forecasts from the Energy Information Administration. In comparison, Saudi Arabia currently produces 9.6 million barrels of crude oil a day. All that said, market watchers across the

"Only a year ago, OPEC was still in denial, but with the slowing global economy, they can't laugh off U.S. production anymore," Flynn said.

board expect OPEC to remain highly influential when it comes to the price of oil. The group will likely cut production when the core countries meet in Vienna on Nov. 27, according to Kilduff. "OPEC is in the process of playing chicken with the market," he said. "But their hand will be forced and they will eventually cut, with the Saudis taking on the bulk of it." OPEC has absorbed lower oil prices up until this point, declining to cut output in a bid to maintain market share. "The main reason why OPEC is not cutting production is they realize that U.S. shale is a serious threat to their global oil space," Flynn said. The cyclical nature of the oil industry makes it unlikely that OPEC has lost its price-setting power permanently, Kilduff said: "There's a boom, bust and a new era upon us all the time. So, the jury's still out on the long-term sustainability of US shale production." SM

Technology

India Too Gets Ready for the Mammoth Internet-of-Things The government is working on an ambitious plan to create a $15-billion (roughly Rs. 92,000 crores) 'Internet of Things' industry in the next six years. Internet of Things, or IoT, can be loosely described as a network of inter-connected devices that can be accessed through the Internet. or instance, with IoT, connected street lights can be made to automatically go off when they sense no traffic on the roads and consequently save power. Another application could be the use of a connected smart band that will automatically alert physicians when a patient's body vitals go to abnormal levels. "Among other things, IoT can help automate solutions to problems faced by various industries like agriculture, health services, energy, security, disaster management etc., through remotely connected devices," the draft IoT policy document says. Some of the proposed concepts under the policy include the development of tools to monitor quality of water flowing in taps and levels in reservoirs, smart environment to monitor quality of air, technology to monitor changes in body vitals and send alerts to hospitals. The human role will be limited to the setting up parameters for alerts and other activities expected from the connected devices. The policy has the objective "to create an IoT industry in India of $15 billion by 2020," adding that this "will also lead to increase in the connected devices from around 200 million to over 2.7 billion by 2020." The number of Internet-connected devices (12.5 billion) surpassed the number of human beings (7 billion) on the planet in 2011, and by 2020, Internetconnected devices are expected to number between 26 billion and 50 billion globally, the draft policy document said. The proposed policy is in-line with the government's plan to develop 100 smart cities in the country, for which Rs. 7,060

crores have been earmarked in the current year's Budget. Devices or objects under IoT, will be connected seamlessly on networks and communicate with least human intervention. The IoT policy excludes phones, tablets and personal computers. The Department of Telecom has already floated a draft policy on technical communication among machines but is yet to finalise guidelines. To boost IoT, the government has plans to fund creation of resource centres and test-beds as a common experimental facility to conduct experiments with an allocation of Rs. 18 crores as 100 percent fund with Rs. 1 crores for each partner and Rs. 3 crores for nodal agency over a period of five years. The government will set up incubation centres that are proposed to be called National Centre of Excellence in partnership with IT industry body Nasscom and other industry associations at an estimated cost of Rs. 35 crores for 5 years to execute a centre

with capacity of 40 people. "Total five centres should be aimed which should include labs, office infrastructure and other necessities. Government would provide Rs. 100 crores of funds. The rest of the funding would be sourced through industry by Nasscom or any other appointed association," the draft policy document said. There is a proposal to set up a project named 'International IoT Research Collaboration scheme (IIRC)' under which government will collaborate and initiate treaties with other countries to generate joint projects for R&D in IoT on 50 percent contribution basis. "IIRC scheme will disburse fund to IoT industry in the form of loan, grant and equity for approved projects after analyzing the capabilities of the bidder," the document said. Among other strategies, IoT Curriculum will be introduced at M.Tech and B.Tech level and Research Activity and Ph.D. SM

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Business

Ex-Apple CEO John Sculley looking to start NBFC in India John Sculley, the man who once fired Steve Jobs from Apple, is currently CEO of Inflexionpoint, an investment and technology acquisition firm. Sculley is looking to start an NBFC in India called Extend Credit, which would look to provide working capital credit for “middle-class economy businesses” in the country. culley was chief of Apple between 1983 and 1993, and under him, sales at the firm grew from USD 800 million to USD 8 billion though he is best known for his fallout with co-founder Steve Jobs, who resigned from Apple only to return later after a few years. Recently, Sculley’s Inflexionpoint, launched Obi smartphones in India, sales of which he said are off to a “very good start”. In the chat, he also discussed the government’s steps towatds digitalization and whether India would attract more foreign investment under the new government regime. Below is the edited transcript of the interview.

India for several years. We acquired a company last year called Iris Computers, which is one of the largest IT distributors. We are growing extremely rapidly organically. Two months ago, we launched our first smartphone business in India called Obi Mobiles. It is off to a very strong start and we are hoping in the next few weeks to get our credentials for an NBFC, which will enable us to start a business called Extend Credit. It will provide working capital credit for many of the middleclass economy businesses that we think are going to be a big opportunity in India. Q: Ho w many mor e ccompanie ompanie e yyou ou How more ompaniess ar are looking a w much mor e att in invvesting in, ho how more capit al ar e yyou ou looking a ying in apital are att deplo deploying India? A: We have been building Inflexion Point throughout South Asia and in India. We

John Sculley

Q: Wha e the eexpec xpec om the Whatt ar are xpecttations fr from w go er new govvernmen ernmentt led bbyy Prime Minist Minister ne Nar endr a Modi? Narendr endra A: The expectations are very positive right now. I think Modi had a very successful trip to New York. He filled Madison Square Garden, which is quite an accomplishment for any world leader. And I think there is a lot of enthusiasm that the government is going to be more open for foreign investment than it has been in the past. Q: B e yyou ou eexpec xpec ting a Byy when ar are xpecting signific an tick when it ccome ome o significan antt up uptick omess tto for eign in specially oreign invve stmen stmentt and eespecially in oming in al and invvestmen stmentt ccoming intto the digit digital technologic al ccapabilit apabilit echnological apabilityy tha thatt India ha hass? A: I have been quite enthusiastic about Seasonal Magazine 56

"Three months ago, we launched our first smartphone business in India called Obi Mobiles. It is off to a very strong start and we are hoping in the next few weeks to get our credentials for an NBFC, which will enable us to start a business called Extend Credit that provides working capital credit for SMEs."

are expanding very rapidly, we are an aggressive acquirer of existing businesses particularly in supply chain and we are interested in any business that touches the growing middleclass. So it could be a product business or service business. We really are quite enthusiastic about growth opportunities because if you look at where the world economic growth is, it is really in the Asian markets and so we are quite comfortable in this part of the world, we have a strong team with a lot of experience and I am quite bullish and have been for several years. SM (Credit: CNBC TV 18)

WOMEN LEADERS OF CORPORA TE INDIA CORPORATE

She Inc. In this age of equal opportunities, does the Woman-on-the-Board needs to be celebrated? Ask men and women for their opinion, and the answers are likely to amuse. Most men we talk to, convey the idea that it is easier for women to climb the ladder. Women’s opinion, on the other hand, can vary. While junior or middle-level women executives tend to believe that it is equal opportunities for the fairer sex, those women who have actually climbed the ladder to the very top, tend to disagree. They all agree that it was tougher for women earlier, but even now the challenges for women are multi-fold compared with men. Seasonal Magazine tends to believe them, as they are women who have actually walked the talk. And most importantly, even with the recent influx of ‘independent’ women directors in listed companies, barely 7% of company directorships in India Inc are occupied by women. Continuing our salutation of women achievers, we bring you in this issue - She Inc. - a compilation of some noted women leaders of corporate India. You can find lady winners from diverse fields here - real estate development, consumer goods, architecture, banking, industry, financial services, healthcare, education, and more. They are not the type of mandatory woman directors that India Inc is rapidly absorbing into Director Boards, to comply with the new Companies Act, but real women leaders who works as hard or harder than men.

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She Inc.

TAKING UP TOUGHER TASKS, LEADING FROM FRONT Snehal Mantri, Director (Marketing & HR), at Bangalore based Mantri Developers, has excelled at both of her core responsibilities, making the realty firm not only one of the fastest selling developers in Bangalore, Chennai, & Hyderabad, but has developed it as a formidable organization of professionals.

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Snehal Mantri, Director, Mantri Developers angalore has no dearth of quality real estate developers, and it is pretty difficult for a developer to differentiate itself from the rest of the pack. Yet, Mantri Developers Pvt Ltd, which is only 15 years old, has done this feat - differentiating itself from the rest - through some unique traits of its founder. Sushil Mantri is a man of speed and a man of innovations. That speed would define this entrepreneur was evident from his very first step in Bangalore realty. Hailing from Pune, he would relocate to Bangalore with his wife Snehal in 1999 to start Mantri Developers. In 2000 itself he would make waves in India’s Silicon Valley with his speed, by not launching a mega residential project, but by handing over 571 apartments! Yes, Mantri Residency was constructed and handed over within a record span of 17 months, which was one month ahead of schedule. That would bring home a ‘Best Entrepreneur’ award from Ernst & Young in 2001. The very next year - 2002 - would witness a string of innovations from Sushil - first residential project with glass & aluminium façade, award-winning landscapes, and individual swimming pools for penthouses. Now, how does a wife and partner keep pace with such a high achiever of a husband? To her credit, Snehal has been backing her husband ever since he decided to relocate to Bangalore. And she has been an integral part of Mantri Developers from its inception in 1999. But her real cutting-edge has been her strategy of complementing Sushil’s formidable capabilities with her own strengths, and not ‘competing’ with his strengths. That made her take up Marketing and Human Resources, two most vital responsibilities at a fast growing real estate firm. The business of homes is everything about relationship building, especially of the long-term type, with homebuyers, employees, associates, and all other stakeholders, and Snehal realized this success secret of the sector, early on itself. Her first breakthrough in the business was in her ability to deeply understand customer needs. Naturally knowing the mind of a housewife helped, as well as her empathetic personality that was quick to grasp what the seniors needed the most. Then came her hard work to translate such customer needs to create some of the most innovative services in residential realty today, like Propcare, Spacethetics etc. While other developers have tried to mimic such innovations later on, some of Snehal’s innovations stand the test of time even 59 Seasonal Magazine

She Inc.

today, like Mantri’s famed Telemedicine and Concierge Services. Snehal was also the brain behind Mantri Developers’ original branding, as well as its re-branding almost a decade later. Her marketing acumen resulted in Mantri becoming known all over Bangalore, and in their other territories like Chennai & Hyderabad, for being one of the fastest selling residential developers. Mantri’s new launches were quick to be sold out soon after the launch, and in 2003 it gave the group the required clout to launch the first residential project to be sold only by invitation Mantri Altius in Bangalore. She also backed Sushil’s diversifications and expansions into international schooling, hospitality, commercial development, and retail space. In 2003, Mantri started Indus International

School at Bangalore, which is today one of India’s most reputed international schools.

a point that Mantri developed into a respectable organization of professionals.

Her involvement in a Mantri project starts from the project conceptualization stage, through the launch, marketing, sales, post-sales, and up until the handing over. All the while, being also the Head of HR, she made it

Snehal Mantri took responsibility of so many such vital activities at the firm that, Sushil Mantri’s time and resources were freed to pursue loftier goals.

Snehal Mantri’s achievements have not gone without notice by the industry, and she has won numerous national and international awards including from title sponsors like FICCI FLO, Silicon India, LIC Housing etc.

He promoted one of the first Public Private Partnership (PPP) projects in Bangalore to improve Bannerghatta Road in 2005. A year later, Sushil did one of the first FDI-in-realty deals of India, when American financial giant Morgan Stanley invested $68 million in Mantri in 2006. Under Sushil’s vision and Snehal’s execution, Mantri Developers has never looked back since then. Achievements and awards have been piling up to their credit. In 2010, the Group launched, Mantri Square, one of the largest malls in India, and Mantri DSK Pinnacle, the tallest residential project in South India, with both of them winning top awards for being the best mall and most environment friendly project respectively, in 2011. The next year saw more international institutional investors coming into Mantri, with ASK Group, a PE fund, investing Rs. 100 crore for a residential project; and Xander investing Rs. 150 crore for a retail project. Amidst such high-voltage corporate partnerships too, Snehal has continued her innovative streak, with her recent achievements being Mantri Insignia, a customer loyalty program, and Smart Lady Training Program, an entrepreneurship development project. Her achievements have not gone without notice by the industry, and she has won numerous national and international awards including from title sponsors like FICCI FLO, Silicon India, LIC Housing etc. Only one peak is left to be scaled by the Mantri couple, and that is perhaps the IPO of their flagship holding company. Here too, Snehal’s passion might come to help, as this home science graduate’s first foray into the business world was as a noted stock broker in Pune together with her father-in-law. But, officially, and as of now, Mantri Developers is not keen to be listed. SM

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She Inc.

CHAMPIONING INDO-CENTRIC DESIGN India’s first woman architect to start her own architectural firm has come a long way. Today, Sheila Sri Prakash master plans and designs entire townships across the globe, in US, China, Africa, & India. Yet, what she wants her Shilpa Architects to be reputed for is their impressive designs and innovations for furthering affordable housing, slum re-development etc. An expert in Indo-Centric Design, she has served on the World Economic Forum’s Global Agenda Council on the Role of Arts in Society, in recognition of her signature works of Visionary Architecture that feature art, culture and heritage. he needs no introduction in India’s architectural landscape. But when she started out on her own 35 years back, even the profession of architecture needed an introduction in this country. “Engineers, and even masons, were the designers back then,” reminisces Sheila about the late 70s when she took her first steps in design. She had passed out in 1977 with a BArch from Anna University’s School of Architecture and Planning. Sheila worked for two years as an architect before setting up her own firm at Chennai in 1979. It was a strange step as no other woman had done that before in India. What prompted her to start Shilpa Architects was simple, in her own words. “There was a huge need for good design, that I sensed naturally.” But what remains unsaid is that she probably took that unusual step because, she was an artist before she became an architect. A child prodigy, she was trained and Seasonal Magazine 62

accomplished in Indian classical music and dance since her school days. Her favourites were Bharathanatyam, Kuchipudi, & Veena, with over 700 stage performances to her credit. And an artist is always highly individualistic, always a solo performer. Probably that is why starting out on her own in architecture felt quite natural to her. Thirty-five years later, nothing could have been a more holistic decision, either for her, her family, her associates, her industry, and the community around. The accomplishments have been that much. Not that Shilpa Architects is the largest or even the fastest growing architectural practice in the country. When asked whether Shilpa’s completed projects are indeed more than one thousand as is reported often, she says, “Honestly, I don‘t know. I have lost track.” She is not in the numbers game, of any kind. That is one of the traits that sets apart this master designer - who has done

Sheila Sri Prakash, Founder & Chief Architect, Shilpa Architects Planners Designers an Executive Education Program from Harvard’s School of Design - from her competitors. When she lists out her best projects too, she is more likely to point out the socially relevant ones like Paranur Railway Station, Madras Art House, Kuchipudi Arts Academy, RBI House renovation, Ramco Group’s Vedic Patasala etc. That may be perfectly acceptable from an offbeat designer, but this is from one of India’s most commercially successful architects. Sheila’s clientele reads like a who-is-who of India Inc, with the likes of Tata, Mahindra, SBI, L&T, Reliance, MRF, KPMG, HDFC Bank, Puravankara, Hiirco (Hiranandani), Canara Bank, and lots more.

Shilpa Architects Global Design Headquarters

With direct presence and multiple offices Sheila Sri Prakash

in both India and USA, her projects and master-plans can be found in North America, Europe, Africa, and China, apart from India. The firm and its subsidiaries are involved in master-planning townships in China and Ghana, currently. Shilpa’s largest projects in the country include Mahindra World City, L&T South City, and headquarters of several corporates. The HQ that Sheila Sri Prakash designed for Cethar Vessels, the country’s second largest boiler maker, is vying to be one of Tamilnadu’s first LEED Platinum Rated buildings. When asked about her trackrecord in designing landmark HQs for several corporates, Sheila mentions about an even greater achievement. Shilpa’s own HQ, the Global

“Everyone needs space to perform, whether one belongs to the low income group or medium income group.”

Design Studio at Chennai has achieved the LEED Platinum Rating from IGBC. One of the first such Platinum rated design studios in entire Asia, it does away with the need for electrical lights during the day, and features lowcost geothermal airconditioning, resulting in a reduced carbon footprint. Even while she keeps the firm at the forefront of international architectural innovations, Sheila Sri Prakash is as Indian as an Indian can be. In fact, she is most known in the country and abroad for her Indo-Centric designs. “India has a depth of ancient architectural practice that very few civilizations can match,” says the ace architect. Her

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She Inc.

and has successfully advocated the concept of incremental housing, in which space will be ample and there will also be a roof over one’s head from day one, with all other facilities getting incrementally added. Three of Sheila’s research interests too mirror these ideas - Spaciology, Sustainability, and Reciprocal Design. A passionate inventor too, she has patents and design patents to her credit, all of them furthering social causes in architecture and allied fields like public water supply and safe transportation. Sheila Sri Prakash is also a noted expert in Transport Oriented Design (TOD), with her best achievement in this regard being the design of the first PPP railway station, at Paranur, near Mahindra World City, Chennai. Today’s Shilpa Group is much more than a trans-national architectural practice. It has associates/subsidiaries like SGBL Studio (with offices in Chicago, New York, & Seoul), and Stone Lotus which provides turnkey solutions in interiors and landscapes. Shilpa also undertakes selective design-build projects.

words can come gushing when she speaks about her love for the Indian culture and values. While she remains bullish about the imminent advent of Smart Cities in the country, she is cautious regarding transplanting such ideas as such from the West. “Modernity should not be about embracing all the technological innovations from the West as such, but it should be about careful picking and choosing, about how they can be adopted to the Indian way of living.” Though an acknowledged expert in Vastu Shastra, she rues that today much of it is used to frighten gullible customers. “Instead, what Vastu has to contribute is really all about the highly proven elements of Indian architecture like our unique courtyards and verandas.” Sheila also comes across as a compassionate professional who has used her skills for uplifting the poor, more than a few times. She has done a Seasonal Magazine 64

lot of work in slum redevelopment and affordable housing, that have been adopted and replicated by Tamilnadu Government in mass housing programs. “For many in the industry, affordable housing is all about delivering tiny houses,” Sheila criticises. “Everyone needs space to perform, whether one belongs to the low income group or medium income group.” That is why she hates the idea of tiny houses or flats,

Though an acknowledged expert in Vastu Shastra, she rues that today much of it is used to frighten gullible customers. “Instead, what Vastu has to contribute is really all about the highly proven elements of Indian architecture like our unique courtyards and verandas.”

Her family more than shares her passion with husband MV Sri Prakash being her pillar of strength and CEO at Shilpa, while daughter Pavithra Sri Prakash, a postgraduate architect from Columbia University and a LEED AP, is the Chief Architect & Planner at SGBL Studio. Sheila and Sri Prakash’s son, Bhargav Sri Prakash, is a noted inventor, entrepreneur, and investor in Silicon Valley, USA., with interests in new-age concepts like gamification and learnification. Sheila is a noted speaker and guest faculty at foreign and Indian universities, industry bodies like CII, and in conferences across the globe. In 2011-12, she served on the World Economic Forum’s 2011 Global Agenda Council on Design Innovation, a 16-member team of international experts in Design and Innovation, to formulate ways that improve the state of the world. She has also served on the World Economic Forum’s Global Agenda Council on the Role of Arts in Society, in recognition of her signature works of Visionary Architecture that feature art, culture and heritage. SM

ROLE MODEL BUSINESSWOMEN

Steel-willed Gentleness It has been only 3 quarters since Arundhati Bhattacharya took over as Chairperson of State Bank of India, but it has been enough to gauge her breadth of skills as a versatile banker. On a standalone basis, quarterly income is up by around 10%, while quarterly profits has soared by over 41%. Mind you, this is not a small or medium-sized bank we are talking about, but about the biggest bank in India, both in the public and private sector. To understand its size, only a couple of comparisons is enough. Even if the largest private sector bank by market capitalization - HDFC Bank - is to combine with its parent HDFC which is the largest housing finance company in India, the combined banking entity will be much smaller than SBI in income and profits. To project another comparison, the asset base of standalone SBI is larger than even the mighty LIC of India which is a virtual monopoly in the life

Arundhati Bhattacharya

cover space. And needless to say, on a consolidated basis, the asset base of SBI at $380 billion - is much larger than that of LIC. So, the growth that this first female head of SBI has ushered in has been on the largest base imaginable in India, and that has been a feat. Maybe in some other time, say, in 2005-2007 period, this was likely to be an ordinary achievement by an entity like SBI. But her tenure as Chairperson had come at the most difficult time, when the after-effects of the global financial crisis combined with domestic policy paralysis and high interest rates, virtually making the banking system growth come to a grinding halt in this past fiscal. A 40% plus growth also proves another thing - that proving the naysayer wrong, this Bengali Brahmin lady has tamed SBI’s infamous NPAs. It will be foolish to assume that SBI is fully past the NPA contagion troubling all PSU banks. As the largest PSU bank, SBI’s NPAs are here to stay for quite a lot more time, but there is no doubt that it has been tamed by this charming 58 year old. And growth at SBI is not like the famed non-stop growth at HDFC Bank. India’s private sector lenders are notorious for not giving term loans to businesses and projects, and creates their growth solely from retail loans and working capital loans. While that is safer, it is obviously not the ideal strategy for the nation’s growth, and that is why a

The Creative Risk Manager It has been six quarters since Vijayalakshmi R Iyer took charge as Chairperson & Managing Director of Bank of India, and the numbers speak about a unique leadership story. Total income has been moving up consistently even on a QoQ basis, and net profit too has been growing after a brief lull in December 13 and March 14 quarters. But that hasn’t been this Chairperson’s greatest achievement, which has to do with how she has managed risk at the PSU lender. Like all such banks, BoI too was troubled with NPAs. And there were analysts who thought that the Mumbai based lender would end up in more trouble than its peers, due to a disturbing NPA episode in 2009-10 period that lasted many quarters and saw BoI’s balance sheet shrinking for some time. But this time around, the

leader was different, and the main difference she brought to the table was her background in risk management. In her three-decade long career at citybased Union Bank of India she had extensive exposure in Credit Department, Credit Monitoring Department and contributed significantly in setting up the Risk Management Department. What was once not a vary glamorous department like, say, bond trading that makes millions, Risk Management has however emerged in recent years as the most important banking skill in the NPAplagued universe of Indian banking. Needless to say, Bank of India, has exploited Iyer’s skills to the hilt. Today, Iyer is looked upon as an expert in containing risk by not only by BoI, but by the entire banking industry. However,

bank like SBI is open-minded to all kinds of loans including term loans for risky and longtenure projects. In other words, if SBI is a full bank, banks like HDFC can only be considered as half-banks. Of course, being open to term loans often throws up nasty surprises like Kingfisher and Bhushan Steel, but for Arundhati that has not been an excuse to not extend term loans to companies in both private and public sector. In fact, the steel-willed way in which she dealt with cases like Kingfisher and Bhushan deserves an applause. Maybe having spent her entire childhood at the industrial town of Bhilai where her father was an engineer at the massive steel plant, taught her a lesson or two in the importance of supporting large enterprises. Surprisingly, she is not from a finance, economics, or accounting background, but has done her graduation and post-graduation in English literature. She had her schooling at St Xavier’s School in Bokaro Steel City, then graduation in Kolkata’s Lady Brabourne College, and postgraduation at Jadavpur University. But she was brilliant enough to crack the SBI Probationary Officers examination in 1977, which was full of maths and logic, and came to study banking on-the-job at SBI and at the Institute of Bankers. She went on to handle some of the most difficult jobs at SBI including heading its American operations based in New York. Ask her the success secret, and she would tell you that it is delegation and getting along well with everyone around. SM

even that hasn’t been Iyer’s core contribution in her latest stint. There are many leaders in the banking industry who manages risk in a very non-creative way - by pausing or stopping all credit growth. This is where Iyer’s brilliance comes into play. Even while containing the NPA contagion effectively, she has been growing credit aggressively. In Vijayalakshmi R Iyer

ROLE MODEL BUSINESSWOMEN Chitra Ramkrishna

The Monopoly Breaker Chitra Ramkrishna is the first woman MD & CEO of the National Stock Exchange (NSE), an institution founded in the early 1990s to reform the capital market in India, and now ranking as the world’s largest exchange in cash market trades and as one of the top three exchanges in index and stock derivatives globally. As the MD and CEO, Chitra Ramkrishna has not only maintained the rich legacy of this great institution, but her tireless endeavour has ensured it has scaled new heights. Over the years, captains of the financial and the corporate sector in India have increasingly recognized Ramkrishna not only as an institution builder, but also as a thought leader. The National Stock Exchange of India, the organization that Chitra Ramkrishna heads oversees equity transactions of around 1,680 Indian companies which have a total market capitalization of over $1.5 trillion. She is so passionate about Indian equity market’s future that she wants the Indian pension system to invest in equities and make smart gains for the senior citizens over the long term, who are otherwise saddled by the low returns from fixed income instruments. Though EPFO is sceptical on the equity exposure

2014, BoI’s loan growth has been 25%, which is above industry average and is even worrying many analysts. But the risk management expert that she is, Iyer is unperturbed. She will coolly point out the safety of her credit growth by citing the AAA rated PSUs and AAA rated NBFCs to which she has been extending credit. According to this postgraduate in Commerce and CAIIB, the core of risk management is not to be credit averse, but to be averse to growth in risk weight of the total portfolio. Maybe she learnt her ropes in risk management much before she became the Executive Director of Central Bank, or became the GM of Union Bank. Widowed early in her married life, she had brought up her two tiny daughters single-handedly with none to help, except her mother-in-law, and most importantly, without sacrificing growth in her professional career. Indeed, when it comes to VR Iyer, the ‘hand that rocks the cradle rules the world.’ SM

given that the equity asset class is inherently volatile, she feels that pensioners can get much higher returns, if even a small percentage of their retirement money is invested for the long term in the markets. She always emphasizes that the current returns on retiral money will not help pensioners beat the inflation rate, when they do really need the money. She also inspires her team to put in tremendous amount of effort in creating awareness about financial planning and investment avenues in tier two & three cities and is very passionate about educating school and college students, to prepare them at an early age, so that they are equipped to handle their finances better in the future. She, along with her mentors over the years, and mentees at NSE has also ensured that the Indian secondary market is second-to-none in high transparency, low transactional cost, and curtailing of manipulation to a large extent. Yet, Chitra Ramkrishna has never invested in stocks! The reason is obvious. She doesn’t want even the slightest conflictof-interest, or even an allegation of conflict-of-interest, to happen between her professional and personal lives. If you think that it is a great deal, wait to hear about an even bigger sacrifice. The NSE board and top management once deliberated on whether top managers should be offered Employee Stock Option Plans (ESOPs). Chitra was instrumental in declining that offer, because it would have been another potential scenario for conflict-of-interest or allegation of conflict. Because, according to this former banker at IDBI, an exchange like NSE has both commercial and regulatory interests, which are equally important, and often in conflict with each other. Offerings like ESOPs could have potentially encouraged the top managers to pursue growth and profits , perhaps at the cost of regulatory interests. Such business ethics and professional acumen are what made the founding team of NSE including its first MD Dr. RH Patil, next MD Ravi Narain, and current MD Chitra Ramkrishna- achieve the seemingly impossible within a few years’ time. Starting in late 1980s, the Government

wanted an alternate to Bombay Stock Exchange which was of the brokers, by the brokers, and for the brokers. The trading system at BSE was dated as dated can be, like its infamous open outcry system. But nothing much happened on the Government’s plan. Then in 1992, the Harshad Mehta episode happened, and the Government under PM PV Narasimha Rao and FM Dr. Manmohan Singh realized that enough was enough and sprang to action. Industrial Development Bank of India was entrusted as the lead promoter and its then Chairman (late) SS Nadkarni formed a five-member team headed by Dr. Patil (then an ED with IDBI) and including Chitra as a key member to set up NSE. But the brokers at BSE laughed off the idea. They and their forefathers controlled the market for more than a century, and how can a new exchange succeed if they don’t participate? Indeed, the beginning was low-key for NSE. But the achievement was that within two years, an exchange was set up from scratch, becoming operational in the Wholesale Debt and Equity Cash segment in 1994. One of the factors the brokers had underestimated was Chitra’s deep understanding of the business owing to her exposure to the securities segment, in the late 80s in her role at SEBI. Though the operational scale of NSE was small - just 135 companies and daily turnover of Rs. 17 crore – NSE proved that it was a fully functional and more modern and transparent exchange than BSE. Slowly, one by one, the brokers started participating in NSE too. The rest,

ROLE MODEL BUSINESSWOMEN as the saying goes, is history. For the last 18 years, NSE has grown its Cash Segment at a CAGR of 18 percent, and currently, the daily average turnover stands at 15,500 crores, which is more than 5 times that of BSE. But NSE’s achievement has been even bigger in the Derivatives Segment. It pioneered the Futures & Options segment in India, and now the daily average turnover stands at 203326 crores (according to notional value), which is 2.6 times the F&O turnover on BSE. Over the years, NSE has also launched products across the spectrum and to suit the risk profile of investors, ranging from currency to debt, interest rate futures, ETFs , volatility index, global indices etc . Chitra has also devoted her energy to ensuring that the exchange’s technology has a continuous edge over domestic and International competitors and insists that the market can develop only if the entire eco system of market participants also adopts the latest technologies. Under her leadership, NSE has also made inroads into the global markets with 15 odd markets trading in ETFs based on Nifty. NSE is ranked the world’s largest exchange in cash market trades, one of the leading global exchanges in currency trading, and the second largest globally in the number of contracts traded in index options . NSE’s flagship index, the Nifty 50, is used extensively by investors and market participants in India and around the world, to take exposure to the Indian equities market. Chitra Ramakrishna’s latest achievement at NSE has been a whistle-blower mechanism. To check wrongdoing in markets, the NSE has put in place this anonymous whistle-blower mechanism, similar to the Dodd-Frank Whistleblower Programme in the US. The NSE’s platform for tip-offs on cases relating to market manipulation and regulatory violations is web-based. The platform can be accessed on the exchange’s website, which also provides a toll-free number for providing tip-offs. Chitra Ramkrishna is eminently qualified to take NSE to new heights, with her rich experience in running the exchange and her professional qualification as a Chartered Accountant. She relaxes by listening to Carnatic music and occasionally playing the Veena, and her favourite dish remains curd rice.

The Compassionate Caregiver Vydehi Institute of Bangalore is as sprawling as sprawling can be, and the role of being its Director is as tasking as tasking can be. Yet, Mrs. Kalpaja DA finds time for a mind-boggling array of philanthropic pursuits, interests and hobbies. Vydehi Institute of Medical Sciences & Research Centre spans more than 65 acres in Whitefield, Bangalore, and comprises of a Medical College, a Dental College, a Nursing College, and a Paramedical College, as well as a 1600 bedded multi super-speciality hospital. While even the most complex of surgeries are undertaken at the Vydehi Hospital, the campus also has a dedicated facility in Indian alternate medicine - the Vydehi Ayurvedagram. Founded by her father Late DK Audikeshavulu, Vydehi Institute’s growth has been rapid, and Kalpaja was involved in its running from the early days itself. DK Audikeshavulu was an extraordinary achiever in various fields including industry, politics, education, religion, and social work, and had too much of an empire to look after, which made Kalpaja a natural leader at Vydehi. There was also another reason that made Kalpaja fit in like a T into this leadership role. Certain philanthropic pursuits like rehabilitation and care of disabled patients and children were always close to her heart. While in earlier years, she shuttled between her home in USA and here in India, eventually she settled down in Bangalore. Even after her father’s death, Kalpaja has taken Vydehi to greater and greater heights, like its 100% results in MBBS. The Medical College is also emerging as a leader in post-graduate medical education with courses like MD, MS, MCh, DM, & Diplomas. The beauty of the Vydehi Hospital is that it caters to rural communities as well as international medical tourists. The list of philanthropic achievements by Vydehi under DA Kalpaja’s leadership will surprise most of us. More than 500 free cardiac surgeries, over 750 free cancer surgeries, over 32 free cardiac surgeries for children, several free total knee replacement surgeries, over 10 free cochlear implants for deserving children, more than 500 free health check-up programs, training and employment for blind youth, as well as numerous blood donation camps etc are only some of them! What makes Kalpaja

Kalpaja DA such a super-achiever? For one she doesn’t believe in apathy or indifference that drive many people today. Her philosophy is rather one of creative dynamism, where she creatively intervenes in a proactive fashion to serve the deserving people in the communities around her, especially the children. Kalpaja doesn’t believe that determination and persistence will bring success, because, according to her what should drive determination and persistence is our core desire. If the core desire, whatever it might be, is absent, no amount of determination is going to succeed. In her case, her core desire has been to serve in the fields of rehabilitation and disabilities, and Vydehi Institute of Rehabilitation (VIR) and Vydehi School for children with multiple disabilities stand as a testimony to her core desire or passion. Apart from her father’s towering influence, she credits her upbringing to her limitless levels of energy to accomplish the impossible in various fields. She was tomboyish in childhood, and grew up as an avid sports enthusiast, making her mark in most sports items that she attempted. For long, she was even an avid car racer! Like her father, she too is a business leader par excellence, with large interests in fruit exports, real estate, logistics, & investments. But it is her array of hobbies that will bewilder anyone - music, classical dance, Tanjore painting, glass painting, reading, writing etc are only a few of her passions! And her tastes are equally surprising - she is as passionate about Carnatic Music as she is about Jazz. Married to Premchander, she is blessed with two lovely daughters. SM

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Stardom in Innerwear For a woman, it is easy to be eclipsed by her husband‘s achievements, especially if he happens to be Kochouseph Chittilappilly. That has been Sheela Kochouseph’s greatest challenge ever. Because, even though there may be bigger businessmen with bigger bragging rights in Kerala, it is highly unlikely that there is really a ‘larger’ business leader from the state. In a state notorious for its anti-business, antidevelopment attitude, Kochouseph succeeded against all odds. His success is more sparkling than many bigger Keralite players, as his success is purely made-in-Kerala. He has never been an NRI, nor did he amass his wealth from the Middle East, as is the norm with most highflying Keralite businessmen. Starting out as a tiny 2-employee firm in 1977 on borrowed capital of Rs. 1 lakh (from his father), Kochouseph would eventually end up taking two of his companies public - V-Guard Industries in 2008 and Wonderla Holidays in 2014 - which have a combined market capitalization of around Rs. 4350 crore today, while making his and his Chittilappilly family’s wealth at around Rs. 3000 crore. And if you thought

Kochouseph is famous in his home state of Kerala for this, you are wrong. He is more famous as a social activist and even more famous as a compassionate human being who donated his kidney to a poor person in order to generate awareness regarding organ donation! Now, how does a wife make her own mark while living with such a legend of a husband? It is difficult and Sheela Kochouseph didn’t have time to think of all that while busy rearing her two sons. At best what she could do was create and maintain an exquisite house with sprawling gardens in Kochi, and take excellent care for her family. But when her sons grew up, she was suddenly left with some free time, and she started attending the office at VGuard. Though the two years that she spent there taught her the nitty-gritty of business, she quickly realized that electrical equipments was not her cup of tea. A former Calicut University hockey player, and a master of many arts including oil painting, singing, dress designing, gardening, and cooking, this Home Science graduate finally decided to start an apparel company, V Star Creations, in 1995. Support and Sheela Kochouseph

guidance from her husband was obviously there, but there were limits. For instance, even funding from husband to wife was strictly on interest-paying terms. Secondly, Kochouseph himself had no exposure in garments business, leaving Sheela to fend off for herself on almost all fronts. Though the firm quickly made a name for itself in the branded Salwar Kameez business, scaling up became a problem, and V Star diversified into women’s innerwear and since then there has been no looking back. Under Founder and Managing Director Sheela Kochouseph’s visionary supervision, V Star Creations is growing rapidly, and is expected to clock a turnover of Rs. 75 crore in this fiscal, sharply up from the Rs. 55 crore last year. Emergence of international innerwear brands in India has not dampened her spirit, and she is of the opinion that their entry is widening the market for high-quality yet costeffective branded products like V Star. Besides that, V Star is also into exports to some key markets. She is a stickler for perfection when it comes to operations, and her product strategy revolves around varied offerings, one example being the one hundred different kinds of bras her firm offers. A globetrotter along with her husband - they travel twice every year - she has been quick to realize and adopt the fact that innerwear is more of a fashion accessory than a utility wear today. Her eye for opportunity is also evident in her branching out to leggings, as well as in her plans for t-shirts and track suits. Sheela is also in the process of combining all brands under the common umbrella brand, V Star, which recently went in for a spanking new brand identity. While the stock market is delighted so far with the Chittilappilly twins - V-Guard an 8X multibagger and Wonderla a 3X multibagger - a bigger surprise may be coming their way, if and when Sheela Kochouseph decides to take her company public. Like her illustrious husband and hardworking sons, Arun Chittilappilly, MD of Wonderla, and Mithun Chittilappilly, MD of V-Guard, this mom too might end up a stock market superstar. SM

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DETERMINED TO MAKE MAKE DETERMINED TO COMMON COMMON MANâ&#x20AC;&#x2122;S LIFE Her father is a legendary first-generation entrepreneur who turned his life-savings of Rs. 40,000 in 1983 to a Rs. 4500 crore empire by 2014. Joining Mumbai-based Jyothy Laboratories in late 2005, his daughter MR Jyothy has helped grow this FMCG firm taller, at a faster pace through her innovations. Today, this Harvard trained lady looks after super-hit household brands like Ujala, Henko, Maxo, Exo, Margo, & Pril, that are used in innumerable Indian homes.

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M R Jy othy e Dir ec othy LLabor abor atorie Jyo thy,, E Exxecutiv ecutive Direc ecttor or,, Jy Jyo abora oriess ne of the earliest and most inspiring memories MR Jyothy has about her father relates to Late Indian Prime Minister Indira Gandhi. “Girls too can achieve whatever boys can. Just look at Mrs. Gandhi, he used to say to us during our childhood,” recalls MR Jyothy, ED at Mumbai-based Jyothy Labs, to Seasonal Magazine.

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Jyothy and her younger sister Deepthi are the two daughters of the legendary entrepreneur who hails from Thrissur District of Kerala. “He brought us up with full freedom, to study or pursue whatever we wished,” Jyothy reminisces. After doing her postgraduate degree in management and a diploma in family managed business administration, Jyothy joined the eponymous firm in late 2005. She has also completed the Owner/President Management Programme from Harvard University. But nothing could have prepared her on how to make a mark of her own in the made-in-India FMCG company founded by her father. Because, by 2005, MP Ramachandran had already proven his flair for entrepreneurial magic. Starting out in 1983 with just Rs. 40,000 investment - his life-time savings back then - and a single product, Ujala, that was sold by just six sales girls in a single district, Ramachandran had come a long way by 2005, when Jyothy joined. By 1997, the national roll-out of Ujala, a liquid fabric whitener, had started. 1999 saw Ujala become a Rs. 100 crore brand. The next year, in 2000, it would roll out Maxo, a mosquito repellent, and Exo, a dish cleaner. 2001 too was momentous for Jyothy Labs as it took over Tata Chemicals’ detergent plant at Madhya Pradesh and also launched Maya incense sticks. The period from 2002 to 2005 saw more acquisitions, and launches of new brands like Jeeva, Ujala Stiff & Shine etc, and Maxo becoming a Rs. 100 crore brand.

M R Jy othy Jyo

So, by the time Jyothy joined Jyothy Labs, the firm had become a formidable place to be. And it was not only about the brands and growth. The 5000-people strong Jyothy Labs was being led by a formidable 71 Seasonal Magazine

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M R Jy othy with M P R amachandr an Jyo Ramachandr amachandran

THE ROUND EXO WAS ONE OF JYOTHY’S PERSONAL INNOVATIONS, AND IT WENT ON TO BECOME A MASSIVE SUCCESS IN THE MARKET DUE TO ITS LOWWASTAGE APPEAL, APART FROM WINNING SOME AWARDS FOR INNOVATIVE PRODUCT DESIGN.

team guided by MP Ramachandran as CMD, and Ullas Kamath as Joint Managing Director.

is an organized laundry business based out of Bangalore, a business in which even MNCs had failed.

Kamath who is a Chartered Accountant and Company Secretary, is also a qualified lawyer and has done Advanced Management Programs from Wharton & Harvard. He joined Jyothy Labs in the 90s and has ever since then been Ramachandran’s closest confidante and strategist.

“One aspect that differentiates us is our hunger for growth,” says Jyothy to Seasonal Magazine. In 2007, the company would go for its IPO. And growth has indeed been in its DNA ever since. From around Rs. 80 in 2007, Jyothy Labs stock today trades at around Rs. 300.

Jyothy started her career at the firm’s Bangalore office, and was mentored by both her father and Kamath. And soon, proving true her father’s inspirational words about girl-power, MR Jyothy began a slew of innovations at the fast growing FMCG player.

The new Executive Director started taking active interest in bettering and re-positioning all the brands, and the results of her efforts started showing up soon. The round Exo was one of Jyothy’s personal innovations, and it went on to become a massive success in the market due to its low-wastage appeal, apart from winning some awards for innovative product design.

Her first contribution was in the company’s Fabric Spa business, which Seasonal Magazine 72

2008 saw the company shifting its headquarters to the new Ujala House in Mumbai. In 2010, MR Jyothy was part of the core team that roped in Sachin Tendulkar as the brand ambassador for a 2-year term. Today, the company has brand ambassadors like Madhuri Dixit, Shilpa Shetty, & Madhavan. In 2011, Jyothy Labs would take a controlling stake in MNC major Henkel India, thereby bringing in more brands inorganically. MR Jyothy’s latest initiative has been to focus and grow their six core brands - Ujala, Henko, Maxo, Exo, Margo, & Pril - through continuous innovations, while g rowing all other brands as regional ones. An equally impressive achievements from MR Jyothy has been the relaunch of the Henko brand detergent powder, a few months back, which has been well accepted since then.

The smaller brands that have made a name for themselves in various regional or state markets include Mr. White, New Super Chek, More Light, Exo Floorshine, Maya, Fa, and Neem Active Toothpaste. “We are a true-spirited Indian company. We take pride in being Indians and being an Indian success story. Our products remain simple and is targeted towards the common Indian people. Our success is based on how we can make the common man’s life better. This is a value I learnt from my father. He would take ideas from any of our employees irrespective of their position in the company. Despite his success, he remains a simple man.” She can surely be proud of her Indian focus, as innumerable Indian families use at least one of her products. Her sister and both their husbands also work at Jyothy Labs. MR Jyothy is also on the Director Board of the company. SM

“WE ARE A TRUESPIRITED INDIAN COMPANY. WE TAKE PRIDE IN BEING INDIANS AND BEING AN INDIAN SUCCESS STORY. OUR PRODUCTS REMAIN SIMPLE AND IS TARGETED TOWARDS THE COMMON INDIAN PEOPLE. OUR SUCCESS IS BASED ON HOW WE CAN MAKE THE COMMON MAN’S LIFE BETTER. THIS IS A VALUE I LEARNT FROM MY FATHER.”

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Vinati Saraf Mutreja

he Maharashtra based speciality chemical company has been the brainchild of a professional and firstgeneration entrepreneur. A top rank holder in MBA from BITS Pilani, Vinod Saraf worked for about 25 years in the textile and petrochemical industries. He built his career in large conglomerates like Aditya Birla, and while quitting his career was a Co-MD of Mangalore Chemicals. He started his entrepreneurial life by establishing a speciality chemicals company in 1989 at Mahad, in Raigad. A fond father, Vinod named his firm on his elder daughter, Vinati Saraf, who was still in school back then. The firm achieved its first breakthrough in 1992, when it successfully started producing Isobutyl Benzene (IBB) at the Mahad plant. IBB, a specialty organic intermediary, is used as a raw material for the manufacture of Ibuprofen, an antiinflammatory & analgesic bulk drug. The firm achieved instant success, but until 2002, Vinati Organics would remain as a one-product company. Seasonal Magazine 74

THE SPECIALIST IN SCALING UP There is a small-cap Indian company, which would have grown your investment in it by 354 times during the last 11 years. In other words, one lakh put into this firm in November of 2003 would have grown to 3.54 crores now. Yet, most investors are unaware of the existence of such a massive wealth creator, as this was a B2B business and not a consumer brand. Welcome to Vinati Organics, led by Vinati Saraf Mutreja as Executive Director. Meanwhile, the firm’s eponymous Vinati Saraf had grown up and was doing her dual-degrees at Wharton School and University of Pennsylvania. Speaking to Seasonal Magazine, Vinati Saraf Mutreja says, “I always wanted to work in this family promoted firm. So, it was a given that I would join Vinati Organics as soon as I graduate.” Yet to garner experience, after her dual degrees in Finance & Engineering/Biotech, she worked for

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Today many in the industry speak about the need for non-polluting processes because it is becoming mandatory, but my father pioneered it more than a decade earlier, voluntarily.

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nearly an year at some large companies in New York. In 2006, she returned to India, and took up charge as Executive Director, at Vinati Organics. Her education, experience, talent, and passion proved to be the game changer for Vinati Organics. Her abilities perfectly complemented Vinod Saraf’s entrepreneurial skills. Says Vinati Saraf Mutreja to Seasonal Magazine, “After I joined, we could strategize effectively on how to scale up on the two products, as well as introduce new ones.” And scale up indeed she did. From a topline of Rs. 65 crore in 2006, Vinati Organics has grown to an annual sales of Rs. 696 crore today, a growth of over 10 times within 8 years. Profit growth has been even better, soaring from Rs. 2 crore in 2006 to Rs. 86 crore in 2014, a growth of 43 times within the same period! Today, the product portfolio of Vinati spans 13 products across three families - speciality monomers, speciality aromatics, and other speciality chemicals.

Vinati Saraf Mutreja, Executive Director, Vinati Organics FY’ 2014 has been especially good for Vinati Organics as its revenue grew at a clip of nearly 26%, while profits matched pace at 25.50%. How confident is Executive Director Vinati Saraf on future growth? “We hope to grow the topline at a pace of at least 20%.” But on the question of for how many years more with the current portfolio, Vinati is quite candid. “We can grow at this 20% pace for a few more years, with the existing portfolio. But then we would need new products to contribute, to continue at this pace.” However, she doesn’t find it much of a problem, as the company is forever active on finding and meeting emerging needs in various industries where speciality chemicals are key inputs.

processes because it is becoming mandatory, but my father pioneered it more than a decade earlier, voluntarily.”

company serves diverse industries like pharma, textiles, agrochemicals, water treatment, mining, oil field recovery, and many more.

But this philosophy had its flipside too. “For us, this is a process-driven industry, and we have forsaken development of some high potential products solely because a zeroeffluent process is not available.”

Apart from her success in scaling up massively and pursuing multiple product lines, Vinati Saraf’s key success has been backward integration, which started in 2010, and is a massive differentiator for the company today.

But according to Vinati Saraf Mutreja, it is more than compensated by what she terms as her father’s ‘wealth from waste’ strategy. The company could create some very creative and very efficient processes so that even waste materials could be re-engineered to form bio-products and other such speciality chemicals. Today, thanks to such innovations the

And Vinati Organics knows how to keep on building upon any breakthrough. For example, in its first successful product IBB (used in Ibuprofen), it has achieved a purity level of 99.8% as against international peer group standard of 99.5%. The end result of this quality pursuit is that many major international brands in Ibuprofen source IBB from Vinati Organics. No wonder then that Vinati exports its products to over 22 countries. Some of its products like ATBS (produced at its second plant at Lote Parashuram) are fully exported, to clients like Dow Chemicals, Akzo Nobel, BASF etc. When asked about what differentiates her company from the rest of the pack, Vinati Saraf Mutreja gives all credit to her father’s philosophies. “From day one, what differentiated the firm was his philosophy of pursuing only nonpolluting products, processes, and technologies.” That enabled Vinati to be a very green company despite being in the chemicals business. “Today many in the industry speak about the need for non-polluting

When asked about her company’s unique wealth creation track-record, Vinati is very nonchalant. That is, despite her tenure witnessing a 120 times growth in stock price. “We shouldn’t comment on the stock performance. It is a market response to how we have been growing and performing.” But having said that she is quick to point out that Vinati Organics follows high corporate governance standards including an Independent Chairman, Girish M Dave, who is a well-reputed lawyer. Reputed FII, International Finance Corporation (IFC), an arm of the World Bank is the largest public investor in the company (holding 4.3% stake), while the second largest investor is the noted DII, SBI Mutual Fund (2.27% stake).

“

After I joined, we could strategize effectively on how to scale up on the two products, as well as introduce new ones.

”

Vinati’s Board has a good mix of executive and independent directors, with younger sister Viral Saraf Mittal (who joined in 2010) the Director handling Corporate Strategy. Vinati’s husband, Mohit Mutreja, a businessman of his own repute, is a non-executive director. The firm has a high promoter holding of nearly 72%, and as such, Vinati Saraf Mutreja is seen as the natural successor to her father as MD. Currently, as Executive Director, she handles core functions including Marketing & Finance. Vinod Saraf needs to be appreciated for not only creating this successful chemicals player, but for grooming Vinati into the leadership role, and thus creating a succession plan, which is not common in the small-cap / mid-cap space.

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“FINANCIAL SERVICES WILL CHANGE FROM BUYER-BEWARE TO SELLER-BEWARE” he is currently the only woman Executive Director of Reserve Bank of India. She is also be the alternate appellate authority at RBI under the Right to Information Act. Prior to this, Dr. Deepali Pant Joshi was RBI’s Regional Director of Rajasthan. Also a noted author and speaker on economic subjects, Dr. Joshi holds a doctoral degree from University of Allahabad, and is a Fellow of Harvard University Asia Center. She also holds degrees in Law and Management. She is a visiting faculty to the College of Agricultural Banking and has lectured extensively at the IAS Academy at Mussoorie, at the Administrative Staff college Hyderabad, and at several Indian and foreign Universities. She has represented the RBI in several important International Conferences and is the India representative on the Financial Inclusion Expert Group of the G-20. Dr. Joshi is most passionate in the areas of welfare and development economics. Seasonal Magazine interviews Dr. Deepali Pant Joshi.

You ar e curr en tly the only w are curren ently woman oman ED e w omen havv en’t mor more women at RBI. Why ha climbed up tto o this st age spit e eevven stage age,, de despit spite lar ge PSU bank ving many w omen large bankss ha having women as EDs and CMDs ? CMDs? The Reserve Bank is an “Equal Opportunities” employer. The total staff strength as on June 29, 2014 in all grades was 17,394. There are 96 Senior Officers in Grade ‘F’ and 333 in Grade ‘É’, 1097 Grade ‘C’. Of these, several are women in Senior positions. However, as in all organisations, there is a pyramidical structure. Women with merit and hard work can come up in the Seasonal Magazine 76

organisation. What I am trying to say is that the RBI has no gender bias. As regards leadership, gender leadership is definitely stronger as women are sympathetic and empathetic and build stronger and more cohesive teams. As regards sexual harassment at the workplace, after the Visakha Judgement, there are Sexual Harassment Committees and these groups help to protect women at the workplace. These are also necessary. As regards the occasional boor, most women are mature enough to understand that such people are best ignored and that will be my advice to

all young girls entering the workforce. There is a great dignity in the work you do and you must respect yourself and the work you do and as regards crude, illiterate, boorish and uneducated people who hold very high degrees but have peculiar mindsets, you should feel pity for them because may be they come from states where women are not very highly educated or may be they themselves have not had this exposure. Never allow such boors to make you feel small. You ha ec en tly guided tha havve rrec ecen ently thatt financial ser vic es industr tur e fr om servic vice industryy should ma matur ture from e’ model tto o a ‘Seller a ‘Buy er Be war are’ ‘Buyer Bew Be war e’ model. C an yyou ou eexplain xplain wha Bew are’ Can whatt this shif shiftt in orien orienttation is all about? The Committee on Comprehensive Financial Services for Small Businesses and Low Income Households headed by Nachiket Mor has pointed out a fundamental principle in this regard. I quote the same: “When the fact is considered that imbalances in information, expertise and power between the buyer and seller of financial products will only be exacerbated in the future then it becomes clear that, existing approaches to customer protection have severe limitations.” The ‘Caveat Emptor’ principle has led to fundamental flaws in the present consumer protection architecture. From the principle of “Caveat Emptor”, (Let the Buyer beware), we have to move to the principle ‘Caveat Venditor’, Latin for ‘(Let the Seller Beware)’. It is a counter to ‘Caveat Emptor’ and suggests that seller can also be deceived in a market transaction. This forces the seller to take responsibility for the product and discourages sellers from purveying products of inferior quality. The principle vests the burden of proving that the shortcoming, deficiency of service was absent, on the seller of the product. This is the paradigm shift in the arena of consumer protection. During the pa st ccouple ouple o ears, past off yyear s, RBI ear ha er oac tiv e a ar a hass been vver eryy pr proac oactiv tive ass ffar ass consumer pr otec tion is cconc onc an erned. C pro ection oncerned. Can you elabor ate on the chie elabora chieff wins o off RBI in this rregar egar d, and about wha e egard, whatt mor more could be eexpec xpec e? xpectted in the near futur future

Dr. Deepali Pant Joshi, Executive Director, RBI We have come a long way in this regard. I can readily mention a few significant achievements in consumer protection. Abolition of foreclosure charges / prepayment penalties on all floating rate home loans / all floating rate loans, has been a significant one. Removal of levying penal charges for nonmaintenance of minimum balances in inoperative accounts, has been another. Non-discrimination of customer at home and non-home branches, is also worth mentioning. You can also expect a Charter for Customer Rights shortly, which the Bank is actively examining. Wha e yyour our vie ws on rregula egula ting and Whatt ar are view egulating owing the micr o-financ e sec gro micro-financ o-finance secttor in the gr coun tr w ccan an RBI limit the lending ountr tryy? Ho How rates in the sec ? secttor or? RBI is not regulating all MFIs in the country. However, RBI regulates NBFC-

MFIs, which contribute to about 80 percent micro finance business in the country. Department of Non-Banking Supervision issues policy instructions and guidelines to NBFC-MFIs from time to time. As per the DNBS guidelines to NBFC MFIs, interest rate on individual loans will be the average Base Rate of five largest commercial banks by assets multiplied by 2.75 per annum or cost of funds plus margin cap, whichever is less. The average of the Base Rate will be advised by Reserve Bank of India. With respect to MFIs other than NBFCMFI, RBI is not limiting the lending rate, however RBI feels that the loans should be extended at a fair rate. If a bank loan has to be treated as priority sector, all MFIs have to follow certain parameters including interest rate to ultimate borrower. Post the JJan an Dhan la unch, it ha launch, hass been Dr. Deepali Pant Joshi

a hec tic time ffor em. hectic stem. or the banking ssyyst ocus in emark ed tha havve rremark emarked thatt the ffocus You ha financial inclusion shouldn’t be on sub sidy pa omo tion o subsidy payyout outss but on pr promo omotion off w ac coun w doe usage o new acc ountts. Ho How doess off the ne RBI en visage tto o pr omo envisage promo omotte the usage irr espec tiv eo ans irre spectiv tive off the tr trans ansffer pa payyout outss? RBI has advised banks to treat Financial Inclusion as a business opportunity and not as an obligation and hence need to be pursued as a normal business function of the banks. In addition to opening of deposit accounts, banks are to issue more and more credit and other ancillary products to customers through ICT based BC model so as to move from a cost centric to a revenue generating model. Further, for making the model sustainable both for banks as well for BCs, banks have to strive towards increasing the number of transactions by encouraging routing of transactions

The ‘Caveat Emptor’ principle has led to fundamental flaws in the present consumer protection architecture. From the principle of “Caveat Emptor”, (Let the Buyer beware), we have to move to the principle ‘Caveat Venditor’, Latin for ‘Let the Seller Beware’.

77 Seasonal Magazine

She Inc.

pertaining to EBT, other remittances, KCC and GCC through ICT based accounts. In cases where banks have started with EBT services, they should now convert EBT customers as fullfledged customers of the bank. RBI is also pursuing several Financial Literacy initiatives to increase transactions. With our initiatives over a period of time we can see some progress, though not very satisfactory, in the level of transactions in bank accounts. With the addition of 6.2 million small farm sector credits during 2013-14, there are 40 million such accounts as on March 31, 2014. With the addition of 3.8 million small non-farm sector credits during 2013-14, there are 7.4 million such accounts as on March 31, 2014. Nearly 328 million transactions were carried out in BC-ICT accounts during the last year (April 2013 - March 2014) as compared to 250 million transactions during 2012-13. Apar om JJan an Dhan, and eevven be e Apartt fr from beffor ore it unch, RBI ha itss la launch, hass been bullish on pr omo ting financial inclusion, promo omoting e specially thr ough the banking through corr esponden e it orre spondentt model. Wha Whatt ar are itss an ther mode rela tiv e adv elativ tive advan anttage agess o ovver o other modess of deliv er deliver eryy? Financial inclusion efforts are not new; both the Government and the Reserve Bank have been pursuing this goal over the last several decades through building the rural cooperative structure in the 1950s, the social contract with banks in the 1960s and the expansion of bank branch networks in the 1970s and 1980s. These initiatives have paid off in terms of a network of branches across the country. In the last few years, it was realized that for financial inclusion to become a reality, there has to be a sustainable business and delivery model. Due to the constraints involved in going for a full-fledged brick & mortar branch model, considering the recommendations by the Khan Committee Report, 2005, the Reserve Bank had adopted the ICT based agent bank model through Business Correspondents (BCs) for ensuring door step delivery of financial products and services. The idea was to achieve the objective of universal financial inclusion by ensuring delivery of financial services Seasonal Magazine 78

Women with merit and hard work can come up in the organisation. What I am trying to say is that the RBI has no gender bias. As regards leadership, gender leadership is definitely stronger as women are sympathetic and empathetic and build stronger and more cohesive teams. through the BC model. With the objective of ensuring greater financial inclusion and increasing the outreach of the banking sector, RBI on January 25, 2006, decided in public interest to enable banks to use the services of NonGovernmental Organisations / Self Help Groups (NGOs/SHGs), Micro Finance Institutions (MFIs) and other Civil Society. Organisations (CSOs) as intermediaries in providing financial and banking services through the use of Business Facilitator and Correspondent models. Recently Deposit taking NBFCs have also been allowed to act as BCs based on the recommendations of Dr. Nachiket Mor Committee. This model brings various advantages as compared to other models of delivery in terms of cost efficiency, door step delivery, leveraging on technology, etc. With BC model, banks are able to provide access to banking products in remote areas as well. The administrative expenses are also reduced as compared to brick and

mortar structure. The issues relating to migrant workers/ labour are also resolved with BCs providing door step delivery at convenient timings for rural poor. The Business Correspondents are mostly from local areas which ensure better understanding of the needs and requirements of people. They are able to communicate in a better way which also facilitates generating financial awareness among the people. Ar e yyou ou sa tis fied with the le Are satis tisfied levvel o off anspar enc transpar ansparenc encyy in the ape apexx bank? Wha Whatt tr per cen TI rreque eque st e usually perc enttage o off R RTI equest stss ar are turned do wn due tto o sensitivit sensitivityy o off the down ma tional in est mattter or na national intter ere stss? In percentage terms the total rejection will come to 2.29% and 2.31%. Some of the valid grounds for rejection are as follows: Information, disclosure of which would prejudicially affects the sovereignty and integrity of India, the security, strategic, scientific or economic interest of the State, relation with foreign state or lead to incitement of an offence. Information including commercial confidence, trade secrets or intellectual property, the disclosure of which would harm the competitive position of a third party. Information available to a person in his fiduciary relationship. Information which relates to personal information the disclosure of which has no relationship to any public activity or interest, or which would cause unwarranted invasion of the privacy of the individual. SM

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SWACHH BHARAT & CLEAN GANGA CSR FUNDS NOW TAX FREE

idening the activities coming under CSR ambit, contributions made by corporates towards Narendra Modi-led government’s two key initiatives — Swachh Bharat and Clean Ganga — will now be considered as social welfare spending work. Making amendments to the Companies Act, the Corporate Affairs Ministry has said that contributions to ‘Swachh Bharat Kosh’ and ‘Clean Ganga Fund’ would come under CSR framework. ‘Swach Bharat Kosh’ has been set up to attract funds, from various entities including corporates, for activities related to Swachh Bharat initiative. The ‘Clean Ganga Fund’ is aimed at pooling money for taking up works to clean the Ganga river. These two initiatives are the latest ones to be brought under the Corporate Social Responsibility (CSR) ambit where contributions made to the Prime Minister’s National Relief Fund has been included already. Through a notification, the Ministry has inserted the words ‘including contribution to the Swach Bharat Kosh set up by the central government for the promotion of sanitation” in Schedule VII of the Act, which pertains to CSR activities Besides, the words “ i n c l u d i n g contribution to the Clean Ganga Fund set up by the central government for rejuvenation of river Ganga” have been inserted in the Schedule. SM

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Indian-born Sunder Pichai Moves Up to Second Rank in Google Google CEO Larry Page has appointed Indian-born Sundar Pichai to head the company’s products business as part of a big reshuffling move in the management structure. t’s huge news since it concerns one of the world’s biggest names in tech. Pichai will now be in charge of Google Plus, search, maps, research, commerce and ad products as well as infrastructure. A memo about this was said to have been passed around among the company’s employees. In addition to handling his new responsibility, Pichai will continue to work as Senior Vice President of Android, Chrome and Apps. He will be reporting to Page, just as usual too. Meanwhile, Google’s YouTube will remain under the command of Susan Wojcicki, CEO of the well known video hosting website. Pichai has been working at Google for more than 9 years. Page is supposedly worried that the company will become less innovative as it gets on in years. Handing some of his major leadership positions to the former should help him focus on the ‘bigger picture’ apparently. Having to deal with an inordinately large variety of services does not help, after all. Page won’t be relinquishing his responsibilities in access and energy, Nest, Calico, the semi-secret Google X facility, legal, corporate development, finance and business. Pichai added two major products to the portfolio he manages over the last two years. Andy Rubin and Dave Girouard exited in 2013 and 2012, leaving him with Android and Google Apps. The new role that Sundar Pichai will be taking on will practically make him second-in-command at Google. SM

Luxe Auto Lamborghini Huracan Lamborghini officially launched its new V10 powered Huracan in India late last month. Replacing the aging and best selling Lamborghini Gallardo, the Huracan is a long awaited entrant in the supercar market.

Huracan can sprint between 0-100km/h in 3.2 seconds and 0-200km/h in 9.9 seconds with a top speed of more than 325km/h. The Huracan has been priced at Rs 3.43 crore (ex-showroom Delhi)

It is powered by a 5.2 litre, naturally aspirated V10 engine which produces 618PS of peak power at 8250rpm and peak torque of 560Nm. The engine is mated to a seven-speed dual-clutch transmission, the first for Lamborghini. The Italian supercar manufacturer claims that the Huracan can sprint between 0-100km/h in 3.2 seconds and 0-200km/h in 9.9 seconds with a top speed of more than 325km/h. The Lamborghini Huracan currently comes with all wheel drive although lighter, more powerful, rear wheel drive versions are expected next year. The Huracan has been priced at Rs 3.43 crore (exshowroom Delhi) for the base model with final prices varying depending on how an owner decides to spec their car.

Kawasaki ER-6n The Kawasaki ER-6n is the streetbike version of the Kawasaki Ninja 650 which has been on sale in India for the past few years. Since it is a naked version of the Ninja 650, part sharing between both the bikes is clearly visible with respect to fuel tank, tail section, seats and fenders. Major visual differences are the stubby headlight, fuel tank extensions and exposed radiator. Also the riding posture of the Kawasaki ER-6n has been altered to better suit its streetbike dynamics. Powering the Kawasaki ER-6n is a 649cc, liquid-cooled motor â&#x20AC;&#x201D; similar to

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the Ninja 650 â&#x20AC;&#x201D; generating 72.1PS at 8,500rpm and torque at 64Nm at 7,000rpm. Power is transmitted to the rear-wheel via a six-speed transmission. The bike employs a tubular diamond type frame which is supported by 41mm telescopic forks at front and preload adjustable mono-shock setup at rear. Braking duties are taken care of by dual semi-floating, petal disc brakes at front and single 220mm petal disc brakes at rear. It will carry a sticker price of Rs 4.78 lakh (ex-showroom Delhi).

Coming Soon: The Ducati Scrambler Will Make a 2015 Debut in India Scrambler will be manufactured at the brand's production facility in Thailand, until it is finally made available in the Indian twowheeler market by Spring 2015. This means that the Ducati Scrambler would follow the same path that the Ducati Monster 795 was supposed to take. Although Ducati hasn't divulged details about the Scrambler's pricing we expect it to retail for around Rs 6 lakh to Rs 7 lakh (ex-showroom) for the Icon version.

Harley-Davidson CVO Limited The Harley-Davidson CVO Limited is based on the Street Glide and will be the new flagship offering for the American bike maker in our market by replacing the Electra Glide. The seats come equipped with a backrest for both the rider and pillion and can be adjusted for lumbar support and in-seat heating. The bike has GPS and a special Jukebox compartment with USB slots, SD card slots and AUX input. The infotainment system also supports voice recognition for hands-free operation of your mobile phone, navigation system and music. Apart from the twin luggage compartment, the HarleyDavidson CVO Limited additionally features TourPak luggage case that can easily store two full-face helmets. Other features on the Harley-Davidson CVO Limited include cruise control and keyless ignition. Powering the HarleyDavidson CVO Street Glide

is a Twin Cam 110 motor. The 1,800cc, liquidcooled mill churns out 155Nm of peak torque at 3,750rpm and is mated to a six-speed gearbox. Braking is done by disc brakes at front and rear while ABS is standard. The Harley-Davidson CVO Limited will be launched on October 30th, and is priced around Rs 50 lakh (ex-showroom), making it among the most expensive motorcycles to be ever sold in India.

The Ferrari 458 Speciale Aperta Ferrari's new Aperta -meaning â&#x20AC;&#x2DC;open' in Italian - known as the Speciale A, has been launched to celebrate the dazzling success of the various versions of the Ferrari 458. Powered by a 4.5 litre naturally-aspirated V8 engine, the limited-to-499 edition churns out 597PS and does 0100km/h in just three seconds. The Prancing Horse's new car features a retractable hard top that opens and closes in just 14 seconds. Thanks to its aluminium construction, the new roof has added only 50kg in comparison to the Ferrari 458 Speciale, which means the vehicle has a curb weight of 1,340kg.

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TOP GALGOTIA TEAM CONCLUDES SUCCESSFUL US VISIT

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USA remains the economic superpower of the world, a fact underlined by Indian PM Narendra Modiâ&#x20AC;&#x2122;s 5-day American visit within months of assuming office, between September 26th to 30th. United States is also the leader when it comes to academic standards, which is why NCR based Galgotias University scheduled a high-power visit by its top management and academic team to USA between September 28th to October 4th. he team consisted of Suneel Galgotia, Chancellor; Dhruv Galgotia, CEO; Dr. BV Babu, Vice-Chancellor; Dr. Siba Ram Khara, Dean-Academics; and Dr. Avadhesh Kumar, Dean-Planning. The Greater Noida based private university is already known for several key academic tie-ups with various American and overseas universities of repute. The purpose of the current visit was to identify specific areas of mutual interest for focused collaborations with two legendary US universities - Georgia Tech of Atlanta and University of Arkansas at Fayetteville - with which GU had already signed MoUs. The meetings and visits were to see the labs and other infrastructural facilities at both these institutions. Dr. Ashok Saxena, Distinguished Professor, University of Arkansas and Adjunct Professor, Georgia Tech made necessary arrangements for meetings and visits to labs and other infrastructural facilites at both the Universities.

The top GU team found at least 4 areas of mutual interest where collaborations can start immediately.

University of Arkansas at Fayetteville

Georgia Tech of Atlanta

The top GU team found at least 4 areas of mutual interest where collaborations can start immediately. Besides meeting with top academic luminaries at Georgia Tech, the GU team visited its Clough Learning Center, Marcus Nanotechnology Center, Packaging Research Center, Manufacturing Research Center, Center of Excellence for Photovoltaics, Materials Science and Engineering Laboratories, Microscopy Labs, School of ECE, and School of Computing. At University of Arkansas, the Galgotias team visited various centres of excellence or met with its heads including, Nanotechnology Center, Engineering Research Center, NCREPT, Biomedical Engineering Labs, Walton College of Business, Law College, Fulbright College of Arts and Sciences, and Department of Bio-Medical Engineering. All in all, the GU teamâ&#x20AC;&#x2122;s latest US visit is sure to benefit its students and faculties in the near future due to the various collaborations expected to fructify soon. SM 85 Seasonal Magazine

PROMISING MID CAP & SMALL CAP COMPANIES

TOMORROW’S LARGE CAPS, TODAY’S WEALTH CREATORS

82 a Seasonal Magazine

othing has killed more investors than the stockmarket. The reasons range from cyclical crashes to plain old greed. But, somewhere in between, there is an often untold reason. The biggest wealth creators out there are not today’s large cap companies, but tomorrow’s large cap firms. Yet, market intermediaries like broking houses and analyst firms make the biggest noise about today’s large cap companies. Retail investors often get lured by this noise and end up investing in behemoths that are well past their prime in fast wealth creation. Meanwhile, the real wealth creators are lying low due to a low capital base, relatively low turnover, low employee base, and often low liquidity in their stocks. But, many of them are growing at a furious pace, at CAGRs exceeding 25% or more, and many of them are even expanding their profitability steadily. These are the companies that everyone should be investing into, after careful research of course, but unfortunately the masses end up investing in today’s marquee names. The celebrated wealth creation stories of marquee names like Infosys or Wipro are prime examples. Wipro was founded in 1945 - two years before Independence - as Western India Vegetable Products Ltd with all of Rs. 17 lakhs as capital. It was not even a small cap firm by today’s standards, but a micro cap firm. But its IPO happened in 1946. Over the next decades, this tiny company would not only grow its vegetable oil business, but diversify first into other FMCG sectors like soaps, lighting, medical equipments etc, and later into computer hardware and software. It will steadily grow into a small cap company in the 70s, a mid cap company in the 80s, and into a large cap company in the 90s. Wipro’s equity base has grown from Rs. 17 lakhs in 1945 to Rs. 493 crore in 2014, through 11 bonus issues and two splits. But it is growth in Wipro’s market cap that is truly mind-blowing, which today stands at Rs. 1.44 lakh crore. That is what made Azim Premji the fourth richest Indian with Rs. 98,400 crore in personal wealth, and its early shareholders multi-millionaires. A Rs. 100 investment in Wipro in even 1980 is worth Rs. 5.9 crore now, and it would have also paid Rs. 1.2 crore as annual dividends since 1980! But having said that, can Wipro create wealth to that degree in the future? It is highly unlikely if only due to its large equity base and market cap today. That is what ails all large caps from Reliance Industries to ONGC to SBI. The million dollar question is which is the Wipro, Sun Pharma, or HDFC Bank of tomorrow? For that, you have to delve into the internals of at least a 1000 mid cap and small cap firms. Seasonal Magazine makes your job easier by compiling a list of 6 most promising firms in this category, and falling into various sectors. Seasonal Magazine 82 b

PROMISING MID CAP & SMALL CAP COMPANIES

Sunder Genomal, Managing Director RoE: 61.20% Debt/Equity Ratio: 0.49 Stock Appreciation: 43 times (Last 7 Years) TTM P/E: 60

Page Industries

Eyeing an Endless Opportunity At Page Industries, the saga is all about brand focus and asset-light growth. any would disagree in considering Page Industries as a midcap stock, but reality is that the exclusive Jockey licensee for India and a few other countries, is very much a midcap firm. Despite a dream run in the bourses from its IPO price of Rs. 395 in 2007 to Rs. 10,390 in 2014, which took its market cap to over Rs. 10,000 crore, Page Industries remains a midcap stock with representation in key midcap indices like S&P BSE Midcap and NSE 500. The Bangalore headquartered firm manufactures and markets Jockeyâ&#x20AC;&#x2122;s innerwear and leisurewear for men and women, in India, Sri Lanka, Bangladesh ,Nepal and UAE. Page is also the exclusive licensee of Speedo International Ltd. for the

manufacture, marketing, and distribution of the Speedo brand in India. While Jockey is present in over 140 countries, Page has won multiple awards from Jockey for being the best licensee in the world. Speedo products include swimwear, water shorts, apparel, equipment, and footwear. Speedo is a leading brand among swimmers around the world. While swimwear in India is still at a nascent stage, the prospects for this category are promising. Over the years, Page has built up a formidable manufacturing and distribution network across India, even while staying true to the brand values of these two international names. The biggest advantage for Page is the huge unbranded and unorganized sector in innerwear that can be systematically tapped over the coming years. SM

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PROMISING MID CAP & SMALL CAP COMPANIES

Sobha Ltd

Growing Against All Odds At Sobha Ltd, the tale is all about the pursuit of quality and great perseverance. obha has always differentiated itself from the competition by its sheer quality edge, and is now persevering against all odds to scale to greater glory as and when the realty sector turns around emphatically. Sobha Ltd, which has completed two decades of existence, has recently been selected as a Global Growth Company by World Economic Forum. This is no simple achievement as only 17 Indian companies have been selected this year to join this internationally elite league of around 370 fastest growing firms worldwide. In the last 20 years, Sobha has completed and delivered 95 real estate and 253 contractual projects totalling 65.83 million square feet of area. In addition to this, the Bangalore headquartered premium realty developer has about 50 ongoing residential projects aggregating to 23.96 million square feet of saleable

Ravi Menon, Chairman

area. On the contractual front, Sobha has 31 ongoing projects covering 9.35 million square feet under various stages of construction. Besides this, the company has a healthy pipeline of about 15 million square feet of new project launches planned in the next few quarters in their existing geographies. Sobha, which is generally known for its Rs. 1 crore plus premium homes, is also getting into the mid-market housing segment of Bangalore by launching Golden Quadrilateral, an 81-acre 6000-homes mega project costing between Rs. 35 lakh to Rs. 75 lakh, right in SM the IT corridor of Whitefield-ORR.

Return on Average Equity: 10.55% Debt/Equity Ratio: 0.60 Stock Appreciation: 2.57 times (Last 4 Years) TTM P/E: 19

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Force Motors

Impressive Capabilities Dr. Abhay Firodia, Chairman or decades, Force Motors has been building up unique capabilities in niche auto sectors like tourist vehicles, but nobody in the market took much notice. But now, after a major shakeout in the promoter group that saw the Bajajs exiting, and the Firodias upping their stake to around 60%, the future has never looked brighter for Force. And the most interesting thing is the kind of valuations it is trading at, even now. Force Motorsâ&#x20AC;&#x2122; most successful product family has been its passenger LCVs viz. the Traveller family consisting of Traveller, Traveller School Bus, Traveller Ambulance, Traveller 26, and Traveller 26 School Bus. Its LCV goods carrier Traveller Delivery Van too has been a great

At Force Motors, the thrill is all about the sectoral turnaround, and changes in the promoter group. success. However, it is yet to succeed emphatically in its other segments like passenger MUVs, carrier MUVs, and small carrier vehicles. Force Motors also produces two tractor families - Balwan and Orchard - both of them only reasonable successes. However, the greatest promises Force Motors carry today - apart from its blockbuster Traveller family - are its relatively new personal vehicles and its engine manufacturing business for MNC auto majors. While its first SUV, Force One, has only been a reasonable success, it is betting big on the second one, Force Gurkha, which is a formidable offroader. Force already assembles engines for MercedesBenz and is reportedly set to start assembling for BMW, and this is an area where Force is investing heavily. SM

RoE: 6.54% Debt/Equity Ratio: 0.02 Stock Appreciation: 6.50 times (Last 15 months) TTM P/E: 13.76

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PROMISING MID CAP & SMALL CAP COMPANIES

Return on Average Equity: 9.16% Stock Appreciation: 3.76 times (Last 16 Months) TTM P/E: 12.98

Manappuram Finance

Diversifying for Sustainable Growth

At Manappuram Finance, the future is all about the ongoing diversifications and a great track-record in wealth creation and sharing.

mall companies grow big by outperformance during good years, and Manappuram had managed it perfectly between 2009 to 2012. But big companies grow to great companies by weathering storms and responding creatively to formidable challenges. Since 2012, Manappuram has been managing this phase of growth too, by going in for highly calibrated diversifications in the NBFC space itself. Manappuram has been the first listed gold loan

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VP Nandakumar, MD and CEO

NBFC, and had an exceptional track-record in wealth creation due to that sole line of business. But in recent years, when the gold loan sector ran into serious headwinds due to RBI regulations, Manappuramâ&#x20AC;&#x2122;s promoter and Managing Director, VP Nandakumar, who is an ex-banker, decided to diversify into multiple asset classes. During the past one year, this plan has come to the execution stage, with Manappuram starting a housing finance subsidiary by taking over the housing finance arm of Jaypee Group, and has also entered the microfinance business by taking over Asirvad Microfinance. Gold loans will remain the mainstay of the business in the future too with around 50% of the business coming from this flagship activity, while housing finance and microfinance will eventually come to make up the remaining 50% of the business. The short duration of the gold loan business, the ongoing nature of the microfinance business, and the long tenures of the home finance business are all expected to complement each other and prove synergistic to Manappuram. SM

V-Guard Industries

Mithun Chittilappilly, Kochouseph Chittilappilly

Prudent and Systematic Growth At V-Guard, the story is all about prudent growth and promoter quality. -Guard’s edge doesn’t lie in making the highest technology products. Rather, it makes moderate technology products of extremely high quality and reliability. Starting off from voltage stabilizers, a product where quality and reliability are of utmost importance, Kochouseph Chittilappilly has come a long way

RoE: 24.19% Debt/Equity Ratio: 0.31 Stock Appreciation: 29.86 times (Last 6 Years) TTM P/E: 40.68

with his V-Guard family of products. Applying the good name of V-Guard in newer and newer products, the firm today has offerings like wiring cables, pumps & motors, water heaters, solar water heaters, fans, UPS, power & control cables, inverter, batteries, solar power systems, switchgears & DBs, induction cookers, and mixer grinders. The biggest advantage that analysts nowadays find in VGuard’s operation is its systematic expansion into the North Indian markets, which was hitherto untouched by the company. The company’s assetlight business model, and extreme financial discipline also deserve special mention. The succession plan is also perfect at V-Guard, with Founder’s son Mithun Chittilappilly, who is also a thorough professional, having assumed the key post of Managing Director since the last couple of years. The firm has aggressively went in for design-led innovations like its Pebble water heaters, that has gained quick market acceptance. The firm carefully analyzes each new product segment before it enters, and thanks to such prudence, has almost never had a failed product family to which the brand name was applied. SM 82 g Seasonal Magazine

PROMISING MID CAP & SMALL CAP COMPANIES

RoE: 16.80% Stock Appreciation: 2.93 times (Last 2 Years) TTM P/E: 9.74

GIC Housing Finance

Focusing on the Mid-Market Housing Segment

Warendra Sinha, Managing Director

At GIC Housing Finance, the buzz is all about sectoral bullishness and attractive valuations. aking the cue from PM Modiâ&#x20AC;&#x2122;s affordable housing for all concept, market has taken housing finance sector as its latest fancy, and driven up some of the big names in it like HDFC and LIC Housing Finance to astronomical valuations. But here is a decent housing finance company that has been growing steadily, and with great promoter pedigree, that is yet to catch the marketâ&#x20AC;&#x2122;s full-fledged love. GIC Housing Finance is jointly promoted by General Insurance Corporation of India, New India Assurance Company Ltd, United India Insurance Company Ltd, Oriental Insurance Company Ltd, and National Insurance Company Ltd. Due to its small size and low-key operations for long, GIC Housing Finance was not a Seasonal Magazine 82 h

market darling until recently. But today, its largest public investors include Life Insurance Corporation of India, Tata Investment Corporation, Acacia Partners, and Reliance Capital Trustee Co. Though HFCs like GIC Housing are generally at a disadvantage when competing with banks, causing attrition of home loans, GIC has still managed to grow its loan book impressively, even while keeping its NPAs limited. GIC is also gearing up to meet the impending high growth phase in home loans, by launching a systematic branch expansion drive. Instead of competing with banks or bigger HFCs, the firm is planning to further tap its core mid-market housing segment, and plans to clock a 66% rise in business to reach Rs. 10,000 crore by the next three years. SM

Cover Story

Q2 Results Analysis

Defying Gravity!

he rush of Q2 results is almost over. Meanwhile, since the results started getting published from mid October, to now, market has run up steeply. Sensex has surged from a â&#x20AC;&#x2DC;lowâ&#x20AC;&#x2122; of 26,000 to a high of 28,334, during this period, with the broader and sectoral indices rising even higher. Is it finally time to pause and ponder whether the rally is justified? There are pundits who justify the 9% rise in Sensex within a month, on the 13% consolidated YoY rise recorded in the net profit of around 3700 companies whose results that have come out. That is surely earnings expansion, but there are several indications that all is not well with this growth. First is that, YoY sales growth has been much lower for these 3700 companies, at just 3.30%. What that signals is that Other Income must have surged, and a quick

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tally shows that it is indeed true as Other Income growth on a YoY basis stands at over 21%. It reveals that companies are facing a wall of resistance in growing core sales, and are instead relying on innovations and creative means to grow the topline and bottomline, so as to benefit from the overseas fund-flow and rally. The challenges of India Inc are also evident from the soaring interest costs that has shot up by nearly 10% YoY. The situation may change in the near term if the Winter Session of Parliament produces the much awaited breakthroughs, and RBI starts cutting the rates. But until that happens, companies should be analysed on a case-by-case basis, and not even sectoral calls can be made safely. Seasonal Magazine brings you the detailed Q2 analyses on some of the most buzzing companies in different sectors. 97 Seasonal Magazine

RESULTS Arundhati Bhattacharya, Chairperson, State Bank

UNION BANK WINS THE BET ON OTHER INCOME GROWTH

nion Bank of India has reported a 78% rise in its Q2 net profit on account of lower provisions and higher other income. The state-owned lender’s net profit for the second quarter stood at Rs.371 crore as compared with Rs.208 crore a year ago. Provisions during the three month period stood at Rs.785.4 crore, down 16% from Rs.937 crore reported last year. Net interest income rose by 6.6% to Rs.2,084 crore during the quarter, from Rs.1,954.5 crore reported last year. Other income rose to Rs.811 crore from Rs.611 crore a year ago. The bank’s asset quality slipped with the gross non-performing asset (NPA) ratio at 4.69% in the July-September period, higher than the 4.27% reported in the April-June quarter. Similarly, net NPA as a ratio of net advances stood at 2.71% during the second quarter, higher than the 2.46% reported in the quarter ended June.

SBI CONTINUES THE STATELY PERFORMANCE

ven as loan growth remained muted this fiscal year, tighter control over expenses and higher earnings from services such as commissions and brokerages helped State Bank of India (SBI) post 30% growth in net profit for September quarter at Rs 3,100 crore. Giving an outlook for coming quarters, SBI chairman Arundhati Bhattacharya said the bank expects profit to come from a healthy loan book, while adding that worries on bad debt will continue until the economy revives. Total expenses at the country’s largest bank rose 2.2% to Rs 9,423 crore while net revenue rose 15% to Rs 17,844 crore. The non-interest income rose 40% to Rs 4,570 crore while net interest income was up 8.36% to Rs 13,276 crore. Giving an outlook for the economy, Bhattacharya said, “The downturn has been very deep and we will see a gradual improvement. But once we see the demand cycle coming back, definitely we will see things happening at a faster pace. The pace will pick up, but for the pace to pick up, we are 12 months away.” The State Bank of India group posted a 31% rise in net profit at Rs 4,024 crore. State Bank of India’s loan book saw 9% growth at Rs 12,42,638 crore. However, on a year-to-date basis (April-September), the loan book shrank Rs 8,300 crore. “So, we are not really seeing a robust growth in loans and therefore, in the next two quarters, we are looking at 11-12% overall growth,” Bhattacharya said. These projections are substantially lower than 15.4% loan growth that the bank registered in the previous fiscal. Deposits rose 14% to Rs 14,73,785 crore, of which the share of low cost ones - CASA - was 42.79%. Bhattacharya indicated that she was looking forward to a reduction in interest rates by the central bank. “CPI (consumer price index) numbers clearly show no demand,” she said. “When there is no demand, keeping high interest does not serve any purpose. We believe interest should start trending downwards... We believe, by the first quarter of the next year... we will be able the see the downward cycle beginning.” Seasonal Magazine 98

Arun Tiwari, CMD,Union Bank of India

GLENMARK KEEPS STAKEHOLDERS GLAD

lenmark Pharmaceuticals posted a 6.98 percent increase in its net profit at Rs 165.07 crore for the second quarter ended September 30, 2014. The Mumbai headquartered firm had posted a net profit of Rs 154.29 crore during the same period of the previous fiscal. Glenmark’s net sales rose by 14.25 per cent to Rs 1,671.53 crore during the second quarter as compared with Rs 1,463 crore in the same period of the last fiscal. “Despite the challenging environment, we have performed well across geographies viz India, Europe, and Latin America. The environment continues to be tough especially in the US where product approvals have slowed down considerably and the channel consolidation has impacted overall sales,” Glenmark Pharmaceuticals CMD Glenn Saldanha said. For the half year period ended September 30, the company posted a net profit of Rs 349.9 crore as against net profit of Rs 282.9 crore in the corresponding period last year. Net sales of the company for the half-year period ended September 30 rose to Rs 3,149.35 crore as compared to Rs 2,700.88 crore in the same period of the previous fiscal.

FEDERAL LED BY STABLE ASSETS

CAN FIN CONTINUES CAN-DO ATTITUDE IN GROWTH an Fin Homes has reported a standalone total income from operations of Rs 198.45 crore and a net profit of Rs 18.45 crore for the quarter ended Sep ’14. Other income for the quarter was Rs 0.10 crore. For the quarter ended Sep 2013 the standalone total income from operations was Rs 137.95 crore and net profit was Rs 18.74 crore, and other income Rs 0.04 crore. The fast growing home finance company promoted by Canara Bank continued to exhibit the best asset quality among all housing finance companies, even when most banks’ housing portfolios are showing an uptick in NPAs. Can Fin Homes shares has given a maximum return of 289% over the last 12 months.

Shyam Srinivasan MD & CEO, Federal Bank Ltd

erala based private sector lender Federal Bank’s second quarter net profit climbed 6.4 percent on yearly basis to Rs 240.3 crore led by strong other income, but impacted by higher provisions. Profit in the year-ago period was Rs Rs 225.8 crore. Net interest income rose by 10.5 percent to Rs 605.8 crore in the quarter ended September 2014 compared to Rs 548 crore in same quarter last year while other income jumped 36.6 percent to Rs 195.9 crore from Rs 143.4 crore during the same period. Net interest margin improved to 3.35 percent in September quarter compared to 3.25 percent in previous quarter. Provisions and contingencies stood at Rs 45.7 crore in July-September quarter of current financial year 2014-15, increased from Rs 22 crore in previous quarter and negative Rs 4.02 crore in corresponding quarter of last fiscal. Asset quality was stable during the quarter with the gross non-performing assets (NPA) falling to 2.1 percent from 2.22 percent Q-o-Q and 3.39 percent Y-o-Y. Net NPA declined to 0.66 percent from 0.68 percent on sequential basis and 0.98 percent on yearly basis. Slippages declined sequentially to Rs 174 crore from Rs 220 crore and fresh restructuring fell too, down at Rs 68 crore in Q2 compared to Rs 88 crore in June quarter.

Glenn Saldanha, CEO & MD, Glenmark Pharma

C. Ilango, MD, Can Fin Homes Limited

PRESTIGE ESTATES IS ALSO PUNCTUAL WITH HIGHER PROFITS restige Estates Projects Limited has reported a 24.82 per cent increase in profit to Rs. 96.89 crore for the second quarter of this fiscal on a standalone basis. The company’s quarterly profit was Rs. 77.62 crore during the same period last year. Total income of the company also increased by 13.68 per cent to Rs. 540.33 crore from Rs. 475.30 crore recorded last year. EPS stood at Rs. 2.66 vs. Rs. 2.22. EBITDA is up 28 percent to Rs 152.2 crore against Rs 118.7 crore. Operating margins stood at 28.2 percent against 25 percent. Prestige’s CMD Irfan Razack informed that H2 will witness revenues getting recognised from the launches done in H1.

Irfan Razack,CMD, Prestige Group. 99 Seasonal Magazine

RESULTS APOLLO TYRES ROLLS OUT MORE PROFITS pollo Tyres reported 17.52 percent increase in consolidated net profit at Rs 257.94 crore for the second quarter ended September 30, 2014-15 driven by higher exports. The company had reported net profit of Rs 219.47 crore in the July-September quarter of 2013-14. Its net sales in Q2 of the current fiscal were Rs 3,300.64 crore, down 3.86 percent, compared to Rs 3,433.45 crore in the year ago period, the company said. Apollo Tyres chairman Onkar S Kanwar said: “Our 18-24 months of planning and smart execution has resulted in incremental exports out of India, and with additional demand for our products in the Middle East and ASEAN region, we expect this to grow further. “Taking into account the export growth, and the expected revival of the commercial vehicle segment in India, our expansion projects in Chennai and Kochi, both in the southern part of India, is moving ahead full steam.” Exports have grown over 30 percent, which has led to a strong performance by the Indian operations, the company said. Apollo said sale of part of African business in the last fiscal, led to the company reporting flat revenue growth on a consolidated level in the second quarter and half year of this fiscal. Overall expenses in Q2 were at Rs 2,928.77 crore compared with Rs 3,085.32 crore in the year-ago period.

Onkar S Kanwar Chairman, Neeraj Kanwar. Vice Chairman & MD, Apollo Tyres Seasonal Magazine 100

Shahid Usman Balwa

DB REALTY IS BUILDING BACK PROFIT GROWTH Despite lower sales, DB Realty reported a sharp increase in its consolidated net profit at Rs 10.01 crore for the second quarter ended September 30, 2014-15. Its net profit stood at a mere Rs 58.93 lakh in the year-ago period, Mumbaibased real estate developer said. Net sales, however, declined to Rs 79.97 crore during the second quarter of this fiscal compared with Rs 87 crore in the corresponding period of the last fiscal. DB Realty’s Q2, 2014-15 profit has increased due to rise in other income to nearly Rs 13 crore, from nearly Rs 7 crore in the yearago period. The company also earned an exceptional income of nearly Rs 9 crore during the September quarter. DB Realty is developing about 36 projects, mostly in and around Mumbai, comprising 90 million sq ft.

UNITED BANK IMPROVES, BUT STILL MILES TO GO olkata-based United Bank of India reported a net profit of Rs 43.80 crore for the second quarter of the current financial year. The bank had reported a net loss of Rs 489.47 crore in the corresponding July-September period of 2013-14. In the previous quarter of the current financial year, the bank had reported net profit of Rs 65.89 crore. Total income fell slightly to Rs 2,835.36 crore during the period under review from Rs 2,876.77 crore in the comparable of the previous year, the bank said.. Bank’s gross non-performing assets (NPAs) or bad loans were 10.78 percent of the total advances as of September quarter, up from 7.52 percent in the year ago period. Net NPAs were at 7.19 percent, while it stood at 5.39 percent during quarter ended September, 2013. The bank trimmed the provisions towards bad loans to Rs 351.84 crore in the review period from Rs 987.35 crore in year ago quarter. Last year, the government had initiated a probe into the bank for mis-reporting about its swelling bad assets. The government holds 88 percent stake in the bank.

UCO BANK FINDS ITSELF IN TROUBLE CO Bank’s second quarter net profit fell 74 percent year-on-year to Rs 103.5 crore dented by higher provisions and lower net interest income but was supported by higher other income. Profit was Rs 400.2 crore in the year-ago period. Net interest income declined 11.9 percent to Rs 1,383 crore in the quarter ended September 2014 compared to Rs 1,570 crore in same quarter last year. However, other income climbed 71.6 percent year-on-year to Rs 358.97 crore in the quarter gone by. Provisions and contingencies jumped 23.3 percent Y-o-Y (up 80.9 percent sequentially) to Rs 935.3 crore in the second quarter of current financial year 2014-15. Asset quality deteriorated sequentially. Gross non-performing assets (NPA) declined 12 basis points on yearly basis (up 89 bps quarter-on-quarter) to 5.20 percent while net NPA rose 2 bps year-on-year (up 82 bps quarter-on-quarter) to 3.15 percent during the quarter.

DENA BANK NOT OUT OF THE WOODS, YET

SU lender Dena Bank ‘s second quarter net profit plunged 52 percent year-on-year to Rs 51.6 crore impacted by lower net interest income and higher provision levels and despite rise in other income. Profit in the year-ago period was Rs 107.4 crore. Net interest income, declined marginally to Rs 624.8 crore from Rs 625.2 crore while other income climbed 19.7 percent to Rs 179.4 crore from Rs 149.9 crore during the same period. Operating expenses jumped 19.6 percent to Rs 485.4 crore in September quarter from Rs 405.7 crore in same quarter last year. Provisions and contingencies declined 6 percent (up 38.2 percent quarter-on-quarter) to Rs 315.2 crore in second quarter of current financial year with the provision coverage ratio at 51.90 percent. Asset quality deteriorated with the gross non-performing assets (NPA) climbing 212 basis points on yearly basis (up 91 bps sequentially) to 5.12 percent and net NPA rising 157 basis points Y-o-Y (up 65 bps Q-o-Q) to 3.59 percent in the quarter gone by.

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RESULTS PETRONET LNG PUMPS OUT BIG PROFITS tate-controlled Petronet LNG’s second quarter net profit jumped 68 percent sequentially to Rs 263 crore on strong operational performance. Profit in previous quarter was Rs 156.6 crore. Net sales grew by 7.9 percent to Rs 10,860 crore in the quarter ended September 2014 compared to Rs 10,065 crore in June quarter. Operating profit (earnings before interest, tax, depreciation and amortisation) surged 52.7 percent quarter-on-quarter to Rs 400 crore and margin expanded by 110 basis points to 3.7 percent in the quarter gone by. Tax expenses during the quarter climbed 65.4 percent to Rs 134 crore from Rs 81 crore on sequential basis.

SYNDICATE BANK IS PRESSED FROM ALL SIDES

Dr.A.K.Balyan, MD & CEO, Petronet LNG Limited

SU lender Syndicate Bank’s net profit slipped 32.9 percent year-on-year to Rs 315.6 crore in JulySeptember quarter dented by higher provisions and tax cost but was supported by higher other income. Profit in the same quarter last year was Rs 470 crore. Net interest income increased marginally to Rs 1,422.5 crore in the quarter ended September 2014 compared to Rs 1,411 crore in the year-ago period. Other income jumped 58 percent to Rs 437 crore from Rs 276.4 crore during the same period. In September quarter, domestic net interest margin of the bank improved sequentially to 2.96 percent from 2.86 percent and global net interest margin expanded to 2.57 percent from 2.47 percent. Operating expenses during the quarter increased 3.3 percent to Rs 905.56 crore from Rs 876.53 crore yearon-year and employee cost declined to Rs 552 crore from Rs 595.92 crore. Tax expenses climbed significantly to Rs 100.5 crore from Rs 1.08 crore during the same period. Provisions and contingencies surged 58.2 percent on yearly basis (up 14.9 percent sequentially) to Rs 537.8 crore in September quarter with the provision coverage ratio at 65.38 percent as on September 2014. Asset quality deteriorated in the second quarter of current financial year 2014-15. Gross NPA rose 55 basis points year-on-year (up 46 bps quarter-on-quarter) to 3.43 percent while net NPA jumped 54 bps Y-o-Y (up 32 bps Q-o-Q) to 2.20 percent in the quarter gone by. Meanwhile, Syndicate Bank said it has sought approval from the government for capital infusion of Rs 1,100 crore via qualified institutional placement.

TATA GLOBAL BEVERAGES OFFERS A BITTER CUP ata Global Beverages reported a 65.31 percent decline in consolidated net profit at Rs 62.45 crore for the second quarter ended September 30. The company had posted a net profit of Rs 180.03 crore for the same period of previous fiscal, aided by exceptional income of Rs 92.05 crore. Net sales during the quarter under review stood at Rs 1,964.41 crore, up 3.05 percent, compared to Rs 1,906.23 crore during the same period in the previous fiscal, Tata Global Beverages Ltd (TGBL) said. TGBL managing director and CEO Ajoy Misra said: “We will continue to focus on innovations based on strong consumer insight across tea, coffee and water. The last quarter has seen new launches and campaigns across geographies in spite of a challenging market environment.”

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BOB CONTINUES TO BANK ON DOMESTIC AND OVERSEAS GROWTH ank of Baroda â&#x20AC;&#x2DC;s second quarter net profit fell 5.5 percent year-on-year to Rs 1,104 crore due to higher provisions and tax rate, and slow growth in non-interest income. Profit in the year-ago period was Rs 1,168 crore. Net interest income climbed 17.5 percent on yearly basis to Rs 3,401 crore from Rs 2,895 crore while other income grew by 1.8 percent to Rs 991.65 crore during the same period. Operating expenses increased 14 percent to Rs 1,989.83 crore in the quarter ended September 2014 compared to Rs 1,744.07 crore in same quarter last year due to higher other expenses. Tax cost surged 5-fold to Rs 410.7 crore from Rs 80.10 crore during the same period. Provisions and contingencies rose 3 percent (jumped 68.6 percent sequentially to Rs 888 crore during the quarter with provision coverage ratio at 65.39 percent as on September 2014. Asset quality weakened on sequential basis. Gross NPA climbed 17 basis points year-on-year (up 21 bps quarteron-quarter) to 3.32 percent and net NPA declined

BoB, Dubai, Branch

12 bps Y-o-Y (up 16 bps Q-o-Q) to 1.74 percent in the quarter gone by. In absolute term, gross NPA jumped 20 percent on yearly basis (up 8 percent sequentially) to Rs 13,057 crore and net NPA shot up 6 percent Y-o-Y (up 11.34 percent Q-o-Q) to Rs 6,704 crore in the second quarter of current financial year 2014-15. Domestic net interest margin of the bank in September quarter improved sequentially to 3.02 percent from 2.94 percent, which was in line with the management guidance. Fresh slippages during the quarter were Rs 1,757 crore, declined compared to Rs 1,881 crore in June quarter. Domestic slippages stood at Rs 1,600 crore and international slippages at Rs 155 crore in the quarter gone by.

K. Venkataraman, MD & CEO, KVB

KVB CASHING IN ON OTHER INCOME GROWTH rivate lender Karur Vysya Bank has reported a 9.2 percent growth in profit at Rs 90.5 crore for the second quarter of current financial year 2014-15 supported by strong other income and NII but was impacted by higher provisions and tax cost. Profit in same quarter last year was Rs 82.9 crore. Net interest income grew by 13 percent year-on-year to Rs 337.4 crore and other income jumped 28 percent to Rs 136 crore in the quarter gone by. Operating expenses increased 7.5 percent on yearly basis to Rs 266.3 crore but employee cost declined 3.6 percent to Rs 126.8 crore from Rs 131.54 crore during the same period. Tax expenses for the quarter were Rs 23.50 crore as against tax refund of Rs 44.55 crore in corresponding quarter of last fiscal. Provisions and contingencies dropped 21.4 percent year-on-year (up 7.8 percent sequentially) to Rs 93.1 crore in Q2FY15 with provision coverage ratio at 75.02 percent as of September 2014. Asset quality was stable with the gross NPA declining 19 basis points year-on-year (up 6 bps quarter-on-quarter) to 1.36 percent and net NPA rising 8 bps Y-o-Y (up 6 bps Q-o-Q) to 0.59 percent during the quarter. Capital adequacy ratio (as per Basel III norms) improved to 14.41 percent during JulySeptember quarter compared to 12.49 percent in previous quarter and 12.81 percent in the year-ago period.

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RESULTS

SOUTH INDIAN BANKâ&#x20AC;&#x2122;S TOTAL BUSINESS MOVES NORTHWARD

Thrissur based South Indian Bank made a net profit of Rs. 76.30 crore in the second quarter of the 2014-15 financial year. The net profit for Q1 fell because of the higher provisioning towards restructured advances, the bank said. About 50 per cent of the incremental provisioning for the current quarter was of one-time nature. The bankâ&#x20AC;&#x2122;s net profit for the first half of the financial year is Rs. 202.95 crore. It has registered growth in business volume, net interest margin and operating profit. The total business, on a year-on-year basis, has increased by Rs. 6,984 crore (nine per cent) from Rs. 75,610 crore to Rs. 82,564 crore, while total deposits rose by Rs. 3,215 crore (seven per cent), from Rs. 43,478 crore to Rs. 46,693 crore.

Indian Bank T.M. Bhasin

INDIAN BANK IS NEITHER SHRINKING OR GROWING ublic sector lender Indian Bank has reported a 2.8 percent growth in net profit at Rs 314.3 crore in July-September quarter driven by higher non-interest income but was limited due to spike in provisions. Profit in the year-ago period was Rs 305.8 crore. Net interest income grew by 7.6 percent year-on-year to Rs 1,176.4 crore while other income jumped 21.4 percent on yearly basis to Rs 336.25 crore in the quarter gone by. Operating expenses climbed 12.45 percent to Rs 747.7 crore in the quarter ended September 2014 compared to Rs 664.94 crore in corresponding quarter of last fiscal. Provisions and contingencies increased 27.4 percent year-on-year (declined 12 percent sequentially) to Rs 286.6 crore in the second quarter of current financial year 2014-15 with non-performing loan provision coverage ratio at 57.41 percent as on September 2014. Asset quality slightly weakened on sequential basis. Gross non-performing assets (NPA) climbed 45 basis points Y-o-Y (up 20 bps Q-o-Q) to 4.21 percent while net NPA declined (up 7 bps quarter-onquarter) to 2.55 percent in Q2FY15 from 2.56 percent in Q2FY14. Advances grew by 6.7 percent year-on-year to Rs 1,16,646.14 crore and deposits rose by 8 percent to Rs 1,64,981.52 crore in the quarter gone by.

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THERMAX HAS COOL NUMBERS TO REPORT

une-based energy solutions provider Thermax today reported over two-fold jump in its net profit at Rs 86 crore for the quarter ended September 30, 2014. The company had posted a net profit of Rs 30.16 crore in the corresponding quarter of the last financial year. Total income increased to Rs 1,213.96 crore during the quarter under review from Rs 1,050.81 crore in the same quarter of the last financial year, Thermax said in a statement. During the quarter, the company had an order inflow of Rs 1,089 crore. Order booking has been helped by improvement in the demand for its standard products in the domestic market and also project orders from the international market, the company said in a statement. As on September 30, 2014, Thermax has an order backlog of Rs 5,016 crore against Rs 5,308 crore in the same period of last year. Meher Pudumjee, Chairperson, Thermax Ltd.

CUB CONTINUES TO PURR

CANARA BANK HOLDS GROUND anara Bank’s net profit increased 0.14 percent to Rs 626.8 crore in July-September quarter from Rs 625.9 crore in the year-ago period, supported by solid jump in other income but was impacted by higher provisions. Net interest income grew by 8 percent to Rs 2,367.8 crore in the quarter ended September 2014 compared to Rs 2,191.2 crore in corresponding quarter of last fiscal. Other income jumped 32.1 percent to Rs 1,021.34 crore from Rs 773 crore crore during the same period while operating expenses surged 14.6 percent yearon-year to Rs 1,763.6 crore in the quarter gone by. Provisions and contingencies shot up 20.7 percent on yearly basis (up 3.2 percent sequentially) to Rs 813.7 crore during the quarter with the provision coverage ratio at 58.68 percent as on September 30. Asset quality weakened on sequential basis. Gross non-performing assets (NPA) increased 28 basis points Y-o-Y (up 25 bps Q-o-Q) to 2.92 percent while net NPA rose 1 bp year-onyear (up 28 bps quarter-on-quarter) to 2.31 percent in the second quarter of current financial year 2014-15. In absolute term, gross NPA in September quarter was Rs 9,164.3 crore, up 22.6 percent compared to same quarter last year and up 12.3 percent compared to previous quarter. Net NPA jumped 11 percent on yearly basis (up 16.6 percent sequentially) to Rs 7,170.3 crore during the same period. Capital adequacy ratio (as per Basel III norms) declined to 10.19 percent in Q2FY15 compared to 10.23 percent in Q1FY15 and 10.62 percent in Q2FY14.

ity Union Bank has reported an 11-per cent increase in net profit to 193 crore for the second quarter as against 175 crore in the corresponding period last year. Revenue too increased by 11 per cent to 773 crore (from 697 crore). The bank’s Chairman and Managing Director N Kamakodi attributed the better performance to the bank saying no to big-ticket lending of over 100 crore and focusing more on small- and medium-sized companies, a domain it is comfortable with. “We are not concentrating on growth but on improving profitability,” he said. It is usually said that when the economy is bad, the SME and agricultural sectors are the first to be hit, followed by large companies. However, in the bank’s case, it has been the reverse. Repayment by the SMEs and agricultural sectors has been good, he said. The bank’s total deposits as on September 30, increased by 10 per cent to 23,152 crore (21,056 crore). The bank reached a milestone during the quarter by reaching a business of 40,000 crore. It closed the September quarter with a 10-per cent increase to 40,060 crore (from 36,905 crore). Advances saw a 7-per cent growth at 16,908 crore (?15,849 crore). Gross non-performing assets at the end of the second quarter stood at 337 crore, which is 2 per cent of the gross advances, he said.

Dr. Kamakodi, CEO , City union bank

AT MUTHOOT CAPITAL, NO CAP ON GROWTH uthoot Capital Services today said it has posted a net profit of Rs 5.39 crore for the quarter ending September in 2014-15 fiscal. The net profit during the corresponding quarter last year was Rs 5.13 crore. The total income increased to Rs 46.82 crore during the quarter ended Sept 30 2014 as compared to Rs 37.99 crore during the corresponding period last year. The unaudited financial results of the company, part of the Muthoot Pappachan Group, reveals continued good performance. Muthoot Cap shares has given 157.29% returns over the last 6 months and 223.20% over the last 12 months.

Thomas John Muthoot, CMD

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RESULTS WELSPUN WEAVES BACK INTO GREEN n the second quarter of fiscal 2014-15, revenues and EBITDA surged 22% and 21%, respectively, from a year ago quarter, at Welspun India, a part of the $3 billion BK Goenka led, Welspun Group. From Rs. 192 crore loss a year back, Welspun returned to a profit of Rs. 132 crore this quarter. Steered by strong volume growth, revenue at Welspun India climbed 22% to Rs.14,135 million in the second quarter of fiscal 2014-15, compared with Rs.11,589 million in the second quarter of 2013-14. At the same time, EBITDA at Rs.3,169 million, shot up by 25% from Rs.2,540 million in the corresponding quarter of the previous fiscal year. Not to be left behind, EBITDA margin too was marginally higher at 22.4% in the reporting quarter from 21.9% in the prior fiscal year quarter. However, depreciation skyrocketed 50% year-on-year to Rs.717 million in the period under review, from newly commissioned projects due to a new depreciation policy. Finance cost at the third globally biggest home textiles producer, stood at Rs.731 million, expanding by 23% from a year ago quarter, from higher working capital interest cost and also discontinuation of interest subvention. Welspun informed that the modernisation, expansion and vertical integration project is half-way through, on which it has spent capex of Rs.12 billion, by the end of the reporting quarter. The 170,000 spindles and 140 looms, which are part of this plan, have started commercial operations and the remaining is expected to be completed over the next two years at an expense of Rs.13 billion. Chairman, BK Goenka said, “We have increased focus on our domestic as well as global brands, which should further improve our position in the coming years and create long-term value for shareholders.” (AR)

DEAL MAKER JM FINANCIAL’S DELIVERS A NICE DEAL TO INVESTORS M Financial Group on Tuesday posted an 83% jump in consolidated net profit to Rs 92.19 crore for the three months ended 30 September, compared with Rs 50.40 crore a year ago. The group advised IDFC Ltd when the lender sold Rs 1,000 crore worth of shares to institutional buyers. It also advised Financial Technologies (India) Ltd (FTIL) for divestment of stake held in Multi Commodity Exchange of India Ltd. In the alternative investment fund management space, the combined assets of the group’s private equity fund and real estate fund stood at a total of around Rs1,005 crore at the end of September. In the group’s mutual fund business, average assets for the September quarter stood at Rs11,976 crore.

Nimesh N. Kampani, Chairman, JM Financial Group

IL & FS INVESTMENT MANAGERS COMES ACROSS AS A TOUGH INVESTMENT L & F S Investment Managers, one of India’s largest homegrown PE funds, announced a sharp drop in consolidated net profit for the quarter ended September 2014. During the quarter, the profit of the company declined 18.44%. Net sales for the quarter declined 13.59%. Earnings per share for the quarter stood at Rs 0.50, registering 19.35% decline over previous year period. IL & FS Investment Managers has reported a consolidated total income from operations of Rs 46.68 crore and a net profit of Rs 15.85 crore for the quarter ended Sep ’14. For the quarter ended Sep 2013 the consolidated total income from operations was Rs 53.82 crore and net profit was Rs 19.43 crore. However, from its beaten-down status, IL & FS shares has given 59.06% returns over the last 6 months and 61.04% over the last 12 months.

B.K. Goenka, Chairman, Welspun Group India Seasonal Magazine 106

ABAN OFFSHORE DRILLS OUT SURPRISING PROFITS ban Offshore has disclosed a sharp rise in consolidated net profit for the quarter ended September 2014. During the quarter, the profit of the company rose 91.49%. Net sales for the quarter rose marginally by 1.69%. Earnings per share for the quarter stood at Rs 29.52, registering 66.50% growth over previous year period. Aban Offshore has reported a consolidated total income from operations of Rs 1,018.49 crore and a net profit of Rs 148.75 crore for the quarter ended Sep ’14. For the quarter ended Sep 2013 the consolidated total income from operations was Rs 1,001.59 crore and net profit was Rs 77.68 crore. Aban Offshore shares has given 24.03% returns over the last 6 months and 151.10% over the last 12 months.

MP Ramachandran,CMD, Jyothy Laboratories Ltd.

JYOTHY LABS HAS CLEAN AND WHITE NUMBERS TO REPORT yothy Laboratories Ltd, the maker of Ujala liquid fabric whitener, reported an increase of 89.90% in net profit for the secondquarter. Net profit for the September quarter stood at Rs 25.13 crore compared with Rs13.24 crore in the year-ago period. Consolidated net sales rose 16.15% to Rs 367.66 crore from Rs 316.53 crore a year ago. Revenue of the soaps and detergent business, which includes brands like Ujala, Henko, Exo, Pril, Margo, Mr. White and Chek, was at Rs 274.53 crore in the second quarter compared with Rs 228.92 crore in the year-ago quarter, up by 19.9%. The home care business, which includes the mosquito repellent Maxo, incense sticks and Exo scrubber, saw revenue rise to Rs 79.70 crore in the September quarter from Rs 77.56 crore during the same period last year, up 2.8%. During the quarter, the company made additional payments towards compensation for retrenched employees at its Bhubaneswar and Chennai manufacturing units, which were closed down, the company said. “We have witnessed a strong traction across the new Henko launches. Our on-ground tie ups and better placement of the products is expected to capture the target markets. We foresee a further uptick in demand on account of word-of-mouth and an increased awareness of the product,” said MP Ramachandran, chairman and managing director, Jyothy Laboratories.

Dr. Archana Hingorani, CEO & ED, IL&FS Investment

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RESULTS

Sunder Ashok Genomal, page industries

JAIN IRRIGATION IS SLOWLY CLOSING THE TAP OF LOSSES icro-irrigation company Jain Irrigation Systems reported a consolidated loss of Rs 23.6 crore for the quarter ended September 2014 against a loss of Rs 80.7 crore in the same period last year. The company reported stand alone net loss of Rs 19.4 crore in the September 2014 period as against a loss of Rs 65 crore in the corresponding quarter in the previous year. Profit after tax (PAT) has been impacted negatively by Rs 8.1 crore due to higher charge of depreciation as per Companies Act 2013, a company statement said here. The company’s consolidated revenue for the quarter stood at Rs 1,293.6 crore, registering a growth of 3.4 per cent in the quarter, the statement said. Its consolidated revenue for half year ended September 2014 grew by 6.7 per cent at Rs 2,887 crore. The company’s overseas business has continued positive growth in current quarter at about 8.79 per cent, Jain Irrigation said. The board has approved spinning off its food processing business into a 100 per cent owned subsidiary. In the statement, Jain Irrigation Managing Director Anil Jain said, “Micro Irrigation (MIS) has done extremely well in the domestic market, despite this being lowest revenue quarter. We continuously focus on reduction of receivable levels further. With the stabilising of crude prices at lower band, busy season revenue mix, expected better capacity utilisation, second half is expected to be better than first half,” he said. The company maintained it’s medium term target of reaching a debt-equity level 1:1 by FY16 through various actions at the operational efficiency level and corporate level.

Bhavarlal Jain, Founder & Chairman, Jain Irrigation Seasonal Magazine 108

PAGE OR NOTHING? age Industries, the licensee of Jockey innerwear, delivered a mixed set of numbers for the September quarter. While sales growth was healthy, driven by strong volume growth, higher raw material costs and marketing spends impacted EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins. However, The scrip made a new 52-week high of Rs 10,380, as management commentary on growth and margins remained positive. Page now trades at rich valuations of 42 times the FY16 estimated earnings. During the quarter, sales grew 36 per cent over a year-on-year (y-o-y) basis to Rs 397 crore, fuelled by strong 21.1 per cent volume growth, which stood robust at 19.6 per cent for men’s innerwear (53 per cent of total sales), 22.9 per cent for women’s innerwear (including brassiere) and 27 per cent for leisure wear (29 per cent of total revenues). All segments reported 30 per cent plus revenue growth in the quarter. Higher input costs (up 230 basis points to 47.2 per cent of sales) and marketing spends led to a 410 basis points year-on-year contraction in EBITDA margin to 18.8 per cent. The cost of most inputs such as cotton, dyes, bleaching chemicals among others stood higher compared to the September 2013 quarter. Management indicated that raw material costs are 4-6 months old costs and the recent fall in prices should start showing March 2015 quarter onwards. A 22-fold jump in other income to Rs 7 crore on a y-o-y basis led to a 22 per cent growth in net profit to Rs 50 crore. The strong brand equity of Jockey, healthy earnings visibility and expansion of distribution network are Page’s key strengths. Consumers’ shift from unorganised to organised players as well as new product launches will aid top-line growth for the company. However, rising competitive intensity from MNC players such as Hanes, Fruit of the Loom, amongst others is a key risk. Another risk Page faces is availability of Jockey and Speedo products on e-commerce portals. Page is way ahead of its listed peers in terms of size and return ratios. Page operates in premium and mid-premium innerwear segment while Lovable Lingerie operates in economy and mid premium segment and is its closest listed peer.

V-GUARD SAFEGUARDS THE GROWTH MOMENTUM onsumer electrical and electronics company VGuard Industries has registered a 32 per cent increase in its net profit at Rs. 19.17 crore in Q2 against Rs. 14.48 crore in the corresponding period previous year. Net revenue from operations stood at Rs. 431.25 crore, a 29 per cent increase, over the corresponding period figure of Rs. 334.04 crore. According to Mithun K Chittilappily, Managing Director, the company maintained the growth momentum during the quarter due to the growth in top-line and bottom line, which was aided by a strong performance in non south and superior product mix. Besides, three new models of mixer grinder were introduced. The new model of water heater ‘Pebble’ launched nationally during the quarter has been well accepted, he said. The company is confident of achieving 20% growth in FY15, and won’t raise funds for immediate growth. Its flagship stabiliser, electric water heater inverter businesses is expected to take the growth story forward. Mithun expects to clock Rs 1,800 crore of revenue this financial year, a growth of 20 percent. V-Guard’s performance in Q1 and Q2 has been commendable, as the company’s strong quarters are usually in the second half of the fiscal.

LIC HOUSING’S FOCUS NOW IS ON LARGE RECOVERIES

Mithun Chittilappilly, MD, V-GUARD

Mithun Chittilappilly , MD, V-Guard

Sunita Sharma, MD & CEO, LIC HFL

IC Housing Finance Ltd’s earnings were slightly better than expected in the September quarter, helped by an improvement in its net interest margin (NIM) and higher disbursements. NIM improved to 2.23% in the three months ended 30 September from 2.19% in the June quarter as LIC Housing Finance recovered Rs.132 crore from one developer account and reduced reliance on bank borrowing. “We are borrowing more through the nonconvertible debentures route to reduce the cost of funds,” said Sunita Sharma, chief executive officer of LIC Housing Finance. Gross non-performing assets (NPAs) improved to 0.63% of the loan book compared with 0.8% at the end of the June quarter, mainly aided by recovery in the developer account which led to an interest reversal. The management said it was looking at recovering three stressed developer loans worth Rs.252 crore by the end of this fiscal year, which should help in reducing NPAs. The gross bad loans in the individual loan segment also fell slightly to 0.38% in the three months ended September. On the operating front, net interest income grew 17% from a year ago, at Rs.532 crore compared with 11% growth in the previous quarter. Loan disbursements were up 21% in the September quarter from 17% growth in the June quarter, aided by expansion in distribution, coupled with upbeat sentiment in the economy. The developer loan portfolio, which makes up less than 3% of the loan book, declined over 4% in the September quarter because of caution in growing this segment. The individual loan portfolio grew 18% compared with a year ago. Advertisement expenses more than tripled due to higher spending on marketing as the company finished its silver jubilee. Commission and brokerage expenses increased 23% from a year ago, helped by higher commission from loans against property (LAP). LIC Housing Finance is trying to build its risky LAP portfolio because of margin advantage of over 200 basis points. Overall, net profit increased 10% to Rs.341 crore after providing for deferred tax liability. LIC Housing Finance shares have rallied 129%, outperforming the indices. The management is expecting loan growth of 20% and margins at 2.35% at the end of this fiscal year.

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mithun chittilappilly v guard

RESULTS SOBHA STAYS SHINING IN GROWTH obha Ltd has posted 5.12 per cent growth in its consolidated profits to Rs. 59.5 crore for second quarter of 2014-15 compared with Rs. 56.6 crore recorded in the same period last year. The company’s total income has gone up 23.98 per cent to Rs. 669.5 crore as against Rs. 540 crore in the same period last year. EPS for Q2 stood at Rs. 6.07 compared with Rs. 5.77 last year. Commenting on the company’s performance, J.C. Sharma, Vice Chairman and Managing Director, Sobha Limited, said, “We have a healthy pipeline of about 15 million square feet of new project launches planned in the next few quarters in our existing geographies. In the last 20 years, we have completed and delivered 95 real estate and 253 contractual projects totalling 65.83 million square feet of area. We are probably the only player in the real estate arena to deliver international quality projects to this size and scale. In addition to this, we have about 50 ongoing residential projects aggregating to 31.14 million square feet of developable area and 23.96 million square feet of saleable area. On the contractual front, we have 31 ongoing projects covering 9.35 million square feet under various stages of construction. This is a mere indication of our delivery capabilities and we are hopeful that we will continue to cater to the emerging needs of the realty industry.”

WONDERLA CONTINUING THE AMAZING RIDE FOR INVESTORS

onderla Holidays reported a 46 per cent rise in net profit at Rs 6.4 crore for the quarter ended September 2014. The Kochi-based theme park promoted by Kerala based Chittilappilly family had posted a net profit of Rs 4.41 crore for the corresponding quarter a year ago. The revenue of the company, which runs two theme parks in Kochi and Bangalore, jumped 34 per cent to Rs 37.14 crore from Rs 27.62 crore in the same period last year. Wonderla Holidays managing director Arun K Chittilappilly attributed the good set of numbers to a rise in footfalls, which grew by 10 per cent, and an increase in margins, which stood at around 55 per cent during the quarter. The rise in margins and footfalls was due to festive season and the company said it expects domestic tourism to expand this year because of Central government promoting tourism. Wonderla Holidays went public in April with a Rs 180-crore initial public offering, which was oversubscribed 38 times the issue size and gained 32 per cent on debut. The Chittilappilly family who is the promoter, still owns 71 per cent in the company, which is building its third theme park in Hyderabad. The company is not looking at raising further funds, as the IPO proceeds are enough to complete the Hyderabad project. The company is nearly debt free, with only less than Rs 50 crore in bank loans. The revenue from the two amusement parks in Bangalore and Kochi rose to Rs 35.1 crore, while its resort division reported good performance with an occupancy rate of 44 per cent, which is an increase of 144 per cent compared to the year ago.

Ravi Menon, Sobha Developers

FORCE MOTORS PRESSES THE SALES ACCELERATOR orce Motors Ltd has reported financial results for the period ended September. The company has reported net sales of Rs.598.84 crores during the period ended September 2014 as compared to Rs.471.75 crores during the period ended September 2013. Force has posted net profit of Rs.25.69 crores for the period ended September 2014 as against Rs.26.93 crores for the corresponding year-ago period. The maker of ’Traveller’ brand of vans has reported EPS of Rs.19.50 for the period ended September 2014 as compared to the corresponding year-ago period. The company has reported net sales of Rs.1143.86 crores during the 6 months period ended September 2014 as compared to Rs.976.07 crores during the corresponding year-ago period of 6 months. The company has posted a net profit of Rs.45.08 crores for the 6 months period ended September 2014 as against Rs.41.20 crores for the corresponding year-ago period of 6 months. The company has reported EPS of Rs.34.22 for the 6 months period ended September 2014 as compared to Rs.31.27 for the corresponding year-ago period of 6 months..

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Arun K Chittilappilly, MD, Wonderla Holidays Ltd

TECH MAHINDRA SHOWS IMPRESSIVE RISE oftware services firm Tech Mahindra has reported a 14.1 percent sequential growth in second quarter net profit at Rs 720 crore on strong operational performance but was impacted by forex loss. Profit in the previous quarter was Rs 630.7 crore. Consolidated total income from operations grew by 7.2 percent to Rs 5,488 crore in the quarter ended September 2014 compared to Rs 5,122 crore in June quarter while dollar revenue climbed 5.2 percent quarter-on-quarter to USD 900 million in the quarter gone by. "Robust growth in key verticals underpins our belief in strategy of continuous investment in capabilities. We are also heartened by the growth in larger customers which demonstrates their trust and faith in our partnership," said Vineet Nayyar, executive vice chairman. Revenue from American territory grew by 9.7 percent (as against 8.27 percent growth in Q1) and Europe reported a 5.24 percent growth in revenue as against 3.66 percent while revenue from the rest of the world declined 4.3 percent as against a 5 percent fall in Q1. Tech Mahindra also beat on operational front. Consolidated earnings before interest and tax (EBIT) jumped 22.56 percent sequentially to Rs 955 crore and margin expanded by 220 basis points to 17.4 percent as against estimated growth of 18.3 percent and 190 basis points, respectively. The company reported a forex loss of Rs 45.8 crore during the quarter as against gain of Rs 12 crore in the previous quarter. Active clients in September quarter stood at 649, increased from 632 in previous quarter. Tech Mahindra's USD 50 million+ clients increased to 12 from 11 and USD 5 million+ clients jumped to 86 from 80 on sequential basis. Tech Mahindra said cash & cash equivalents stood at Rs 3,434 crore at the end of September quarter.

MANAPPURAM BACK ON THE GOLDEN TRACK OF GROWTH

ndiaâ&#x20AC;&#x2122;s first listed gold loan player Manappuram Finance has declared a 9.6 % increase in net profit on a yearon-year basis for the second quarter of this fiscal. Net profit for this fiscal stood at Rs. 76.43 crores, compared to Rs. 69.71 crore in the corresponding quarter of the last fiscal. Sequentially, the net profit has registered an increase of 74 %; Q1 net profit being Rs. 43.98 crore. The company has signed a non-binding term sheet to acquire a majority equity shareholding in Asirvad Microfinance, an RBI-registered NBFCMFI operating in Tamil Nadu, Kerala, Odisha, and Gujarat. Assets under Management (AUM) for Q2 of the this fiscal was Rs. 8,530.9 crore, a of 3.9% increase sequentially. Aggregate gold loans disbursed during the quarter were Rs. 5835 crore. The company added 2.43 lakh new customers during the quarter, taking the number of customers to 16.06 lakh. V.P. Nandakumar, MD & CEO, Manappuram Finance

MAHINDRA LIFESPACE DEVELOPS A BETTER BOTTOMLINE

ahindra group's realty firm Mahindra Lifespace Developers reported a 21 percent increase in consolidated net profit at Rs 23.47 crore for the second quarter ended September. Its net profit stood at Rs 19.38 crore in the year-ago period. Total income, however, fell to Rs 193 crore in the second quarter of this fiscal from Rs 208 crore in the corresponding period of the previous year, Mahindra Lifespace said. â&#x20AC;&#x153;Growth through better execution and increased profitability due to lower interest cost have been the key highlights of this quarter," company's CFO Jayantt Manmadkar said.

C. P. Gurnani, MD, Tech Mahindra 111 Seasonal Magazine

RESULTS

GIC HOUSING IS FINANCING MORE AND MORE HOMES

IC Housing Finance reported a rise in standalone net profit for the quarter ended September 2014. During the quarter, the profit of the company rose 4.53% to Rs 258.30 million from Rs 247.10 million in the same quarter previous year. Net sales for the quarter rose 15.67% to Rs 1,786.90 million, compared with Rs 1,545 million for the prior year period. Earnings per share for the quarter stood at Rs 4.80, registering 4.58% growth over previous year period.

Ramesh Poddar, CMD, Siyaram Silk Mills

SIYARAM TURNS FASHIONABLE ON DALAL STREET

iyaram Silk Mills has reported a standalone total income from operations of Rs 397.96 crore and a net profit of Rs 22.03 crore for the quarter ended Sep '14. Other income for the quarter was Rs 3.47 crore. For the quarter ended Sep 2013 the standalone total income from operations was Rs 338.48 crore and net profit was Rs 18.51 crore, and other income Rs 0.51 crore. Siyaram Silk shares has given 167.28% returns over the last 6 months and 238.74% over the last 12 months.

KITEX GARMENTS STITCHES UP A PERFECT QUARTER itex Garments has reported financial results for the period ended September 30, 2014. The infant wear maker has reported net sales of Rs.128.20 crores during the period ended September 2014 as compared to Rs.100.08 crores during the period ended September 2013. The Kochi based exporter has posted net profit of Rs.19.32 crores for the period ended September 30, 2014 as against Rs.11.98 crores for the corresponding year-ago period. The company has reported EPS of Rs.4.07 for the period ended September 30, 2014 as compared to Rs.2.52 for the corresponding yearago period. Kitex has reported net sales of Rs.230.96 crores during the 6 months period ended September 2014 as compared to Rs.200.57 crores during the 6 months period ended September 2013. The company has posted net profit of Rs.33.75 crores for the 6 months period ended September 2014 as against Rs. 24.96 crore for the corresponding yearago period. Kitex Garments that supplies to top American & European brands has reported EPS of Rs.7.11 for the 6 months period ended September 30, 2014 as compared to Rs.5.26 corresponding year-ago period.

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Warendra Sinha - MD & CEO, GIC Housing Finance Ltd.

Sabu M Jacob - CMD, Kitex Garments

MCX STARTS BENEFITING FROM THE NSEL CRISIS

PUNJAB & SIND BANK RETURNS TO SAFE SHORES ublic sector lender Punjab and Sind Bankâ&#x20AC;&#x2122;s net profit spiked 2.6 times year-on-year to Rs 112.2 crore in July-September quarter supported by sharp fall in provisions and higher other income & net interest income. Profit was Rs 43 crore in same quarter last year. Net interest income grew by 13.9 percent to Rs 461.1 crore in the second quarter of current financial year 2014-15 from Rs 404.8 crore in corresponding quarter of last fiscal. Other income during the same period climbed 31 percent to Rs 97 crore from Rs 74 crore. Provisions and contingencies fell 48.2 percent on yearly basis (down 40.6 percent sequentially) to Rs 97 crore in the quarter gone by, with provision coverage ratio at 44.46 percent as on September 2014. Asset quality was stable on sequential basis. Gross nonperforming assets (NPA) jumped 96 basis points Y-oY (down 14 bps) to 5.08 percent and net NPA rose 94 bps year-on-year (up 5 bps Q-o-Q) to 3.92 percent during July-September quarter.

P K Singhal joint MD, MCX

CX, India's largest commodity exchange, reported about a 9 per cent increase in net profit at Rs 29.37 crore for the second quarter ended September. The company had clocked a net profit of Rs 27.04 crore for the corresponding period a year ago. Total income from operations declined sharply to Rs 54.82 crore from Rs 88.02 crore in the year-ago period, the company said. Despite the fall in income, the company reported the increase in its net profit on back of a fall in total expenses to Rs 43.22 crore against Rs 77.19 crore in the year-ago period, mainly due to a re-negotiation of the tech contract with former promoter Financial Technologies. During the quarter, on August 27, the original promoters Financial Technologies India Ltd (FTIL) exited the exchange by selling their residual 5 per cent stake for over Rs 200 crore. In July, Jignesh Shah-led FTIL, the erstwhile promoter of MCX, had announced sale of its 15 per cent stake in MCX to Kotak Mahindra Bank for Rs 459 crore. FTIL originally held a 26 per cent stake in MCX. It has divested stake in MCX after the Forward Markets Commission (FMC) had declared the company unfit to run any exchange in the wake of a Rs 5,600 crore payment crisis at group company National Spot Exchange Ltd (NSEL). The regulator had asked FTIL to reduce its stake in MCX to 2 per cent from 26 per cent. Before the Kotak deal, FTIL had sold a 6 per cent stake in MCX, including about 2 per cent to billionaire investor Rakesh Jhunjhunwala, in two rounds for about Rs 220 crore, bringing down its shareholding to 20 per cent.

GEOJIT BNP PARIBAS BROKERS A GREEN DEAL FOR INVESTORS eojit BNP Paribas Financial Services has turned profitable in the quarter ended September 2014. Consolidated net profit stood at Rs 20 crore as against loss of Rs 94.2 crore in same quarter last year. Consolidated net sales jumped 58 percent to Rs 70.3 crore versus Rs 44.4 crore year-on-year. The company had made provision of Rs 128 crore in Q2FY14 due to the NSEL crisis. The Geojit stock is up by a maximum of 184% in the year-to-date.

C. J. George, MD, Geojit 113 Seasonal Magazine

RESULTS MAYUR UNIQUOTERS’ TEXTURES ATTRACT STREET’S ATTENTION ayur Uniquoters has recorded 26 percent jump in its September quarter net profit at Rs 15.6 crore against Rs 12.5 crore in the year-ago period. The company’s net sales were up 11 percent to Rs 128.2 crore versus Rs 115.2 crore, Y-o-Y. Mayur Uniquoters stock has given 209% returns over the last 12 months.

Mr. Poddar,CMD, Mayur Uniquoters Limited

AVANTI FEEDS MAKES INVESTORS HEALTHY

STRIDES ARCOLAB SETS AN EXAMPLE IN DIVIDEND PAYOUTS engaluru-headquartered Strides Arcolab has posted a 60% growth in EBITDA at Rs 62.8 crore during the second quarter of the financial year 2015. The company said it was aided by a growth in the emerging markets and the launch of niche products in the US and Europe. The company recorded consolidated adjusted net profit of Rs 507 crore, while saying there's no comparable figure available for the corresponding quarter last year. This is because, the results for the quarter included a one-time gain of Rs 397.48 crore towards dividend income from non-current investment in wholly-owned subsidiaries. the company's Singapore unit Strides Pharma Asia Pte Ltd, Singapore received $150 million from Mylan Inc as the full and final settlement against the contingent holdback of upto $250 million. Strides paid its investors Rs. 105 as additional special dividend from this settlement, apart from the Rs. 500 it had paid earlier as special dividend in December, and the Rs. 5 as regular dividend paid in September. The total revenues were up 19% at Rs 292.90 core from Rs 245.70 crore in the corresponding quarter a year ago. Commenting on the results, Arun Kumar, Founder and Group CEO, stated: "We continue to see positive results on our calibrated approach to product selection and margin maximisation across our businesses. With our recentlycommissioned R&D infrastructure for both the pharma and biotech business, we will achieve a momentum of products filing in the near term. Additionally our announced merger with Shasun, on completion, will accelerate our growth & strategy."

vanti Feeds reported a robust 84% year-on-year jump in standalone net profit at Rs 34.18 crore for the quarter ended September 2014 on back of strong operational income. The company which is engaged in feed products business had profit of Rs 18.58 crore in the same quarter year ago. Total income from operations for the quarter grew 74% to Rs 532 crore against Rs 305 crore in the corresponding quarter of previous fiscal. Operating profit jumped 78% yoy to Rs 53.91 crore, while margins remained unchanged at around 10%. Meanwhile, for the first half (April-September 2014) of the current financial year 2014-15, the company reported net profit of Rs 60 crore against Rs 33 crore in the same period last fiscal. It had profit of Rs 70 crore during the entire previous financial year 2013-14. Avanti Feeds is the leading manufacturer of prawn and fish feeds as well as one of the largest shrimp processor and exporter from India.

Arun Kumar, Group CEO, Strides Arcolab Limited Seasonal Magazine 114

SINTEX IS TURNING AROUND SLOWLY BUT SURELY MAHABANK SHOWS MAHA TURNAROUND ank of Maharashtra’s net profit in the second quarter ended September more than trebled to Rs 162.91 crore on rise in other income and drop in bad loans provisioning. The Pune-based state lender’s net profit in the corresponding July-September quarter of the previous fiscal stood at Rs 46.85 crore. Total income in Q2-FY15 rose to Rs 3,419.56 crore from Rs 3,196.56 crore earned in the same quarter of FY14, the bank said. The bank’s income from other sources rose to Rs 222.04 crore during the quarter, from Rs 183.07 crore in the year ago period. Income from wholesale and corporate banking operations increased to Rs 1,635 crore from Rs 1,567.56 crore a year ago. Also, the provisions made towards bad assets were trimmed to Rs 293.41 crore in the second quarter of current fiscal, from Rs 323.23 crore year ago. On the asset front, bank’s gross non-performing assets (NPAs) or bad loans were 4.83 percent of the total advances as of September 2014, from 2.77 percent a year ago. Net NPAs stood at 3.29 percent Q2-FY15, up from 1.76 percent in Q2-FY14.

SICAL SOARS ON LOGISTICS RALLY ical Logistics, a Coffee Day Group company, has reported a consolidated total income from operations of Rs 205.97 crore and a net loss of Rs 0.65 crore for the quarter ended Sep '14. For the quarter ended Sep 2013 the consolidated total income from operations was Rs 215.82 crore and net loss was Rs 1.28 crore. Sical Logistics shares has given 274% returns over the last 12 months.

Dinesh B Patel, Chairman, Sintex Industries Ltd

Sintex’s Q2FY15 is a reflection of strong growth and a drastic improvement in business sentiment. Sintex’s customised moldings business caters to Fortune 500 customers across continents and various sectors. It intends to leverage these customers and potentially enhance domestic manufacturing and outsourcing. This will significantly improve margin in the business over the next couple of years. The initiatives on clean India campaign have thrown open new set of opportunities to SIL. Despite economic adversities across the globe, SIL grew its topline by about 21 percent in H1FY15 and strengthened its balance sheet. This was achieved through a disciplined approach in streamlining business systems and processes to maximise efficiencies and a continued focus on improving the business mix. Now, Sintex is perfectly poised to accelerate profitable business growth going forward with a hawk eye on maintaining a lean balance sheet. Sintex has 36 manufacturing plants in India and abroad. It is presenting textiles, SMC molded products, structured dyed yarn, prefab structures, and monolithic. Sintex is today a diversified MNC with operations in 13 manufacturing locations and 12 nations across four continents. At the current market price of Rs 81, the share is trading at a P/E of 8.0x on FY15E and 6.0x on FY16E. During Q2FY15, Sintex’s net profit rose 47% to Rs 107.4 crore on 23% higher revenue of Rs 1680 crore. Q2FY15 EPS stands at Rs 3.0. OPM and NPM stood at 17.1% and 6.4% against 15.5% and 5.3% respectively in Q2FY14. During H1FY15, net profit rose 42.7% to Rs 167.4 crore on 21% higher revenue of Rs 3025 crore. H1FY14 EPS stands at Rs 4.8.

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MCX India

The Trust is Back The past 15 months have been nothing less than tumultuous for The Multi Commodity Exchange of India Ltd. (MCX) What started off from the imposition of Commodities Transaction Tax (CTT), gathered momentum after the payment crisis at National Spot Exchange Ltd (NSEL) unfolded. As the two exchanges were promoted by Financial Technologies India Ltd. (FTIL), the clouds of distrust were also blowing over MCX, which has been India‘s leading exchange for gold, silver, metals, crude oil, cotton, etc. It was enough to send the share price of MCX – the country’s first listed exchange and for long a darling midcap of the bourses

Satyananda Mishra, IAS, Chairman

- crashing from around Rs. 800 to Rs. 238, within weeks. The fear was that whether MCX too had skeletons hidden in its closet. However, today’s MCX is a different story altogether. The share price has soared from Rs. 238 to a 52-Week High of Rs. 923 recently, which is a 3.88 times appreciation within 15 months. The credit for the turnaround goes to the new Board of Directors, led by Chairman Satyananda Mishra, IAS (retd.), who was formerly India’s Chief Information Commissioner, and Joint Managing Director Parveen Kumar Singhal, who was formerly the CEO of Delhi Stock Exchange.

Parveen Kumar Singhal, Joint MD 117 Seasonal Magazine

he reasons for the rapid turnaround at MCX were many. Firstly, the strengths of MCX were not lost on anyone. Despite the crisis at NSEL and promoter company Financial Technologies (FTIL), The Multi Commodity Exchange of India remained the country’s largest commodity futures exchange. But largest is not the right word to describe MCX’s market share in the commodity futures segment. Before the CTT was imposed and the NSEL crisis happened, MCX was reporting an average daily turnover in the range of Rs. 48,000 crore-50,000 crore. On April 15th 2013, MCX had recorded its highest daily turnover of Rs. 1,19,241 crore. The market share of MCX during those days was around 89%. And even during the height of the crisis, MCX’s market share in this high turnover segment dipped only to 78.4%. MCX’s technological and operational superiority, as well as first-mover advantage had made it a virtual monopoly, over the years. And in the commodities sub-segments of Metals & Energy, MCX has always been a market leader with over 80% market share generally. But all these were not enough to prevent the exit of some high-profile institutional investors like NYSE Euronext. However, for every high profile exit, there were entries by equally high profile FIIs, the best example being Blackstone, one of the largest PE funds in the world. MCX has always been a fundamentally strong business to invest in. During fiscal 2013, its Return on Equity (RoE) stood at a robust 25.6% Its Net Profit Margin was mindboggling at 46%. In other words for every Rs. 10 crore turnover it does (at the company level), Rs. 4.6 crore is its profit after tax. There are not many companies in India that enjoy such a profit margin. Moreover, it’s a debt free company. Still, even with all these advantages, MCX wouldn’t have survived, if not for another development. Just like after Seasonal Magazine 118

the Satyam scam, Government and the market regulator acted quickly to ringfence MCX from the influence of its erstwhile promoter group and its complex liabilities. The Government used its extraordinary powers to supersede MCX’s Board of Directors with a new one, while the commodities regulator, Forward Markets Commission (FMC), unleashed a slew of measures for the safety of the leading commodity bourse.

Uday Kotak

The market share of MCX in the commodities space is steadily increasing, and has recently clocked 86%, which is near to the pre-crisis level. The trust is back. Chairman Satyananda Mishra and MD PK Singhal can definitely start relaxing. But far from it, they are planning to take the MCX saga to the next round by starting an e-Mandi (a commodities spot exchange) and by launching commodities derivatives contracts.

MCX’s new board is headed by Satyananda Mishra, IAS (retd.), who was earlier India’s Chief Information Commissioner. If transparency was what everyone wanted from MCX, Government had handpicked one of the finest ex-bureaucrats whose expertise was ensuring transparency as CIC. One of India’s senior-most bureaucrats, Mishra has handled various kinds of high-level assignments, throughout his exemplary career. He has been the Secretary, Department of Personnel & Training, which is one of the most powerful departments as its suborganizations include CBI, CVC, CIC, & PSEB. The FMC nominated four Directors in the 11-member strong new Board of MCX. They were Ravi Kamal Bhargava IAS, former Secretary General of India’s National Human Rights Commission; DK Mehrotra, former Chairman of LIC; Santosh Kumar Mohanty, IRS, a senior ex IT Department professional; and Pravin Tripathi, former Deputy CAG of India. Other Directors in the new Board includes G Anantharaman, IRS (retd.), a former senior officer with SEBI and IT Department; and Ajai Kumar, former CMD of Corporation Bank, as the Shareholder Director. Institutional heavyweights such as SBI, NABARD, & Canara Bank, who are also large investors in MCX, nominated senior banking professionals as their directors to the new board viz. BV Chaubal, R Amalorpavanathan, and M A K Prabhu, respectively. While all these 10 directors including Chairman Satyananda Mishra lent their

unparalleled expertise in diverse fields to stabilize the organization, the responsibility for executing the complex activities of the giant exchange without a glitch was taken on by the new Joint Managing Director, Parveen Kumar Singhal. In a career spanning over 39 years, Singhal’s profile is unmatched in the securities and commodities markets. He has diverse experience in all the spheres of the exchange business and being earlier associated with SEBI and FMC gives him high credibility amongst the stakeholders. He also has excellent relationships with the market participants as he was earlier heading the Delhi Stock Exchange and OTCEI. While the government set the ball rolling by entrusting the responsibility of MCX to such an exemplary board of Independent and Executive Directors, the new Board on its part did everything possible to ensure transparency and uninterrupted exchange operations.

value long before the market does, and it came as a huge endorsement. Next in line to invest was Kotak Mahindra Bank, that picked up a 15% stake from FTIL, after the PwC audit report had come out. This assured the wider market of institutional due diligence.

High profile investors who have bought into MCX stock during the year-to-date include Blackstone, Kotak Mahindra Bank, SBI Life Insurance, Rakesh Jhunjhunwala, Radhakishan Damani, & Prof. Shivanand Shankar Mankekar.

MCX complied with the new guidelines its regulator FMC had introduced. This included an audit by an external agency, and MCX selected Pricewaterhouse-Coopers for this task. “Confidence of participants in the commodity markets and the institutions is returning. No doubt the continuous effort of the Exchange’s management during the trough phase has been a key factor”, says Jayant Manglik, President, Religare Securities Ltd.

That prompted FMC to relax many curbs on new contracts, and enabled MCX to launch new contracts for the upcoming calendar year. When the Share Holding Pattern for the September quarter was published recently, there were more surprises. Two more high-profile celebrity investors - Radhakishan Damani and Prof. Shivanand Shankar Mankekar too had picked up significant minority stakes in the leading commodity bourse. An even bigger surprise was that Rakesh Jhunhjunwala had continued to accumulate MCX shares during the quarter, thereby nearly doubling his stake to 3.94%. When asked about his bullishness about MCX, the noted investor was crystal clear in his vision. “MCX is not a trading bet for me. It is a long term investment. I think it is one of the best proxy plays on India‘s financial space, especially in activities like hedging etc.”

Since FMC had declared MCX’s former promoter group, FTIL, as ‘not fit and proper to run any exchange’, and asked it to exit its stake in MCX immediately, the Exchange too pursued this initiative with diligence. While many in the market turned wary on whether FTIL, the erstwhile promoter group, would be able to find any takers at a good price for their stake, MCX got a shot in the arm when Rakesh Jhunjhunwala picked up a minority stake from FTIL. India’s best known celebrity investor is known for identifying

Kotak, in fact, wanted to pick up a higher controlling stake, but FMC wouldn’t allow it. Still, when Kotak went for the deal, the move assured the market that it was a good investment. Next to come in was SBI Life Insurance, and soon it was clear that FTIL had fully exited the exchange it created 11 years back.

Rakesh Jhunjhunwala

The market share of MCX in the commodities space is steadily increasing, and has recently clocked 82%. The trust is back. Chairman Satyananda Mishra and Jt. MD P. K. Singhal can definitely start relaxing. But far from it, they are planning to take the MCX saga to the next round by starting an e-Mandi (a commodities spot exchange) and by launching forward contracts, which are two new businesses that are likely to do quite well in the future. SM 119 Seasonal Magazine

Luxury GANT Moccasins by GANT e:R Price:R e:Rss 11,999 Pric Available at Gant boutiques across the country

Todâ&#x20AC;&#x2122;s Sella bag by Tod's Price:Rs 97,000 Available at Tod's boutiques across the country

Michael K or Kor orss Pale gold leather medium Frankie drawstring messenger bag Price on request Available at Michael Kors boutiques across the country

Jimmy Choo Vision Macaroon and Sand LamĂŠ Glitter and Metallic Nappa sandals, Price: Rs 61,000 Available at Jimmy Choo boutiques across the country

Christian LLouboutin ouboutin Pensamoi red soles Price: Rs 95,000 Available at Christian Louboutin boutiques in New Delhi and Mumbai

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Monogrammed Tassel bag Price: Rs 1,36,000 Available at Kitsch stores in Mumbai and New Delhi & Rocknshop.com

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Designed by Shaheen Abbas for Gehna Jewellers, the yellow and white gold cuff bracelet, studded with well-cut round diamonds is all elegance and beauty. Available at Gehna Jeweller, Kakad Palace, Bandra West, Mumbai

Bejewelled necklace Price: Rs 5,900 Available at Marc Cain boutiques across the country

Canali Calfskin one buckle monk strap Price: Rs 49,200 Available at Canali boutiques across the country

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Molded in 18k white, rose and yellow gold, with brilliantly cut Forevermark diamonds is this beautiful ring from the House of Rose Available at House of Rose, Hormuz Mansion, Breach Candy, Mumbai

The Marlon sunglasses Price: Rs 24,990 Available at Tom Ford boutiques at DLF Emporio, New Delhi

Far ah Khan FFine ine arah Je weller Jew elleryy Draped with lines of diamond-studded 18K white gold strings is this emerald neckpiece by Farah Khan. Available at Farah Khan Fine Jewellery boutiques in Mumbai and Delhi 121 Seasonal Magazine

Luxury Valentino Uomo Made for the collectors of classic perfumes, the Valentino Uomo selects top notes of cedar and precious leather to bring out the woody notes of this mascualine fragrance. Price on request

A. Lange & Söhne Little Lange 1 “Soirée” The triad of pink gold, mother of pearl, and diamonds is the perfect combination to create watchmaking artistry.

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Yves Saint Laurent Manifesto L’Elixir The fragrance is a passionate composition of floral and oriental extracts that defines a woman's intense personality. Price on request

Piaget Limelight Dancing Light The warmth of pink gold gleams with the brilliance of 150 diamonds and is further enhanced by the delicatelydesigned motif.

Roberto Cavalli Nero

Enveloped in a beautiful black bottle with an ornate gold cap, the Roberto Cavalli Nero is a rendezvous with the maker's signature style of infusing edginess to flawless elegance. Price: Rs 5,650 (75ml)

Collab Alert: The Porsche Design P’9983 Blackberry Just when you thought they were down and out, Blackberry jumps up yet again, this time with a show-and-tell of their new P'9983, a smartphone produced in tandem with Porsche Design.

Bottega Veneta launches the Rialto Bag Luxury fashion brand, Bottega Veneta, has launched The Rialto Bag, a completely brand new design by Mr Tomas Maier. This bag has been called the Rialto bag, after the famous Rialto Bridge in Venice Sheer nappa leather and exquisite detailing add an air of subtle refinement to this stunning Rialto shoulder bag.

Nico Rosberg and Lewis Hamilton present their own IWC watches Together with its brand ambassadors and Formula One drivers Nico Rosberg and Lewis Hamilton, Swiss luxury watch manufacturer IWC Schaffhausen has developed two special edition watches, each limited to 250 pieces. The two Silver Arrow drivers have unveiled their own personal Ingenieur Chronograph. In addition, IWC Schaffhausen has announced the renewal of its current partnership with the Mercedes AMG Petronas Formula One Team. As brand ambassadors of IWC Schaffhausen, Mr Rosberg and Mr Hamilton had a hand in the design of their own watches, and, prior to the first practice sessions on the track, appeared for their presentation at an IWC event in Singapore.

Vertu Launches the Exotic-Looking New Aster Smartphone Faber-Castell Launches a 24k Gold Pen of the Year With St Petersburg's gorgeous Catherine Palace as its muse, it's no wonder Faber-Castell's Pen of the Year 2014 is such an attractive feat. Think baroque motifs relayed on 24k gold-plating with some gemstone embellishment for effect, and the limited-to-150 edition emerges as a prime contender for year-end celebratory summations. The barrel of the special edition features six

So undeniably, the first thing you will notice about the Vertu Aster is the plush-looking exotic hide it comes wrapped in, what with a selection of calf leathers, karung skin, or ostrich skin to choose from. Positioned as your passport to the world, the Aster thrives on the â&#x20AC;&#x2DC;One World' concept, which keeps you connected via superior global data support, the brand's tie-up with 10 LTE bands, and an optimised radio feature as well. Add the signature Vertu Concierge, Life and Certainty services, and you've got one user-friendly luxury handset at your beck-and-call. The Aster handsets are all handmade, right from the sound bar with concentric racetrack details, to the glorious ruby key that resonates with the Vertu â&#x20AC;&#x2DC;V' shape. Grade 5 titanium dominates the back plate, pillow and sound bar, and sapphire crystal duplicates the durability on the screen and lens cover. 123 Seasonal Magazine

Luxury Taj Coromandel introduces Jiva Grande spa to Chennai Taj Coromandel, Chennai’s first luxury hotel for four decades, brings its luxury spa experience to the city – the Jiva Grande. Blending ancient Indian wisdom with contemporary therapies, Jiva Grande offers therapies ranging from Indian aromatherapy massages, timehonoured Indian treatments, body scrubs and wraps. Jiva Grande also promises a retreat for seekers of Yoga, Meditation and Ayurveda, where dedicated therapists combine timeless wellness concepts with modern therapeutic wisdom. Located in the lower lobby and spread across 12,000 sq ft, Jiva Grande spans across three floors and consists of four single spa suites, a couple spa suite, a relaxation area, yoga studio, Ayurveda consultation and treatment room, extensive wet areas, a terrace lap pool, a reflexology walk and relaxing lounges. The highlight of Jiva Grande at the Taj Coromandel is the couple spa suite, with a lavish bath tub, overlooking the stunning landscape and swimming pool.

The Spa at Mandarin Oriental Atlanta hosts the “Be Happy and Healthy” retreat The Spa at Mandarin Oriental, Atlanta is presenting the Be Happy & Healthy Retreat from November 7 to 9, 2014 featuring Tammy Stokes, author of Live Your Healthiest Life and founder of West Coast Workouts. Ms Stokes will guide participants as they engage in physical and mental exercises to achieve a balanced lifestyle. The retreat will begin on a Friday, November 7 at 4pm with a

Gemfields adds Sapphires from Sri Lanka to coloured gemstone portfolio Gemfields has entered into a joint venture with East West Gem Investments Limited, a Jersey registered company, to progress opportunities in the Sri Lankan sapphire and gemstone sector via three Sri Lankan subsidiaries which will be 75 per cent and 25 per cent held by Gemfields and EWGI respectively. Gemfields has acquired 75 per cent operating interests in 16 exploration licences.. Seasonal Magazine 124

cardio and body sculpting class providing a total body workout. Participants will then take part in an educational seminar and tea time focusing on pillars for a healthy lifestyle. A morning Yoga Tonic class will be held on Saturday, November 8 at 7:30am. The class will concentrate on a flow of sun salutations infused with Pilates followed by a Tammy Stokes Lifestyle healing tonic.

Citrus at The Leela Mumbai unveils a Japanese counter and a new a la carte menu Citrus at The Leela Mumbai has unveiled a new Japanese counter and a comprehensive menu of global cuisines, including more than 50 new à la carte dishes. The pièce de résistance of the new menu is the Japanese counter. Presenting a wide array of Japanese fare with a selection of teas and Sake, guests can choose among melt-inyour-mouth Sushi & Sashimi - from tuna to yellow tail to pepper seared salmon, vegetarian hand rolls, hot and cold small eats,

or opt for the set menu or platters to relish chef recommended delicacies. The restaurant is also offering new dishes from the restaurant's live kitchens. The team of chefs invited loyal Citrus fans to taste a wide array before finalizing the menu. The result is scrumptious delicacies that take you on a culinary journey through different parts of the world. From classic American grills and steaks to aromatic Asian delicacies, Middle Eastern platters to robust Italian preparations, the exhaustive menu has a lot to offer, including local Mumbai favorites of Kheema Pav, Wada Pav, coastal South Indian Curries and delectable desserts like Valrhona Chocolate and Gianduja Parfait and Warm Bread and Butter Pudding with Vanilla Bean Anglaise.

Jaguar reveals the new Jaguar XE The Jaguar XE was recently revealed during a star-studded event held at Earl’s Court, London. The rear-drive Jaguar XE redefines the concept of sports saloon thanks to i ts a d va n ce d l i g h twe i g h t construction, streamlined styling, luxurious interior, and outstanding ride and handling. The XE goes on s a l e i n 2 01 5 , w i t h t h e h i g h performance S model at the top of the range. The XE S rewards drivers with the responsiveness and refinement of its supercharged 3.0-litre V6. Generating 340PS and 450Nm of torque, this highrevving engine is linked to an eightspeed automatic transmission with paddle shift controls, giving the driver immediate access to the vehicle’s incredible reserves of power. Accelerating to 0-60mph in just 4.9 seconds, the XE S has an electronicallylimited maximum speed of 155mph. The S model’s large front air intakes, chrome side vents, discreet rear spoiler and optional 20-inch forged alloy wheels hint at the performance potential of Jaguar’s supercharged 3.0-litre V6 petrol engine.

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