Mp april e magazine by Mediasteps

Vol. 1

No. 2

Pages 98

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US $10 (Overseas)

April - May 2015

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Winning Business Models For Airlines

Why is Raghuram Rajan so hesitant ? World’s best CEOs Kejriwal of Greek politics Why Nations fail Money Plant | April - May 2015

Money Plant | April - May 2015

ECONOMY

34 38 40 42

Highlights Vol. 1 • No. 2 • April - May 2015

The Greek Tragedy Kejriwal of Greek politics Why is Raghuram Rajan so hesitant ? Person of the Month - Christine Lagarde

CEO SPECIAL

46 50 54 58 60 62

World’s Best CEOs India’s Great Performers - Top CEOs Women Shaking up Men’s Forte Alibaba sans 40 thieves Profile - Michael Bloomsburg The Greatest Innovators of All Time

INTERVIEWS COVER STORY

8 Winning Business Models for

Airlines

20 Flamboyant Tycoons 24 Tete-a-tete with Lalith Desilva 32 Silking its way in India

A Perspective of Jagdish Ram Bhojwani

65 T. N. Ninan 66 Poornima Vardhan 68 Bobby Chemmanur BUSINESS

74 The Job Strategy MINDSET

76 Steps to take before you Start-up! 82 Top 10 Mergers & Acquisitions of 2014 Money Plant | April - May 2015

Money Plant | April - May 2015

Editor & Publisher Dr. G Biju Krishnan

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Regional Head (Hyderabad) Uma Ram

Manager, Business Development Ganesh Damodharan

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AGM-Operations Krishna Nair

AGM-Business Development Uma Maheswari S

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The news items and Advertisements published herein have been collected from various source, which are considered to be reliable. Readers are however requested to verify the facts before making business decisions using the same. No part of this magazine may be reproduced without the written permission from the Publisher. All rights reserved. Copyright ÂŠ 2015 *Responsible for selection of news under the PRB Act

Money Plant | April - May 2015

Globally Visible PM Prime Minister Modi indeed wears more than one hat. He is the Principal architect of the economic policy, he is the Chief Development Commissioner, he is the one-man Planning Commission after formally abolishing it, and he is India’s Ambassador at large – besides being the prime minister. Modi’s just concluded 3-nation visit is path-breaking in the Defence, energy and economic realms. After three years of unsuccessful negotiation over the price, Prime Minister Modi and French President Francois Hollande made a breakthrough announcing India’s purchase of 36 Rafale fighter jets of Dassault. It was a governmentto-government pact that clinched the deal, killing commercial negotiations and scope of middlemen’s commission.

From The Editor’s Desk

Under the original plan, India’s Air Force was to buy 126 Rafale fighters. Of those, 108 would be produced at a state-run Hindustan Aeronautics plant in Bengaluru as part of India’s efforts to build a domestic military industrial base. But the two parties could not agree on the terms. The delay escalated the cost to $20 billion from an initial $12 billion. Buying 126 planes would have cost the country 900 billion rupees ($14.43 billion), and the saving to the Exchequer thus is humongous. India’s air force needs 42 squadrons to face a two-front challenge from Pakistan and China. It currently has 34, several of which have planes that need to be phased out. Another feather in Modi’s cap is the signing of the $280 million nuclear deal with Canada, which will ensure supply uranium fuel to India. Canadian producer Cameco Corp will supply 7.1 million pounds (3.22 million kilos) of uranium concentrate to India over the next five years. The deal is Cameco’s first with India, which the firm called the second fastest growing market for nuclear fuel. In Germany, Modi won the support of Angelia Merkel in India’s fight against terrorism, and presumably India’s candidature at the UN Security Council. But the bad news is after its rebuff in Sri Lank, China has won the right to operate Pakistan’s Gwadar port, which should be worrisome for India.

Dr. G. Biju Krishnan

Editor & Publisher editor@mediastepsindia.com +91 9745001001

Money Plant | April - May 2015

Winning Business Models for Airlines W Strategy has been the primary building block of competitiveness over the past three decades. But in the future, the quest for sustainable advantage may well begin with the business model.

hile the convergence of information and communication technologies in the 1990s resulted in a short-lived fascination with business models, forces such as de-regulation, technological change and globalization have rekindled interest in the concept today. A study by the IBM Institute for Business Value conclave of global CEOs has reported that senior executives across industries regard developing innovative business

Money Plant | April - May 2015

COVER STORY

models as a major priority. Seven out of 10 companies are engaging in business-model innovation, and an incredible 98% are modifying their business models. The pressure to crack open markets in developing countries, particularly those at the middle and bottom of the pyramid, is driving a surge in businessmodel innovation. The economic slowdown in the developed world is forcing companies to modify their business models or create new ones. In addition, the rise of new technology-based and low-cost rivals is threatening incumbents, reshaping industries, and redistributing profits. Indeed, the ways by which companies create and capture value through their business models is undergoing a radical transformation worldwide. The scenario is quite different when a company wishes to address

Money Plant | April - May 2015

The scenario is quite different when a company wishes to address several customer segments and often it uses a particular business model for each one. several customer segments, and often it uses a particular business model for each one. To crowd out competitors or forestall potential disruptors, to expand into new markets, to make more efficient

use of fixed assets, or to develop new income streams, it may ideally require distinct business models that operate in tandem. Nowhere have the perils of running tandem business models been more evident than in the airline industry. Witness what happened to British Airwaysâ&#x20AC;&#x2122; Go Fly, Continental Lite, KLMâ&#x20AC;&#x2122;s Buzz, and Deltaâ&#x20AC;&#x2122;s Song when challenged by low-cost competitors. Remarkably, LAN Airlines successfully operates three business models at once. The Chilean carrier has thrived by integrating a full-service international passenger-airline business model with an air-cargo business model while separately operating a no-frills passenger model for domestic flights. From 1993 to 2010, LAN posted 17% compound annual revenue growth through good times and bad

(from $318 million in 1993 to $4.2 billion in 2010), while steadily raising annual net profits from zero to $420 million. LAN’s market capitalization, at $8.9 billion as of March 11, 2011, exceeds that of most of its main global rivals—US Airways ($1.5 billion), American Airlines ($2.2 billion), Korean Air ($3.7 billion), British Airways ($6.9 billion), and United-Continental ($8.1 billion). It even tops that of upstart Ryanair ($6.9 billion) and every other Latin American airline. From 1998 to 2010 LAN’s share price, adjusted by dividends and splits, has grown by more than 1,500%. LAN Airlines’ experience makes it clear that other business models are complementary. Indeed, they may be so mutually reinforcing that together they turn otherwise unviable possibilities into profitable opportunities. A company that recognizes which models are substitutes that must be kept separate and which are complements that strengthen each other can build a uniquely sustainable competitive advantage. Let’s look at how LAN has used that insight to its benefit. What sets LAN apart is its cargo business—a premium service like its international passenger operation. It transports salmon from Chile, asparagus from Peru, fresh flowers from Ecuador, and other such perishables to the U.S. and Europe while flying high-valueto-weight merchandise such as computers, mobile phones, and small car parts from the U.S. and Europe to Latin America. LAN is unusual among passenger carriers in its reliance on cargo revenue—accounting, by the second quarter of 2011, for 31% of its total revenue (compared with less than 5% for American, Delta, and United-Continental). Although Korean Air and Cathay Pacific both also derive about a third of their revenue from cargo, LAN is distinctive in that it transports fully 35% of its shipments in the belly

of wide-body passenger aircraft, which serve most of its cargo destinations. In fact, the bulk of LAN’s cargo business operates on the same route network with its passenger business. In all three of LAN’s models, the key to profitability is the same: flying more planes, more fully loaded, to more places. This logic has been borne out, as lower fares have led to dramatic increases in demand: From 2006 to 2010, the number of passengers on LAN’s domestic flights increased 83% within Chile, 123% in Peru, and 200% in Argentina, allowing LAN to reach its goal of increasing aircraft utilization on its short-haul routes from eight to 12 hours a day. LAN now holds the largest market share of passenger traffic within Chile and Peru and is increasing its market share in other South American countries. LAN also has the largest market share of passenger traffic to and from Chile, Peru, and Ecuador, as well as approximately 37% of the Latin American air-cargo market, as its complementary full-service passenger and cargo operations have yielded many mutually reinforcing advantages. LAN’s three businesses require different sales and marketing efforts and a sometimes mindboggling variety of technical skills to maintain its premium services. For instance, at the same time that LAN was extensively training its flight and maintenance crews for its passenger business (ultimately winning it several awards for service), it needed to train employees in how to care for pigs and horses in its cargo-only planes. Flying more planes to more places means that LAN’s pilots must fly even on two hours’ notice, half the time typical for a U.S. legacy airline. That would not be possible if LAN had not created a culture that fosters flexibility by instituting a performance-related pay and bonus structure, both for management

and for administrative and flight personnel. Notably, though, in 2010 LAN’s wages were a lower percentage of its total costs relative to the percentage at many U.S. and European carriers. Operating three business models is clearly not without its risks— but meeting the challenge offers uniquely sustainable benefits. LAN was able to minimize the risks and capture the benefits by combining two complementary models and carefully keeping a competing model separate. But how did it tell which was which?

Money Plant | April - May 2015

To determine whether two business models are complements or substitutes, executives should consider two questions: • To what extent do the business models share major physical assets? • To what extent are the resources and capabilities that result from operating each business model compatible? LAN’s case, the major physical assets are its wide-body planes, which the cargo and international passenger models share but the

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low-cost domestic operations do not. Equally critical is the cascade of advantage-enhancing resources and capabilities produced by combining the cargo and full-fare passenger models: By deeply understanding how complementary models generate unique opportunities, LAN has built, in both passenger and cargo service, formidable competitive advantages that are becoming increasingly difficult for competitors to overcome. LAN’s competitive advantage in international passenger service

would vanish if the company did not have a thriving cargo business; likewise, its advantages in cargo would not exist without a blooming passenger business. Competitive strategy is all about building advantage by protecting a unique position and exploiting a distinctive set of resources and capabilities. Viewed in this light, the implementation of multiple business models is not a risk but rather a new tool for strategists. Properly applied, it will help firms boost their ability to create and capture value and to gain durable advantage.

Flying Low Cost Airlines Low Cost Carriers Are Here To Stay

If managed well, Airlines business is still one of the most profitable businesses in the world but due to high risk factors, only hardcore business groups or persons are seen in the sector apart from government run or aided entities.

oday, airline companies are struggling with declining revenue. New low cost companies are significantly lowering the prices, and in this price war, only the best airline companies survive. Profits were not a concern in the early years of commercial aviation. Airlines were state-owned beasts in receipt of juicy handouts from state coffers. They were regarded as important strategic businesses with monopoly powers that conferred

national pride and international prestige. Air travel was governed by inter-governmental deals that dictated which airlines could fly where, how many seats they could offer and, in many cases, what fares they could charge. The result was inefficiency and losses. Those eras are gone now. Apart from some so called national carriers and highly subsidized carriers of rich states, all others need to find their own way to remain in the business.

Money Plant | April - May 2015

Profits were not a concern in the early years of commercial aviation. Airlines were state-owned beasts in receipt of juicy handouts from state coffers. Money Plant | April - May 2015

The liberalization of air travel in the 1980s led to competition from upstarts to the state behemoths, many of which were privatized wholly or partly. Low-cost carriers introduced cut-throat rivalry on short-haul routes. They devastated their model of feeding short-haul passengers onto more lucrative long-haul services. How airlines businesses evolved over the years are itself a good example for how things can change quickly and sometimes beyond

anybodyâ&#x20AC;&#x2122;s expectations. When air travel started in the 20th century it was very expensive. Only the rich people could afford travelling by plane. As time went on better planes were built. They were faster, quieter and could carry more people over longer distances. Flying was slowly becoming a means of transportation that normal people could afford. Into the 60s and 70s many airlines kept selling expensive tickets to their passengers. They offered a

comfortable way of travelling which included free meals, friendly service and other luxuries. In the 1980s a new type of airline emerged. Budget airlines or Low Cost Carriers (LCC) offered tickets that were much cheaper than those of other carriers. They manage this by cutting costs wherever they can. Low Cost Carriers or LCCs make their way and grows to such an extent that without them global airline industry would have collapsed now. They are a fact of life; part of the airline eco-system. It is the legacy carriers that need to take note. The economics of air transport are straightforward. If the price is low enough, people who previously never flew, or took other modes, fly. However, LCCs are also leading the airline business models now with successful strategies that didn’t stick alone on price factor. It is absolutely true that trends in recent airline history suggest that LCC can make sustainable profits and this is having a profound effect on the air transport business. Some of the world’s most successful carriers, including SouthWest in the US and Ryanair

in Europe are LCCs. At a time when many legacy carriers are struggling to operate profitably, the LCC is here to stay. That is not to say that LCCs, too, if not properly managed and focused, will not struggle. We have seen LCCs come and go in the last few years; just as we have seen full service carriers come and go.

LCC Business Model Running an airline is an expensive business. The biggest cost is the plane itself. Average passenger jets cost around $50 million to $100 million, larger planes can cost up to $300 million and more. Pilots cost a lot of money too. A pilot with ten years of experience may get a salary of $100,000 and more. Fuel costs cannot be calculated so easily because they change a lot depending on whether or not oil prices are up or down. Many other factors raise the costs of operating an airplane, for example the number of seats that are empty. If you don’t sell all of the tickets the airline is not making the best possible profit. Many offer only one class of seats. They don’t have a business class.

Some of them do not reserve seats, so passengers can sit wherever they want. They also save on the number of crew members. A lot of money can be saved by selling tickets on their own website instead of through a travel agent. Another way that airlines can reduce their costs is by buying fuel at the right time. If they buy kerosene when it is cheap they may be able to save millions of dollars. To use only one kind of airplane surely can reduce expenses as this saves money on maintenance, repairs and training pilots. Many budget airlines chose smaller airports to take off and land. Big airports charges airlines higher fees. Low cost carriers choose to take their passengers to smaller airports and in some cases airlines choose airports that lie between two bigger cities. Many airlines try to stay on the ground as little as possible. After landing, the plane is refueled and takes off a short time later. Almost all budget airlines only offer the real flight. You have to pay for onboard food and drinks. Recently some airliners have thought about even charging a toilet fee for its passengers.

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Here are some of the basic principles followed by most LCCs Standardized fleet (lower training, maintenance costs; purchasing aircraft in bulk) Remove non-essential features (non-reclining seats, no frequent flyer schemes) Use of secondary airports (lower landing fees, marketing support) Abandon airports which have too high costs Rapid turnaround (less time on the ground, more flights per day) Keep aircraft on the ground for very short time (less unprofitable standstill) Online ticket sales (avoid call centres or agents, charge extra for those) Online check-in (fewer check-in desks). Charge for desk check-in.

Impose baggage charges (a manned bag drop disk is needed for bags, and of course people loading and unloading the aircraft. This also allows extra revenue for checked bags, hidden when e.g. a family discusses which airline to use). Some carriers charge extra for baggage on non-flexible tickets (mostly tourists) but include the baggage charge in the ticket price for flexible tickets (mostly business travelers, who often have no checked baggage).

Have staff do multiple jobs (cabin crew also check tickets at the gate, clean aircraft) Hedge fuel costs (buying fuel in advance when it is cheaper) Charge for all services (including on-board services, reserved seating, and extra baggage) Do not use reserved seating (which slows down the loading of the aircraft), or charge extra for reserved seating, or for early boarding. Fly point to point (passenger transfers to other flights are not accommodated, no compensation for missed connections) Carry very little extra fuel (reducing the weight of the aircraft) Have the plane outfitted with cost-cutting modifications as winglets Route planning before aircraft arrives at airport (saving time on the ground) Market and sell destination services such as hotels and rental cars and get royalty from that.

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LCCs are also focusing on other areas such as merchandising, multi-channel strategies and increasing partnerships. They also place more emphasis on maintaining low costs while compensating for rising costs of fuel and aircraft. With carriers veering from the fundamental low-cost strategy, it is no wonder that the low-cost business model has been difficult to define in recent years. The result of this shift is the emergence of the â&#x20AC;&#x153;hybridâ&#x20AC;? business model. This model combines the cost-saving methodologies of a pure low-cost airline with the service, flexibility

and route structure of a full-service carrier. The LCC model everywhere continues to evolve as airlines respond to opportunities as well as challenges in the dynamic global marketplace. However the success of each airliner depends on how LCCs are trying to differentiate themselves in the increasingly competitive but fast-growing market. The staggering growth seen today from a base of virtually zero at the turn of the century has completely and forever changed the competitive landscape. However,

rapid growth over the medium to long-term is still expected. The recent slowdown is in part a reflection of the challenging market conditions, which have promoted some LCC groups to become more disciplined with capacity for the time being. However, a misconception spreading about LCCs is that they are unsafe. This is not true. In many cases low cost carriers have modern fleets. They know that cutting costs on safety may drive them out of the business. And indeed many budget carriers have a very good safety record.

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domestic routes, while LCCs like IndiGo started to add features on top of the basic ‘no-frills’ offer and focus on business fliers who are willing to pay more. The LCC boom in India was marked by price tags as low as One Rupee, internet auctions, bulk purchases and attractive last day fares. LCCs provided cheaper connectivity to many tourist locations like Tirupati, Dehradun and Dharamshala etc., which were hitherto accessible only by road or rail. Air travel converted even a two-day weekend into a tourism opportunity something not possible through road or rail travel. In a way, LCCs addressed the rising aspirations of the Indian middle class coupled with their high price sensitivity. LCCs made air travel accessible to many and also boosted air cargo as well. However, not all is well in India for LCCz s as they are struggling to stay profitable, hurt by infrastructure constraints, rising operating costs, suicidal price wars, excessive taxes on aviation Turbine Fuel (ATF) and MaintenanceRepairs-Overhaul (MRO); and the absence of a favorable regulatory framework.

India is perhaps the costliest place to run an airline. Indian ATF is one of the costliest in the world nearly 60% higher than in Middle East and SE Asia. As regards MRO, it’s a travesty that Indian carriers find it cheaper to fly empty aircrafts abroad than to get the repairs done in India. Airport charges have gone up since they have all undergone massive capital expenditure and need to service their debt. Third party ground handling invites over 30% royalty charges. The impact of the rupee depreciation remains a threat as nearly 70% of airline expenses (fuel, leases, MRO, expat salaries, overseas offices, foreign debt etc) are all linked to the dollar. Thus every element of the cost structure has increased in the recent past. The slow growth in traffic has created a vicious cycle. The high cost structure is now distributed over a near-stagnant passenger base. Despite all these difficulties, LCCs are here to stay, but legacy carriers are struggling to adjust. The competition has intensified, and the stakes, huge.

Indian Perspective Now take a look at Indian market for LCCs. India’s domestic aviation market is predominantly a LCC market, with more than 70 percent market share controlled by the LCCs. Even Full-service carriers are at times forced to offer economy class seats at a fare comparable with LCCs. India is, now, by all means an LCC territory. In India, full service airlines and LCCs have learnt from each other and in many cases segued into each other. Carriers like Jet Airways, have adopted elements of the LCC model, particularly on

Money Plant | April - May 2015

WORLD’S BEST

5 Low Cost Carriers Southwest Airlines Co Headquartered in Dallas, Texas, Southwest Airlines Co is the world’s largest low-cost carrier. Established in 1967, the airline has nearly 46,000 employees and operates more than 3,400 flights per day. It carries the most domestic passengers of any U.S. airline. Southwest Airlines has used only Boeing 737s, except for a few years in the 1970s and 1980s, when it leased a few Boeing 727s. Southwest is the largest operator of the 737 worldwide with over 550 in service, each averaging six flights per day.

Ryanair Ltd Headquartered in Swords, Dublin, Ireland, Ryanair was both the largest European airline by scheduled passengers carried, and the busiest international airline by passenger numbers. Ryanair has its primary operational base at Dublin and London Stansted Airports. Ryanair operates around 300 Boeing 737-800 aircraft. The airline has been characterised by its rapid expansion, a result of the deregulation of the aviation industry in Europe in 1997 and the success of its low-cost business model. Ryanair’s route network serves 28 countries in Europe and also Morocco.

Easyjet Headquartered in Luton London EasyJet is the largest airline of the United Kingdom, by number of passengers carried, operating domestic and international scheduled services on over 700 routes in 32 countries. Easyjet employed nearly 9000 people. EasyJet has seen rapid expansion since its establishment in 1995, having grown through a combination of acquisitions and base openings fuelled by consumer demand for low-cost air travel. The

airline, along with associate company EasyJet Switzerland, operates more than 200 aircraft, mostly Airbus A319

Airberlin Headquartered at the Airport Bureau Center in Charlottenburg-Wilmersdorf, Berlin. Air Berlin is Germany’s second largest airline, after Lufthansa, and Europe’s seventh largest airline in terms of passengers carried. Air Berlin operates an extensive network from a total of 17 German cities, including some European metropolitan and several leisure destinations in the Mediterranean region. Its hubs are Berlin-Tegel Airport and Dusseldorf Airport. The airline is a member of the Oneworld alliance and owns the subsidiaries NIKI in Austria and Belair in Switzerland. Etihad Airways owns 29.21% of Air Berlin.

AirAsia Headquartered near Kuala Lumpur, Malaysia. AirAsia is a Malaysian lowcost airline. AirAsia group operates scheduled domestic and international flights to 100 destinations spanning 22 countries. Thai AirAsia, Indonesia AirAsia, Philippines AirAsia, AirAsia Zest, and AirAsia India are all its affiliate airlines while its subsidiary, AirAsia X, focuses on long-haul routes. AirAsia operates with the world’s lowest unit cost of US$0.023 per available seat kilometres (ASK) and a passenger break-even load factor of 52%. It has hedged 100% of its fuel requirements for the next three years, achieves an aircraft turnaround time of 25 minutes, has a crew productivity level that is triple that of Malaysia Airlines, and achieves an average aircraft utilization rate of 13 hours a day.

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Flamboyant Tycoons Tony Fernandes Source of Wealth : Airlines Residence

: Kuala Lumpur, Malaysia

Citizenship

: Malaysia

Marital Status

: Married

Children

: 2

Education : Bachelor of Arts / Science, Epsom College; London School of Economics

Malaysian mogul Tony Fernandes, who transformed a floundering carrier into Asia’s biggest budget airline, was born in Kuala Lumpur in 1964.He went to boarding school in Epsom, Surrey, before going on to study at the London School of Economics. He followed Virgin Atlantic boss Richard Branson’s own trajectory of beginning in the music industry, working for Virgin after graduation.

e took over money-losing AirAsia shortly after the Sept 11, 2001, attacks in the United States sent the global aviation industry into a tailspin, and was given little chance of succeeding. He bought the airline, its two aircraft, and 40 million ringgit ($11.46 million) in debt for the token sum of 1 ringgit, mortgaging his house to pour money into the carrier. According to Forbes magazine, he now has an estimated personal wealth of around 400 million pounds. He was made a CBE in 2011. A childhood dream, a little mentoring from Richard Branson and a 20p purchase took Malaysian entrepreneur Tony Fernandes to the helm of the pan-Asian budget airline at the heart of aviation’s latest mystery.

The branding of Fernandes’s airline felt like Branson’s Virgin, down to the colour scheme and logo typeface, but the bigger inspiration was the boom in low-cost flying that was transforming Europe’s flight maps. Soon the fleet was expanding rapidly, and within a decade AirAsia was flying 30 million passengers annually. While the group’s HQ is in Malaysia, the AirAsia brand has become an umbrella for foreign airlines in which Fernandes has a stake. He bought 49% of the then AWAIR, an Indonesian low-cost carrier, in 2004, rebranding it as Indonesia AirAsia the following year. Similar joint ventures have brought AirAsia into the Philippines, Thailand, Japan and most recently into India. With large numbers of new planes on order, Fernandes has spoken of AirAsia X linking Europe and Asia via low-cost

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longhaul in the years ahead, starting with a London route. For all his entrepreneurial nous, Fernandes has made questionable ventures in other arenas – in Britain, most famously buying up football club QPR and seeing it overreach itself in terms of salaries for star players who failed to deliver. A four-year adventure in Formula One came to an unhappy conclusion early in 2014. A well-recognised face in Asia, where he has taken the Alan Sugar role in the continent’s version of The Apprentice, he is not averse to immersing himself in publicity stunts of all sorts à la Branson – in fact, a bet between the two tycoons recently led to the Virgin boss

According to Forbes magazine, he now has an estimated personal wealth of around 400 million pounds. He was made a CBE in 2011.

relatives of the passengers aboard flight QZ8501. AirAsia is credited with starting a revolution in the skies of Southeast Asia and has seen spectacular growth under Fernandes’ lowcost, low-overhead model despite intense competition.

dressed up as a stewardess serving passengers on AirAsia flights.

The ebullient tycoon is one of Asia’s most visible entrepreneurs, carving out an image that has seen him frequently compared to colorful Virgin Group Chairman Richard Branson.

Fernandes is prolific on social media and was quick to share condolences and keep the public informed as he made his way to Surabaya in Indonesia to meet

The tycoon, a flamboyant spirit in Asia’s staid business world, who favors blue jeans and caps over power suits, has made a habit of defying naysayers.

Richard Branson Source of Wealth : Virgin, Self Made

The flamboyant Richard Branson was told on his last day at School by his Head Master that he would either end up in prison or become a millionaire. He ended up as the latter by working hard and built a vast business empire spanning continents and lives constantly in the glare of publicity.

Residence

: London, United Kingdom

Citizenship

: United Kingdom

Marital Statu

: Married

Children

Education

: Drop Out, High School

ranson’s story is a fascinating read, one of a school dropout who became an entrepreneur of repute and a billionaire by his sheer perseverance, a trait which Branson attributes to his mother who overcame odds to become a pilot. Born in 1950 and educated at Stowe School, he went into business at 16, publishing Student magazine. In 1972 he founded Virgin as a mail order record company and opened his first store, in London’s Oxford Street.

In 1984 he took his biggest gamble yet and launched an airline, with a single Jumbo jet shuttling across the Atlantic. His Virgin Group, one of the world’s most recognized and respected brands, expanded into air and rail travel, hospitality and leisure, telecommunications, health and wellness, and clean energy through more than 300 companies in 30 countries. His business secrets are his believes. He said “there is no need of any major investment for an

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entrepreneur except knowledge. Knowledge of the customers and the subject matter supersedes the need for monetary investment”. “In the cluttered world of businesses, the ones which have a unique selling proposition are sure to do well” “Know when to start, how to delegate effectively and when to step out. Pursue new ideas all the time” His love of publicity has come into its own, dressing up and playing the fool, becoming a master of the photo-opportunity, usually with a bottle of champagne and a pretty woman or several. With every new stunt his boyish enthusiasm has hyped his company’s name. Richard Branson is also renowned for his buccaneering spirit in the air and on the sea as much as in business. Branson is passionate about life and living every minute to its fullest. Since 1985 he has been getting his adrenaline rushes through world record breaking attempts by boat and hot air balloon. Several distance and speed records have been attempted and achieved, but his attempt to be the first person to circumnavigate the world in a hot air balloon was never achieved. Branson makes

each record attempt a media event with his Virgin logo prominently displayed during every launch, which has been an excellent source of free advertising and brand placement for the Virgin Group.

fly Virgin Atlantic?

Some of the businesses Branson has collected include:

Virgin Active - Chain of fitness clubs throughout the United Kingdom.

Virgin Atlantic - An international airline flying to many major destinations.

Virgin Galactic - Branson’s planned affordable flight to space venture.

Virgin Megastores - Music Supermarkets located in major locations in the UK, USA and Australia. Virgin Books - Publisher and distributor of books. Virgin Credit Card - Branson’s attempt to provide credit card at a reasonable price. Virgin Holidays - Book a holiday and

“Know when to start, how to delegate effectively and when to step out. Pursue new ideas all the time”

Virgin Trains - Virgin making trains sexy in the United Kingdom. V2 Music - Largest UK based independent recording label.

Ulusaba - Luxury game reserve located in South Africa. Necker Island - Branson’s own private island located in the British Virgin Islands Branson is continuously seeking new business opportunities and loves a good challenge, especially when he enters a market that is dominated by a few major players. Branson is the author of several books including Losing My Virginity: How I Survived, Had Fun, and Made a Fortune Doing Business My Way and Reach for the Skies: Ballooning, Birdmen, and Blasting into Space. Branson was awarded a Knighthood and became Sir Richard Branson for his contribution to entrepreneurship. Branson is married with two children and currently lives in London.

Yesterday’s Hero Vijay Mallya Source of Wealth : UB Group and others

Money Plant | April - May 2015

Residence

: Bangalore

Citizenship

: Indian

Marital Status

: Married

Children

: 3

Education

: Bachelor of Commerce

Mallya was born on December 20, 1955 in Kolkata and did his graduation from the University of Calcutta. At the age of 27, he took over as the chairman of UB following the untimely death of his father in 1983. Termed as a ‘playboy’ by the business fraternity, who claimed that he would squander away the inherited fortune, he quickly proved himself as an astute deal maker.

owever, his business empire collapsed and his transformation from “The King of Good Times” to a “Wilful Defaulter” was a real shock to many of his admirers. Nobody would have dreamt of such a rapid extrication of the empire. What really happened to Kingfisher Airlines is still remained an unanswered question. His former employees are now calling him “unprofessional”, “inhuman” and also accused him of “betraying” them. Many of his other critics have also alleged that the manner of Kingfisher Airlines collapse has done a great disservice to the entire nation as leasing companies don’t want to lend to Indian airlines. It all started well for Mallya. He started Kingfisher Airlines in 2005, named after the best-selling beer in the line-up of his United Breweries, as his 18th birthday gift to son Siddharth. Marketed as India’s only world-class, premium airline, Kingfisher Airlines was meant to be everything other domestic carriers were not: glamorous, good-looking, efficient and fun. It offered sumptuous in-flight

meals and entertainment and was staffed by personable, well-trained flight attendants dressed in smart uniforms who were reputedly chosen personally by Mallya himself. Kingfisher quickly became the No.2 airline in India by market share, behind only Jet Airways. In 2007, Mallya announced the buyout of Air Deccan, an airline founded in 2003. The logic of the purchase was that Air Deccan would, in 2008, complete the five years of domestic operations necessary for an airline to start overseas flights, and Mallya wanted Kingfisher to fly on international routes. But Kingfisher’s extravagance and expansion, largely fuelled by money borrowed from banks, got out of hand. In 2008, the world economy went into a tailspin, the credit markets froze, jet fuel prices surged to new records and the aviation business was hammered. Kingfisher shut its budget airline in 2011. The following year, the income tax department froze Kingfisher’s accounts because of long overdue payments on tax irregularities. Kingfisher grounded most of its fleet, causing hundreds of flights to be cancelled. Critics blamed Mallya’s flamboyant lifestyle for the debts that Kingfisher Airlines has incurred. Mallya’s collapse deteriorated after State Bank of India pledged majority of

It all started well for Mallya. He started Kingfisher Airlines in 2005, named after the best-selling beer in the lineup of his United Breweries, as his 18th birthday gift to son Siddharth.

his ownership in entities such as United Breweries, United Spirits, Mangalore Chemicals and Fertilizers and UB Engineering. Over 70% of Mallya’s roughly 35% in United Breweries and nearly all of his 5% in United Spirits is held by lenders as collateral. The lenders also hold 18.25%of his shares in Mangalore Chemicals. In UB Engineering, 90% of Mallya’s shares are with lenders. And off late, in a double-whammy, the government has annulled his reappointment as Managing Director of Kingfisher Airlines while he also had to quit from board of another group company MCFL. He was compared to Sir Richard Branson, the British flamboyant boss of Virgin Atlantic. Interestingly, Richard Branson had this to say on Mallya, “Flamboyance is dangerous. If you do show your wealth to the world too much, I think that’s dangerous for any business person and I think you’ve got to get that balance right and particularly in somewhere like India, where there are a lot poor people. I think, may be, when he looks back on his life, he might regret perhaps being so overtly flamboyant in the sort of showing off one’s wealth...I think that’s what people have to avoid” However, Vijay Mallya still maintains a distinct and exotic life style whether it is sport, aviation, beer or anything else he is always there to give it a try and succeeds in almost everything he does. Despite the tragic end of Kingfisher Airlines and other businesses, Mallya with his passion and energy is still riding high.

Money Plant | April - May 2015

Tete-a-tete with

Lalith Desilva Sri Lankan Airlines is an award winning carrier, with a fine reputation as a global leader. What is your USP? Our unique selling point (USP) is our Sri Lankan hospitality, warmth and service. That stayed from the very inception of Ceylon days to the Air Lanka days to finally becoming the Sri Lankan airlines. That’s where we top and compete in the market. We were a very small, regional carrier which quickly started servicing the international routes like London. All credit to our hospitality.

How many aircrafts are you operating and how many destinations do you cover? At the moment, in this financial year, the focus is the Eastern area, especially India. India has been doing tremendously well compared to Europe, which was unfortunately going through recession. It is recovering but we have our major incoming traffic from India and the Far East. China is giving us a very big market and the disposable income is increasing with the Chinese passengers, where we see development and future.

relationships, but we can see the change immediately. First thing he did was to reach out to the neighbouring country, India and build strong relationships.

cooperation, and regional tourism of SAARC countries. I am also very hopeful about the e-visa policies that has been adopted by the new government in India.

The last visit of an Indian PM, Rajiv Gandhi happened 27 years ago. Has the situation changed now?

What do you expect from the Indian government?

Yes, that is correct. In fact, I think that it is a very positive sign, the co-operation between the two countries. And there’s lot of cultural interconnectivity - when you’re visiting Sri Lanka it appears that you are in India because of the sheer amount of Indian tourists. In fact, it was the Indian tourists that kept the industry going during the unfortunate period we passed. So with the Indian PM coming, the trade will likely improve the regional

India is not properly promoted in Sri Lanka. A lot of Sri Lankans think of wildlife, in some far places like Kenya to spend huge amount of money on airfare alone. Or snow for that matter. Snow means Europe. But just a couple of miles away, you get all that in one country. That’s the uniqueness of India, but it has not been marketed in India. Most tourists who visit India are for pilgrimage and shopping. There’s a lot to see in India which people are paying out of their nose to see in other countries.

Has the election of new President, Maithripala Sirisena been a positive sign for business? Yes indeed, very much. The first thing what he did was to conduct a meeting India’s Prime Minister Modi. That makes a huge difference. Not that the previous government didn’t have

Money Plant | April - May 2015

What’s your future expansion plans for 2015? We’re not adding any new destinations as such, but we might probably add a destination in Australia. Other than that we will be consolidating our existing destinations, increasing frequency and re-fleeting. We will be replacing some of our old aircrafts 340’s with the new 330-230-300 versions.

How do you visualise growth in the next five years for Sri Lanka? Actually we have been steadily, in spite of high fuel prices at one time. Fuel prices are now declining, encouraging airline industry. This is a very positive time that could reduce airfares bringing an increase in the number of passengers. If I am not mistaken, IATA has predicted a rise in the number of passengers in the Asian region for 2015.

After the LTTE, people are very much interested to go the Jaffna side. Do you think the area has the potential to become a tourist hotspot? Already development projects are taking place. We didn’t have hotels because of the disturbance for 30 years, but now lot of Indian investors are investing. The beach is amazing place to be. It is more like, you’re in Maldives. The Eastern coast is much better. We have a couple of boutique hotels coming up. But it is still in its early developmental stage.

Money Plant | April - May 2015

A Budget for

Job Creation

Money Plant | April - May 2015

SPECIAL FEATURE Read together the Budget, the Railway Budget, and the Economic Survey, we get a picture of Modi’s mind. Cautious as every seasoned politicians are, and determined as every able administrators are, the Budget focuses on Infrastructure and capital investment – the core arena of development.

landmark feature of the Budget is that the stake of states is increased to 42% of the revenue from its present 32%, and it begins from this fiscal year. Shrinking the central pot and pushing funds for the states to use themselves in implementing social and welfare schemes is a step toward stronger governance and accountability. The big news of the Railway Budget presented by Minister Suresh Prabhu was infrastructure investment to the tune of $137 billion, set aside for modernization over the next five years. The railways will look to increase passenger as well as freight capacity, especially important for developing a faster and more integrated export-focused economy. Coming back to the Union Budget, Jaitley projected an economy returning back to health: inflation is down, growth has picked up to 7.4% this year and is predicted to surge above 8% in the fiscal year starting April 1. (Both of these figures are based on revised estimates that some call dubious.) Foreign exchange reserves are up to $340 billion, the rupee has strengthened and the stock market has been performing well— “second-best…amongst the major economies”. Jaitley increased infrastructure investment outlays by $11 billion,

Money Plant | April - May 2015

The big news of the Railway Budget presented by Minister Suresh Prabhu was infrastructure investment to the tune of $137 billion, set aside for modernization over the next five years. a new national infrastructure fund, new tax-free infrastructure bonds and “revitalized” public-private partnership funding models that will shift the risk burden toward the government and away from the private sector. As announced by the prime minister from the ramparts of the Red Fort in his Independence Day speech, the government is intent on using technology to bring financial services to the bottom of the pyramid. The new “JAM” acronym stands for Jan Dhan Yojana (the bank-account-for-all program announced back in August). This will benefit individuals directly, cutting down on fraud.

An expanded pension system for the poor, and a new ministry of skills development for rural youth also found place in the Budget. India lacks a universal social security system since the vast majority of the population is employed in the informal sector. We’ll have to see how this program unfolds. But the rural skills development focus may have immediate impact, given the training required to get young people coming of workforce age ready for the type of jobs in demand.

It will be included as a “charitable purpose” in the Indian tax code. Tourism made its appearance with an announcement that the new visa on arrival system would be expanded from 43 to 150 countries. There was a nod to sanitation as well—toilets and clean India, now with 100% deductible contributions.

Yoga, too, got its due in the Budget.

Creating sufficient jobs may be

As expected, the US business groups have welcomed the budget. The infrastructure outlay is an immediate boost to the economy as well as welcome focus on investing in the basics to deliver higher growth down the line.

one of the toughest challenges that India faces. There are 700 million people living without dignity who need to be lifted out of their desperate circumstances through jobs and livelihoods. On top of this, India’s much-hyped demographic dividend also makes it essential to productively employ nearly 13 million young people who enter the workforce every year. In contrast, even at its peak between 2005 and 2010, the Indian economy created, at best, 5.5 million jobs a year. So, the jobs gap is huge. The Modi government has been betting on manufacturing

Money Plant | April - May 2015

of hundreds of thousands of such micro-entrepreneurs will be huge. An even bigger and neglected job creation opportunity lies in revitalising India’s cooperatives. India has extraordinarily successful cooperative models: Amul in dairy and Suguna in poultry. These models need to be emulated. For instance, nearly 250 million artisans are organised into 6,00,000 cooperatives. Sadly, these incredibly-skilled artisans are often among the poorest of the poor because they are trapped in inefficient markets and exploitative supply chains

without access to capital, design inputs or markets. So, they are losing out to cheap mass produced goods and their children abandon millennia-old traditions and migrate to overburdened cities. However, much India has prematurely given up on its artisans, the demand for sustainably-produced goods, unique designs and contemporary, but handcrafted, items that come with an emotional story is growing rapidly globally. It’s time we revive the cooperative movement.

and hoping India can be the ‘next China’. To address its jobs deficit, India has to become a nation of jobcreators rather than of job-seekers. Becoming an entrepreneur, rather than find a job, must be the ambition of young people, including those who live in smaller cities and towns. They may not script an Infosys or a Flipkart success story. Most will be micro-enterprises employing a handful of people. The majority of these enterprises won’t be in Bengaluru or Mumbai but in remote towns. But the collective impact

Money Plant | April - May 2015

ECONOMY

The Fear of

Rising Dollar! The rising dollar has been the talking point in all financial circles. Currency movements are complicated in their causes and consequences.

owever, the dollar surge in 2014 has straightforward explanations. While a higher dollar presents challenges for both investors and U.S. corporations, at the moment it appears to be a positive force in the global economy.

The dollarâ&#x20AC;&#x2122;s rise is certainly significant. On an year-to-date basis, the dollar is up 8.8% versus the euro, 3.2% against the British pound and 2.4% against the Yen, with almost all of the gains coming since May. A number of factors have likely contributed to the dollarâ&#x20AC;&#x2122;s ascent.

Money Plant | April - May 2015

Compared to other major economies, the U.S. is currently displaying the best momentum relative to its trend growth pace. Following a 4.6% real GDP surge in the second quarter, the US appears to have grown by a healthy 3% in the third. This is in contrast to the euro zone, China and Japan which, while not in recession, have shown signs of relative stagnation over the summer. Traditionally, fastgrowing economies have rising currencies due to capital inflows. The Federal Reserve looks set to increase interest rates in 2015, unlike either the European Central Bank or the Bank of Japan. All other things being equal, investors like to hold their assets in whatever currency pays the highest short-term rates. If investors expect the dollar to be in favor then because of higher rates, it makes sense to buy dollars today to take advantage of the expected appreciation.

The dollar’s rise is certainly significant. On an year-to-date basis, the dollar is up 8.8% versus the euro, 3.2% against the British pound and 2.4% against the Yen, with almost all of the gains coming since May. gives higher returns than taking risk and investing in India, the foreign investor will have second thoughts on Destination India. It will indeed be a setback for Make-in-India campaign, it is possible to argue

that US investors are not the only foreign investors, though. The US investors have a surfeit of funds and are daring investors – but let’s look at the positive side of the story and hope for a turnaround. Most importantly, however, a higher dollar effectively transfers demand from the U.S. economy to economies around the world. At this stage of the global business cycle, this is a welcome development. The US unemployment rate is now below its 50-year average and falling fast, highlighting the limited remaining capacity for the U.S. economy to absorb extra demand without generating inflation. By contrast, other economies such as Japan, emerging Asia and Europe could do with a boost to their exports, which should be the result of a higher dollar. In the long run this should lead to a healthier, more balanced global economy.

The energy revolution is having a major impact in reducing the US trade deficit. In 2005, the US consumed 20.8 million barrels of petroleum products a day, of which 12.5 million or 60% had to be imported. In 2013, we consumed 19.0 million barrels, of which 6.6 million or 35% were imported. By 2015, according to Energy Department estimates, we will consume 19.1 million barrels, of which just 4.1 million barrels or 21% will be imported. In other words, the increase in domestic production between 2013 and 2015 could save 2.5 million barrels per day which, at $90 a barrel, would cut roughly $80 billion from a $480 billion trade deficit—this is a clear positive for the US dollar. All these factors by now are imbedded in exchange rates. The most obvious effect is a negative impact on international investment returns. This is what is going to hurt India most. If investing in dollar

Money Plant | April - May 2015

Silking its way in India SilkAir, the regional wing of Singapore Airlines is planning to expand its India operations to more cities after recently adding Pune to its list. The airline already flies to eight other destinations in the country namely, Bengaluru, Chennai, Coimbatore, Hyderabad, Kochi, Kolkata, Thiruvananthapuram and Visakhapatnam. In an exclusive chat with Money Plant, Jagdish Ram Bhojwani, General ManagerIndia, SilkAir, speaks about the airlines’s future plans in india.

With an impressive fleet having 350 weekly flights across 12 countries, what is SilkAir’s success mantra? What makes your airlines a favourite to the customers, making them choose your carrier on a second visit? Over the past 25 years, SilkAir has grown steadily, while remaining true to our commitment to connecting travellers to Asia’s newest frontiers. We have consistently expanded our network, providing convenient connections to exciting destinations of the world. In the near future we will commence operations to Cairns on 30 May 2015. SilkAir’s positioning as a fullservice, short-to-medium haul regional carrier gives us a unique appeal amongst leisure and business travellers in Asia. We operate one of the youngest fleets in the world averaging 4.5 years which ensures that travelers experience a modern and efficient aircraft. SilkAir offers carefully selected meals, a full bar service and elements of inflight entertainment, placing great emphasis on providing attentive, friendly and relaxing service.

Money Plant | April - May 2015

Our regional flair is expressed through both our cabin crew and cuisine â&#x20AC;&#x201C; ensuring that travellers begin to experience the destination they are heading to, from the moment they step on board our plane. SilkAir won a distinguished place in Top Airlines for Best Cabin service for six years in a row apart from other notable awards. What sets this regional airline apart from its competitors? Our biggest strength remains that we have grown along with our competition. SilkAir has always had the first-mover advantage in some cities like Trivandrum and Vizag; continuing to be the only foreign carrier in these and some other similar points.

Are Indian government regulations friendly to an international aviation company like SilkAir? What are the pros and cons you see? The Indian Government has undertaken initiatives such as improving airport infrastructure, attracting foreign investment, development of a progressive civil aviation policy, reviewing bilateral agreements with countries to augment capacities and marketing India as a favorable tourist destination overseas which adds to increased flow of traffic. As one of the fastest growing aviation markets, the Indian Government

Money Plant | April - May 2015

has set the right direction to accelerate development and growth through such positive steps. We welcome any decision of the government that will promote the long-term development of the aviation industry, improve overall infrastructure and importantly allow consumers to benefit from enhanced services and experiences SilkAir is currently an active carrier in 8 cities in India, with plans to expand to North and West. What are the expansion plans of the company in the next five years with respect to Tier II and Tier III cities? Yes, we currently fly to eight destinations in India namely; Bangalore, Chennai, Coimbatore,

Hyderabad, Kochi, Kolkata, Thiruvananthapuram and Visakhapatnam. With the existing range of our fleet, we can connect to South India. We will soon get our Boeing Max, which will allow us to fly further to destinations within a radius of six to six and a half hours from Singapore.. We continue to seek opportunities to enhance our network and are constantly reviewing potential new destinations to fly to, including cities in India which is one of our key markets. How successful was SilkAir

Studio, the wireless inflight entertainment system tried on the Airbus A 320 aircraft? Is it a regular feature now? SilkAir Studio is our latest wireless in-flight entertainment (IFE) system that was launched in May 2014. Complementing the existing overhead system, this wireless service provides customers with diverse options for a more customized in-flight entertainment experience. The service has enhanced the overall flying experience and been well received by fliers. Passengers on SilkAir flights are able to stream blockbuster hits, short features, as well as charttopping music to their personal laptops and handheld devices

throughout their flights. With SilkAir Studio, customers do not need to download a separate mobile app prior to boarding. Once the inflight entertainment system is switched on, customers can enjoy the new programmes on their personal mobile devices, such as laptops, smartphones, and tablets. All these are provided on a complimentary basis. For flights above two hours, tablets are offered to Business Class passengers. This effort to improve the in-flight entertainment experience for customers is the latest example of SilkAirâ&#x20AC;&#x2122;s commitment to quality, fullservice air travel.

The Mood of the Greek Voters 38

Money Plant | April - May 2015

The Greek Tragedy It is catch-22 for Greeks and Europeans alike! Damned if Greeks accepted the European austerity that inflicted pain on every Greek home, which saw the change of government.

amned if they donâ&#x20AC;&#x2122;t because the Greek banks will collapse, leading to a paralysis of the economy. Damned if the Europeans expelled Greeks, because the euro, which many thought will stand against the dollar, will lose credibility. Damned if they donâ&#x20AC;&#x2122;t expel Greeks because Europeans then will have to carry the humongous debt burden of Greeks. Clearly, it is a lose-lose situation where everyone stands to lose, but the actors would pretend they are more than conquerors. Prime Minister Alexis Tsipras, who came to power by promising end to austerity, will have to pursue the policies of his predecessor, whom he opposed vehemently. He has to learn a thing or two from Angela Markel, nicknamed Austerity Markel. She

Money Plant | April - May 2015

Damned if the Europeans expelled Greeks, because the euro, which many thought will stand against the dollar, will lose credibility.

has been campaigning vigorously for setting up more nuclear plants, but suddenly before the last election she made a U-turn calling for a moratorium on nuclear energy. What she achieved was to throw her political opponents into disarray: she hijacked their political platform, leaving them without one. This austerity is no austerity, considering the Happy Days Ahead of Greece! Prime Minister Tsipras will have to mesmerize the Greeks into believing this. Eliciting the willing suspension of disbelief is at the heart of all creative politics. Understandably, the new prime minister found not a single ally among 18 euro zone peers in its drive to reverse austerity and renegotiate its debt pile. Spainâ&#x20AC;&#x2122;s finance minister was afraid that any concession Athens might win will strengthen his countryâ&#x20AC;&#x2122;s opposition party clamouring for the antiausterity, especially when the elections are due. The Greek Finance Minister Yanis Varoufakis was mostly silent because he is new in the Syriza party, and the 40-year-old Tsipras will have to sell the new reworked austerity package to the party elders. The very thought of a weakening euro drove Angela Merkel to endorse the 240-billion-euro bailouts. The European leaders followed suit. Both Athens and Brussels claim victories â&#x20AC;&#x201C; without winning!

Money Plant | April - May 2015

European creditors with the expectations of voters who rallied to his promises to rehire thousands of fired public workers and pursue other leftist, pro-growth policies. Commenting on the reworked austerity programme, a senior advisor to the prime minister said, “We should always keep in mind that this program is for a short period of four months while the government is elected for four years to carry out its program.” Yet the political dynamic has undeniably changed. To avoid a banking crisis and keep the loan money flowing, Tsipras discarded his confrontational stance and is now committed to pushing through structural reforms and tougher tax collections: positions long advocated by European creditors.

Kejriwal of Greek politics Driven by the anger of the Aam Admi in Greece, the flamboyant Alexis Tsipras came to power.

he Greeks were fretting and fuming against the prolonged austerity measures imposed on them by the European Union: The austerity Chancellor Angela Merkel of Germany is portrayed as a demon in the Greek media. The rich evade taxes and rampant corruption ate into the Exchequer. For decades, it had been so. And the debt rose to shattering heights, and the European Union was not amused. On the verge of being expelled, Prime Minister Tsipras came out with a compromise formula, seeking a 4-month period to make course correction.

loopholes and shift the tax burden away from the poor toward the rich. Unlike past Greek governments, which often had ties to these elites, Syriza is better positioned to make real change, analysts say.

The immediate task of the new government is cracking down on tax evasion by the wealthy and on corruption. The Syriza party was elected without the support of Greece’s most powerful business networks, and the party had vowed before the elections to close

Greece has endured years of hardship and high unemployment, with many Greeks blaming the belttightening requirements attached to the country’s 245-billion-euro bailout for the country’s economic collapse. Tsipras must now balance the demands of the country’s

The immediate task of the new government is cracking down on tax evasion by the wealthy and on corruption.

As important as tax evasion and corruption is smuggling of tobacco and oil. If they manage to plug the loopholes, they will be able to raise the revenues that will allow them to fund their social programs and also be financially sound at the same time, said an anayst. Rebuilding trust with the creditors presents a separate challenge. Lenders will continue to scrutinize Greece’s finances and could make additional demands on Athens before making the next loan disbursement, which would be 7.2 billion euros, or about $8.2 billion — money the Greek government needs to meet its debt obligations. Tsipras did win some important concessions from European leaders. The new accord includes pledges for food stamps as well as free electricity for the poor, a package that Syriza recently estimated would cost some 1.8 billion euros. The government also plans to review the possibility of expanding a pilot program that guarantees a minimum income to poor families, while also raising the minimum wage and helping struggling homeowners meet mortgage payments.

Money Plant | April - May 2015

Why is

RAGHURAM RAJAN so hesitant

The industry may consider RBI governor Raghuram Rajan the stumbling block in reviving the economy.

inance Minster Arun Jaitley may be a little impatient with his RBI governor. But Rajan is waiting for the opportune moment to cut the interest rates â&#x20AC;&#x201C; which is not now. When we talk of interest rates, we are referring to the rate at which other banks can borrow overnight from the central bank. It is through this rate that the RBI can influence all sorts of interest rates in India.

When we talk of interest rates, we are referring to the rate at which other banks can borrow overnight from the central bank.

A reduction in interest rates will have the following effects: It will bring down the cost of capital, and companies will borrow more to produce more. They will hire more workers reducing unemployment and increasing wage rates.

Money Plant | April - May 2015

It will increase consumption, which will add to aggregate demand and eventually raise GDP. Household savings will come down because there is no incentive to save. The real estate market will boom. But all of these benefits have one caveat, they increase inflation. Reduced unemployment is directly correlated with inflation. A decrease in unemployment will increase inflation correspondingly. Increased consumer spending will increase price level of goods thereby increasing retail inflation. Everything will become expensive. Inflation is something that has destroyed economies in the past if not controlled. Therefore, the interest rates should be cut only if we feel we can handle the inflation. The Indian economy is fragile – vulnerable to global price shocks. To lower interest rates now has a strong chance of pushing inflation to its pre-2012 levels. Inflation itself is a mysterious

Money Plant | April - May 2015

phenomenon. A high inflation can easily turn into stagflation, while a low inflation can easily turn into deflation. The right step is to bring inflation down to its optimal level: a level that is sustainable and corresponds to the natural rate of unemployment. Once we are there, we can reduce interest rates. If we cut the interest rates now, there are chances that inflation will bounce back, because of reasons beyond the RBI control: 1. The recent slump in oil prices may be temporary. OPEC will act sometime in the future when the price hits a floor. They will cut back production and drive up the price of oil. This will push up Inflation. 2. The kharif crop output is predicted to be lower this year. If this prediction materializes, commodity prices will face tremendous upward pressure. Again, this

will lead to higher Inflation. 3. A cut in the interest rates right now will devalue the Rupee further. Imports will be more expensive, triggering higher Inflation. 4. The present decline has also been attributed to an extent to base effect (a new method of inflation calculation). We have to wait and see if this decline is because of the base effect, or because of improved economic fundamentals. 5. There are enough indicators to prove that the worst is not over. In 2010 also, rates were reduced because the economy was improving and the rate cut caused inflation to skyrocket.

John Maynard Keynes once said, “When facts change, I change my conclusions, What do you do Sir?” Let the economist have the last word.

Person of the Month

Christine Lagarde IMF chief Christine Lagarde is an optimist. She is more optimistic about Indiaâ&#x20AC;&#x2122;s future than most Indians, because she sees India a decade ahead.

Money Plant | April - May 2015

FOCUS

he envisions the country emerging as one of the world’s most dynamic economies, but India needs to open up more fully to the world, she says. The first woman finance minister of France – and its longest-serving since 1974 – has made a name in international circles. There is something about her straighttalking, business-like approach that has never been fully appreciated by the rumour-mongering world of French politics. Her reputation abroad finally won her respect at home.

Lagarde’s main strengths are a mix of hard-working professionalism, an appetite for technical detail, and an ability to get her way with charm rather than bullying. The hallmark of Lagarde is the mix of Frenchness and internationalism. Appointed finance minister in 2007 by Sarkozy, Lagarde has not hesitated to defend what she considers to be in French interests. While dutifully pushing some of his ideas abroad, she has also done a fair amount to try to inject more competition into the French economy, and boost public-sector efficiency. Lagarde’s main strengths are a mix of hard-working professionalism, an appetite for technical detail, and an ability to get her way with charm rather than bullying. She often seems more at ease at global summits than on the benches of the unruly French National Assembly. Lagarde is impressed by Prime Minister Modi leadership, and she has a word of praise for

Money Plant | April - May 2015

RBI governor Raghuram Rajan’s macro-economic management. The government’s financial inclusion plan JAM (Jan Dhan, Aadhar and Mobile) is an important step towards overhaul of the subsidy regime, she said. “Subsidies that are needed to help the poor often end up favouring the middle class. That is why the JAM Number trinity - Jan Dhan (bank accounts for all households), Aadhaar (unique identity for all persons) and Mobile (phone) could be a major step up in terms of direct income support to the poor,” she said. For sustainable long-term growth and to become the world’s largest by 2030, India must reduce inequality, International Monetary Fund (IMF) Managing Director Christine Lagarde says. “Growth can’t be your only goal…. Your

objective should be inclusiveness, welfare of people, especially those who have traditionally not been included.” Low and declining women participation in the labour force constituted a ‘huge missed opportunity’, she said. Citing a new IMF working paper, she said only 33% of women in India participated in the labour force, as per the latest available data. This was lower than the global average of 50% and the East Asian average in East Asia of 63%. “Much needs to be done in India to give girls a level playing field... most importantly level playing field in terms of respect so that even in villages they can feel safe,” she said. “We need more Indian women in areas beyond the liberal arts… I want more women economists from India.”

Pollution: Death Trap for Indians The good news: India will leapfrog China in GDP. The alarming news : 1.5 million Indians die every year because of chronic respiratory diseases.

2014-WHO report identifies 20 of the most polluted cities of the world, out of which 13 are in India. After years of denial, we are face to face with the gravest danger. Our energy sources – be it coal, diesel, or oil – are the dirtiest on the planet. Our waste disposal, especially garbage burning, leaves a trail of pollutants. The unregulated use of energy sources leads to copious emissions of carbon dioxide – the villain of the greenhouse effect. It endangers the life of 1.2 billion people through global warming!

The unregulated use of energy sources leads to copious emissions of carbon dioxide – the villain of the greenhouse effect.

shortages. Critics of coal say hefty investment in this sector could be self-destructive. Nuclear energy is capital intensive, and increase dependency on foreign countries. After Fukushima, there have been second thoughts on the safety of nuclear plants. But Modi government should ensure that our pollution levels should not scare away foreign investors!

The US and China agreed on a breakthrough deal in which Washington agreed to new emissions reductions and Beijing to a deadline. The European Union is ambitious in pledging to reduce emissions by 40% from 1990 levels by 2030. But India’s case is unique, with 300 million Indians lacking access to electricity, and yet millions more live in perennial energy

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PROFILES OF THE WORLD’S

BEST CEOs

Richard Anderson For decades, airline stocks were risky investments till Richard Anderson stepped into the Delta cockpit. By cutting corners, raising fares and fees, refurbishing used jets instead of new jets, and winning over the labour, Anderson turned around Delta airlines – from near-bankruptcy to one of earning profits and paying dividends. Richard Anderson joined Delta’s Board of Directors in April 2007 and became CEO in September 2007. He strategically and creatively reengineered the business model and has reinvigorated a valuebased culture. At 58, Anderson remains a risk taker and an innovator. Indeed, Delta’s earnings soared 75% in 2013. What’s more, the company issued its first dividend in a decade, paying six cents per quarter, as part of its plan to return $1 billion to shareholders over three years. Delta bought a Pennsylvania oil refinery to help reduce fuel costs. Delta was named the 2014 Airline of the Year by Air Transport World magazine and was named to FORTUNE magazine’s top 50 Most Admired Companies in addition to being named the most admired airline for the third time in four years. Richard was named one of the World’s Best CEOs by Barron’s magazine in March 2014 and among Fortune magazine’s 2013 Top People in Business. He was presented the Officier De La Légion D’ Honneur in 2011 and in 2013 received Travel Weekly’s Lifetime Achievement Award.

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CEO SPECIAL

Warren Buffett

David Cote

Investment is child’s play for this maverick financial wizard. Under his stewardship, Berkshire Hathaway shares clocked a 9,000-fold rise. The company invested $10 billion last year in the Heinz buyout, and is looking for an elephant-size deal to park its $42 billion in cash.

David Cote (61) has piloted Honeywell to great highs in sales, earnings, and stock-market value. The company today is a leader in aerospace, building controls, energy-efficiency systems, and turbochargers.

Warren Buffett may be the world’s best investor — but he’s one of the worst when it comes to financial disclosure, say Wall Street analysts. They term the disclosures as “laughable, poor, terrible”!

“We are fending off competition from China. If you can’t beat them in Asia, you’ll be facing them in Western Europe and in the US,” he says. Honeywell is a $40 billion diversified technology and manufacturing leader.

Buffett said he prefers to communicate with shareholders through his annual letter, set to be published on Feb. 28, and by answering questions at the company’s annual shareholder meeting in Omaha.

Honeywell sells more than 50% of its goods and services outside the U.S. It has more than 131,000 employees, including 22,000 scientists and engineers. The company’s focus is on developing innovative products and solutions.

Buffett eats like a child, with burgers, French fries, and soda on his menu. He enjoys Cherry Coke, made by Coca-Cola, a longtime equity holding.

Cote was elected president, CEO, and a member of Honeywell’s Board in February 2002, and named chairman of the Board on July 1, 2002. He was named co-chair of the U.S.-India CEO Forum by President Obama in 2009, and has served on the Forum since July 2005.

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Jeffrey Bezos

John Martin

Amazon.com is in relentless pursuit of new things to sell. No wonder it dominates Web retailing with $75 billion in annual sales. Bezos (50) takes calculated gambles. One estimate says Amazon.com is offering 230 million different items and expanding its product assortment at a 24% annual clip. The company’s 20%-plus annual revenue growth still delights Wall Street.

John Martin the Chemist is credited with transforming Gilead into one of the world’s biggest biotech companies. Its sales shot up 332 times since 1996, to $11 billion. He created a niche market by focusing squarely on anti-virals, in particular HIV/AIDS treatments. A skilled deal maker, Martin (62) outbid rivals and became the biggest seller of HIV drugs.

Its Amazon Web Services which sells computing has the potential to replace traditional enterprise computing, and offers the parent company potential billions in new, higher-margin revenue. Bezos is on record saying, “We like to go exploring, to wander into dark alleyways, and see if they open up into broad avenues”.

Competition pushed Martin into areas like hepatitis C, striking a bold deal with biotech Pharmasset. That led to the invention of a breakthrough drug, Sovaldi that cures. But making the drugs affordable by bringing down the price from $1,000 a pill is the formidable challenge before the company.

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Carlos Brito

Pony Ma

This Brazilian turned a small beer company into the world’s largest brewer by the acquisition route. He acquired Anheuser-Busch (US) in 2008 and Grupo Modelo (Mexio) in 2013, and created a $169 billion Anheuser-Busch InBev, which is the No. 4 consumer company in the world.

Pony Ma does not make eloquent speeches, but the company he co-founded does. Globally, it ranks third in five-year total stock returns among large tech, media, and telecom firms, says Boston Consulting Group. Tencent is one of the largest internet companies in China.

The Brazilian management is known for sharp cost controls, innovative brand-building, and an informal corporate culture, which Brito (53) exemplifies.

In 2007 and 2014 TIME magazine called him one of the world’s most influential people. In February 2014, he is the third richest person in China, and the 70th richest in the world, with an estimated net worth of $14 billion.

He wears jeans to work, and prefers in-house talent, which produces employees who are “part of an engaged group of owners”.

The company’s first product, an instant message tool named Tencent, became very popular in China. It soon expanded to become “China’s answer to AOL. By the end of September 2012, it had a total of 784 million active users, an increase of 10% from the previous year. WeChat, its mobile messaging application, crossed 200 million by the same year. The company introduced many innovative products, including online games, and thrived. Ma Huateng – better known as Pony Ma – was born on October 29, 1971. He graduated from Shenzhen University before founding the company in 1998.

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India’s

Great Performers TOP CEOs

Sunil Mittal The Man who made Waves Thinking ahead of others and grabbing historical moments to his advantage made him the captain of India’s largest telecom company and the world’s fourth largest mobile operator. He ranks as the 8th Richest Indian according to Forbes, with a Net worth of $7 billion. Mittal started his business at the age of 18, with a capital of 20000(US$310) borrowed from his father. His first business was to make crankshafts for local bicycle manufacturers. Four years later in 1980, he launched Bharti Overseas Trading Company in partnership with his brothers Rakesh and Rajan, and moved to Mumbai the next year. He imported thousands of portable power generators from Japan’s Suzuki Motors. Suddenly, the government banned the import of generators. Undaunted, Mittal started assembling push-button phones in India in 1984,[9] which used to be imported from Taiwan. The country was in a transition stage, replacing the old-fashioned phones. A technical collaboration with Siemens AG ensured the success of his enterprise. In 1992, he successfully bid for one of the four mobile phone network

licences auctioned in India. He clinched a deal with the French telecom group Vivendi to fulfil the auctioning condition that the bidder should have some experience in the field. In 1995, Bharti Cellular Ltd (BCL) was formed to offer cellular services under the brand name AirTel. Within a few years Bharti became the first telecom company to cross the 2-million mobile subscriber mark. It also brought down the STD/ISD cellular rates in India under brand name ‘Indiaone’. In June 2010, Bharti acquired the African business of Zain Telecom for $10.7 billion, making it the largest ever acquisition by an Indian telecom firm. In 2012, Bharti tied up with Walmart to start a number of retail stores across India. Today the Group flagship Bharti Airtel operates in 20 countries across Asia and Africa and a customer base of over 275 million.

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Naveen Jindal Lover of Sports & Controversy acknowledgement of Jindal’s support to his Alma Mater, the university has renamed its School of Management as Naveen Jindal School of Management in 2011. Along with his wife, dancer Shallu Jindal, he founded the Flag Foundation of India, to foster among Indian youth respect for the Tir-colour and the values it embodies. Naveen Jindal was born in Hisar (Haryana) on March 9, 1970, as the youngest child of a former minister and an industrialist. Naveen himself is a two-time MP.

Naveen Jindal loves sports and – unwittingly – controversy. The colourful Jindal is in the news most of the time for the right reasons and, at times, for the wrong reasons. Naveen’s Jindal Steel and Power Ltd (JSPL) operates the world’s largest coal-based sponge iron manufacturing plant in Raigarh, Chhattisgarh, and plants in Jharkhand and Odisha. Jindal Power Ltd. (a subsidiary of JSPL) runs a 1000 MW thermal power plant in Raigarh, Chhattisgarh, which was India’s first such power plant in the private sector. (The annual turnover of JSPL is over $3.5 billion, and is part of the $17 billion diversified O.P. Jindal Group). Jindal holds an MBA from the University of Texas at Dallas, and he was the recipient of the Student Leader of the Year Award (1992). As an

Naveen’s Jindal Steel and Power Ltd (JSPL) operates the world’s largest coal-based sponge iron manufacturing plant in Raigarh, Chhattisgarh, and plants in Jharkhand and Odisha.

A M Naik Flying with a Vision

During his tenure as VicePresident, L&T achieved major successes in the indigenisation of critical technology in the defence and nuclear sectors. 56

Naik piloted Larsen & Toubro through the most turbulent of times and transformed it into a world-class conglomerate. He infused a global perspective into L&T’s business orientation. It meant changing mindsets and institutionalising systems to benchmark virtually every critical activity in the company against international standards. The international thrust under Naik has been spectacular, making breakthroughs into the Persian Gulf, the US and South-East Asia. Naik spearheaded the move to de-merge L&T’s cement business to unlock value for shareholders. He created an Employees’ Foundation/ Trust to strengthen their sense of belonging and to enable L&T retain its identity and unique character. During his tenure as Vice-President,

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After persuading Nanda, Naik spent the next six months wading through government bureaucracy to get the appointment ratified. “I had to chase the file as it moved from one table to another in various ministries from HR to labour to the cabinet secretary, to home ministry, the PMO and even RAW. I also had to regularly update and reassure Nanda over the inordinate delay,” Naik recalls.

L&T achieved major successes in the indigenisation of critical technology in the defence and nuclear sectors. As a result, L&T is now closely associated with the nation’s defence establishment in the development of weapon and missile systems. Joining the company as a Junior Engineer in 1965, he rapidly rose to be a GM, MD and finally a CEO in 2003. Management education is close to his heart, and as chairman of IIM-Ahmedabad, in his first three-year term, the 73-year-old Naik took a private plane to Boston in early-2013, “to look Ashish Nanda in the eye and convince him” to leave Harvard Law School and take over IIM-A as its director.

Not surprisingly, Naik has just been elected to a second term as IIM-A chairman even though his pugnacious style may have ruffled a few feathers. “My second term,” Naik says, “will be focused on doing everything to help the director implement the vision. I do a video-conferencing meeting with the director every month and travel there once every three months.” “I spent one-and-a-half years of my tenure at IIM-A as chairman trying to rope in an internationally reputed director,” says Naik.

Bhaskar Bhat The Turnaround Artist Titan Industries was in the doldrums. That was when Managing Director Bhaskar Bhat took over the reins. It was saddled with debt from a failing jewellery business and an expensive foray into Europe. Investor Rakesh Jhunjhunwala was eyeing the Bangalorebased company for putting in some money. The two met and Jhunjhunwala was profoundly impressed by the blunt and truthful approach of Bhat. The year was 2002. Today Jhunjhunwala owns 11% of Titan, and it’s an investment that’s

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certainly paid off. Titan’s market capitalisation has soared from $45 million to $3.5 billion. Its annual revenue has jumped from $153 million to $1.74 billion, while profits have mushroomed from $1 million to $118 million. Since its founding in 1984, this watch and jewellery maker has diversified into a leading speciality retailer that sells everything from gold jewellery to bags, belts and wallets. Titan boasts of five manufacturing plants and 847 stores in seven chains across 160 towns around India. Titan is looking to add 320 stores in different brands over the next year. Jewellery, which contributes 76% of revenue, will continue to be a big growth driver. “We are trying to change the game toward diamond jewellery. We’ve made diamonds more price-friendly,” says Bhat.

Y C Deveshwar World’s 7th Best In two decades at the helm, he has diversified ITC Ltd into a group of companies with significant forays in FMCGs, paper, hotels, agri-business and IT. Harvard Business Review rated him the world’s 7th best performing CEO in 2013, on the basis of growth in total shareholder returns and market capitalization. ITC’s bold diversification and consistent shareholder returns of about 26% for the last decade and a half are among the key indicators that testify to Deveshwar’s sure eye in the captain’s seat. When Y C Deveshwar took the reins at ITC, it had unsuccessfully tried to diversify into financial services, commodity trading and edible oils. And much money was lost. Against this background, British American Tobacco, a major stakeholder and parent company, wanted ITC to stick to the tobacco core business and exit other markets. At the same time, allegations of foreign exchange irregularities were shaking the top brass at ITC. In short, Deveshwar had inherited a nest of woes. However, Deveshwar knew that diversification was the way forward, and he remained firm in his purpose. He contended that earlier diversification projects had run

into choppy waters because of insufficient investments. He brought back the paperboard and hotels businesses, within an integrated structure that would ensure sufficient cash flow. At the same time, he created checks and balances to mitigate against excessive risks. He also reduced BAT’s influence over ITC, so that the latter could start finding its own way without having to be answerable to BAT. Five years of focus on systems and processes paid off as the paperboard and hotels businesses turned around, bringing in profits. His quest for diversification involved a tightrope walk. Tobacco is still the major chunk of ITC’s business, and he has had to insulate that business from the ups and downs of the company’s learning curve in other areas. He has built a significant non-tobacco business, but all the while he had to ensure that ITC does not jettison its historical leadership in a space that he nonetheless wants to move beyond.

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Women Shaking Up Men’s Forte “It may be difficult, not impossible,” proves these fine women of the century who gave the establishments that took them in an economic makeover. These selected women are only the tip of the iceberg, there’s a positive dynamic force on the move aiming to topple down men from their cozy chairs.

CHITRA RAMKRISHNA Chitra Ramkrishna is the first woman to become the CEO of National Stock Exchange (NSE), the biggest stock exchange in India. Her first footstep in the finance industry began with the modest beginning of a chartered accountant. She later reaffirmed it with joining the finance division of Industrial Development Bank of India (IDBI) where her surpassing excellence earned her the place in NSE. Her brief acquaintance with policy making and market regulation came in handy for NSE owing to her work for Securities and Exchange Board of India (SEBI), drafting its legal framework. Chitra Ramkrishna is also an active participator in important industry-body committees such as the CII’s National Council, FICCI’s National Executive Committee and Capital Markets Committee. Under her leadership, NSE became the 7th largest market exchange in the world with a capitalization of approx 1 trillion dollars. Elected as one of the four Indians in a list of 50 most powerful business women by Fortune, she was also titled Forbes’ Women of the Year in 2013.

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USHA SANGWAN Usha Sangwan became the first woman Managing Director of Life Insurance Corporation (LIC) of India, the largest insurance company in the country. She made history by accepting the position in an organisation that will complete sixty years of being operational next year. A direct recruit to LIC in 1981, she was academically backed by her choices in Economics and Human Resource Management. She developed an impressive profile over 30 years that involved serving as a Principal of ZTC (Gurgaon), General Manager of Marketing of LIC Housing Finance Ltd, and Director of IFCI Limited. She is currently a board member of Ambuja Cements Ltd, LIC Singapore Pte Ltd. and Additional Director of AXIS Bank Ltd. Sangwan pioneered marking LIC on the virtual domain leveraging internet and mobile, achieving selling of policies online. She also initiated taking LIC Housing Financing to the international market to bring back 29.85 million dollars by global depository receipts in 2004. LIC continues to thrive with more than 250 million lives that associated to the company.

ARUNA JAYANTHI Aruna Jayanthi is the Chief Executive Officer of Capgemini India, and a recently chosen Chairperson of the Board of NIT, Calicut. She oversees business operations of Capgemini group guiding 40,000 employees and simultaneously channelling growth and strengthening industrial and innovation sector of the country. Her has a vivid experience crossing 2 decades in IT industry on multinational companies and has pursued it with passion in an international level. Another noteworthy designation she enjoyed was being Global Delivery Officer for Capgemini Outsourcing. She rose to fame ranking third in Fortune Indiaâ&#x20AC;&#x2122;s list of 50 Most Powerful Women in Business and Business Todayâ&#x20AC;&#x2122;s list of Most Powerful Women in 2012. Aruna Jayanthi was also awarded India Today Woman in the Corporate World in 2013.

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SWATI PIRAMAL Swati Piramal is the Vice Chairperson of Piramal Enterprises Ltd, a leading drug discovery company in India. The institution she presides is an MNC with over 200 international patents which sends medicines to over 100 countries. She is also the first woman President of India’s Apex Chamber of Commerce, ASSOCHAM, assisting and influencing policies of governance. She founded Gopikrishna Piramal Hospital and Ostop India both directed at prevention and elimination of chronic diseases that were highlighted by massive health campaigns. She devotes herself to empowering women, health conditions in rural India bringing down victims of disease in huge numbers. Swati Piramal also spearheads Sarvajal foundation for clean water. Nominated eight times in the list of the 25 Most Powerful Women, she is part of the Scientific Advisory Council as well the Council of Trade of the Prime Minister. This inspiring woman for many currently serves the Board of Harvard School of Public Health, Harvard Business School, IIT Bombay, and Harvard University.

MALLIKA SRINIVASAN Mallika Srinivasan is a strategist, entrepreneur and the Chairman and Chief Executive Officer of TAFE - Tractors and Farm Equipment Limited (TAFE), India. TAFE is the third largest tractor manufacturer in the world, with presence in over 82 countries. A gold-medalist in Econometrics, she graduated from University of Madras, and the Wharton School of Business. During 25 years of her career, Mallika Srivasan substantially expanded TAFE’s product range and initiated a partnership with AGCO resulting in mutual growth for both. She pioneered the acquisition of Eicher’s tractor spurting it to growth with revenue reaching 1.6 billion dollars. Other industrial bodies led by her include Tractor Manufacturers’ Association of India, The Madras Chamber of Commerce and various positions in Confederation of Indian Industry and Indian Institute of Foreign Trade, etc. Her philanthropic endeavours include supporting Sankara Nethralaya (an eye care institution), Indira Sivasailam Endowment Fund (the traditional Carnatic music), Cancer Hospital in Chennai and other educational and healthcare facilities. She is on the Board of AGCO Corporation - USA, Tata Steel Ltd., Tata Global Beverages Ltd., Indian School of Business, and the Bharathidasan Institute of Management.

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Alibaba Sans 40 Thieves When Jack Ma chants “open sesame,” there materialises a world of banking, search engine and more importantly a market where everything under the sun can be brought online! And the story was right about Alibaba’s treasure; it’s nothing less than magical.

ead the story of a man who was rejected by Harvard ten times, yet became to be China’s richest man (until recently) fighting rejection and ridicule with sheer determination. To everybody else, it was unlikely bargain to start an e-commerce site, Alibaba launched from Jack Ma’s tiny apartment in 1999. The portal meant to connect Chinese manufacturers to overseas markets on the date of its historic initial public offering (IPO), 19 September 2014, had a market value of US$231 billion.

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“I went for a job with the police; they said, ‘you’re no good’”. “I even went to KFC when it came to my city. Twenty-four people went for the job. Twenty-three were accepted. I was the only guy...” Former English teacher Jack Ma, saw opportunity in internet when he supposedly searched for “beer” in 1995. Although he couldn’t find anything on Chinese beer, there were plenty of hits for American and German beer. This thought gave rise to the creating a global tech company that boasts of 22,000 employees and 90 offices. During its early stages, one of the daunting tasks he faced was to win the banks favour to work out a smooth payment system. Since the banks were hesitant to work with him, he developed a system called Alipay, a third-party online payment platform that transferred payments of different currencies as well as providing escrow services with no transaction fees. When Jack Ma consulted people with his idea, he was faced with, “this is the stupidest idea you’ve ever had.” Not so much, when we see 800 million people using Alipay today, contributing to half of China’s online transaction. His consumer-to-consumer portal Taobao, similar to eBay, is one of the 20 most-visited websites globally, accounting for 80% of the nation’s online sales in 2014.

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Together with its sister site, Tmall. com these two sites receive more than 100 million visitors a day.

sports, acquiring media companies and a soccer team in a pre-IPO buying spree.

The Alibaba has spread across various sections over the years, operating e-payment business, online investment funds, cloud computing and mobile services. The company also introduced themselves to entertainment and

In 2013, Ma stepped down as CEO, and chose to remain as the chief strategist to pursue philanthropic endeavours. Deriving from personal experiences, he started loan services to help and support entrepreneurs.

Former English teacher Jack Ma, saw opportunity in internet when he supposedly searched for “beer” in 1995. Although he couldn’t find anything on Chinese beer, there were plenty of hits for American and German beer.

But he has another fun face too. A Brit Beijing-based technology consultant, Duncan Clark says, “He is the opposite of stuffy and canned. He’s funny, creative and a compelling speaker. I often thought he has another career in stand-up comedy.” Once a year, the employees and customers of his wait for the muchacclaimed Alifest, a conference that resembles a rock concert. It is in one such show where he famously donned a blonde wig and wore lipstick to entertain his guests, and it becomes no wonder when featured guests like Bill Clinton and Kobe Bryant comes to participate. Whatever you might make of this wonder wan, you can always bet that there’s more to him than it meets the eye.

MICHAEL BLOOMBERG He is no ordinary ex-Mayor of New York. He was elected thrice proving the power of his personality. The rumour mills made him a Presidential candidate during the last election, but he wisely declined offers. He went back to business where his heart was. With a net worth of $36.5 billion, he is the 10th richest person in the US and the 13th wealthiest in the world.

ow Michael Bloomberg wants to be part of Indiaâ&#x20AC;&#x2122;s success story. He has foreseen the development of Indiaâ&#x20AC;&#x2122;s 100 smart cities and his role in helping to build them. He came to Delhi recently to meet Prime Minister Modi, who was more than happy to meet a foreign investor of the high reputation of Bloomberg. It was agreed that Bloomberg Philanthropies will assist the urban development ministry to select cities for its smart cities mission funding. A statement from

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PMO said the approach of this joint initiative would be different from the conventional approach. India’s urban citizens who are the stakeholders will be actively involved in the planning and execution of the projects. Bloomberg has just committed $125 million in a new global road safety initiative to cut fatalities due to accidents. India has the highest number of road fatalities in the world and Mumbai has been selected as one of 20 cities in the world where Bloomberg Philanthropies will work with local governments to tackle the menace. India has also been selected as one of the five countries to receive technical support for reviewing and strengthening road safety legislations from the Bloomberg trust. “We can prevent millions of road traffic fatalities and injuries through stronger laws, more effective enforcement and better infrastructure,” Bloomberg said in a statement. Michael Bloomberg was born in the Brighton, near Boston, on February 14, 1942. His family is Jewish. He attended Johns Hopkins University from where he took an electrical engineering degree and an MBA from Harvard Business School. In 1973, Bloomberg joined Salomon Brothers, the Wall Street investment bank, where he headed equity trading and later systems development. In 1981, the bank changed hands and Bloomberg was laid off. He was given a $10 million severance package, which he used to set up a company named Innovative Market Systems.

It was agreed that Bloomberg Philanthropies will assist the urban development ministry to select cities for its smart cities mission funding. A statement from PMO said the approach of this joint initiative would be different from the conventional approach. Market Master terminals and investing $30 million in the company. The company was renamed Bloomberg L P in 1987. By 1990, it had installed 8,000 terminals. Over the years, ancillary products including Bloomberg News, Bloomberg Message, and Bloomberg Tradebook were launched. As of 2012, the company had more than 310,000 terminals worldwide. His company also started a radio network in New York City. When he was elected Mayor, he left the position of CEO. After three terms as Mayor, he returned to his company, and wrote his autobiography Bloomberg by Bloomberg, which is a must read for management students.

His business plan was based on his firm conviction that the financial community would be willing to pay for high quality business information, delivered as quickly as possible and in as usable forms as possible, via technology.

In 2001, when the incumbent mayor Rudy Giuliani could not seek re-election after two consecutive terms, several well-known personalities decided to throw their hats in the ring. Bloomberg, a lifelong Democrat, made up his mind to run on a Republican ticket.

In 1982, Merrill Lynch became the new company’s first customer, installing 22 of the company’s

Bloomberg received Giuliani’s endorsement. He also had a huge spending advantage. Bloomberg did

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not to use public campaign funds – which the New York City laws set limits – but spent $73 million of his own money. One of the major themes of his campaign was that, with the city’s economy suffering from the effects of the World Trade Center attacks, it needed a mayor with business experience. Bloomberg won around 50% votes in a city that had 68% registered Democratic voters. His election also created history in New York City which had not seen a Republican succeeding another Republican as Mayor. No Republican presidential candidate has won the city since Calvin Coolidge in 1924. As Mayer, he declined a salary but accepted a remuneration of $1 annually for his services. He lived not in the official mayoral residence, but in his own home in Manhattan. Bloomberg was re-elected Mayor in November 2005 by a margin of 20%, the widest margin ever for a Republican mayor of New York. He spent almost $78 million on his campaign, exceeding the record of $74 million he spent on the previous election. On October 2, 2008, Bloomberg announced he would seek a third term by amending the law. His argument was “Handling this financial crisis (2007-08) is a challenge I want to take on … I plan to ask New Yorkers to look at my record of independent leadership and then decide if I have earned another term.” On October 23, 2008, the City Council voted 29–22 in favor of extending the term limit to three consecutive four-year terms. And Bloomberg defeated his rival by a vote of 51% to 46%. Bloomberg was mentioned as a possible presidential candidate in 2008 and 2012, and as a candidate for New York Governor in 2010. He denied all speculations, and returned to Bloomberg LP, after a stint as philanthropist.

The Greatest

Innovators

Of All Time

ed Turner once said if he only had some humility, he’d be perfect. To carry a multinational corporation, you also need creativity, hard work, leadership and a dozen of other traits to rise above the competition.

Steve Jobs

Nikola Tesla

The iconic American entrepreneur and founder of Apple will go down in history as one of the great innovators. As CEO of Apple in the 1980s and again in the late 90s and 2000s, Jobs played a central role in the personal computer revolution and in developing its key products, including the McIntosh, the iPod and the iPhone.

A great inventor, engineer, and futurist, Tesla helped develop the AC electrical delivery system. Infamous for his wild experiments and colorful personality, Tesla’s creative work regarding the production and transmission of power was far ahead of his time.

Innovation is the process of creating something new that makes life better. Innovation is impossible without passion. Innovators see the world differently. Here’s a list of the greatest innovators of all time:

Thomas Edison

Richard Feynman

One of the most significant innovators and inventors in American history, Edison is perhaps best known for inventing the first long-lasting, commercially practical incandescent light bulb. He was the father of many other breakthroughs, including the first phonograph and the motion picture camera, and he was influential in developing the first economically viable way of distributing light, heat, and power from a central station.

One of the great scientists of the twentieth century, Feynman’s breakthrough ideas in Quantum theory helped revolutionize that field.

The Wright Brothers

Orville & Wilbur Wright invented and flew the world’s first successful airplane in 1903. Their persistence, experimentation, and work on the principles of flight made them legendary inventors and innovators.

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Bill Gates

One of the great businessman/ philanthropists of the last century, Gates founded and built Microsoft into an unmatched software behemoth before leaving to state the Bill and Melinda Gates foundation, a multi-billion dollar philanthropic enterprise working to enhance global healthcare and reduce poverty.

The legendary Italian genius whose breakthrough ideas helped usher in the scientific revolution in the seventeenth century, Galileo is often called the father of modern science. Forced to defend his views of heliocentrism against the Roman inquisition, and spending most of his life under house arrest for heresy, Galileo has become an icon of scientific integrity in the face of religious dogmatism.

Benjamin Franklin The original â&#x20AC;&#x153;Renaissance man,â&#x20AC;? Da Vinci is best known for his paintings (the Last Supper, the Mona Lisa) but he was also a philosopher, engineer, and inventor. He left behind him a collection of extraordinarily prescient drawings depicting future technologies (helicopter, tank, solar power).

Marie Curie One of the founding fathers of the United States, Franklin was a brilliant polymath, inventor, political theorist, scientist, statesman, and writer. He had a prodigious scientific mind, and his interests varied widely, but in addition to politics, he is perhaps best known for his experiments with lightning and electricity. The first female winner of the Nobel Prize in 1903 (she won it twice in both physics and chemistry), Curie was a pioneering physicist and chemist who is known for her breakthrough ideas in radioactivity and her discovery of two elements.

Leonardo Da Vinci

Alexander Graham Bell

Sandford Fleming A Scottish inventor and engineer, Bell was awarded the US patent for the telephone in 1876. His work on telecommunications, aeronautics, and many other areas (he invented the metal detector) earned him a reputation as one of the great figures of the nineteenth century.

Galileo Galilei A Scottish-Canadian innovator and inventor, Fleming used his engineering, surveying, and mapmaking skills to help build the transcontinental railways of the nineteenth century. He was also the inventor of worldwide standard time and the standard times zones used today.

Money Plant | April - May 2015

How Do You Rank World’s Best CEO’s That’s a tough question – you know it already. But you also know it’s a panel of experts who pick the best CEOs and award them. But there is something you ought to know, which is about the criteria of selection that could affect you.

nce it was thought that the best CEOs are the ones that produce the best financial results. Any CEO who maximize the shareholder return and market capitalization is considered the best – but no more. Harvard Business Review picked up 100 Great CEOs following the financial results criteria and found something was amiss. The impact of these CEOs on their employees, communities, governments and society at large does not figure in the criteria. In other words, their leadership role was given a miss.

So the non-financial metrics was brought in to fine-tune the result. To develop consistent and reliable data, we now rely on a scientifically developed and standardized survey instrument designed to gauge public perceptions of companies on seven dimensions: finance, leadership, workplace, citizenship, governance, products, and innovation. What became to known as the RepTrak scorecard. Companies now need to understand what value they are creating, not only for their investors,

but also for their employees, customers, and society at large – and they need to know how their reputations reflect this net value creation. Experience shows that companies with higher reputations would tend to financially outperform those with lower reputations. On average, it was found that high-reputation companies have higher returns, deliver higher earnings multiples, have higher market/book ratios, and have a higher Enterprise Value/ EBITDA ratio – the key measures on which investors assess corporate performance. But there is no linear relationship between financial and nonfinancial measures of performance; companies that deliver strong financial results do not always have good reputations with the public, and vice versa. Some CEOs see significant drops in ranking when we factor in the weak non-financial performance reputations of their companies The fact that financial performance and nonfinancial performance reputation do not correlate among the top 100 CEOs underscores why it is so important to keep refining our non-financial metrics and ensuring their rigor. And if both kinds of metrics are important to take the measure of a company, they may matter even more to assessments of a CEO’s tenure. The most holistic measure of a CEO’s contribution over his or her tenure would be a reliable answer to one question: How much better or worse is the overall reputation of the company compared to the day this leader stepped into the role? A great CEO’s legacy is never as onedimensional as the ledger.

Money Plant | April - May 2015

INTERVIEW

T. N. Ninan T.N. Ninan, Chairman and Editorial Director of Business Standard, is one of India’s much respected economic editors. He was the editor of The Economic Times and executive editor of India Today. Winner of B.D. Goenka award for excellence in journalism, Ninan was also the media advisor of Prime Minister Manmohan Singh. “India definitely a country of future”. Do you share Paul Krugman’s optimism taking in account of our current scenario? Yes, if we do the right things. The potential is there, but we have to do better on macro-economic management, human development issues like health and education, and on building the country’s physical infrastructure. In your opinion, what are the sectors likely to do well in the coming decade? The less risky sectors have to do with the consumer. As the size of the middle class grows, consumer

Money Plant | April - May 2015

spending will grow faster than GDP. So everything from auto to retail banking, home gadgets, internet-related businesses like e-commerce, etc. Also, export sectors where the advantage of low-cost educated work-force is a factor (tech, pharma, etc). What are the changes you expect in 2015? So far we have seen a change of mood, and stock market optimism. However, there is no real change on the ground. Our key macroeconomic numbers will improve— inflation, fiscal deficit, and current account deficit. What needs to be

done after that is to show revival of growth. How realistic are our policy makers to expect a “$20-trillion economy” vision shared at the ET Global Summit, 2015? That is not a serious target, just a way of saying ‘from 2 to 20’. There is no economy in the world as big as that. If we grow at 8% a year, it will take us till 2045 or so. No one can plan for such a long-term perspective; there are too many variables and uncertainties. It would be more productive to see if we can get to $3 trillion in 5 years, which is the life of this govt.

Poornima Vardhan

Prior to 335th, Poornima was the Brand Head of Indiaâ&#x20AC;&#x2122;s first and largest luxury brand, Satya Paul, heading the accessory division, brand strategy and retail planning. Poornima has an expertise in brand strategy, financial structuring of business and management and is an active mentor and advisor to many start-ups globally. Poornima holds an MBA in Finance from The Wharton School, and Masterâ&#x20AC;&#x2122;s in Operational Research from London School of Economics.

Money Plant | April - May 2015

The “new India” concept promises a rise in opportunities in the consumer sector. Do you agree, if yes, what are your visions on the same? I think this is an excellent time for the industry and the consumers. Let’s take a brief look at the Industry statistics:

Amazon in India. However, we are yet to see successful online brands emerge in the country, a very popular trend in the US. We at 335TH plan to establish ourselves as the biggest Asian online retail brand. What sets 335th apart from the rest of its competitors in online merchandising?

1. The total consumer expenditure is estimated to be Founded in 2014, the brand reflects USD 3.6 Trillion by 2020; CAGR the vibe of Modern India. 335TH is founded on a fundamental principal: of 13.9% create a collection of iconic 2. Indian retail is one of the essentials women and men would fastest growing markets in the want to wear every day with a focus world due to economic growth on distinctive design, enduring style with a CAGR of 15% and uncompromising quality.

3. Favourable government policies will boost investor confidence in the sector.

With an obsession for detail, we offer differentiated products refining each one through creative and technical thinking and extensive 4. India rates fifth in market R&D. Every 335TH garment is potential after US, China, Brazil delicately designed to help you give and Canada. the perfect fit.

We can clearly see that India’s strong growth fundamentals, along with increased urbanisation and consumerism, offer immense scope for retail expansion. Personally, I am very optimistic about rising prominence of online retail in the country. We are already witnessing the huge growth potential with third party aggregators such as Flipkart, Jabong, Snapdeal and now

Money Plant | April - May 2015

We have conceived the concept of “10 am to 10 pm” dressing. Given our fast paced and on the go lifestyle, we help you put your most stylish and confident foot forward at all times. As an entrepreneur coming back to India after a period of studying and working abroad, what were the challenges offered by the market?

One of the biggest issues I faced when I moved back to India was access to high quality professionals. While working on an innovative idea it was a challenge to convince people to join us in the beginning. Initially, I got all my employees to work part time since we were developing the concept and products. The startup relies immensely on Research and Development (R&D). Each product goes through extensive R&D in the areas of fabrics, fits, construction and other details. It has taken some time and a few hiring mistakes but I feel lucky to have an amazing team. If you could start another venture in this country in ten years, which industry would you choose, and why? I am already working on developing the concept of my next 2 ventures: one is a mobile styling that aims to disrupt the personal styling industry and the other one is in the IOT (Internet of things) space. Beauty and wellness ranks amongst the top 10 in the global industry of the future. I see a huge market gap in personal styling that I want to work on. I am also very passionate about IOT. It is and will be one of the highest growth industries in the next 20 years. I have identified a few opportunities and I am in the process of crystallizing them.

Exclusive Interview

Bobby Chemmanur

Bobby Chemmanur is the Chairman and Managing Director of Bobby Chemmanur International Group. He is a motivational speaker, better known for his social works, a recipient of awards from Limca and Guinness world records. He was recently selected as universal peace ambassador from India by Universe Peace Federation. Your company has seen an impressive growth with retail outlets mushrooming in national and international territories, what drives you? I would say a good part of what I accomplished came natural to me. I developed it further by interacting with other business people, sharing and using the knowledge that I gathered from them. But what fuelled my enterprise is my passion for marketing and advertisement, which is the backbone of any business. But as a businessman, what really keeps me going is the charity work that I have undertaken. Unlike most of charitable ventures, I don’t intend to take in donations. People make contributions on political, religious reasons, but for me I have no religion, caste, politics, or any other separations. I need to work and make more business so that I can reach out to more people and extend a helping hand. You’ve built a business empire, but you’re more known for our community welfare initiatives. Where do you see yourself? How do you personally like to be known as?

Even though I’m a businessman, I would like to be known as a philanthropist or a humanitarian. There comes a time when you fail to find happiness in business, and that’s when you realise the importance of love. We can never get tired of loving, it’s endless. After reading Mother Teresa’s books, I realised that the path to eternal happiness happens through love. Everything else would fade away in time. I am also an avid fan of sports, life, entertainment and enjoyment. It’s all there in me. What constitutes your business mantra? Follow-up: Once I was at Delhi trying to meet a Union minister, but unfortunately it didn’t happen. Back then, I held on the superstition, lose on first try and you’ll win on your third. While I waited an older gentleman walked up to me after a meeting with the minister. He saw me, asked what happened and when I told him I didn’t get a chance, he said: “You do followup, beta. You can meet. This was my sixth attempt” That words gave

Money Plant | April - May 2015

“Love is endless. After reading Mother Teresa’s books, I realised the path to eternal happiness happens through love. Everything else would fade away in time.” me perspective, and sure enough, I got to see the minister on a later day. And after that, I shed my superstition and never gave up on anything. Opening 35 branches and becoming the first Indian to run 812kms were all achievements I earned through this mantra. What’s your greatest ambition? My biggest dream is a world without orphaned people. I have 3 shelter homes so far where we provide for the homeless, the unhealthy and the needy. I make sure that the foods provided in such homes are of the same standard of what I consume, giving it a sense of equality. I’m working on expanding such care centres and poor homes around the world, and save maximum people. I do sports, and the God-given strength in me to accomplish such causes. Are there other projects spearheaded by you besides charity and social welfare? I’m looking forward to enter the construction field. We have 70acres of land which will be developed into a township. The project will see flats, villas, schools, hospitals, and other institutions.

Money Plant | April - May 2015

Smartest of The Lot “Nothing’s more expensive than a missed opportunity,” says H. Jackson Brown, Jr., a truer statement if there ever was. A prerequisite for which was identifying an opportunity that knocks at your door. Here are five companies who recognized a potential in a non-existing market, to bring out the best for both parties.

Attero

The only Indian company, and one among seven globally that extracts metals from e-wastes in their purest forms. Attero, the largest e-waste management company in the country tackles the electronic waste accumulation by patent pending technology, recognized by NASA’s technology innovator. This was a much needed solution for emerging economies which lack high-capital smelting plants, as they become consumers to the world’s e-waste outputs. Brand mantra : Leverage technology for social and environmental benefits. What they do : Attero apart from managing e-wastes also

integrates the recycling sector by setting up an effective e-waste take-back program, through training and consumer e-waste collection/awareness events. Other customized solutions offered by the company are electronics asset recovery, data security and electronics reverse logistics along with repair, refurbishment and retailing of electronics. HQ and Reach : Attero has its coporate office in Noida, Uttar Pradesh. Attero collects e-waste from more than 500 cities, connecting 22 states with equipment manufacturing partners like Samsung, Wipro, Bosch, Siemens and 500 other bulk consumers.

Money Plant | April - May 2015

BUSINESS

Mitra Biotech

A medical breakthrough that the world needed, that is what Mitra Biotech has to offer. Two Indian-origin scientists, Mallik Sundaram from Harvard Medical School and Pradip.K.Majumder from Massachusetts Institute of technology dreamt of a cancer treatment that could give better results by tweaking the current system. They founded Mitra, â&#x20AC;&#x153;your friend in the fight against cancerâ&#x20AC;? in 2009 gifting themselves to humanity. Brand mantra : Care - to enhance the quality of life for all patients with cancer by selecting the most optimal treatment plan; and integrity - consistent value addition, the right way. What they do : Mitra developed CANScript, a multidimensional laboratory that cultures tumour

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cells in artificial environment similar to human body. Drugs are then introduced into it and tested for response. A data is collated based on targeted drug action and its response enabling physicians choose drug combination for specific patients. A biopsy sample provided 20 hours of surgery to their Biotechlab would give the exact combination of drugs for the patient within a week. HQ and reach : Mitra has its base in two countries â&#x20AC;&#x201C; Bengaluru in India and Chicago in US. With the elimination of chemotherapy and the progress, Mitra has attracted investments from Kitven, Accel Partners, India Innovation Fund and Tata Capital. The company will also be expanding to Switzerland and Japan.

Zipdial

Featured in “The World’s 50 most innovative companies in 2014”, Zipdial was on the news for becoming Twitter’s latest acquisition in January. Launched in 2010, Zipdial was the brainchild of California-born Valerie Wagoner, who was interested in the developed system of “miss calls” practiced widely by Indians. Instead of making a call, people intentionally hung up phone calls after one or two rings conveying messages without actually conveying. Brand Mantra : Mobile marketing solutions for entire brand lifecycle.

What they do : The company provides a phone number to its clients who use it for print ads or TV commercials. Customers leave a “miss call” and get themselves register the company’s attention for free of cost. HQ and Reach : ZipDial has its headquarters in Bengaluru. Apart from banks offering the service to check their bank balance, it has also accomplished an impressive clientele such as Unilever, Disney, Gillette, Amazon and Facebook to mention some.

Cloudnine The infant and mortality rates in India aren’t flattering. That’s where Cloudnine comes in with a whooping 0% maternal mortality rate and 99.72% survival rates across 16,000 deliveries. Winner of multiple awards such as the Mother Teresa’s Excellence Awards and Australian Service Excellence Awards, this newly formed company recently scored $16 million in a funding round led by Sequoia Capital. Brand mantra : To be the kind of leader in the space of women and

health, by providing premier quality healthcare to women and children. What they do : Their hospitals provide the best of pregnancy, neonatal, infertility, gynaecological paediatric, high risk pregnancy and new born intensive care. Apart from these, they also have specialized units for fetal medicine and workshops for first-time parents. HQ and reach : Originally based in Bengaluru, Cloudnine has networks spread across Chennai, Mumbai, Gurgaon and Pune.

Money Plant | April - May 2015

Goonj

This NGO was founded in 1999 by Anshu Gupta, the awardee of India’s Social Entrepreneur of the Year in 2012. Goonj had its inception with the campaign ‘Not Just a Piece of Cloth’ (NJPC), and it got its greatest push after the 2004 tsunami, winning international awards from NASA, Nike and US Agency for International Development. They continue to bridge the gap of the neediest of the society by providing infrastructure and local developments. Brand mantra : providing disaster relief, humanitarian aid and community development. What they do : The organisation built a network of providers to

Money Plant | April - May 2015

deliver 1,000 tons of material every year to the poor through a group of 500 volunteers and 250 partners. Their School-to-school initiative negates the lack of infrastructure an educational material of rural schools by using under-utilised material from country’s affluent schools. Besides these efforts, they vehemently strive to bring the best of resources to areas of natural calamity. HQ and reach : Goonj has its roots in Delhi, which now spread through 21 states across India in. Their biggest achievement lies in evolution of two powerful currencies made for development: labour and material.

The ‘Job’ Strategy!

Money Plant | April - May 2015

teve Jobs created a world of on his own, and led people into it. One man, having high school graduation for qualification, born to parents who left him for adoption and facing the worst in his life, he became the man who won against the condescending life that never gave up. “I want to put a ding in the universe.” And he did. Steve Jobs was fiercely loyal to himself and the empire he built, and he made sure his company policy ensured it too. He forged an effective team who believed in making an actual difference that mattered in the bigger picture. Revenue is one thing, but quality is an uncompromised promise. Talent within Apple was made contagious to become a prerequisite accessory. Quality in personnel proportionally inspired the others in the peer groups to come up resulting in an efficiency- saturated workforce. From the time the people present themselves to the company, test them with a challenge to see how well they perform. “Sometimes life hits you in the head with a brick. Don’t lose faith” Steve Jobs is a classic example of when-life-gives-you-lemons. Born out of wedlock to parents

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who were still in college, Steve Jobs was given up for adoption. His dropped out of college, returned coke bottles for food money and lived on weekly meals at the local Hare Krishna Temple. He was later fired publicly from Apple, the company he founded. He later returned as CEO after Apple bought NeXT, the company Steve founded in the meantime. Steve Jobs, clearly, was no whiner. He didn’t let the circumstantial disadvantage get to him, instead went to become the CEO of one of the biggest companies of the world, inspiring people to get back on their feet throughout the world. “Design is not just what it looks like and feels like. Design is how it works” This self explanatory quote goes a long way. Apple longterm strategy is worth noting for its farsightedness. It was one of the first companies to produce whole of its required components instead of outsourcing it to other manufacturers. All parts of it, every component was made by the parent company, eliminating external factors and centralizing their product to a single, wholly zero compromised output. “Innovation distinguishes between a leader and a follower” Steve Jobs knew the never

stopped believing in himself. He knew his capabilities and constraints yet choose to pursue his dreams engaging in a vehement war against reality. Secondly, he was immune to discouraging words which has the potential to weigh us down. Deciding on someone else’s point of view is like being coerced into getting into a train while you wanted to board was a different one. The lesson here is to use the available resources to the maximum to extract something that would change the scenario for your competitors. “Older people sit down and ask, ‘What is it?’ but the boy asks, ‘What can I do with it?’ “ Simple as it sounds, “don’t lose perception”. Technology and life around is constantly evolving at a mad pace, each trying to catch up with the other. Which means, you too are inadvertently a participant of the race, and it is upto you to stay ahead of time. Mastering technology is not just the solution; mastering an idea is. And importantly, questioning that idea. To conclude, an average consumer of this era is aware of the product they want, down to its specifications. They research, ask opinions and the product you have to sell should have substantial attraction that convinces them to take that leap of faith.

Steps to take before you Start-up!

Money Plant | April - May 2015

eing an entrepreneur is no cake walk. In fact, in order to be cozy lifestyle you visualize in achieving takes a lot of time and sweat. Some has made it big with new businesses, some unfortunately, has not. It’s a thin line between winning and losing and here’s a list of what makes that line.

Know your market You might have imported eggs to sell, but what if majority of your target audience prefers a vegan diet? A research on the necessity of the product and study on the audience mentality goes a long way. Speculation of statistics is a bad idea, get out and understand the market like the back of your hand. Ensure there is a demand for the product in the market before you commit and that demand could be equated to profits.

Reality-check You might have a framework on how to go about with the venture.

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MINDSET But before you start implementing them, consult people who run similar kinds of business both amateur entrepreneurs as well as established ones. There might be some important aspect that you missed in your planning, or a helpful advice that you could use from an experienced mouth. Use online space to interact with business instigators from around the world to explore more.

Partnership vs. one man show Decide before the commencement whether you will be the one to call the shots or you need a shoulder to share the burden. Often, the right partnership aids in the flourishing the business than you anticipated. One key aspect in picking the right partner is to ensure that the person shares the same goal with adequate passion. It’s better to have divergent strengths among partners, if the other person excels in something you lack in for the business, the better.

Know your budget

You can’t start a business without capital. And capital to invest is the most crucial element that you need to invest time in considering. If you need an investor for finance, plan ahead with a business plan without approaching. Take an account of the possible sources that you can fall back on, the amount that you could risk investing without rocking your ship. Don’t be hasty or have unrealistic expectations on return of investment (ROI) as it takes time to reap what you sowed, especially when it is new to the market.

Be legally-proof A business license in itself is inadequate in the absence of additional permits that you get depending on the nature of your business and local legal system. In India, it starts with a Director Identification Number (DIN) which then crisscrosses between registration of taxes and ending with medical insurances. Sometimes entrepreneurs convince themselves of being legally covered until faced with a rule

they didn’t know existed. Don’t assume, research every bit of legal constraints that you might have to clear off from your path.

Building your team The execution of your grand plan greatly depends on the designated workforce. Choose and build a professional team which makes the company better: The HR consultant, legal advisor, accountant, consultants and similar human personnel with potential. Like-brained individuals who share an appetite of commitment will lead the company to success.

Fall back on the right people It may be deemed that entrepreneur‘s face the business world single handedly and that their

journey to make ends meet is quite solitary. This holds some light but it is also considered necessary to have the support and help of loved ones for the accomplishment of one’s goal and for the well being of the emotional health. Margaux Guerard, co-founder and CMO of Mem, says, “As an entrepreneur, you just can’t do this alone. You need the mental and emotional support of your friends and family to help you weather the storm.”

Hone it with constructive criticism Seeking advice is not just flattering for the recipient but a necessity for growth of a company. Feedback always provides a perspective and an angle that might not have occurred to you before. There’s never a shortage for people whom

you trust who could come up with suggestions and alternate ideas. While some might get overbearing, listening it with an open mind might just provide you with something you have been looking for.

Network and connectivity Network and connectivity are the much guardians of every business. The people you meet might in future become a potential client, partner or light-bearer in your business. Talking to them would also help you gauge where you stand and work towards polishing your weaker areas. Likewise, it’s equally important to acquaint your company to people. Start a website, build a solid profile and update its contents occasionally.

Money Plant | April - May 2015

Tackling troubles with positivity

hile we canâ&#x20AC;&#x2122;t exercise a Zen mentality in our workspace often, it is a crucial growth factor that compliments business. Itâ&#x20AC;&#x2122;s not overrated gimmick that stress busters advertise anymore, rather it has proven benefits that practically contributes to your overall lifestyle. The best of the business are practitioners of maintaining a healthy warm attitude and they consider it one of their biggest assets.

Make it a practice Looking at the bright side is a ritual that needs to be practised. Occasional triumphs at maintaining your cool would not provide you a permanent sense of calmness, but leaves you with a false sense of accomplishment. Exercise having a positive outlook of things, and

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it is contagious. People closely associated with you – co-workers, employees and family would gradually sync in with you to its tune.

Reach of contentment Positivity essentially works by trickle down effect. If you are happy with the output your company and you take a minute to appreciate the effort, it will substantially increase next time. While the contribution of employee happiness is well-known its effect, the channelling of it by the boss is less explored. Irate and constantly dissatisfied employer sets a bad example and brings down the morale of the team. On the other hand, a cheerful and supportive boss, who tolerates minor slowdown in business, and doesn’t penalise employees for it and inspires them to achieve better.

Breathe and Smile While it is a much clichéd idea, it nonetheless remains true. Let’s look at what science has to say for the matter. When we are in good spirits, our mental perspective ceases to be self-centred and becomes a broad spectrum that accommodates better ideas. Negativity on the other hand, weighs us down tensing our body causing stress, fear or

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restlessness. Both these promised activity has the power to release our body of anxiety that mounts during turbulent times.

Building inter - personal chemistry Every company has an inherent work culture that is unique to the system. Some maybe exuberant, while others might exhibit a neutral or dull approach. Building a positive chemistry between your workforces is important as positivity cannot just project itself vertically. It runs in all directions, vertical, horizontal as well as diagonal. A system has to be developed that offers compliments, positive exchanges and offers emotional support among its peers. In his book Social Intelligence: The New Science of Human Relationships, Daniel Goleman explains that heightened prefrontal activity, which is associated with positive emotions, enhances mental abilities such as â&#x20AC;&#x153;creative thinking, cognitive flexibility, and the processing of information.â&#x20AC;? Interestingly, the benefits of the advertised positivity can be observed in a short span of time. There will be significant improvement in the thought processes, coordination with others, better clarity with ideas and much better concentration.

Money Plant | April - May 2015

Top 10 Mergers & Acquisitions of 2014

ften seen together, Mergers and Acquisitions are a different ball game. A merger involves two corporate entities joining forces and becoming a new business entity, with a new name. It usually involves two companies of same size and stature joining hands. An acquisition, on the other hand, involves one bigger business taking over a smaller company which may be absorbed into the parent company or run as a subsidiary. The company being taken over is referred to as the ‘target company’ in the corporate world. Some of the most happening mergers and acquisitions in India in 2014 are listed below:

Together, both company heads claimed, they were scripting “one of the largest e-commerce stories”. olves one bigger business taking over a smaller company which may be absorbed into the parent company or run as a subsidiary. The company being taken over is referred to as the ‘target company’ in the corporate world.

RIL - Network 18 Media and Investments

Some of the most happening mergers and acquisitions in India in 2014 are listed below:

Asian Paints Ess Ess Bathroom Products

Flipkart- Myntra

Reliance Industries Ltd (RIL) took over 78% shares in Network 18 in May for Rs 4,000 crore. Network 18 was founded by Raghav Behl and includes moneycontrol.com, In.com, IBNLive.com, Firstpost. com, Cricketnext.in, Homeshop18. com, Bookmyshow.com while TV18 group includes CNBC-TV18, CNN-IBN, Colors, IBN7 and CNBC Awaaz.

Merck - Sigma Deal

This is the most sensational acquisition of the year. The 7-yearold Bangalore based domestic e-retailer acquired the online fashion portal for an undisclosed sum in May 2014. Industry analysts and insiders believe it was a $300 million or Rs 2,000 crore deal.

Asian Paints signed a deal with Ess Ess Bathroom products Pvt Ltd to acquire its front end sales business for an undisclosed sum in May. Ess Ess produces high end products in bath and wash segment in India and taking them over led to an immediate 3.3% rise in share price for Asian paints.

Money Plant | April - May 2015

Leading Indian manufacturers, Merck KGaA took over US-based Sigma-Aldrich Company for $17 billion in cash, hoping the deal will help boost its lab supplies business. Sigma is the leading supplier of organic chemicals and bio chemicals to research laboratories and supplies groups like Pfizer and Novartis with lab substances.

worth Rs 2,000 crore. TCS – the $13 billion flagship software unit of the Tata Group – is already holding a 51% stake in CMC.

second largest private dairy company in South India. Lactalis acquired 100% of their shares.

Tata Power Aditya Birla Minacs PT Arutmin Indonesia CSP CX

Ranbaxy - Sun Pharmaceuticals

Sun Pharmaceutical Industries Ltd, an MNC headquartered in Mumbai, has bought Ranbaxy Laboratories. Ranbaxy shareholders will get 4 shares of Sun Pharma for every 5 Ranbaxy shares held by them. The deal, worth $4 billion, will lead to a 16.4 dilution in the equity capital of Sun Pharma.

Tata Power, India’s largest private power producer, has purchased 30% stake in Indonesian coal manufacturing firm for Rs 47.4 billion. Earlier this year, they sold off 5% of its stake in PT Arutmin Indonesia (Arutmin) and PT Kaltim Prima Coal (KPC) for Rs. 250 billion due to falling coal prices globally.

Tirumala Milk Lactalis

Aditya Birla Nuvo Ltd (ABNL)owned ABNL IT & ITeS Ltd. Was sold to a Canadian-based technology outsourcing firm marking Aditya Birla’s exit for the IT industry. The deal was chalked out with a group of investors led by Capital Square Partners (CSP) and CX Partners (CXP) for $260 million (roughly Rs. 1,600 crore).

Sterling India Resorts - Thomas Cook India

TCS - CMC

Tata Consultancy Services (TCS) has announced a merger with CMC in its efforts to consolidate its IT businesses under a single entity. At present, CMC employs over 6,000 people and has annual revenues

Money Plant | April - May 2015

The largest dairy player in the world, Groupe Lactalis SA, acquired the 18-year-old Hyderabad based Tirumala Milk products for a whopping Rs 1,750 crore ($275 million) in January, 2014. Founded by D Brahmanandam, B Brahma Naidu, B Nageswara Rao, Dr N Venkata Rao and R Satyanarayana, Tirumala is the

Billionaire Prem Watsa-owned Thomas Cook India bought the Sterling Resorts India for Rs 870 crore. This marks Thomas Cook’s entry into the hospitality sector. Thomas Cook had earlier acquired Ikya Human Solutions in 2013.

Will You Sign Your Virtual Death Sentence?

ealing with death remains the hardest emotional challenge known to man. Our ways of coping no longer rests with a framed picture on the mantelpiece, or a frozen image in a pendant. They transmuted to becoming digital copies, wallpapers, tattoos and custom T-shirts. Last decade saw an option of pressurising departed one’s ashes to turn them into diamonds. Dust-to-dust trudging its way to redefine itself as carbon-to-carbon. Humanity never ceases to evolve, and it’s a curious thing to watch them grow. The latest of the gimmicks is to have a post dead profile in the online sphere. In the event of death, the options for our online profile are letting it be, and deleting it. But it’s not simple as it looks. Leaving the profile as it is would result in having an “active” account that could, in some cases,

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DIGITAL IMMORTALITY send automated requests/notifications to friends or family. Spam mails, for example, sent from an expired user’s account could be an unnecessary reminder of your loss. While at the same time, removing the personal profile takes away the chance to preserve what the person left behind. The second option would be annihilating your digital remains, everything decisive clicks that you’ve made. Gone. In the book, Your Digital Afterlife: When Facebook, Flickr and Twitter Are Your Estate, What’s Your Legacy? by Evan Carroll and John Romano could illuminate this idea better :

“You are the arbiter of what belongs or does not belong. Increasingly, the things you gather for that collection are digital. This includes both things that you have obtained and things that were sent to you. Songs you’ve downloaded on iTunes or email messages you’ve received are good examples. These things were created by someone else, but you have a copy of then in your digital collection and your copy is exactly like theirs. That’s one of the most powerful ideas about digital files: Two can exactly be the same”.

Artifacts of Your Life (pg.36)

In the absence of a unified legal framework, companies adopt different policies to deal with deceased user accounts. Facebook, this February introduced a new feature “legacy contact” which enables its users to pick someone to ‘inherent’ their account, in the event of their demise. The obvious elephant in the room is, while implicitly trusting a spouse/ friend to run your show is a touching gesture, to what extent is it practical? Updating/using an expired user’s account could be an emotional anchor that the assigned person didn’t want to deal with. Instead of moving on, they are sentenced to a life of replicating another’s. And even if it taken in the right stride, the adopted identity is mutually exclusive to its new found user’s subconscious. The second most important question, is defining boundaries of identity. Every click we make and every updates we leave on the internet, becomes extension of our digital identity. Trying to save your digital legacy therefore, would mean to preserve that alternate version of yourself, created by you. It surely a good way to remember thoughts and ideas shared by greatest minds of the century, say Robin Williams. Would we still find his one-liners updated real-time just as authentic and receive with same mentality? To conclude, being on the virtual sphere gives you the best exposure that you can get in life. And the decision whether to stretch to eternity is ours to make. Narcissism is one thing, but is digital legacy pushing it ?

Money Plant | April - May 2015

Mergers & Acquisitions

reating Value from Mergers and Acquisitions focuses on the unified integrated framework, which many contemporary authors overlook. The author, Sudi Sudarsanam, believes this framework is critical because the evidence, over a long period of time, suggests that the majority of the deals don’t work. They destroy value, rather than create value. In a mega merger deal, a lot of people are involved. There are people who strategise, there are lawyers, accountants, tax people and so on. Then there are people who are implementing the mergers. And while this is done, there are people who are involved in an interface with the external players, like investment bankers, regulators and so on.

Creating Value for Mergers and Acquisitions By Sudi Sudarsanam Prentice Hall, USA

Mergers & Acquisitions involve trillions of dollars. Companies spend a lot of money buying other companies – so if they don’t get the deal right, they don’t do all the stages right, then they are going to lose money, destroy value.

So it’s a transaction that involves a wide range of functions at different stages. If things are going wrong – or right – then all must hang together. So there must be an integrated perspective. Often, this integrated perspective is missing. You get fragmented perspective. On the face of it, an M&A is a high risk transaction. But the important question is, where does this risk reside? At what stage of the process? Is it that they get the strategy wrong/right, or is it that they implement it – they don’t integrate it properly? Or is it because they overpay, because the investment bankers advise them to overpay, so they don’t step back

Money Plant | April - May 2015

BOOK REVIEW

and question whether they are overpaying or not. For example, the Vodafone deal for Hutchison in India. This company was being valued for $12 billion about six months ago, now Vodafone has paid $19 billion in six months. So how do you explain that $7 billion of value have been added, at least in the opinion of this company? So how do these companies measure this value that they are going to create and could they go wrong in doing that? And even if a deal looks great on paper, it could go haywire when you come to the execution stage. So you have to look at the concept stage, the deal making stage, the implementation stage together, so that you can identify exactly where the risks are – where the risks are greatest and where the risk can be better managed. So that was the motivation. The book has treated M&A as a process rather than a deal. It is a process for which the organisation must be ready, both before the deal is done and after the deal has been

Money Plant | April - May 2015

The fundamental principle which runs through is value creation. How do you create value from a merger or an acquisition? So the important question to ask is what is a merger or an acquisition supposed to deliver? How does it create value? done. In the last forty years, we have had waves of mergers and disillusionments. There is a euphoria when you do the deal, but when it comes to the nitty-gritty and actually implementing, then it is a huge challenge and many of the companies fail to do that, so they regret having done a deal. It doesn’t stop them from doing the next deal, but there is always a regret at the end of it. It doesn’t deliver the promise that you expect from this kind of deal making. I mean suppose $1 trillion are spent on M&A and 60% of the deals don’t make money – that is a huge waste of corporate resources. The fundamental principle which runs through is value creation. How do you create value from a merger or an acquisition? So the important question to ask is what is a merger or an acquisition supposed to deliver? How does it create value? It can only create value if it is a means of delivering corporate

objectives, corporate strategy objectives. So the starting point is corporate strategy – what do you want to achieve by doing a merger with another company? Why can’t you survive on your own? What makes it impossible for you to survive on your own? What makes it desirable for you to merge with another company? What do these two companies bring in that will enhance your collective competitive advantage? So that is the starting point. The next thing is even though you may have a good strategy, it doesn’t mean that you are well prepared to handle the different aspects of M&A, so you need organisational resources and capabilities – to do a good strategic evaluation, to do a good deal, negotiate a very tough deal, that you don’t overpay and then subsequently integrate. And you also have to have the capability to learn from the past deals, you know the disasters, as well as the triumphs. But organisations are very poor at learning for a variety of reasons. They don’t have a good organisational learning process and if you don’t do that you tend to repeat the same mistakes. So, you can’t avoid failing M&A. So that is the motivation – how do companies conceive M&A as an instrument for delivering corporate strategy and how do they proceed once they have identified M&A as an instrument, how do they go about picking the right target, paying the right price and doing the right integration so that at the end of the day, say two or three years down the road, you can say, yes that was a great deal and we did a great job? Not only in picking the right target, but in getting the two companies to work together and delivering corporate objectives. And creating value for stakeholders.

The Greatest Happiness Of The Greatest Number Why Nations Fail : The Origins of Power, Prosperity and Poverty By Daron Acemoglu & James Robinson (Profile Books Ltd, UK)

Why are some nations rich and others poor? Does culture, the weather, or geography make the difference?

one of these factors is either definitive or destiny.

Botswana has become one of the fastest-growing countries in the world, while other African nations, such as Zimbabwe, the Congo, and Sierra Leone, are mired in poverty and violence. The fact flies in the face of culture, or weather, or geography contributing

to a countryâ&#x20AC;&#x2122;s prosperity. In their brilliant and engaging book, authors Daron Acemoglu and James Robinson demonstrate that it is the political and economic institutions that are critical to economic success. Korea is a remarkably homogeneous nation, yet the people of North Korea are among the poorest on earth while

Money Plant | April - May 2015

BOOK REVIEW their brothers and sisters in South Korea are among the richest. The south forged a society that created incentives, rewarded innovation, and allowed everyone to participate in economic opportunities. Sadly, the people of the north have endured decades of famine, political repression, and very different economic institutions—with no end in sight. Based on fifteen years of original research, Acemoglu and Robinson marshal extraordinary historical evidence from the Roman Empire, the Mayan city-states, medieval Venice, the Soviet Union, Latin America, England, Europe, the United States, and Africa to build a new theory of political economy with great relevance for the big questions of today. This book is about the huge differences in incomes and standards of living that separate rich countries of the world such as the United States, Great Britain and Germany, from the poor, such as in sub-Sahara, Africa, Central America, and South Asia. The authors introduce their work thus. And as they were writing the preface, North Africa and the Middle East have been shaken by the Arab Spring started by the so-called Jasmine Revolution, which was initially ignited by public outrage over the self-immolation of the street vendor Mohamed Bouazizi on Dec 17, 2010. By Jan 14, 2011, President Zine El Abidine Ben Ali who had ruled Tunisia since 1987 had stepped down. As the revolution spread like wild fire across the Middle East, Hosni Mubarak, who had ruled Egypt with a tight grip for almost 30 years, was ousted Feb 11, 2011. The roots of discontent lie in their poverty. The average Egyptian has an income level of around 12% of the average citizen of the United States; and can expect to live 10 fewer years; 20% of the population is in dire poverty. But these differences are small compared with

Money Plant | April - May 2015

The roots of discontent lie in their poverty. The average Egyptian has an income level of around 12% of the average citizen of the United States; and can expect to live 10 fewer years; 20% of the population is in dire poverty.

those between the United States and the poorest countries in the world, such as North Korea, Sierra Leone and Zimbabwe, where well over half the population lives in poverty. What are the constraints that keep Egyptians from becoming more prosperous? Is the poverty of Egypt immutable, or can it be eradicated? “The Industrial Revolution and the technologies it unleashed did not reach Egypt because that country was under the control of Ottoman Empire, which treated Egypt the same way as Mubarak family later did. Ottoman rule was overthrown by Napoleon Bonaparte in 1798 but the country fell under the control of British colonialism, which had as little interest as the Ottomans in promoting Egypt’s prosperity. Though the Egyptians shook off the Ottoman and British rule, in 1952, overthrew their monarchy, these were not revolutions like 1668 in England, and rather than fundamentally transforming politics in Egypt, they brought to power

another elite as disinterested in achieving prosperity for ordinary Egyptians as the Ottoman and British had been. In consequence, the basic structure of society did not change, and Egypt stayed poor.” Egypt has had revolutions in the past that did not change things because those who mounted the revolutions simply took over the reins from those they deposed and recreated a similar system. It is indeed difficult for ordinary citizens to acquire real power and change the way society works. But it is possible, and we will see how it happened in England, France, and the United States, and also in Japan, Botswana and Brazil. Fundamentally, it is a political transformation of this sort that is required for a poor society to become rich. Synthesizing brilliantly the work of theorists from Adam Smith to Douglass North with more recent empirical research by economic historians, Acemoglu and Robinson have produced a compelling and highly readable book. And their conclusion is a cheering one: the authoritarian “extractive” institutions like the one’s that drive growth in China today are bound to run out of steam. A wonderfully readable mix of history, political science, and economics, this book will change the way we think about economic development. It has an important message: Let tyrants everywhere tremble! Countries rise when they put in place the right pro-growth political institutions and they fail-often spectacularly-when those institutions ossify or fail to adapt. Powerful people always and everywhere seek to grab complete control over government, undermining broader social progress for their own greed. Keep those people in check with effective democracy or watch your nation fail.

Money Plant | April - May 2015

It�s a �o� to �� from 8 destinations in India On-board wireless entertainment is one of many reasons why SilkAir is a joy to fly.

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Money Plant | April - May 2015