January 31-February 28, 2018

January 31 - February 28, 2018

A Purushothaman

Bhuvanendran

L J Oliver

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January 31 - February 28, 2018

E V E N T S

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CSR initiative rn Passage’, a te as ‘E g tin ra Rose, Head of , inaugu n Condiments kyo Bay; Ninu er To st r, Ea ne , rt D & Pa R g in opal, Head, George, Manag .

Sivapriya Balag omen. Roopa w ; are also seen g in ge er le w ol C po ’s em er r vi fo Xa n er St st l, of Ea en Cel ar tment & Wom Commerce Dep

ez, receiving the ternational’s Tabl In p ou Gr lu Lu , or d Ritu Marya, anaging Direct tor Vivek Oberoi an ac od wo Adeeb Ahamed , M lly Bo m e Year award fro Entreprenuer of th treprenuer India Editor in Chief, En .

dia-Israel receiving In r e ft a ’ s th ndra Modi Mon f ‘I Love 9 inister Nare o M r e e d m n ri u P o o-f ian COO and C nge Award from Ind Anjali Raj, e ll hu a ya h n C ta n Ne ovatio r Benjamin Global Inn te is in M e Prim and Israeli

January 31 - February 28, 2018

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E d i t o r i a l

Budget: a Gordian knot for Dr Isaac

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Editor & Publisher Varghese Paul Kozhikode Vineetha Mukundan Ph: 8714986177 Chennai Augustine Joseph Ph: 09381000534 Bangalore Gireesh Gopal Ph: +91 7204560000 Adithya Ph: +91 9538060591 54, 2nd Main, Vyalikaval Banglore – 560003 Manager-Marketing Sajan K Ph: 09895344485 Keethara Publications Pvt Ltd Door No: 1994/66 2nd Floor, ‘Priyadarshini’ Veekshanam Road Kochi – 682018, Kerala, India Mob: 9207734485 www.passlinebusinessmagazine.in E-mail: passline.com@gmail.com

onsidering the dire state of Kerala’s economic condition, this year’s State Budget also will be a mere display of some facts and figures by our Finance Minister, Thomas Isaac without any possibility of implementing the budget proposals in coming future. Because, most of his proposals in last year’s budget has not seen the light even today due to the same reason of financial crunch of the State. Demonetization, the time taken for the transformation to the GST regime and confusion in the pattern of implementation has made a irrevocable dent on the already weak economic scenario of the State.

Thomas Isaac was having sky high hope for the GST initially and his assumption was the State will get an average income escalation by nearly 20 to 25% since ours is a consumer state. But, in reality the State could not achieve even 12% so far. In GST regime, certain commodities fell in lower tax brackets compared to pre-GST. Naturally, the tax revenue has declined. Not only that, the luxury and the indiscriminate expenditures of most of the Ministries, Boards and repeated infusion of money to the Government undertakings like KSRTC which is no way productive unless the Corporation undergoes scientific revamping.

Let us take the case of PSC of Kerala. In a state like having 3-crore population, we have 21 members right now . Each member has luxurious paraphernalia like car, residence , personal staff, travel allowances etc. But large states like Uttar Pradesh and Madhya Pradesh has 9 and 3 members respectively in their PSCs. Unless the government stubbornly introduced certain austerity measures , the money for the development of state’s infrastructure, spending for social welfare, agriculture etc will be in doldrums.

Initiatives are taken by the Central Government for bringing land registration and petroleum products in the ambit of GST, for which Congress is pressurising the Centre. That will be the last nail on the already dead state economic coffin. Till now, the State was the beneficiary of the land registration proceeds . In Kerala, the stamp duty is 8% of the land value and if it includes in GST regime it will be either in 5 or 12% bracket. In both the cases the State will be a loser because, the State is eligible only for half of the GST proceeds. The State is meant only for paying salary, pensions and the interest for its borrowing without any substantial revenue will nose dive into deep financial crunch in the coming days.

Economists and financial experts point out certain immediate measurers which has to be taken by the government in order to come out of the labyrinth. A substantial hike can be made in the land tax for immediate relief because, now the land tax is only a paltry sum .

Another area the State can explore is agriculture. From the farmers who earn higher income and having large land holdings can be taxed according to their income and it will be a good source of revenue for the exchequer. Fee in the government institutions like Medical colleges and Arts & Science colleges must increase for financially higher students though they obtained admission on merit basis. Subsidies are meant for the vulnerable section of society. Nowhere the law is insisting that the financially sound sector is eligible for the freebies and subsidies from the government. For the treatments also, government hospitals and Medical colleges should increase the fee for financially sound; and Finance Minister can find resources from this. Building tax in Panchayath, Municipalities and Corporations should be administered by the State. The efficient collection process is not practiced now. After giving the share of the local bodies, the State can utilise the balance. The employees of commercial tax can be utilised for assessing and collecting it. Because, after the roll out of GST , the commercial tax employees do not have any work. So the government can deploy them efficiently.

Excess land lying idle: Most of the PSUs have excess land. Those lands must be leased; and find revenue from it. Certain industrial estates are also not functioning and all are in dilapidated state. Those lands can be used for meaningful purposes. After the roll out of GST most effected segment in the industries are small and medium sector. Many such industries are closed down and in this budget Finance Minister must consider them sympathetically because they are one of the leading employment providers in the State. The government should also find ways and means to provide employment opportunities through start-up villages by way of self- employment .

Anyway, whatever social welfare measures the government wants to doll out, scarcity of resources is the stark reality for the Finance Minister. Finding the avenues other than borrowing will be a Herculean task, this time too, for the FM to mitigate the deficit.

Varghese Paul

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ESTABLISHMENT

January 31 - February 28, 2018

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ABC Emporio Kochi A must visit showroom

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he world comes to ABC Emporio Kochi in search of interior décor, ceramics and bathware. Strategically located in arterial NH 47, at a stone’s throw from the Metro Station at Edapally. ABC Emporio Kochi is a veritable wonder land of surfaces and bathware ceramics; suitable for world class interior décor. It is truly a stop point, to find the world standard solution for your surface needs.

Mr. Muhammed Madani, the Group Managing Director of the venture said; `` It is one of the topmost twenty five centres of excellence from whole world in the domain of interior décor, having several unique characteristics.”

According to Mr. Muhammed Madani, a revolution in renovation is happening across the world technologically and especially it is reflected in interior decore and furnishing of residential sector. ABC Emporio is strategically very futuristic and riding the crest of this wave; always take the lead of bringing futuristic products in Kochi.

ABC Emporio (Kochi) resourced; some of the leading international brands like Kohler, Toto, Gessi, Armani-Roca, Vitra, Loufen, Roca, etc. and it has been displayed in systematic manner where the customer can experience with the greatest ease and comfort.

In other word a touch button shifts an entire array of fascinating products to one side revealing another array

of even more fascinating products.

The illuminations are arranged scientifically. As we entered in ABC Emporio (Kochi), customer care intelligent systems welcome us with an advanced and hospitality reception also guides through the products era where it is displayed, organised and

detailed digitally. The products are arranged in an eco-friendly ambience. Lounges and hightech discussion rooms are available in variable floor area to enhance customer comfort and awareness.

There is live demonstration of the functioning of products are available at all possible places.

The crowning glory of all your experiences is that there is an intelligent Virtual Reality technology which enables you to customize the design of the entire interior of your home.

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January 31 - February 28, 2018

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in the country

ABC Emporio Kochi is not just another one of the several ceramics show rooms available across the length and breadth of Kerala. There are hundreds of them and a customer can very well buy sanitary ware for his home from any of these shops. Then what is it that makes ABC Emporio Kochi different from its peers in this field? Well, the entire buying experience is different in ABC Emporio. Here, a customer can experience the quality and beauty of the various products not only with his naked eye but also with the support of globally advanced technology before he zeroes in on the product that suits him most. ABC Kochi has to its credit - the first ceramic store in India that provides its customers with Virtual Reality Experience and the facility to foresee the upcoming technology in the field of ceramics . But that is not all. For example, would you ever believe it if someone says that one can have live experience of steam, sona and spa in a ceramic

Muhammed Madani

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ceramic store premises? Yet that precisely is the truth.

ABC Kochi Emporio, for the first time in India, provides its customers with all the above.

Interactive screens and international brands numbering over one hundred are showcased in the store for its privileged customers in order to enable them to experience luxury, quality and comfort.

Don’t you think that paying a visit to ABC Emporio is absolutely worthwhile?

The group started its first store in Thaliparamba in Kannur district way back in 1998.

Within the span of two decades, the company started stores in most of the important cities and towns in the northern part of Kerala, including Kochi. Its first off-shore store commenced operations in Doha, Qatar in 2009. Now the company has operations in GCC countries, Africa, and China. Kochi is the group’s National Head Quarters and Dubai is its hub for International operations. The company, which presently has a turnover of Rs 460 crore, is now aiming to become a 1000 crore enterprise in 2020. “ We are not just selling tiles, we are selling surfaces and concepts ”, said Mr. Muhammed Madani, the 42yearyoung Group Managing Director of ABC group of companies, who is dynamic and ambitious. “ABC is dedicated to the cause of making the world a better place to live in, through innovative business and inspirational luxury living. Having the largest collection of

January 31 - February 28, 2018

Why ceramic business “ For me it is a passion. During my childhood days my father was having a stationery shop. In front of it there was a sanitary and ceramic shop which was the biggest in those days in that town . I used to stand in front of that shop watching loading and unloading of goods in lorries and other vehicles. It was so interesting to me. At that time my ambition was to start a ceramic shop. I read a number of books with that purpose in mind . Even in 1990 I used to read `Inside Outside’ magazine to update myself about the latest trends in ceramics. I believe that man comes from soil and will go back to soil. So I thought a business related to soil is most suitable for me.

Ceramics is taken from soil and I started my career as a dealer of products made out of ceramics."

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trend setting tiles, sanitary ware and building materials manufactured by the world’s best production houses, our mission is to serve the customer better and ever better. Our Kochi store, namely ABC Kochi Emporio, is the store house of more than one hundred globally reputed ceramic brands. We have showcased ‘Armani’ collections, one of the expensive brand from the Swiss ‘Laufen’. ‘Gessi’, the product of the world’s most expensive and super luxury Italian designer of bath room products, is also made available in Kochi. Other medium and super luxury brands are available in addition to all these. Each show room of ABC is an epic in itself.

Each one speaks a different language by way of either the ambience and experience or the range of products. I dare say that our store in Kochi is a ` must-visit ’ show room for people who are engaged in home making, who wish to renovate their homes and who wish to start career as interior designers. You might be a customer planning to make a dream home, spending your hard-earned money; or you may be an Architect or Interior Designer who want to explore the current and future trends in the ceramic world. Whoever you are, you can advance your interests by using the ultramodern technologies available in our stores. Our immediate goal is not to make a hurried or frantic sale somehow or other. On the other hand, our intention is to make the customer experience more than one hundred brands available in our store , in an ambience capable of refreshing his

January 31 - February 28, 2018

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The name ABC

“ ABCD..... is the beginning of English alphabet. In our case also it is a beginning ; we do not know anything in this business, we are learning , we are making corrections and learning again. It is a long process and we are continuing it to serve the people better and ever better according to their demand and desire.”,said Mr. Muhammed Madani.

“When I started this business , nobody knew anything about this business . Neither my parents, nor partners, nor friends knew the ABCD of this business. Even after starting international operations, imports and exports , we are still learning to make our dealings more impeccable. Of course there is an advantage in this name . Our store’s name will become a household one. Because, when a parent tries to impart English to his or her child , he starts with ABC ; the child also will repeat it several times in order to learn it. In computers we are keeping names in alphabetical order. So our name will come first there. Whoever opens a computer, we are the first to appear, be it our suppliers, bankers or tax authorities .

Similarly, there are disadvantages also if anyone black lists us; for, then also we will top the list.”, said Mr. Muhammed Madani sarcastically".

mind. We will provide him with expert We are very passionate about this consultancy for the purpose of enabling store. We are not here just to provide him to get hundred percent value for his the customer with an experience that hard-earned money. We have a highly is exceptionally good; we are here to knowledgeable and dedicated team with provide him with the very best. us to clear whatOur stores ever doubt the are MBOs customers might ( m u l t i have about the brand outbrands, products, lets).Let According to Mr. Muhammed Madani, GST features etc. us conis good, it is the transformation of econosider what He can have the my in an organized manner. At the end of it means pleasure of the day, good people who carry forward the for a cusex p e r i e n c ethical way of doing business will survive tomer. It ing medium and others will undoubtedly perish. The means to super luxury stability of the organization is the prime brands under that he consideration in a business. These types one roof in a super of reforms will always be there in a growcan avoid luxury ambience. ing economy. We must be prepared for it. visiting

Business in GST era

ten ordinary showrooms if he visits ours. This is so because he will come across more than one hundred brands ranging from medium to super luxury under our roof. I am sure that the happiness, satisfaction and confidence level of a person will shoot up from zero to hundred per cent within seconds if he enters our stores in search of the ceramic or sanitary ware that he needs. Home making is a passion for Keralites and we have showcased all brands of ceramic products consisting of mid and super luxury segments. ABC Kochi is the most happening place in India if you are talking about the universe of ceramics. There is nothing like ABC Emporio Kochi in the whole of India if you want to consult experts in the field of ceramics or get convinced of matters connected with it. It is a hub of Designers and Architects who want to deliver the highest value to their clients by giving them expert advice with a view to making each client’s dream home a reality."

Vision 2031

• A well known customer-centric global brand in the building material industry.

• The most sought-after company for solutions; suitable for both low –end and high-end customers.

• Become a major driving force, bringing about revolutionary changes and transformations in the global construction industry.

• Become the largest onepoint solution provider for products, designs and execution in the world.

• Become a world leader with operations in more than fifty countries, with its National Head Quarters in Kochi and International Head Quarters in Dubai.

• Be directed towards establishing the ABC foundation for charity and empowerment of old aged and differently abled people.

• ABC Team will contribute 5% of its profits towards charity, empowerment and upliftment of the under privileged.

• ABC Team members will exhibit exceptional spiritual, mental, physical and financial abundance.

• ABC will successfully launch ABC Academy to build professionally skilled people.

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Opportunities “India is the third largest ceramic producer in the world now, after China and Brazil. Most probably we will surpass Brazil this year to become number two. The opportunities arising from Government programmes like Swatch Bharath and Make in India will be tremendous for this industry.

People who have engaged in production, distribution and trading will become the part of nation building because toilets for every households in India is the core area of Prime Minister’s Swatch Bharath programme which has huge funds allotted for it.

As far as Kerala is concerned, home making started before 35 or 37 years ago. Thanks to the halt in the Gulf boom , it has become stagnant now a days. Now it is the time for renovation of those old homes .You won’t get a store like ABC Emporio Kochi to experience the building materials required for the renovation.

The materials used for the construction of home will determine the class that a person belongs to. I have an advice to people : instead of buying a villa or apartment that the promoter shows in a brochure , the customer should become aware of the materials being used by the promoter: its brand , quality , service etc. It is particularly so for sanitary equipment because, if sanitary equipment are not good, the life in a house will be miserable. Here comes the relevance of ABC Kochi Emporio, its products, expertise and service.” , said Muhammed Madani

Milestone

Market leader in tiles, sanitary wares, bathroom solutions and allied products, industry leader in export and import, nine International operations, seven retail divisions, ten wholesale division, two import and export divisions, nearly two lakh sqft. of display area, more than three lakh sqft of warehouse area, staff strength of five hundred and eighty five, more than Rs. Four sixty crores as group turnover , one crore satisfied customers, one thousand channel partners across Kerala and more than one hundred prestigious projects.

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Analysis

January 31 - February 28, 2018

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INDIA â–Ź AN ECONOMY Passline News Service

If someone is planning to start a construction work, he will go to China and purchase entire goods without bill. Our traders are bringing goods from China unethically and selling them here without issuing bill.

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January 31 - February 28, 2018

IN TRANSITION It can be said with reasonable confidence that basically there is no risk in investing in the stock market with a long term view. The advice of a certified financial adviser shall be taken regarding details before actually investing. Long term investment in stock market is the equivalent of participating in the economic trajectory of the country.

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10 POLICY

January 31 - February 28, 2018

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FRDI Bill will make a dent on the fabric of Indian banking ethics Instead of hurriedly introducing Financial Resolutions, the government should initiate very urgent Policy measures for reviving the sagging sectors,

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January 31 - February 28, 2018

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Federal Bank associates with Hedge Equities

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Shyam Srinivasan wins IIM alumnus award 2017

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ederal Bank signs a MoU with Hedge Equities Ltd for providing Portfolio Investment Scheme (PIS) services to NRIs. A formal agreement was executed at Federal Towers, Marine Drive, Ernakulam on January 10, 2018. Jose K Mathew (EVP & Head Retail Business, Federal Bank) and Alex Babu (MD, Hedge Equities Ltd) exchanged the MoU announcing the partnership.

Federal Bank is authorized by RBI to issue Permission Letter to NRIs on behalf of RBI to transact in secondary market. Presently the Bank has PIS arrangement with eight partners and through these tie-ups, the Bank facilitates NRI clients to invest in shares of Indian companies, in secondary market for purchase/sale of shares or convertible debentures on repatriable and non repatriable basis.

On the occasion Jose K Mathew, EVP & Head Retail Business, said that the Bank is competent to cater to all the needs of NRI clients to invest in Indian Stock Market and offers PIS services with best in class service at extremely competitive rates. He also added that the Bank is in the process of doubling the PIS business in terms of number of accounts and total volume.

Alex Babu, MD of Hedge Equities Ltd, added that Hedge is slowly but surely transiting to a wealth management company. Last one year we have shown growth in AUM by hundred per cent to 750 crore. Mostly it is contributed by NRIs and we expect this growth to continue for next couple of years. The Federal Bank PIS tie-up will definitely help smoothen the process and accelerate the growth trajectory.â–€

From previous page

Shyam Srinivasan, MD & CEO, Federal Bank, receiving Distinguished Alumnus Award 2017 of IIM Calcutta from Shrikrishna Kulkarni, Chairman, Board of Governors, IIM Calcutta.

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ederal Bank MD & CEO Shyam Srinivasan has been awarded Distinguished Alumnus Award 2017 of IIM Calcutta. The award was given to him on the 57th foundation day of IIM Calcutta. Shyam Srinivasan is an alumnus of the 23rd batch of IIM Calcutta. The award is given in recognition of the significant contribution made

by Srinivasan to the corporate world and the

phenomenal contribution towards fulfilling the mission of IIM Calcutta. He had earlier received the Distinguished Alumnus Award from NIT, Trichy, from where he graduated in engineering.

He took charge of Federal Bank in September 2010. Under his leadership Federal Bank has multiplied its business several times and has been made future ready â–€

12 CATERING

January 31 - February 28, 2018

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Westend Caterers

Trust draws clients to it Passline News Service

Oliver's father Manuel and mother Burnice

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January 31 - February 28, 2018

Oliver with wife Rosy Joyce Lopez and children Merina and Maryann

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January 31 - February 28, 2018

SAVINGS

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Calibrated money moves make you richer in 2018 A Rs-1 crore loan taken at 8.75% for 20 years could fetch a deduction of Rs 8.67 lakh and potentially reduce the borrower’s tax liability by almost Rs 2.5 lakh in the first year. However, last year’s Budget capped the total deduction to Rs 2 lakh. So, instead of putting money in to fixed deposits, PPF and debt funds, prepay your debts.

Settle for critical illness power

If you believe you have covered your risks with a basic health plan, think again. These illness may have prolonged treatment periods and ancillary costs, which are not compensated by a basic health cover.

Healthcare costs are rising very fast and you need to have a critical illness cover to compliment your basic plan.

You can buy a critical illness plan as a standalone policy or combine it as a rider with life or health plan.

Passline News sevice

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hese calibrated money moves can improve your finances and make you richer in the new

year After wind fall in 2017, it is time for equity investors to moderate their expectations. Real estate has a bad year, with demonetization, RERA, the Benami Property Act and GST, and the new year will not be any different.

The debt market was also lackluster.

Gold remained relatively stable in 2017, and experts believe the trend may continue. Here are ten financial moves that can work for you in 2018.

Restore allocation by rebalancing the portfolio.

The equity portion of your portfolio may have pushed up the overall returns in 2017. Now it is time to rebalance the portfolio by encashing the gains made in equities. Reducing the equity exposure might seem counterintuitive in these bullish times. But experts insist that it is prudent to realign the portfolio and restore the original asset allocation. It is essential to review one’s asset allocation on a regular basis, and if required, rebalance the portfolio to their original weights.

Keep a watch on mid-and smallcap exposure

The Sensex rose 28% during 2017 but Mid and Small-cap stocks did even better. Experts warn that the Mid and Small –cap have become overvalued and investors should avoid them now. The BSE Midcap has a PE of 46.7 while BSE Smallcap has a PE of 114.5. Over the past few months, several Mid and Small- cap funds in this category have restricted

Gold bonds are much desirable

The recent crash in bit coins and other crypto currencies is a wakeup call for investors. Normal investors should stay away from bit-coins as they will get it wrong as the buy and sell timing horribly wrong. inflows and some are accepting only SIPs. Under the risk-reward perspective, large-cap funds make more sense right now.

Short-term debt scheme are more lucrative

Debt funds gave insipid returns in 2017, much to the disappointment of investors who had got used to double-digit returns in the preceding 1-2 years. Rising crude oil prices and concerns over meeting the fiscal deficit target made the bond market uneasy, causing a spike in bond yields from 6.4% in January 2017 to 7.3% in December. Experts say investors should stick to short term debt funds which are not very volatile and could give stable returns.

Mix the stocks to pocket taxfree long-term capital gains

Most investors have made good money from stocks, now it is time to book profits. There is no need to time the market. Simply sell your stocks to book long-term capital gains, and then buy back the same scrips. This will reset the acquisition date of your

holdings and allow you to book shortterm losses if the stock prices recede from the levels. Such short-term loss can be set off against other taxable capital gains and even carried forward for up to eight financial years.

For retirement savings use NPS

The ultra low-cost structure of the NPS makes it one of the cheapest market-linked products available to Indian investors. Besides, the NPS allows partial withdrawals for specific purposes. Also one can remain invested after retirement and stagger the withdrawals over the next 10 years. This can significantly reduce the tax impact. Opening an NPS account is now a completely paperless exercise. It takes barely 20-25 minutes to open an account if your bank account and PAN are linked to your Aaadhaar.

Prepay Home loan

Till last year, if a property was put on rent, the entire interest paid on the loan could be claimed as a deduction. High-net worth investors used this provision to cut their tax liability.

Gold ETFs were once considered a great way to invest in the metal.

This is no longer true. Sovereign gold bonds can give better returns than gold funds. Both the products are linked to gold prices and their returns will be based on the metal’s performance. However, while gold ETFs charge around 1% per annum as expense ratio, gold bonds offer an interest of around 2.5% per annum.

So, gold bonds will generate 3.5% more returns per annum than gold ETFs.

Abstain from exotic investments

The recent crash in bit coins and other crypto currencies is a wakeup call for investors. Normal investors should stay away from bit-coins as they will get it wrong as the buy and sell timing horribly wrong.

Opt for rent instead of buying

Increasingly, people are turning to taking utilitarian products on rent which is both cost-effective and convenient. Given that moving to different cities or localities within a city has become a routine affair, especially for professionals, renting furniture is gaining popularity. Taking set of basic furniture and appliances on rent will cost you Rs 10,000 – 15,000 a month. Rentals also come with free delivery and installation, relocation, cleaning and maintenance.▀

15 PSU

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January 31 - February 28, 2018

KSFE is dressing up for a new look

travel expense of the accompanying person. NORKA is associating with us in this case”.

NRI Corporate Chitties

Passline News Service

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erala State Financial Enterprises (KSFE) – the state public sector chitty behemoth, is planning for a facelift by changing its logo and colour scheme as a part of rebranding in the year 2018.

The company is also introducing number of unique chitties and has also envisaged the renovation of its corporate office at the expenses of nearly Rs 10 crore. Its three Zonal offices and 15 Regional offices will also be renovated in due course. Being a public sector enterprise, KSFE is transparent and trustworthy. Talking to Passline, Mr A Purushothaman , the Managing Director of KSFE and an excellent banker by profession, explained his plans and strategies for further impressive growth of the institution in the coming days. Excerpts: “Our sole agenda during 2017 was technology up-gradation of the institution. Now, all our branches are core solution providers and by the end of 31- 1- 2018 the customers of our 578 branches can avail the benefit.

Other technologies like App- based chitts , dedicated 24x7 online facility for customers etc are also functional now. Our ‘ Ponnonam Chitties ‘ doing tremendously well and this year the campaign had collected Rs 30 crore more than our expectation. KSFE had achieved a total business of Rs 34,335 crore as on 30-11-2017 with 33 lakh accounts, 1.7 million heads.

As of now around 33,833 numbers of chitties worth of Rs 1,650 crore are auctioned through nearly 600 of our branches. As part of the product innovation we have started a few

unique chitties called Multi Division Chitties and Sharia Compliance Chitties and few more are also on the anvil. As per Sharia rule, discounts and interest are forbidden and those chitties do not have discounts. In Multi Division Chitties, we club 4 or 5 chitties together and the bidding discount will be 40%. We are getting very good response for this chitty. A few branches have already started it. Since it is a 10- year duration chitties of Rs 60 lakh each we target younger people as our customers.

The modus operandi is that we have clubbed 4 divisions consisting of 120 subscribers each. The total number of subscribers will be 480 in each division and the total customers will be 2400.”

NRI Chitties

“We have NRI Chitties to be commenced shortly for Malayalee expatriates. Chitties are almost the same.

There is not much difference. Trans-

parency and trust worthiness are the merits of our chitties since KSFE is fully owned by the Government.

These are the online chitties and fully automated. The customers can view their chitty account online and there is 24x7 contact centre to make calls at any time to know the details of their prescribed chitties. We have appointed our agents for marketing the chitties in most of the GCC countries. The highlights of these chitties are the insurance cover of the member without paying the premium. If some untoward situations, like death or disability, occur and the member is not in a position to complete the chitty his / her legal heir or the nominee need not pay for the chitty. The insurance companies will compensate it for which KSFE has the tie- up with LIC and State Insurance Company. In the case of death, KSFE will bear the cost for bringing the body of the deceased and the

When compared to bank remittance KSFE chitties are much better, because, if we approach a bank for a loan they will harass the applicant by asking umpteen questions, that too personalised questions which are not at all relevant to the context .

In KSFE no such questions if the guarantee from the employer is in place.

“This chitty is yet to start because we are waiting for the completion of regulatory measures. During the preliminary discussions NRI enterprises like UAE Exchange and Lulu Mall have showed great interest.The employees of these companies can start a chitty provided their employer is giving them the guarantee. For the companies it is an additional gesture for the welfare of its employees. Companies, like UAE Exchange, have 2 to 3 million customers , out of which 6 lakh are Malayalee customers. If we could strike a deal with UAE Exchange to market the product that will give a good boost for it. We expect not less than 2 lakh members for NRI chitties. When compared to bank remittance KSFE chitties are much better, because, if we approach a bank for a loan they will harass the applicant by asking umpteen questions, that too personalised questions which are not at all relevant to the context . In KSFE no such questions if the guarantee from the employer is in place. There is no TDS and also we are not charging interest but giving dividends to the members. In the beginning the total sum of the chitties will be Rs 10 lakh. Gradually we are planning to top up it.

In 2018 our major initiative will be to clean-up our balance sheet by reducing the NPA level from Rs 1,000 crore. Our gold loan portfolio has major sticky loans. Though it is fully covered, it is not proper to carry forward bad loans to one quarter to another. We have introduced a lot of attractive schemes by reducing the interest rate, opportunity to renewal of loans in a hassle free way etc but people are not taking these measurers in right spirit .

Another step we have earmarked for this fiscal is renovation of our corporate office and the change of our logo and colour scheme as part of the face lifting of the institution to get a new look to its 50-year old establishment. The new building will be a total green- compliance one having rain water harvest and other green solutions with a cost of Rs 10-crore outlay,” the MD signs off ▀.

PROJECT OPPORTUNITIES

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January 31 - February 28, 2018

LED-based lighting systems

Prof Job K T

A

light emitting diode (LED) is a device which converts electrical energy to light energy. LEDs are preferred light sources because they: are inexpensive, robust and have long life can be modulated at high speeds, couple enough output power over a small area to couple to fibers.

A light-emitting diode (LED) is a twolead semiconductor light source. It is a p–n junction diode, which emits light when activated. When a suitable voltage is applied to the leads, electrons are able to recombine with electron holes within the device, releasing energy in the form of photons.

This effect is called electroluminescence, and the colour of the light is determined by the energy band gap of the semiconductor.

LEDs primarily offer advances in ef- 2. Outer surface trait and structure ficiency, controllability and life span. of the diodes – LED can be classified The key strength of LED lighting is into round LED, square LED, rectanreduced power consumption. LEDs gular LED, surface LED, side LED, are available with at the most Lumen surface mount sub miniature LED. efficiency of 110 Lm/Watt compared 3. According to the structure – LED to 65-80 Lm/Watt of CFL and FTL, 45 based on structure can be classified Lm/Watt of Mercury vapour and 75 into full epoxy resin packaging, metal Lm/Watt of metal halide or 94 Lm/ base, ceramic base epoxy resin packWatt of Sodium Vapour. aging and glass packaging.

LED tube light could replace for tra- 4. Luminous intensity– According to ditional fluorescent tubes in the fol- luminous intensity, there are stanlowing places like hotels, hospitals, dard brightness LED (luminous infactories/offices, commercial com- tensity <10mcd) high brightness LED plexes conference/ meeting rooms, Parameter schools/colleges/universities, residential/institution buildings. Thus, Life span (hours) due to demand it is a good project Wattage to match desired lumens (W) for entrepreneurs to invest.

While an LED bulb last for 50,000 Power consumed per hour (kWh) hrs, it consumes 10W electricity and Cost of usage for one hour @Rs.6/kWh emits 100-110lumens/watt, an inCost of usage for 50,000 hours (A) –Rs. candescent bulb last for just 1,500 Bulbs needed for 50,000 hours of hrs, consumes 60W and emits only 13lumens/watt. LED lamps are best running suited for signs and indicators, night Bulb Cost (Rs.) lights, flashlights, under cabinet fixCost of replacement (B) –Rs. tures and some recessed light/down Total 50,000hrs lighting cost (A+B) –Rs. light applications. For residential purpose, LED bulbs usually come in the energy efficient range of 4W, 6W, (luminous intensity between 10mcd 10W,13W, 18W, 25W and 30W. -100mcd) and ultrahigh brightness LED products can be classified into LED (luminous intensity >100mcd). different types: The comparison of cost of LED, CFL Table : 2 1. Light emitting colours – LEDs are and bulb is shown in table Description available in red, orange, green (sub- Sl.AnNo. LED lamp comprises following madivide into yellow green, standard jor1sub units/parts: Land green and pure green) and blue and Secondary Optics: Secondary optics 2 Buildings so on. is used to create the desired appear3

ance and beam pattern of the LED signal lamp. It is known as the diffuser component.

Optics or remote phosphor effectively separates the emitting photons, allowing different phosphors to be interchanged in a light housing.

This allows colour temperature to be changed simply by slotting in a different phosphor.

LED chip encapsulates: The chip encapsulates provide moisture resistance and absorb thermal cycling stress, protecting the sensitive components.

LED

CFL

50,000

10,000

Incandescent bulb 1,500

6

14

60

0.006

0.014

0.06

0.036

0.084

0.36

1,800

4,200

18,000

1

5

33

200

120

10

200

600

330

2000

4800

18,330

Their high transmittance and thermal stability help to design maintain light quality over a longer time, while their unique chemistry offers minimal yellowing and degradation.

Reflector: Reflectors Requirement provide ultrahigh reflectivity 100 forcents spreading the light extensively.

6000 sq.ft Conformal coating/white reflection: Component forming,Soldering Machine,Digital Rs. 50.00 lakhs The conformal coating helps in moisMultimeter,

Continuity

Tester,

Sealing

Machine,LCR Meter, Drilling Machine, Lux Meter, Oscilloscope, Packaging Machine 4

LED Chips, Circuits, Mounting Circuit, PCB Rs.100.00 Rectifier Circuit with filter, Heat Sink Devices, annum

lakhs

per

January 3130 - February September - October28, 31,2018 2017

17 5

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Table 3

ture control and solvent protection.

Thermal interface/ Pottants: It helps in controlling the high temperature of the LED by providing proper insulation.

Adhesives for environment seals: Adhesives and sealants play a crucial role in the structural integrity of

LED lamps and luminaries, shielding electronics from environmental stress and moisture. These products ensure components, such as module lids and base plates, provide a secure structure base for subcomponents and larger assemblies B.I.S. Specifications pertaining to LED are: 16101: 2012 General Lighting—LEDs and LED modules; Terms and Definitions.

16102 (Part I &II) 2012: Ballasted LED Lamps for General Lighting Services.

16103 (Part 1): 2012 Led Modules for General Lighting Part 1 Safety Requirements.

16105: 2012 Method of Measurement of Lumen Maintenance of Solid State Light (LED) Sources.

16108: 2012 Photo biological Safety of Lamps and Lamp Systems.

Conventional lighting systems represent mainly incandescent light bulbs and compact fluorescent lights (CFLs).LED lighting system provides advantages over conventional lighting systems in terms of better energy efficiency, better energy costs, longer lifetime, less temp. Sensivity, higher light output. This leads them to be better Lighting substitute and good market prospect. Therefore the market prospect for LED based Lighting system is good and booming. The global LED lighting market is forecasted to reach USD42.7 billion by 2020at a CAGR of 13.5% from 20142020. The fastest growing region is North America growing at a CAGR of 15.3% from 2014–2020 closely followed by Latin American countries,

Asia Pacific and Europe.LED lamps are expected to command approximately 20%share of the global lighting market by 2020. Among the LED types high brightness LED segment is expected to grow swiftly and continue to account for the highest market share, contributing over 60%

can survive up to three times Sl. Particulars Cost (Rs. in lakhs) longer than compact fluores- No.1 Land Own cent, eight times longer than 2 Buildings 100.00 3 Machinery & Equipment 50.00 halogen and a whopping 5 Miscellaneous fixed assets 25.00 6 Preliminary and pre-operative 10.00 25 times longer than incanexpenses descent bulbs. Government 7 Contingency@ 10% 15.00 8 Working Capital- (1st Year) 65.00 schemes like Ujala scheme, Total 250.00 Domestic Efficient Lighting Programme the Smokey reflector to form a com(DELP) and Street pact unit.

Light National Pro- 4. Testing of the assembled LED Table 4 gramme (SLNP) are Lighting systems and packing strongly supporting A rough estimate for starting a LED Table 3 Sl. Particulars Amount the cause by dis- Based Lighting Systems having an No. ( Rs. in lakhs) tributing1 subsidized installed of 90000 Annual sales income from LEDcapacity Based Lighting system numbers 180.00 LEDs. The Sl. Particulars Cost 130.00 2 cost Cost ofhas raw materials, salary, is power, depreciation, per annum given below: No. (Rs. in lakhs) been reduced to interest on investment term loan, The approximate 1 sales Landcommission, Own require2 administrative Buildings expenses 100.00 Rs.200-250 ment etc. for setting up of LED Based 3 Machinery & Equipment 50.00 In Dec 32015, Min-Profit Lighting 50.00 5 Operating Miscellaneous fixed assets System unit will 25.00 cost Rs. Preliminary pre-operative 10.00 Breakeven 40% istry of 4 6New andpointand 250.00 lakhs as indicated below: expenses 5 7 PayEnergy Back Period 10% Less than 5 years Renewable Contingency@ 15.00 It is stexpected that financial instituWorking (1 Year) 65.00 Internal RateCapitalof Return 30% stopped 6 8 providing tions will provide term loan to the Total 250.00 central financial extent of 65% of the fixed assets assistance to CFL- amounting to Rs. 100.00 lakhs. based solar lighting Apart from this, the unit is also eliof the total market revenue. As per system. The same will be available gible for working capital loan of Rs. Table 4 the official estimates, use of LEDs in to LED-based solar lighting system, 35.00 lakhs (75% of working capital) households and public lighting could further inParticulars Amount reduce energy consumption by 50% creasing their Sl. No. ( Rs. in lakhs) to 90%.It is expected that if 770 mil- affordability 1 Annual sales income from LED Based Lighting system 180.00 LED CFL Incandescent lion incandescent bulbs sold Parameter in In- and adoption 2 Cost of bulb raw materials, salary, power, depreciation, 130.00 Life span (hours) 50,000 10,000 dian households were switched to The Indian sales 1,500 commission, interest on term loan, Wattage to match desired lumens (W) 6 14 60 administrative expenses etc.

LEDs, the country could save 25 bil- Government Power consumed per hour (kWh) 0.006 0.014 0.06 3 Operating Profit 50.00 lion KWh (units) of energy per year. banned manCost of usage for one hour @Rs.6/kWh 0.036 0.084 0.36 4 Breakeven point 40% The major growth drivers of LED are u f a c t u r 1,800 i n g 4,200 Cost of usage for 50,000 hours (A) –Rs. 18,000 5 Pay Back Period Less than 5 years its unique design makes them for 90% ICL 1 5 33 Bulbs needed 50,000 of100W hours of 6 Internal Rate of Return 30% more efficient thanrunning incandescent in 2015, in a Cost (Rs.) 200 120 10 sources. At that rate,BulbLEDs can sig- major deparCost ofhome replacement (B) –Rs. ture from usage 200 330 nificantly reduce annual lightof600conventional light from commercial bank in the first Total 50,000hrs lighting cost (A+B) –Rs. 4800 18,330 ing energy bills to a very large extent sources. 2000 year. The balance in the project cost compared to other lighting. The Gov- This project profile is made for the of Rs. 115.00 lakhs will have to be ernment of India has envisioned a assembling of LED based Lighting mobilized by the promoters. goal to build 100 smart cities and re- system cum LED Lamp up to 10 W. The financial viability of the unit is juvenate another Table : 2 provided below: Sl. No. Description Requirement 500 cities in InConsidering the power shortage and 1 Land 100 cents dia. The governincreasing in the power charges, LED 2 Buildings 6000 sq.ft ment is looking 3 Component forming,Soldering Machine,Digital Rs. 50.00 lakhs based lighting system having a long Multimeter, Continuity Tester, Sealing towards more life of 50,000 hours and a saving Machine,LCR Meter, Drilling Machine, Lux Meter, energy efficient of Rs.4800 for CFL and Rs.18,330 Oscilloscope, Packaging Machine solutions to light for incandescent lamp is the need 4 LED Chips, Circuits, Mounting Circuit, PCB Rs.100.00 lakhs per up cities. of hour. Government of India is proRectifier Circuit with filter, Heat Sink Devices, annum “Make in India” viding various incentives to attract Metallic Cap Holder, Plastic Body, Reflector campaign was Plastic Glass, Connecting wire, Soldering Flux, young entrepreneurs to the assemPackaging Material etc. launched in bling of LED lamps.

5 Direct employment potential 25 persons 2014 to attract 6 Power requirement 30HP investments in (Professor Job K T is a retired Senior manufacturFaculty of Centre for Management ing in India. The campaign aims to The assembling of LED based Light- Development, Thiruvananthapuram. develop India as a manufacturing ing system cum LED Lamp consists Presently he is the Director, Enterhub, by eliminating redundant regu- of the following steps: prise Development Service, Thirulations and shortening bureaucratic 1. Procurement/import of LED chips vananthapuram, offering training, processes. The initiative is expected of Miliwatt rating, Procurement of Circonsultancy, asset valuation and to benefit the electronics industry as cuit and other mounting devices.

Quality Management System sersignificant investments are expected 2. Embedding of LED Chips of Milivices to small and medium enterin the next two to three years. watt rating on the PCB board with the prises. He can be contacted at Mob: LEDs has extra-long lifespan, shining rectifier circuit, filter circuit etc. on for years and even decades be- 3. Fitting of PCB Board with the hold- 9847135571 or e-mail: jobkt012@ yond traditional light sources. LEDs er cap and plastic modules fitted with gmail.com)

January 31 - February 28, 2018

18 STRATEGY

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Some investment ideas for 2018

Dr V K Vijayakumar

T

he world of investment is highly volatile. Returns from different asset classes vary hugely. Therefore, choosing the right asset classes to invest is a challenging process. 2017 witnessed fabulous returns from stocks and consequently the valuations are presently very high. Returns from fixed income investments such as bank deposits and bonds are poor.

Returns from gold have been poor for the last 5 years. Real estate is unlikely to pick up smartly any time soon.

Therefore, choosing the right asset classes for investment has become very challenging in 2018. However, a conservative approach to investing coupled with a well thought out asset allocation strategy, can prove to be a winner in 2018.

A good investment journey starts with right asset allocation, which, in turn, depends on the financial goals and the risk profile of the investor.

This varies across investors. Therefore, asset allocation and investment strategy also has to be investor specific. Leaving such specifics aside, let us look at a general approach to investing in 2018 for all categories of investors.

Stocks

Smart investors should try to discern the mega trends emerging in the economy and invest to reap the benefits of these mega trends. Two mega trends, emerging in India presently, are the formalization of the economy and financialization of savings. These two mega trends have the potential to unleash profound consequences for the economy in general and investment in particular. Formalization of the economy will substantially benefit the corporate sector, particularly the listed companies. Financialization of savings, coupled with the emergence of equity as a favored asset class among investors, is likely to keep the markets buoyant for an extended period of time. Therefore, stocks have to be an integral part of a good investment portfolio.

2017 has been a fabulous year for equity investors. Nifty gave 29 percent return in 2017 and Nifty Midcap

and Nifty Smallcap appreciated by around 48 and 58 percent respectively. These are fabulous returns indeed! What is in store for investors in 2018?

The course of long-term bull markets has never been smooth. 2017 was a year of surprisingly shallow corrections. 2018 is likely to be different.

It would be realistic to expect modest returns in 2018. Investors should look beyond 2018 and continue to invest. High- priced mid and small caps, driven by momentum, are becoming excessively risky. Companies run by managements of suspect and unproven quality should be avoided. In the present context of stretched valuations, investors should prefer large caps, which have a much higher margin of safety, compared to mid and small caps. A bottom up approach is ideal in 2018 since winners are likely to be across sectors. From a sectoral perspective, the winners in 2018 are

likely to be corporate-facing banks, particularly private sector banks, oil and energy, autos, cement, aviation and capital goods. Market leaders and large caps in these sectors would be safe bets in 2018. IT and select pharma stocks are good value picks presently. The investment strategy has be a calibrated one with emphasis on buying on declines.

Fixed income

Fixed income is likely to witness another challenging year. Even though it can be safely assumed that the accommodative cycle is over, interest rates are unlikely to rise sharply in 2018, the present spike in bond yields not withstanding. Investors should look for asset classes beyond bank fixed deposits to get reasonable real returns. Here, equity savings funds look good. Investors can expect returns better than bank FDs with superior tax advantages. Since

19

equity savings funds invest around one third each in equity, arbitrage and fixed income they are treated as equity / balanced funds for tax purposes. HDFC Equity Savings Fund, ABSL Equity Savings Fund and ICICI Equity Income Fund are good funds, which may be considered for investment .

Gold

Gold performs well during cycles. The last five years have been disappointing.

2018 also does not look promising for gold since global financial stability looks robust presently.

But one can never be sure. Some presently unknown factor might trigger a ‘flight to safety’ bringing gold again to the forefront.

More importantly, gold is a very good equity hedge. Gold will perform well when equity underperforms: In 2008 when equity (Sensex) crashed by 52 per cent following the global financial meltdown, gold appreciated 25 percent. Again in 2011 when Sensex crashed by 25 per cent, gold appreciated by a whopping 32 per cent.

Therefore, a small asset allocation for gold may be considered for 2018.

Here, the choice should be in favour of Sovereign Gold Bonds (SGBs) or Gold ETFs. Both are well-regulated products tracking the rupee price of gold. SGBs are better from the returns perspective since they yield 2.5 per cent interest. But liquidity is poor for SGBs since there is a 5 - Year lock-in and secondary markets are thin. Gold ETFs have very good liquidity.

Mutual funds Mutual fund investment, ideally through SIPs, should be the preferred investment in 2018.

Since markets are likely

January 31 - February 28, 2018

to be much more volatile in 2018 than in 2017, SIPs should be the ideal investment strategy. SIPs can be done across market caps. A combination of equity and balanced funds would be ideal. In equity, SIPs can be done across market caps.

Some good funds with consistent track record, ideal for SIPs are: Equity large caps:Motilal Oswal MOSt Focused 25, ABSL Frontline

Equity, SBI Blue Chip.

Equity Mid & Small caps: HDFC Midcap Opportunities, Reliance Small Cap, Franklin Templeton Smaller Companies.

Equity Multi caps: Motilal Oswal MOSt Focused 35, Kotak Select Focus.

Balanced Funds: HDFC Balanced, ICICIC Pru Balanced, L&T India Prudence.

Conventional wisdom forbids us from

P a s s l i n e

putting all eggs in one basket. Therefore, the 2018 investment portfolio should include choices from the asset classes discussed above. A defensive investment strategy with modest expectations seems appropriate for 2018.

(Dr. V K Vijayakumar is Chief Investment Strategist, Geojit Financial Services)▀

20 STATUS

January 31 - February 28, 2018

P a s s l i n e

INEQUALITY IS ON THE RISE IN ALMOST ALL COUNTRIES Discussions around inequality have lacked hard data – until now. A new report shows inequality levels across the globe.

By Antonio Savoia

I

nequality is rising almost everywhere across the world – that’s the clear finding of the first ever World Inequality Report. In particular, it has grown fastest in Russia, India and China – places where this was long suspected but there was little accurate data to paint a reliable picture. Until now, it was actually very difficult to compare inequality in different regions of the world because of sparse or inconsistent data, which lacked credibility. But, attempting to overcome this gap, the new World Inequality Report is built on data collection work carried out by more than a hundred researchers located across every continent and contributing to the World Wealth and Income Database.

Europe is the least unequal region of the world, having experienced a milder increase in inequality. At the bottom half of the table are SubSaharan Africa, Brazil and India, with the Middle East as the most unequal region.

Since 1980, the report shows that there has been rising inequality occurring at different speeds in most parts of the world. This is measured by the top 10% share of income distribution – how much of the nation’s income the top 10% of earners hold. Places where inequality has

remained stable are those where it was already at very high levels. In line with this trend, we observe that the Middle East is perhaps the most unequal region, where the top 10% of income earners have consistently captured over 60% of the nation’s income.

Inequality is always a concern Even in Europe, where it is less pronounced, equality always raises ethical concerns. For example, in Western Europe, many do not receive a real living wage, despite working hard, often in full-time employment.

Plus, the data shows that the top 10% of earners in Europe as a whole still hold 37% of the total national income in 2016. Rising income inequality should be focal to public debate because it is also a factor which motivates human behaviour. It affects how we consume, save and invest. For many, it determines whether one can access the credit market or a good school for our children. This, in turn, may affect economic growth, raising the question of whether it is economically efficient to have unequal societies.

Going into the details of what drives the rise in income inequality, the report shows that unequal ownership of national wealth is an important force. National wealth can be either publicly owned (for example, the value of schools, hospitals and public infrastructure) or privately owned (the value of private assets).

Since 1980, very large transfers of public to private wealth occurred

in nearly all countries, whether rich or emerging. While national wealth has substantially increased, public wealth is now negative or close to zero in rich countries.

In particular, the UK and the US are countries with the lowest levels of public capital.

Arguably, this limits the ability of governments to tackle inequality. Certainly, it has important implications

of rising inequality. This suggests that national policies and institutions can make the difference. The trajectories of three major emerging economies are illustrative. Russia has an abrupt increase, China a moderate pace and India a gradual one.

The comparison between Europe and the US provides an even more striking example – Western Europe remains the place with the lowest concentration of national income among the top 10% of earners. Compared with the US, the divergence in inequality has been spectacular.

While the top 1% income share was

for wealth inequality among citizens.

It also indicates that national policies shaping ownership of capital have been a major factor contributing to the rise of inequality since 1980.

Inequality in the developing world Resource rich economies are traditionally considered to be prone to conflict or more authoritarian in terms of how they are governed.

What this new report tells us is that some resource rich economies, such as “oil economies”, are also extremely unequal. This was often suspected because natural resources are often concentrated in the hands of a minority. Until this report, however, there was no clear evidence.

The World Inequality Report appears to show us that the Middle East region may be even more unequal than Central and South America, which have long been held up as some of the most unequal places on Earth.

Another significant finding is that countries at similar stages of development have seen different patterns

close to 10% in both regions in 1980, it rose only slightly to 12% in 2016 in Western Europe, while it shot up to 20% in the US. This might help explain the rise in populism. Those left behind grow impatient when they do not see any tangible improvement (or even a worsening) in their living conditions. It is not just important to reduce inequality to make society more fair. Equal societies are associated with other important outcomes.

As well as political and social stability, education, crime and financial stability may all suffer when inequality is high.

With this new data at our fingertips, we can now act to learn from the policies of more equal regions and implement them to reduce inequality across the world. – Third World Network Features.

(Antonio Savoia is a Lecturer in Development Economics, University of Manchester.)▀

21 POST - SCAM

January 31 - February 28, 2018

P a s s l i n e

By A Special Correspondent

T

he fear of another scam pushed the government into a rather long period of so-called ‘policy paralysis’.

To play it safe, the price of spectrum in all subsequent auctions was benchmarked to the high 3G rates.

The acquittal of key players in the alleged 2G scam after seven years might have come too late to change the fortunes of telecom companies which lost money and reputation, while forcing foreign telcos like Telenor and Sistema out of the country.

The key buzzwords facing the industry today -- burgeoning debt burden and consolidation -- trace their roots back to the 2G spectrum scam of 2008 and the action taken subsequently by the Comptroller and Auditor General and Supreme Court. These fundamentally changed the country’s telecom landscape. The advent of Reliance Jio with its aggression accentuated the problem.

The CAG report in 2010 benchmarked the artificially high 3G spectrum price to conclude that A Raja’s decision to offer 2G spectrum at an administered price caused the government a loss of Rs 1.76 lakh crore.

That conclusion had far-reaching consequences. The fear of another scam pushed the government into a rather long period of so-called ‘policy paralysis’. To play it safe, the price of spectrum in all subsequent auctions was benchmarked to 3G rates. The high price forced telecom operators to borrow money, something that would later lead to a burgeoning debt burden for many.

Experts in the sector argues that ‘The real impact of the scam was the distortion in spectrum price, amid lack of curation by regulators (to correct anomalies) for fear of being accused of causing loss to the exchequer.’

“This was the beginning of the burgeoning debt problem for the industry, as they had to borrow significantly

The impacts of 2G case on telecom sector to pay for the high price of spectrum, as well as a period of policy paralysis in the government.” A COAI official said. He points out that many decisions like spectrum sharing were shelved for a long time. The overall debt of the telecom industry, around Rs 2,41,000 crore in 2012-13, more than doubled to Rs 4,60,000 crore in 2016-17.

Some analysts and every telco agrees that CAG had made a flawed calculation. The 3G auction saw nine players slugging for survival as they fought for three-four pan-Indian spectrum slots. That was because many newer players had joined the party. With limited supply, the price of spectrum zoomed, regardless of the business potential of circles on the block. No serious operator could have ignored buying 3G spectrum and get into a major business disadvantage vis-à-vis rivals. For instance, the auction price for Delhi and Mumbai was 10 times the reserve price.

As much as 40 per cent of the total value the government received from the auction was for these two cities.

Notwithstanding the fact that these two circles’ share of total telecom revenue was only 14 per cent.

The government or regulators made very little attempt to change this equation and anomaly in subsequent

rounds of spectrum auction by reducing the reserve price substantially and not benchmarking it with 3G, simultaneously with putting enough spectrum on the table. In fact, the fear of taking any decision that might lead to another controversy was palpable. The central government of the day, for instance, decided not to extend the licence of incumbent telecom operators by another 10 years (after their 20-year licences ended), despite this being part of the notice inviting application.

The government said it would auction liberalised spectrum (which meant any spectrum could be used for any service, for the first time). This led to bloodshed in many of the auctions held in 2015, with incumbents fighting no end to retain their spectrum in the 900 MHz and 1,800 MHz bands.

This was necessary for their business continuity but meant prices going through the roof.

In 2012, when the Supreme Court (SC) ordered the scrapping of 122 telecom licences granted by tainted minister A Raja four years earlier, the intention might have been different. But, the action forced the first round of consolidation in the sector.

By giving spectrum on a ‘first come, first served’ basis, Raja doubled the number of players from seven to 14,

and ensured a cut-throat price war.

Telecom rates, as a result, fell over 50 per cent. The eight new players invested as much as Rs 40,000 crore in a couple of years and acquired about 70 million subscribers or eight per cent of market share in terms of subscriber base.

But, the SC’s decision forced operators like Etisalat, which owned a 45 per cent stake in Swan Telecom, C Sivasankaran-promoted S-Tel, and Loop Telecom, to shut shop. Others like Videocon, Telenor and Sistema (21 licences), having lost their licences after the court order, returned to participate in future auctions but only as niche players, not as the strong pan-Indian operators that they earlier hoped to become. The writing for them was on the wall. Videocon Telecom, for instance, had in 2008 won licences for 17 circles, which it lost after the SC judgment. Later, even as it participated in auctions and won spectrum for six circles, it hardly made any mark in the telecom market. Over the years, it sold its spectrum in some circles, closed operations in some others, and eventually shut shop earlier this year.

Sistema, which had invested over $4 billion, lost most of its money and merged with Reliance Communications this year. Telenor, which had won 22 licences in 2012, and those for six circles later, wrote off more than Rs 10,000 crore on its books while selling off its mobile business to Bharti Airtel.

According to analysts, the SC order took the number of operators in the market back to the level before Raja gave away licences, though the number of subscribers after the decision to double the players helped in seeing the subscriber base in the country more than triple from 300 million in 2008 when the new licences were given to 951 million in 2012 when the cancellations happened.▀

22 TIPS

January 31 - February 28, 2018

P a s s l i n e

Practice Detached Attachment

Neetha Natarajan

Being righteous is justified but fighting to establish truth and righteousness with the wrong people is nothing but lack of wisdom. Shiva learnt this fact in a hard way. This is a problem which most of us face in Career life. Where is the thin line between Professionalism, Commitment, Loyalty and Righteousness? It is rightly said that you need to own your Company with the acceptance that you are not the owner of the Company.

23

at WORK !

Work and Work place equates to Worship and Worship Place. It is similar to doing a wrong ritual at a worship place which wouldnâ&#x20AC;&#x2122;t be appreciated by the deity, if you donâ&#x20AC;&#x2122;t know your Employer / Organization and reach out of your Job Description to do better.

January 31 - February 28, 2018

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24

ISSUES

January 31 - February 28, 2018

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Internet experts & trade negotiators working in silos

By Chakravarthi Raghavan

25

January 31 - February 28, 2018

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26

January 3130 - February September - October28, 31,2018 2017

PREVIEW

P a s s l i n e

The probables of Central Budget 2018-19

W

ork on India’s first post-GST Union Budget 2018-19 must have commenced by this time with the finance ministry issuing timelines for different processes that will culminate with its presentation on February 1. It may also be the current government’s last full-fledged Budget as general elections are due in 2019. Scrapping a colonialera tradition of presenting the Budget at the end of February, Jaitley had for the first time presented the annual accounts on February 1, 2017. This will be Finance Minister Arun Jaitley’s 5th Budget in a row. It would also be the last full Budget of the BJP-led NDA government before the 2019 general elections. As per practice a vote-on-account or approval for essential government spending for a limited period is taken in the election year and a full-fledged budget presented by the new government.

Besides advancing the presentation date, the Budget scrapped the Plan and non-Plan distinction and merged the Railway Budget with it, ending a nearly century-long practice.

A view, currently shared by a large number of people, is that the Union government’s Budget for 2018-19 will be a populist one. The argument is that this will be the last full Budget of the Modi government in its current tenure.

Hence, it will make sense for Finance Minister Arun Jaitley to dole out freebies and concessions in his final Budget in an attempt to woo voters. Such assumptions are flawed, based as they are on an incomplete and outdated understanding of the factors that influence the making of the Budget. In

}

By A Correspondent

fact, the dates of general elections in 2019 and the presentation of the final Budget of the Modi government are so far removed from each other that Jaitley should not be under any pressure to present a populist Budget next month. Instead, he could well unveil an array of schemes and proposals that he believes are necessary for the economy, even if a few of them could be unpopular. The economy is yet to recover from the disruptions caused first by demonetisation and then by the Goods and Services Tax (GST) rolled out in July 2017. Economic growth is still to gather fresh momentum. With international crude oil prices rising, inflationary pressures in the domestic economy may also increase.

The nation expects the government to focus on jobs, farms, and fiscal consolidation from this year’s budget. Create jobs in rural areas, develop clusters at the district level for specific agriculture products, change the crop geometry, and improve linkage of farmers with markets are the need of the hour for agriculture. Besides, the Budget may focus on market linkages for farm products and strengthen the livelihood mission to address rural distress in the wake of electoral wounds suffered by the Bharatiya Janata Party in rural Gujarat, particularly Saurashtra. The Budget for 2018-19 is likely to emphasise quickening the market intervention

} scheme to give states more freedom to stabilise prices of agricultural commodities at the time of slump. As the prices of crops such as chana, tur, and oilseeds decline below the minimum support price, the Budget may directly allocate funds to states to intervene to stabilise prices through a programme.

This would help states to address fast the issue of distress sales by farmers.

Farm credit is also likely to be strengthened with not only the target for farm loans going up from the budgeted Rs 10,00,000 crore in 2017-18, but the interest subvention on timely repayment of short-term credit could also be increased to ensure cheap advances to farmers. For rural development, the mid-term expenditure framework (MTEF) pegged the outlay at Rs 1,12,000 crore in 2018-19 compared to Rs 1,05,000 crore budgeted for the current financial year. For the flagship, Mahatma Gandhi National Rural Employment Guarantee Scheme, the Budget could allocate more than Rs 60,000 crore, almost Rs 12,000 crore more than the Budget estimate of 2017-18.

That apart, the Budget is expected to increase the allocation for the National Social Assistance Programme (NSAP) from the existing Rs 9,500 crore because the Centre is planning to raise its share of pension distributed to old citizens and widows from the existing Rs 200 and Rs 300, respectively.

Finance Minister Arun Jaitley has let it known that in the forthcoming Union Budget, the government will further boost spending on infrastructure and use it as the key driver of economic growth and recovery. Investments in infrastructure Gross Capital Formation in Infra was expected to rise to 9% of Gross Domestic Product in the terminal year of the 12th Plan -- 2017. Instead, it is hovering around 5.5%. Clearly, this ‘Infrastructure Deficit’ is largely on account of Public Private Partnerships (PPP) disappearing; even whilst public expenditure keeps the show going. This deficit has to be made up. And there’s no better way to reviving PPP other than following the Kelkar Committee recommendations on ‘Revisiting and Revitalising the PPP Model of Infrastructure Development.’ This committee, incidentally, was set up by the NDA government. And to support building institutional capacity for PPP, Mr Jaitley may recall his own announcement in his maiden Budget in 2014 where he set aside Rs 5 billion for setting up ‘3P India.’

The year 2018 is likely to be steady in terms of institutional investment into real estate. Prime Minister Narendra Modi’s plan of building homes for all by 2022 is set to boost the economy by $1.3 trillion, create 60 million new houses and over 2 million jobs annually.

The year 2018 is likely to be steady in terms of institutional investment into real estate.

More long-term and patient capital from stronger entities such as pension and sovereign funds is expected to enter the sector.▀

27 REALTY

January 31 - February 28, 2018

P a s s l i n e

Sparkle Homes ideal for families Sparkle Homes handed over Sparkle Scapes

Andrew Nettikadan, Chairman, Nettikadan Group

S

parkle Homes is a realty initiative by the trusted Nettikadan Group, born in 1964 with the core competency of publishing books familiar to more than 2,000 schools.

Sparkle Homes is the diversified version of the Group which entered property development in the year 1992 with an apartment complex in Edappally and a few other commercial buildings that gained admiration for superior quality.

The aim, as usual, was to deliver the best and provide home seekers with exceptional homes that raise the benchmark of comfort, convenience and affordability. The latest complex Sparkle Scapes, a residential apartments project at Elamakkara, off Kaloor, are delivered to its pride owners recently.

Sparkle Scapes is a unique conglomeration that is ideal for families. It’s a modern apartment complex that boasts of luxurious living. Here, you discover an unparalleled range of 3 BHK apartments with beautiful aesthetics and modern fixtures.

Each uniquely designed apartment reflects your distinct attitude in life.

Explore a lifestyle that exceeds your expectations and surpasses your standards. Now, you can begin each day with a workout session at the fully-equipped gym, or end it with a leisurely swim in the security of a gated complex covering the following amenities: • Swimming Pool • Kids Pool • Children’s Play Area • Gym • Multi-purpose Hall • Landscaped Surroundings • RO Plant-purified Water Elamakkara is the perfect locale where comfortable living meets the ease of connectivity.

It gives the builders immense pleasure to invite the home aspirants to discover the new project in Elamakkara, Kochi. A residential project

Andrew Nettikadan,Chairman, Nettikkadan Group; handing over the keys to Jacob Sam Eapen, CEO, Audi Kochi; the first owners of Sparkle Scapes -- the luxury apartments.

M

r Jibu John, Principal architect of Jibu & Thomas, has crafted SPARKLE SCAPES, with great deal of aesthetics and space management alike. The detailing of the exteriors and the interior of each apartment has been intricately detailed to ensure maximum homely feel for its residents. The condominium cluster has been intentionally designed to reduce the volume of its occupants, offering them spacious facilities in the most premium manner.

Sparkle Homes completed its maiden real estate venture Sparkle Scapes and handed over the keys to its proud owners recently in Kochi. In a glittering function held at Sparkle Scapes, the limited edition super luxury apartments the Nettikadan group of Companies Chairman Andrew Nettikadan, handed over the keys to Jacob Sam Eapen , CEO, Audi Kochi, who is one of the first owners of the luxury apartment. Managing Partner of Sparkle Homes Varghese Nettikadan said Sparkle Scapes has got only 3BHK apartments in 43 cents of land with areas ranging from 1988 sq ft to 2210 sqft. A few of the ready to occupy units in the complex are up for sale . For more details, please visit www.sparklehomes.in made under the direction of an exem- being the Personality of the Year plary team of architects, engineers and 2014 award from Swiss Malayalee Association, Switzerland. He has several others. also covered all the seven contiMan of entrepreneurial nents including Antartica in the ethics year 2010.

Andrew Nettikadan, Chairman, Nettikadan Group; is the legend with strong commitment to highest standards of excellence and ethics. He is a man of entrepreneurial spirits and exemplary vision, with more than 5 decades of business and social experience. He is President of Kalabhavan and also a philanthropist. Sharing the success with the community is in line with the philosophy of the founder Andrew Nettikadan.

With this mission in mind, Andrew Nettikadan started a foundation mainly doing services in the health services and recently donated an ambulance to a hospital in Ernakulam. He has won lot of awards and the most recent one

A

n engineer by profession with 22 years experience heads Sparkle Homes. He is dynamic and a great organizer. He has been a catalyst in the changing landscape of the group.

He has passion for scaling greater heights and setting high standards that resulted in the group gaining strong brand equity. He is an avid follower of technological innovations and photography enthusiast. Also loves to travel and explore exotic destinations. He is a life member of professional bodies KMA and TiE. The Nettikadan group continues to be recognized and awarded with national and international accolades.

So Sparkle Homes firmly believes that for an organization to be a market leader, it must be customer- focused. So the group has inculcated a culture of excellence and innovation within the company, which has given them a competitive edge.

Sparkle Homes has also focused on integrating the needs of the consumers and the environment that has led the group in implementing industry- leading design processes and sustainable practices.

28

January 31 - February 28, 2018

STATE ACT

P a s s l i n e

The Kerala investment Promotion and Facilitation Act 2017

A milestone in the industrial

T

he index of ease of doing business has evolved in to a measure of the potential for the industrial growth of different States. It is the World Bank that, in the year 2006, launched this index for the purpose of assessing the economic power of various countries at a global level.

The World Bank used to rank countries on the basis of time required to complete the following formalities : 1.

Launching of the project. 2. Registration of land . 3. Permission for electrification.4. Granting permission to construct building.5. Sanctioning of loan and 6. Payment of taxes. Our rank was 130 in the year 2017 , after several ups and downs witnessed in the last decade. We have been

able to improve it to 100 in the year 2018. Closely tracking the methods adopted by the World Bank, and in close co-operation with the WB, DIPP of Govt .of India had ranked the Indian states. Kerala slipped in to the 20th rank in 2016 from the 18th in 2015. This fact, which led to great controversies and heated debates, lent more momentum to the outcry that Kerala should be transformed in to an industry-friendly State. The assessment was that it was the entrepreneurâ&#x20AC;&#x201C;unfriendly functioning of the different departments and agencies that beat back Kerala to this position. The Department of Industries and Commerce and the agencies under its aegis have been functioning

in an entrepreneur-friendly manner for years. However, it requires the obtainment of the permission and NOC of a host of executive departments like local self- governing bodies , Town planning department, Department of health, Pollution Control Board, Fire Force, Department of Mining and Geology etc. in order that an enterprise becomes a reality. It is the delay caused by these departments in processing the applications for licence to set up an industry that reduces the dream of the entrepreneur to a distant mirage. It is in this context that the Govt. of Kerala created a land mark in the history of industrial Kerala by issuing the ordinance titled `THE KERALA INVESTMENT PROMO-

TION AND FACILITATION ACT 2017â&#x20AC;&#x2122; .

It is after undertaking elaborate preparatory work that the govt. framed the law. The govt . had already appointed the KSIDC as the nodal agency to identify, on a war footing , the sectors that could be improved and amendments that had to be made. The KSIDC was also entrusted with the task of working on the subject of ease of doing business. The studies aimed at recasting and reforming the existing rules had already been started in June 2016. The studies took place in four stages. Existing rules and procedure to grant licences, rules and procedure successfully implemented in other states, the analysis of the difference between these two systems and discussions with the mentors in departments were included in the studies that extended through 120 days. The laws, rules and

January 31 - February 28, 2018

29

P a s s l i n e

history of Kerala procedure adopted in twenty depar tments were examined. Licences that were outdated and dispensable were identified. The final report on ease of doing business was submitted by the KSIDC on 22nd November, 2016. The Cabinet approved of the report on 5th April , 2017 and issued the ordinance on 20th October, 2017.

Approval within thirty days.

It is mandatory to accord approval to the entrepreneur within thirty days if he submits application in accordance with `THE KERALA INVESTMENT PROMOTION AND FACILITATION ACT 2017’ . Any defect in application or inadequacy of documents should be brought to the attention of the entrepreneur immediately. The relevant documents shall be submitted within five days by the applicant and procedure shall be completed as soon as possible . In the event the issuance of permit is delayed beyond thirty days, it shall be assumed that permit has been issued, and a deemed permit shall be issued. The deemed permit will be given online.

Amendments in seven rules.

Amendments have been issued in respect of seven important rules in compliance with the ordinance issued on 20th October, 2017.

Amendments were issued in respect of the following Acts:-

1.The Kerala Panchayath Raj Act, 1994 .2. The Kerala Municipality Act, 1994. 3. The Kerala Lifts and Escalators Act 2013. 4. The Kerala Ground water Control And Regulation Act, 2002. 5. The Kerala Head load Workers Act, 1978 .6. The Kerala Shops and Commercial Establishment Act, 1960, and 7. The Kerala State Single Window Clearance Board And Industrial Township Area Development Act, 1999. Amendments in line with the above are being worked out in respect of about ten rules that were in existence.

Investment Promotion And Facilitation Cell.(IPFC) Investment Promotion And Facilitation Cell has been formed as per the GO(MS) No. 100/2017/ID of 12th October, 2017. The Cell consisting of the nodal officers of the relevant departments examines the applications received on-line and co-ordinate various examinations at department level. The cell plays an important role in removing hurdles in giving the applicant a licence or permit within thirty days, by co-ordinating the various department-level proceedings.

The Managing Director of The KSIDC will be the ex officio CEO of the Cell at the State level. The State level Cell will be functioning from the office of the KSIDC in Thiruvananthapuram.

APPLICATIONS WILL BE ENTIRELY ON-LINE. As per the latest arrangement, an entrepreneur needs to give only one application on-line for clearance from all departments. It is the National Informatics Centre (NIC) that has undertaken the development of the required software.

Revolutionary changes are going to sweep the industrial scenario of Kerala consequent to the implementation of `THE KERALA INVESTMENT PROMOTION AND FACILITATION ACT. 1.

With the advent of this Act, the discretionary powers of the local self-governing bodies to reject the application of an entrepreneur who has got the legal permissions from all technical departments will be used subject to the technical advice from other departments . Personal matters and politics will no more be a hurdle before the entrepreneur in the matter of obtaining Panchayath, Municipal and Corporation licences.

2.

Hereafter , trade licences will be issued for a period of five years.

Renewal of licences will also be for a period of five years.

3.

The renewal will be effected as soon as the required fee is remitted on-line, eliminating other procedures.

4.

Decision on the applications will be expedited by delegation of powers to lower levels.

5.

The industries that fall in the `` green ‘’ category of the Pollution Control Board will be granted permission on the basis of self –declaration.

The establishments that employ less than twenty five people also need to submit only self-declarations to the Department Of Factories and Boilers.

6.

The industrial establishments that do not conform to the standards prescribed by Law will be banned or served stop memo only in consultation with the concerned departments.

7.

Hereafter , only hospitals, clinics, laboratories and paramedical establishments need to obtain NOC from DMO. This will be a relief to other categories of industrial ventures.

8.

Only two documents need to be submitted for the purpose of getting Electrical connection : (a) proof of identity and (b) certificate of ownership.

9.Investment Promotion And Facilitation Cell will hereafter work for the State Single Window Board. It will deal with the applicants seamlessly and decisions will be taken in a timebound manner. The Board will have the powers to grant interrelated licences.

10.Establishments can carry out loading and unloading using the employees and machinery available with them. They need to pay only the wages stipulated by the govt. in case they employ registered workmen.

11.The industries should henceforward make arrangements to purify and reuse the water consumed by them. The water so purified should be used for industrial, commercial or domestic purposes. No separate permission is required to draw water , if it falls within the jurisdiction of the department of ground water.

12. The rule that the permit for lifts shall be renewed every year has been

relaxed to renewal once in every three years.

13.

Local self-governing bodies, Pollution Control Board, Town Planning dept. and Fire Service Dept . will issue licences on the basis of documents attested by oneself or others.

However, there is provision to levy fine up to Rs. Five lakhs if one gives false information.

14.

In case nonconformity is found in the case of an industrial enterprise , either as a result of complaints from the public or otherwise, steps to issue stop memo shall be taken only after consultation with all concerned departments provided that the industry started operations after obtaining all permits legally required. Stop-memo can be issued only if instructions at department level for corrective action are not complied with, in a time bound manner.

15.

Changes have been made in the relevant rules so that more space is available for constructing buildings.

16.

Henceforth, establishments that are more accident-prone will be subjected to more stringent inspection.

17.

Provisions have been made to allow simultaneous inspection by several agencies.

18.

Well defined process has been put in to place for registering establishments that pay employment tax.

It is certain that the new rules , which have been widely welcomed, will ensure a quantum jump in the industrial sector. It is also for the first time in the history of Kerala that so many amendments to rules come in to effect simultaneously. The changes brought about in the laws shall be reported to The DIPP(Department Of Industrial Policy And Promotion), after being uploaded in to the web sites of the concerned departments. It is after the evaluation of these changes that the ranking of the State will be revised.

We can certainly expect a substantial improvement in the ranking and an unprecedented up-tick in the industrial growth of the State. Each and every well-wisher of the industrial sector can justly be proud of being a witness to this revolutionary change.▀

30

NEWS

January 31 - February 28, 2018

P a s s l i n e

10th edition of KTM in Kochi from Sept 28, 2018

ing new Kerala products to the world.

Sellers can take part in hundreds of productive business meets,” he said, adding: “KTM is an ideal platform to bring various buyers under one roof.”

‘Agenda 9’ for action calls for measures to tackle waste management, promote organic farming, efficient use of energy and extensive use of local produce and products. Other key areas in the checklist are rain-water harvesting, reducing the use of plastics, and improving greenery.

Tourism Director Bala Kiran said KTM is India’s pride and can be placed in the same league with other international tourism fairs like ITB Berlin and FITUR. “KTM is not only a venue for interaction between the na-

K

ochi is to host the largest gathering of tourism stakeholders in India—the 10th edition of Kerala Travel Mart (KTM 2018) from September 27, Minister for Tourism Kadakampilly Surendran announced in Thiruvananthapurm. The three-day conclave, under the aegis of KTM Society in partnership with Kerala Tourism, will be held from September 28 to 30. Malabar Tourism promotion will be the main theme of this edition.

“The 10th edition of KTM will be inaugurated on the World Tourism Day (September 27) in Kochi. The inauguration will be followed by three-day business-to-business meetings,” the

minister said at a press meet. “There is huge scope for tourism growth in Malabar with the inauguration of the Kannur airport next year. The government is planning to implement many projects in the Malabar region, the main one being the “Nadhithada” tourism project that focuses on nine rivers in Northern Kerala,” Surendran said. “The government has already allotted Rs 38.5 crore for this project and the first phase of the project has already started,” he added.

KTM, the minister noted, has contributed significantly to the development of tourism industry in the state. “As the Responsible Tourism campaign is progressing, KTM’s CSR initiative ‘Agenda 9’ is giving it a fresh impetus,” he said.

The Responsible Tourism (RT) Mission has already started activities to

spread its objectives to more places and make it a state-wide project instead of concentrating it in a few places.

Kerala Tourism Principal Secretary Dr Venu V said KTM has emerged as the most prestigious commercial intervention of Kerala Tourism.

“There is more to KTM than trade exchanges. Being a wonder in the tourism sector in India, Kerala Tourism’s dynamism, energy, cooperative and brotherhood spirit comes under one umbrella in KTM,” he added. “KTM is growing into a unique brand position,” he noted.

The exhibition at KTM will have around 400 stalls featuring a range of products, packages and services offered by businesses and entrepreneurs. Public Private Partnership (PPP) being the main highlight of

KTM, it offers a platform for stakeholders, including tour operators, hotels, resorts, home stays, houseboats, Ayurveda resorts and cultural art centres to have fruitful meetings and interactions with buyers from around the world.

KTM Society President Baby Mathew explained that the Society had adopted the comprehensive 9-point charter, ‘Agenda 9’ during KTM 2016, which calls for measures to tackle waste management, promote organic farming, efficient use of energy and extensive use of local produce and products. Other key areas in the checklist are rain-water harvesting, reducing the use of plastics, and improving greenery. “The latest edition will focus on the Charter’s implementation aiming to make Kerala a sustainable destination. We also aim at exhibit-

tional and international buyers, but also a platform to spread Kerala’s geographical space, expand tourism product bouquet and promote the state as a 365-day tourism destination,” he added.

The pre-registration of buyers will commence in January 2018. Each pre-registration form will be scrutinized by a committee. Registration for sellers will begin by March. A total of 638 domestic buyers from various parts of India and 238 international buyers from more than 57 countries attended the ninth edition of the mart, which also witnessed a large number of business meetings. KTM Secretary Jose Pradeep, Tourism Additional Director Jafar Malik, KTM former President E M Najeeb, KTM Vice President Riyas U C, and Treasurer G Gopinath were also present at the meet.▀

31

Machinery

January 31 - February 28, 2018

P a s s l i n e

Machinery Expo explored the latest industrial sector

M

icro Small Medium Enterprises sector (MSMEs) plays a vital role in the development of the country. The role of Micro Small Medium Enterprises (MSMEs) in the economic and social development of the country is well-established. The State has taken commendable initiatives to promote globally competitive Micro Small Medium Enterprises including Food and Agro based, Furniture, Ready Made Garments, Plastic and Rubber, Electrical & Electronics, Handicraft, Handloom, Coir, Bamboo, Cashew, Printing, General Engineering, construction sector, Automobile sector, Ayurvedic Sector etc.

There is a vital change on industrial sector from its traditional concepts in the era of information technology, even online business ventures are establishing using virtual spaces.

The entrepreneurs are needed to be aware on the rapid changes and technological developments in the sector and need to keep them update about the opportunities and developments reducing the dependence on obsolete systems and technologies. Identifying suitable machinery will help entrepreneurial sector to ensure timeliness of operations, reduces cost of production and drudgery and improves safety in operations and efficiency leading to higher productivity and in turn contributing to the economic developments. The department of

Industries and Commerce held a machinery exhibition-- 2018 at Kaloor International Stadium, Ernakulam, from 12 to 15 January 2017. The previous exhibition was organized during the year 2015-16. The exhibition â&#x20AC;&#x201C; 2015-16 was a grand success serving its purpose with active participation of machine manufacturers and entrepreneurs, emphasised the relevance of organising the exhibition this year.

The Machinery Expo 2018 was a forum to display of technology and live machine demonstration. The focus

was given to showcase latest world class technology with an emphasis on Machine Tools, Engineering Machinery, Automation Technology, CNC Machines & Systems, SPMs, Plasma Laser Cutting Machines, Robotics and latest versions of conventional engineering machinery and tools.

The exhibition helped the prospective entrepreneurs to understand the trends, new technological developments, cost of the machinery, its operations, power requirements, space required to accommodate the machinery etc. and to clear their doubts and apprehensions on entering the manufacturing venture. The exhibition also played a catalyst role to develop commercial sector giving opportunity to manufacturers of machinery and equipment in MSME sector to exhibit their products â&#x2013;&#x20AC;.

32

January 31 - February 28, 2018

P a s s l i n e

Ace Finepack – the ultimate name in packaging industry

T

hree decades of impeccable service made ‘ Ace Finepack’ the most renowned name in the industrial circles in Kerala and outside. The company, ‘Ace Finepack Private Limited’ is known for the quality of the line packaging machines, coding machines and materials used and supplied by them.

Having started operations in 1988

by Mr Jayakumar.S in a humble way , the company has become a Rs 25 crore business firm as on date.

The enthusiastic, dedicated and workaholic Mr. Jayakumar gives all

credit to employees of his company and his esteemed customers for this achievement. Now, M/s ‘Ace Finepack’ are engaged in supplying various machines for packaging and all types of coding. They are the distributors for M/s.BESTCODE CJI printers of USA, Squid Ink USA and UCS TTO Printers for Kerala & other States.

The ISO 9001:2008 certified that M/s. ‘Ace Finepack Private Limited’ has transformed packaging into an art in itself, using innovative and latest technologies backed by

a dedicated and self motivated professional team that has a sense of commitment to their clients. “They are product suppliers and the solution providers for Packaging & Coding. “ Their range includes Strapping

Machines, Coding Machines, Sealing Machines, Wrapping Machines, Pet Strapping Tools etc.. These machines are widely used in sealing and packing of granules, liquids, powders, notebooks, toys , pet bottles etc.. Their packaging machines also find application in sectors like, Banks, Pharmaceuticals, food industry and publishing sector.

Their packaging machines are well known for their easy operation and capability of working in complex situations”, he added.

M/s. ‘Ace Finepack Private Limited’ has expanded their operations to all- India level, with branches in Chennai, Bangalore, Mumbai & New Delhi.▀

January 31 - February 28, 2018

33

P a s s l i n e

Powermech combo believe in customer retention

Ramesh

Sudeesh

P

owermech Group of companies was started in 1996. There are two

companies operating â&#x20AC;&#x201C; Powermech Diesels & Powermech Controls & Safety. Powermech Diesels is exclusively dealing in KOEL Green DG sets in the range 2.4 KVA to 1010 KVA. Powermech Controls & Safety represents leading brands like 3M, Draeger, Bata and many other companies. They have a long list of clients both in private and public sector spread across the State and some customers outside the State also. They believe in customer retention and give utmost importance for the same.

The partners, Ramesh and Sudeesh, believe in providing quality products and services to customers at reasonable rate and right time to attain 100% customer satisfaction.

They have a dedicated team and believe in team work and their vision is to be the most preferred outlet in their product portfolio â&#x2013;&#x20AC;.

Tel.1800 266 8866 | www.wilo.in

Authorised Dealer: Vinker Techno Marketing Company T: + 91 484 2331484, M: + 91 9447000746, E: vinkerpumps@gracetec.in

34 Enterprise

January 31 - February 28, 2018

Paravoor Engineers

P a s s l i n e

'Inventions are never ending'

‘

Inventions Never End’ are the words written along with the logo of M/s. Paravoor Engineers who are the manufacturers of machines for the industries like Automotive, Food, Disposable Paper Products, Soap Making, Sanitary napkins, Lifts for passengers and cargo.

Anyone who takes a close look at this enterprise will be convinced that the words written on the logo are not written by mistake. Let us hear what Mr. Sarun, an engineer by profession and the proprietor of M/s. Paravoor Engineers, says “ We are engaged in planning, designing and manufacturing these machines. We have been doing it indigenously with our own research and developmental efforts.

We resort to mass production, there by reducing the labour cost per unit produced. We have renowned , established and satisfied overseas customers. We have achieved this by providing machines meeting international standards for quality , further backed up with training and aftersales service.”

Established in 1985, M/s.Paravoor Engineers, having Head Quarters at North Paravoor in Ernakulam, have grown in leaps and bounds over a period of three decades to become the numero uno in industries like Automotive, Food Products and Disposable Paper. “ We do customized improvements and modifications to suit the needs by every customer. There is no secret formula for our success.

Our commitment to quality, capacity to provide training , timely servicing and prompt supply of spare parts are the reasons for it. Our Research and Development team is professionally competent to work out any automation system for industrial purpose . The technical team is capable of accepting any challenge in the areas of service and maintenance . We do manufacture virtually all kinds of machines required for the food industry. It includes slicers for bread and banana, Cooling Conveyors, different models of machines for making Chapattis, Cake beaters, Cheeda making units, Flour kneaders, roasters, Gattiya making units, Kuzhalappam making units, Mixture making units, Nool puttu / Idyappam making units, Pappad making units for Pappadam industry etc. We manufacture plate and cup making units for Disposable Paper Products Industries . We manufacture the machines required for Sanitary Napkin manufacturing units . As regards machinery for automobiles, we manufacture Hydraulic Two Wheeler Lift , Hydraulic Cargo Lift etc.’’, added Mr. Sarun .

Being a client centric company, M/s. Paravoor Engineers satisfies the never ending demands of their customers by doing their best by providing machines of highest standards for quality.▀

35

H

January 31 - February 28, 2018

P a s s l i n e

HESEL for Electrical Control Panel manufacturing

esel Controls in Kochi, a member of Gracetec family, is specialised in the design and fabrication of power and control panels.

Hesle has the capability to fulfil a wide variety of electrical and control systems needs from small control panels to large power control systems requiring several multi-bay panels. It not only provides a Quality Product, but also delivers peace of mind knowing that, Innovation and forward thinking are key words in Business Enterprises, that is why we have chosen the demanding area of Electrical Control Panel manufacturing, Automation & Allied Electro-Mechanical fabrication field.

This is an area where challenges are more and solutions are complex, where one is not just selling a product, but a CONCEPT- a whole new way of thinking. Hesel has the capability to fulfill a wide variety of electrical and control systems needs from small control panel to large control systems, requiring several multi-bay control panels. It , not only, provides a Qual-

ity Product, but also delivers peace of mind knowing that, the job will be completed on time and to your satisfaction and Backup Service.

Hesel Products: Power Control Centers(PCC). Motor Control Centers (MCC). Power Distribution Boards. LT Bus ducts. AMF Panels. Load Sharing and Synchronizing Panels. APFC Panels. Control & Relay Panels. Process & Machine Control Panels. PLC Control Panels. Drive & Soft Starter Panels.

Mimic Panels. Metering Panels. Control Desks. HVAC Panels. Cable Trays and special panels as per Innovation and forward thinking are key words in Business Enterprises, that is why Hesel has chosen the demanding area of Electrical Control Panel manufacturing, Automation & Allied ElectroMechanical fabrication field.

Employees and management are qualified & experienced hands, who have proven abilities to take your re-

quirements from concept to Design, Fabrication , Installation., Commissioning and Backup Service.

The staff is skilled at working with clients to quickly identify critical needs and cost-effective solutions in a wide variety of Power & Control system applications. Specialties include (but not limited to) Process Control & Instrumentation Systems, Machine Control Systems, PLC Automation Panels, Drives & Soft Starters Panels, Conventional Power Distribution Panels etc.

When engineering or programming are involved, Hesel either procures the functional specifications from the client or the expert team of Engineers will arrange Site visits, Technical discussions at Client premises and will prepare Functional Block Diagrams & get it approved from Client, before Manufacturing. If the company is doing simple control panel fabrication, it’ll review the client’s plans before

manufacture. Auto CAD is used as the standard drafting package. Details and decisions are “front-loaded” to avoid costly errors and allow for fast and cost-efficient fabrication techniques.

Hesel has in-house metal fabrication capabilities like Hydraulic Shearing, Hydraulic Press Break, Manual Press, Hydraulic Bus bar Cutting, Punching & Bending Machine. Drilling, Tapping and Punching Testing Equipments etc….

The extensive network of Quality vendors for final paint finishing (Powder Coating) enables the management to deliver the requirements. The craftsmen perform complete panel assembly, including component mounting, wiring, controls, sub-panel assembly , testing , commissioning and backup service.

Hesel has highly-skilled and experienced craftsmen. Many have over fifteen years of tenure. Hesel provides safe , well-organized, clean and bright services and uses intelligent approaches to enhance the productivity of the skilled and experienced workforce ▀

Plot No. 24-B, Industrial Development Area, South Kalamassery, Kochi – 683 109, Kerala, India Tel: 0484 2544371, Mob: 91 81298 22510 E-mail: heselcontrols@gracetec.in, Web: www.gracetec.in

MANUFACTURERS OF POWER & CONTROL PANELS Panel boards type-tested at CPRI for 3200A, 50KA for 1Sec

AN ISO 9001-2008 CERTIFIED COMPANY Licensed Partner for SIEMENS-SIEPAN 8PU, LT Panels

36 RN65561/94 Reg No KL/EKM/116/2009/2011

January 31 - February 28, 2018

P a s s l i n e

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