Kerala Tourism Director P I Sheik Pareeth and GoAir Vice-President (Sales and Marketing) Manoj Dharmani exchanging the MoU in the presence of Kerala Tourism Minister A P Anilkumar,. Kerala Tourism Secretary Suman Billa, and GoAir Head of Corporate Communications Gaurav Patwari are also seen
Kerala Financial Corporation GM Premnath Ravindranath receiving FACT MKK Nayar Memorial Productivity Award for the second place in service sector
Happenings
The MD & CEO of Federal Bank Shyam Srinivasan receiving the IDRBT Award from RBI Governor Raghuram Rajan in the presence of Jose K Mathew, Addl GM of Federal Bank and R Gandhi, Dy Governor of RBI
Abdul Rahiman P A, the eminent NRI business man, receiving business exellence award 2014 instituted by Darshana TV from PK Abdurabb, Minister for Education. Syed Sadikkali Shihab Thangal and Manjalamkuzhi Ali, Minister for Urban Affairs are also seen
NEWS BUSTER
Disposable bed linen in Rajdhani Express
Y
ou might get this happy surprise when you next board a train. The Railways is planning to soon try disposable bed linen, on an experimental basis, in the Bangalore Rajdhani Express. Among other initiatives that the Railways is planning for giving you a “clean experience” are bio-toilets, pest-free train coaches and setting up of more cleaning stations. All of this with a mere Rs 940 crore in pocket? It seems the country’s biggest transporter has a very daunting task at hand. But the Railway Board is in a mission mode to make these possible, especially because cleanli-
ness is among the three priority areas Prime Minister Narendra Modi has identified for the country’s railway network. The budget for this has seen a major increase from last year’s Rs 673 crore (under various heads). However, the use of disposable bed linen - which will cost the Indian Railways roughly Rs 75 a trip, compared with Rs 55 for cotton ones - entails the challenge of overcoming safety hazards more than the price factor. These disposable sets - each containing a bed cover, a bed sheet, a pillow and a blanket - will add to the fire load of coaches, as these are synthetic and inflammable, unlike their
cotton cousins currently in use. The Railways is working on this aspect, the new sets, supplied and designed by small-time contractors, also need to appeal to the commuters. The zonal railways can buy bed linen only from the outlets of Khadi and Village Industries Commission and Association for Consumer Action on Safety & Health (Acash). These organisations, sometimes, are not able to meet the replacement requirements. The Railways also plans to set up 64 mechanised laundries over the next three years to do the washing itself,
instead of relying on conventional washermen. Also, the Railways is adding some half a dozen cleaning stations to the current 34 where mechanised cleaning of trains halting for more than 15 minutes takes place. However, bio-toilets are arguably the most complicated part of the Railways’ cleanliness drive.
3 From the Editor
Booze is the buzz; bus is missed!
K
erala Travel Mart 2014 (KTM 2014), the flagship tourism event, concluded last month with great fanfare. The show was impeccably organized and extremely marvelous, also on par with the World Travel Mart held in London or any other international event of that stature. Kudos to the organizers. According to the data of Tourism department, Kerala has a revenue of Rs 25,000 crore from tourism industry per annum, quite an impressive figure indeed. Number of seminars and talks was galore at the venue of the event and daily press briefing was also there in place. The honchos from the industry , particularly the owners of bar hotels and resorts, were desperate about Kerala government’s recent liquor policy and they categorically insisted for the repeal of the policy for the betterment of tourism. There may be some substance in their argument because Gujarat government was also so adamant about the free flow of liquor, since the state is the birth place of Mahatma Gandhi, recently became liberal about their liquor policy and issuing permits hassle free for those who visit the state. Let us leave the matter since it is to be adjudicated. To my great surprise nobody from the industry was concerned about the travel woes of tourists which mar the potentials of tourism. They totally ignored the issues of motorable roads, dearth of good public transport including our regularly irregular trains or clogged waterways.
Editor & Publisher
Varghese Paul Kozhikode Vineeth Mukundan 8714986177 Chennai Augustine Joseph Ph: 09381000534 Bangalore Gireesh Gopal +91 7204560000 Adithya +91 9538060591 54, 2nd Main, Vyalikaval Bangalore - 560003 Manager-Marketing Sajan K 09895344485 Keethara Publications Pvt Ltd 38/125 1st Floor, Narakathara Road, Kochi-682 035, Kerala, India. Editorial : +91 484 4038346 Marketing : +91 484 4039346
“ The condition of roads in Kerala is so pathetic that one will have to undergo ayurveda treatment if one travels through them”, this is the opinion expressed by the Hon High Court of Kerala about our roads. The total road length of Kerala is 1,381 lakh kilometers and we occupy the third position as regards the number of accidents . Kerala has 8 National Highways run for about 1,457 km but our highways are narrower ones compared to our neighboring states. In Tamil Nadu, they keep 60 meters and more width providing over 4 line traffic for future development. Whatever road infrastructure Kerala has, 75% of them are not at all motorable. Our KSRTC is in possession of 5,373 buses as per the available data and 4,795 schedules per day. Most of the buses are damaged severally and not useful for a cozy or pleasure trip which our tourists are longing for while they visit the State. The affluent travelers are depending on tourist taxis or travel agencies for their movement in the State, but majority of others who depend on public transport will never visit the State once more due to the travel agonies they face. KSRTC has a few air-conditioned Volvo buses but those buses can not ply in Kerala roads which have full of gutters and pot holes, most of them are lying in yards and workshops ( KATTAPPURATH). Other option for travel is train travel. Our trains are infamously famous for irregular timings and unhygienic coaches and platforms. Nobody can predict the arrival and departure of our trains . Tourist who wants to reach their destination in time will be in trouble if they depend our railways. The cost effective and environment-friendly travel mode is our waterways. Kerala is enriched by number of water bodies surrounding the State. It includes back waters, canals and rivers of total 1500 km. The agony is most of the waterways are not navigable due to several reasons, mainly the apathy and neglect of the government. Our Chief Minister made an announcement that by 2012, 205 km of the Kollam – Kottappuram water channel would be commissioned. But till the date no progress has been made towards it and the reason is known only to the Chief Minister. Despite such a grave situation prevailed in Kerala on the travel and transport front, nobody from our travel and tourism sector, that too a multicrore industry, raised voice for it. Our veterans from travel and tourism were noisy about the ban of liquor but not at all concerned about travel woes. Astonishing! Isn’t it?
Varghese Paul
4 GOVERNANCE
T
K Vijayachandran
PASSLINE
here is no dearth of news in Kerala on the breakdown of governance and on the sins it has committed by omission or commission: With many political parties (national and regional), trade unions, employees’ associations, employers’ unions, trade associations, resident associations and their numerous apex bodies, NGOs, more than three dozen TV channels, FM Radios, countless newspapers and journals and a large number of writers and journalists in local languages and English, public complaints and criticisms about the working of State Government at various levels are numerous. There is no dearth of strictures or directives on the functioning of GOK, from High Court, Supreme Court or Central Government. For the State bureaucracy in Thiruvananthapuram, its daily routine to travel to Kochi to attend the High Court, and there is a massive legal cell stationed at Kochi, along with a large team of advocates and solicitors, the size of which is a fair index of the poor quality of governance delivered by a team of two dozen ministers and each minis-
October 31 - November 30, 2014
ter assisted by two dozen politically committed personal staff, supposed to have grass-root level contacts with the people. Complaints about the poor quality of governance had driven the present Chief Minister out of the secretariat and try out delivery of quality governance right at the district level, with the help of the district level bureaucracy headed by the Collector. Newspaper majors and members of the visual media competed with each other for guiding and controlling the long Qs thronging the Neethi melas that marked the active participation of local leaders and officials and presided over by local panchayat members, MLAs and ministers helping the Chief Minister. In a way, these campaigns by the CM were a UDF version of Peoples Planning Programme of LDF which had left its own bitter list of complaints and short comings. This time, media played the role of campaigners as well as planners of developmental projects, big and small, which were long neglected by the government at various levels like district administration and three tier panchayats as well
as municipalities and corporations, for their own reasons. The neglect and delays in public works as well as public investments in training and HRD were often because of lack of expertise, capacity, competence or authority with the local level. Quite often they do not have even the expertise to engage professional consultants to study and advise on remedial measures. Such disabilities were, quite often, sought to be overcome by wordpower, media campaigns and political contacts and not by conscious and planned efforts for capacity building by inducting and or professionals and specialists. This lack of capacity at different levels and various institutions and the problems arising out of it were discussed in some of my earlier articles in Passline and the latest one was in October 2012 and republished in my book Perestroika Glasnost and Socialism. Net result is that problems accumulate and firefighting methods are inevitably adopted for solving even simple problems and this inevitably puts the State Government budget under strain. Footprints of
5
KERALA: POOR GOVERNANCE AND FINANCIAL CRISIS Chief Minister’s Durbars could be easily seen in the Kerala Government budget of recent years. Trends in the capital budget expenditure of GOK under four major heads, irrigation, industries, works other than PWD, and other economic services are given and analyzed in Table-1. It is seen that this has nearly trebled to around Rs 2,990 crore in 2013-14 compared to the previous year. This trend appears to be continuing in the current year as well. These four heads of capital expenditure that accounted for only 24 % of capital budget of Kerala Government in 2011-12; this has now increased to 64%. The total increase on this count, during the two-year period, is more than Rs 3,000 crore; more than half of this is accounted for by miscellaneous capital accounts head, which has experienced an explosive growth within a short span of two years. It is seen
that increased outlays under these major heads were partially compensated by the cut down of outlays on the other sectors viz public works department, roads and water transport. Extensive damage suffered on the roads, this year, was not because of any abnormal monsoons: In all probability, it was a reflection of the budget cuts and subsequent lapses in capital maintenance. What we experience on Kerala roads is a reflection of the rapidly deteriorating quality of governance in the State at every level. This is true regarding our schools, primary health care units, water supply, local transport and protection of environment. And the solution is to strengthen the local governments by building up the manpower needed so that they could effectively discharge the responsibility assigned to them by the constitution, and certainly not by saving on salaries of employees
by arbitrarily cutting down their numbers. Efforts in the past to improve our governing system through the panchayati raj and democratic decentralization of the administration and capacity building at vari-
ous levels have failed to yield results. Major reason for this failure is the steady erosion in the authority and accountability of state governments, thanks to the outmoded Central-State relations.
TABLE-1: KERALA GOVERNMENT BUDGET: TRENDS IN CAPITAL BUDGET Year/Rs Crore
2012-13
2013-14
2014-15
Major head
Actual
Revised Est
Budget
S.No 1
Irrigation
340.6
696.5
933.7
2
Industries
274.0
386.7
473.9
3
Other works
414.0
763.4
994.3
4
Other economic services
77.6
1,142.9
1,712.7
5
Public works
2,143
1,805.6
1,331.5
6
Roads, water transport
722.3
466.5
454.1
Total 1 to 4
1,106.2
2,989.5
4,114.7
Total capital expenditure
4,603.3
5,900.6
6,636.4 October 31 - November 30, 2014
PASSLINE
6 DASHED HOPE
ICTT: winners and losers A
K V A Iyer
PASSLINE
public debate is on concerning disappointing performance of International Container Transshipment Terminal (ICTT) of Cochin Port, at Vallarpadam. Reportedly the project was conceived and recommended by a reputed international maritime consultant, Fredrick H Harris and Drewry. It was a project approved by the Government of India at the various levels of decision- making, including the shipping ministry. The project was conceived as part of the economic reforms and restructuring policy initiated during early nineties. Cochin Port was having annual traffic volume of about 1.5 lakh containers (exclusive of coastal traffic) prior to 2005. Coastal traffic is not routed through transshipment and hence it was not included in transshipment project. The fact, that coastal container traffic was not included in the project proposal, was clearly mentioned in the tender document, inviting proposal, given to qualified bidders. At that time, Colombo Port’s trans-
October 31 - November 30, 2014
shipment traffic of India bound and out bound containers were 30 lakh containers per year. As Colombo and Cochin are similarly situated and close to East-West maritime route, it was perceived that a strategic partner such as DP World (DPW) would be able to wrest at least 3 lakh transshipment containers from Colombo. When Cochin Port’s origin/destination traffic of 1.5 lakh containers is added the total traffic volume of Cochin Port would rise to 4.5 lakh containers within one year, i.e., by 2006 – a growth of 200 per cent in just one year was, no doubt, quite tempting. As huge size mainline ships or the so called mother ships start calling Cochin Port, there will be big increase in ship related revenue for the Cochin Port Trust by way of port dues, berth hire and pilotage. Higher expense of maintaining deep draught channel and berth, as traffic volume increase beyond 4.5 lakh containers, could be met from higher level of revenue that would become realizable by Port Trust. Besides, DPW would
give 33.3 percent revenue share on cargo related charges as royalty to Cochin Port Trust. 33.3 per cent revenue realizable on 4.5 lakh containers from DPW would work out to be equal to that of revenue being collected on 1.5 lakh containers prior to 2005. It looked a win-win scenario for the Port Trust. DPW had, while submitting the financial bid, accepted the terms of tender and agreed to sign licence contract on those terms which were already accepted by it, at the time of submitting the bid. However, DPW was quick to perceive that every business plan may not work as projected. DPW therefore expressed their reservations and wanted the Port Trust to alter the terms to include coastal traffic in the partnership. The Port Trust thereupon agreed to this change and another 20 modifications desired by DPW. Even after entering into partnership, DPW went on demanding more and more concessions such as reduction in tariff levied by the Port Trust on ships and relaxation of cabotage restrictions,
7 etc., all of which had been conceded by the Port Trust. And, on the other hand, Port Trust’s demand that cost of CISF security staff must be met by DPW in accordance with contract remains unsettled. The cost is now met by the Port Trust. Despite having acceded to whatever DPW wanted the partnership that is going on for the last 10 years has failed to achieve the core objective of turning Cochin Port into transshipment hub. Container traffic volume in Cochin Port in 2011-12 was approximately 2.6 lakh containers (exclusive of coastal traffic) of which about 76,000 were empty containers. Actual EXIM traffic volume therefore works out to about 1.8 lakh containers only in 2011-12. The reasons failing to achieve the targets are relevant only for the purpose of business analysis. They cannot reduce a partner’s obligation to make good the losses due to the failure. It appears that proper analysis of transshipment traffic through Colombo was not done. Colombo Port’s transshipment volume of India’s inbound and outbound traffic was 30 lakh containers. Double count done for transshipment, when factored in, the real traffic volume of India related containers at Colombo comes down to 15 lakh containers. Major Indian ports served by Colombo, in terms of descending order of transshipment volumes, are Tuticorin, Chennai and Cochin. It is obvious that Tuticorin and Chennai are not ideally located to use Cochin as hub as voyages between west and east coast has to be done rounding Sri Lanka. India’s premier port with traffic volume of 40 lakh containers per year is JNPT. However, JNPT is predominantly a direct call port. Only about 8 per cent of JNPT’s traffic is done via feeders. For other west coast ports north of JNPT traffic goes inland to vast areas of North India. As a result, Cochin or any other port south of JNPT has no significant scope for transshipment. The leading mainline ship operator – Maersk is part owner of Colombo’s container port and this company already has significant presence in Indian container ports as well. All these negative factors lead us to the conclusion that transshipment has only limited scope for Indian ports. The massive investments made in the Cochin Port in anticipation of a roaring transshipment business have turned out to be a fiasco. Cochin Port Trust has turned a sick enterprise and its owner, the Govern-
ment of India, is Container Traffic Handled at Cochin Port - Type-Wise 2009-10, 2010-11&2011under compul12 in Cochin Port sion to write off/ bear the huge (Numbers) financial losses and DPW will Type 2009-10 2010-11 2011-12 also come under Import 139317 145860 155307 20 feet 85423 84228 90825 legal compulsion 40 feet 26947 30816 32241 to partner the Stuffed 117863 126805 134116 losses. However, 20 feet 81631 81789 87438 major losers are 40 feet 18116 22508 23339 the workers. Empty 21454 19055 21191 About 200 work20 feet 3792 2439 3387 ers were forced 40 feet 8831 8308 8902 to accept job loss Export 138863 141272 162635 as part of the 20 feet 82725 82688 92053 voluntary retire40 feet 28069 29292 35291 ment package. Stuffed 85325 92706 107579 About 2,000 20 feet 35443 37572 43643 daily workers had 40 feet 3128 1725 3323 compromised to Transhipment 11380 22576 18897 live with reduced 20 feet 10248 19350 15595 employment 40 feet 566 1613 1651 and correspondStuffed 11274 21828 18757 ing lower wage 20 feet 10194 19350 15595 incomes. Nearly 40 feet 540 1239 1581 400 employees Empty 106 748 140 are being retained 20 feet 54 0 0 with indefinite 40 feet 26 394 70 job prospects TOTAL 289560 30970 336839 to perform odd jobs. Another 500 self-emSource: Culled out from IPA Statistics. ployed workers illogical tariff fixing could have been ized. Cochin Port Trust is finding it were left to fend for themselves. avoided had the private bidders were difficult to meet the exponentially Several poor families lost their home- chosen not on the basis of highest increasing expenditures, caused by steads to let the new railway line revenue share to the Port Trust, as at the partnership with DPW while through their and highways to pass present. Had the lowest bid in rupee revenues are declining. The sole property. / dollar for each item of operation in gainer is DP World, which met the the container terminal were the basis project cost of Rs 700 crore through Not only the working poor but even for selection of successful bidder, debt finance sourced from an Indian the trading communities and busi trade would have welcomed it. financial institution and external ness firms were affected. Sequel to by DPW of commercial borrowing. Here again the takeover of RGT The Central Government has spent the major losers will be Indian finanRGCT in 2005 - the Port’s Container Rs 1,600 crore for providing sup Terminal at Wellington Island DPW porting infrastructure to Vallarpadam cial institutions. introduced a charge for accessing Terminal. The expected benefit from (The writer is an office-bearer of Water the container terminal for containthis investment has not materialTransport Workers Federation of India) ers with export cargo. Together with related expenses of cargo handling, the port costs rose by Rs 2, 000 per container. In 2011 when operations were shifted to Vallarpadam, Prime Minister Man Mohan Singh had declared that by avoiding transshipment at foreign ports, the trade would stand to save additional expense of about $ 300 per container. Not only that, this promise did not materialize, costs increased further by Rs 5000 per container by way of hiking tariffs by DPW. Non-availability of Customs personnel thanks to the SEZ status of Vallarpadam Terminal had further added to the problems of shippers. The permission given to DPW by Tariff Authority for Major Ports (TAMP) to increase tariff by 3.48 per cent every year, makes Vallarpadam Terminal even more expensive. This October 31 - November 30, 2014
PASSLINE
8
Quality Food Products Industries Committed to nature
O
The finished products are subjected to strict quality tests before packing. With globally reputed chefs at its top, the key to the success of spice products has indeed been its undeterred commitment to quality and its distinct flavour that has own appreciation from all quarters
ur Vision is an ECOFRIENDLY world. As a leading food product brand of curry powders and spice powders, we understand our responsibility to society. Our products are sourced from nature; it’s our duty to preserve the environment and our resources. That is why all our activities are fine-tuned to be eco friendly”. These words are the excerpts from the vision statement of
Quality Food Products Industries -the manufacturers of ‘Quality’ brand curry masala and spices powder. The words echo the commitment of the company for the nature and purity which translated automatically to its products. Quality brand curry powder and masalas are one of the finest brands available in south India having more than 15,000 outlets and 36 products, including grocery like pulses, spreading Kerala, Tamilnadu,
K Varghese George
PASSLINE
October 31 - November 30, 2014
New Delhi and Lakshdweep. Started in 1984 as a small unit at Panavally village, Sankaramanagalam in Alappuzha district, Quality has become a household name in three decades, through experience and optimum efforts, it has enough production, storage and transportation facilities. Quality has earned the trust of its customers and their endeavour has always been to maintain that name. Let us listen to the words
9 of the Proprietor of the Quality Food Products Industries Varghese George: `` We make sure that we uphold high standards of cleanliness in the premises so that our customers get only the most pure and hygienic products. Thus, we live up to the expectations of the customers making it the most wanted product by every household.” The factory is equipped with fully mechanized various German IFP collaborated machines with computed productivity and also has barcoding facilities within the premises. “ Always we have an integrated production line with pneumatic conveying system to produce quality spice powders untouched by hand, which helps to eliminate microbial contamination in the products during processing. Magnetic separators are installed at various points in the line to separate iron particles if present and are constantly researching and developing new product ranges and refining the existing ones, developing existing sectors, and maximizing every opportunity in the ethnic markets in India,” said George. `` Our company is equipped with a sophisticated quality control laboratory approved by the Spices Board and the raw materials are cleaned in machines like De-stone and Sifter to
remove stones, husks, lighter particles, dust and other foreign matters. The moisture content in spices is maintained at specific level using electrical tray drier. The pin mill with pneumatic conveying system helps to retain more volatile oil in spice powder because of low heat generation during the process. The above processes give more natural flavour and aroma to the products compared
to similar products manufactured by conventional methods. The raw materials are tested for various parameters and only on achieving the parameters they are transferred for processing. The finished products are subjected to strict quality tests before packing. With globally reputed chefs at its top, the key to the success of spice products has indeed been its undeterred commitment to quality
and its distinct flavour that has own appreciation from all quarters. With value added enhancements to the products such as air-tight product packaging and uniform quality maintenance the brand is all set to go places with its ‘Gourmet Indian Spice Blends for curry without worry’! We have now entered the international export market. By the grace of God and due to the excellent
October 31 - November 30, 2014
PASSLINE
10
co-operation of workers and various authorities, the unit is functioning smoothly. We’ve a successful efficient network of supply chain augmented with a fleet of vehicles to ensure that what we produce reaches the market without any interruption. Our distribution network ensures the availability of the product in every nook and corner of the state. We always believe in providing the best to its customers: We combine the taste of tradition and modernity to make cooking really easy,” ensures George. The lab also identifies and eliminates toxins and microbiological hazards through unique sterilization methods and the product comes
out untouched by hand. HACCP CERTIFICATION, 14001:2004 & 18001:2007(OSHAS) & ISO 22000: 2005 for quality, extensive research and development programmes, constant market analysis, rigorous R&D endeavours, a well-structured supply and distribution network are set the company apart from other contenders in this field. With a holistic approach in all its business operations, a loyal and dedicated workforce and its belief rooted in value creation, Quality Food Products Industries is always ready to realize its vision and objectives. The challenges of the future will surely help them to enhance the Group’s performance
Varghese George with wife Gracy George and sons Nithin George, Nivin George PASSLINE
October 31 - November 30, 2014
11
Self-made entrepreneur
Varghese George is a self-made entrepreneur. After his graduation he started his career by entering a job with Western Scales Co dealing in weighing machines. His brother Paul was an employee in Western Scales. George gave up his job after the death of his brother employed in the company. His close friends like Jayachan, Gopalakrishnan, Krishnakumar, Prasannan, and Kabeer are the motivational forces who inspired him to put his passion of entrepreneurship into practice. Thus, Quality Food Products Industries was launched with a capital of merely Rs 25,000. As his mother and father had a hand to mouth existence George had only moral support from them. But his entrepreneurial skill and acumen helped the enterprise to grow to the level of a unit having about 300 staff and crores of turnover now. And the management and staff maintain a family atmosphere inside the unit which embodies his family members as his brothers Raju Varghese and Edward Varghese play active role in the development of the venture. Besides, his wife Gracy George is in charge of the plant. His eldest son Nithin George, BTech holder and MBA student, is involved in the management of the unit. The second son Nivin George is doing BBA. George has now diversified business plan. His aim is to build low cost quality villas in his village within two years.
Varghese George
and transform newer dreams to reality. Vision ``Our vision is a nature-loving world. As a leading food product brand of curry powders and spice powders, we realize our onus to society and nature. Our products are sourced from nature. It’s our duty to preserve the environment and our resources. That is why all our activities are fine-tuned to be eco- friendly. Our products are prepared with care and do not contain any additives that are harmful to health. As an eco-friendly food product brand, Quality follows strict food safety measures and ensures that no raw material goes without careful testing and quality control”. Mode of operation • Keep in track with the suppliers to obtain the quantity of quality products in seasonal occasions. • Purchase raw materials from the farmers and provide the product to our re-sellers at a minimum cost. • Arrange delivery of the purchased goods on time by confirming the reservation from the transporting company. • Observe the Damage Control Unit to avoid the discrepancies in Production & Marketing. • Check the possibility to assign agencies across India thru a networking system. October 31 - November 30, 2014
PASSLINE
EXCESSES
13 13
Kerala: the glass is half empty Dr V K Vijayakumar
W
hen the history of the present Oommen Chandy Government is written, historians will record two decisions of his government which had profound consequences for the State: one, an excellent decision and two, an incredibly stupid decision. Historians will record the first decision as a far sighted decision that contributed substantially to the improvement of the State’s finances while they will record the second decision as a hasty and stupid decision that not only neutralized all the benefits of the first one but also paved the way for the stagnation of the State’s only unique industry with huge potential-- the tourism industry. The first decision that I am referring to is the decision to introduce the Contributory Pension Scheme; the second one is the hastily taken decision to introduce ‘total prohibition in stages’ over a ten year period. An elected government is well within its rights to implement decisions in social interest. If a decision promotes social interest, the government should implement that decision even in the teeth of opposition. But the ‘complete prohibition in stages’ policy does not qualify as a decision in social interest. Why? Without doubt, irresponsible drinking cannot be justified. It is true that irresponsible binge drinking by drunkards have brought untold sufferings to their families and health problems for the drunkards themselves. But this is not the problem of liquor; the problem is with irresponsible binge drinking. This cannot be cured through total prohibition policy-- a policy that has failed in almost all places where it has been implemented. Total prohibition will lead to bootlegging, liquor mafia and all associated vices. The cure will be worse than the disease. Kerala, the land of excesses Kerala is a land of excesses. These excesses can be seen not only in drinking, but also in our politics, in our driving…... in fact in many facets of Kerala life. Take politics for instance: there is multi-party politics in many countries of the world. In
some Developed countries multiparty democracy is practised with great discipline and restraint. There, elections are very subdued normal events that lead to peaceful and orderly change of governments. But, what about Kerala? Here elections are like carnivals and political clashes are routine. Multi-party democracy had often degenerated into political
The KPCC president, always keen to project his ‘holy’ image, took an uncompromising stand on the reopening of bars that did not comply with the guidelines. The IUML and Kerala Congress sided with the KPCC president since it was politically expedient. The pragmatic Chief Minister, when pushed to the corner, turned the tables on the party chief and the UDF constituents in a surprising volte face. murders. The problem is not with multi-party democracy, but with the practitioners who indulge in excesses. Kerala has the dubious distinction of hundreds of political murders including some of the recent controversial ones. The solution to this problem is not banning multi-party democracy, but to educate people to practise responsible politics eschewing violence. Last year more than 4300 people died in Kerala in road accidents. The main reason for this terrible tragedy is irresponsible driving. Anyone who had travelled abroad will be struck by the contrast between responsible driving abroad and our irresponsible driving. While in most countries compliance with traffic regulations is a rule, here it is an exception. This is another example of Kerala excesses. The solution is to make drivers responsible and punish them sternly for excesses.
The solution is not to prohibit motor traffic. Lessons from history Many countries including the USA tried prohibition and when it failed, repealed the policy, learning from mistakes. Remember that the USA has law enforcement machinery several times more competent than ours. Yet, they couldn’t enforce prohibition. What about our excise and police? A wit recently remarked that prohibition in Kerala will substantially improve the standard of living of the police and excise personnel. A hasty decision born out of ego clash If the prohibition decision was taken after a thorough study, it could have been partly justified. But the ludicrousness of this decision stems from the fact that it was born out of ego clashes. As Shashi Tharoor rightly put it, the decision was the product of a ‘holier than thou’ ego clash. The KPCC president, always keen to project his ‘holy’ image, took an uncompromising stand on the reopening of bars that did not comply with the guidelines. The IUML and Kerala Congress sided with the KPCC president since it was politically expedient. The pragmatic Chief Minister, when pushed to the corner, turned the tables on the party chief and the UDF constituents in a surprising volte face. It was a political master stroke; but Oommen Chandy will regret the decision. He and the State will have to pay dearly for this hasty decision. Are we an investment- friendly State? This government has been shouting from the roof tops that it is investor- friendly. It has been claiming that the investor- friendly policies will attract huge investment into the State. Really? What about the more than Rs 10,000 crore invested in star bar hotels in Kerala? Investor- friendly indeed! Infringement of personal freedom Large number of people drinks responsibly. After a hectic day’s work, back home and refreshed, a drink
can be a highly relaxing and enjoyable experience. Ministers and party presidents have no right to deny this to responsible citizens. Can these utopians prohibit Tamil Nadu and Karnataka from opening retail outlets and bars on the border? Can they prohibit the distribution of liquor via the Defence canteens network? It is difficult to rationalize with people living in fools’ paradise. I am tempted to conclude with this famous quote from Winston Churchill when asked about his position on whisky. “If you mean whisky, the devil’s brew, the poison scourge, the bloody monster that defiles innocence, dethrones reason, destroys the home, creates misery and poverty, yes, literally takes the bread from the mouths of little children; if you mean that evil drink that topples men and women from the pinnacles of righteous and gracious living into the bottomless pit of degradation, shame, despair, helplessness, and hopelessness, then, my friend, I am opposed to it with every fibre of my being.” “However, if by whisky you mean the oil of conversation, the philosophic wine, the elixir of life, the ale that is consumed when good fellows get together, that puts a song in their hearts and the warm glow of contentment in their eyes; if you mean good cheer, the stimulating sip that puts a little spring in the step of an elderly gentleman on a frosty morning; if you mean that drink that enables man to magnify his joy, and to forget life’s great tragedies and heartbreaks and sorrow; if you mean that drink the sale of which pours into our treasuries untold millions of dollars each year, that provides tender care for our little crippled children, our blind, our deaf, our dumb, our pitifully aged and infirm, to build the finest highways, hospitals, universities, and community colleges in this nation, then my friend, I am absolutely, unequivocally in favour of it. This is my position, and as always, I refuse to compromise on matters of principle.” (The author is Investment Strategist, Geojit BNP Paribas)
October 31 - November 30, 2014
PASSLINE
14 ISSUES
cal masters heard the cry of rubber planters in the State, especially the small time farmers with the holdings of one or two acres who are the majority.
R Ramachandran
K
erala is in an inebriated state over the liquor issue for the past few months. After the Saritha episode there was no other topic than this which hogged the media of Kerala for such a long period. Thanks to the tipplers of Kerala who always keep the State number one in the consumption of liquor. The political atmosphere is also getting murkier in these days. The Congress leadership and the UDF Government in the State are competing each other to snatch the maximum mileage out of the recent government announcement of gradual ban of liquor in the State. Do not think that the Opposition in the State is sitting as a mute spectator of the situation; they are also trying their level best to make the water more muddy for a easy catch. But, none of these rulers or politi-
PASSLINE
October 31 - November 30, 2014
With continuous plummeting price of natural rubber there seems to be no end to the woes of rubber farmers. The repercussions of this tragic scenario had already made major dent in overall consumer business. Both the Centre and the State governments have done nothing tangible to stabilize the rubber prices, except the lengthy speeches and the shedding of crocodile tears aiming the media glare. There are about 15 lakh rubber farmers spread in Kottayam, Idukki, Pathanamthitta and parts of Ernakulam districts. Around 20% of the total geographical area supports rubber which is essentially a mono crop. Adding insult to injury, per hectare expenditure of rubber plantation has doubled in last three years. The labour charge of Rs 2.5 per tree was fixed during the hey days, while the price per kg was Rs 245. But, the current situation stifle the very lives of small rubber farmers with low income and high input costs. Tapper trees per hectare on an average come around 400 numbers. Tapping days per year are stipulated
to 140 days. With inclement weather and desperation caused by steep fall in price further reduced the tapping days to less than 80 days. Speaking to Passline K M Abraham, a progressive farmer of Karikode , said, “the farmer is in a cross road since other stakeholders refused to look in to his woes. The case is the same from large plantation to small growers, not only the present scenario but the future is also grim for them due to the uncertainty in the price and indiscriminate dumping�. In Kottayam and neighbouring districts suicides directly and indirectly related with downfall of rubber are on the rise. There is also a fall in the prices of land from an average of Rs 1.5 lakh per cent to a pittance of Rs 50,000 and even less. Like the preceding year, this year too consumer business including durables, textiles and jewellery suffer mammoth setbacks as the purchasing power of rubber growers touched the nadir who once strode the mountains with pride and enormous purchasing power. According to a textile chain, during last Onam they suffered 20% fall in business and this year 30% fall due to rubber crisis, even after upgraded whopping advertisement campaigns.
15
Liquor replaces rubber in political agenda! The absence of strong network among farmers further deepens the crisis and isolate them. The need of the hour is a viable Joint Action Council irrespective of political colours. The rubber prices touched an alltime high of Rs 240 per kg in 2011 and Rs 245 in 2012. In 2013 average price of rubber per kg was Rs 140 and 2014 recorded an all-time low of below Rs 100. Some 15 years back Kerala experienced a similar volatile situation when a sudden influx of Srilankan rubber occurred. Kerala which accounts for 95% of total rubber production cannot switch over to other plantation in near future and it is aching to do so with the standing live trees that once laid golden eggs. India which is world’s fifth largest producer of rubber is also second largest consumer of natural rubber. The centre’s policy of the Free Trade Agreement with various rubber growing countries is considered as shield for the rubber cartels with unabated rubber imports chasing the domestic rubber growers into ruin. The cartels now manipulate the price of natural rubber with uncontrolled imports over ran the collective bargain power of domestic growers. The same cartels import huge quantity of natural rubber during high cropping season and stay away from the market during lean season leaving the domestic growers high and dry as the landing cost of imported rubber is still lower than the do-
mestic product. In this context both farmers` unions and traders` association urge for substantial increase in import duty from the present 20%. Another disturbing factor is that, according to reliable sources, the import of natural rubber for the fiscal 2014 – 15 may exceed the previous year. If one takes note that during the month of May of this fiscal alone , there was a spurt in import to the tune of 33% viz a viz last year same period. During 2013-14, 3,24,586 tonnes of rubber were imported.
limitations of Rubber Board in the current pathetic scenario are also apparent. Further decline in domestic rubber prices may force the hapless farmers to abandon rubber cultivation erupting massive human tragedy and social unrest. The absence of strong network among farmers further deepens the crisis and isolate them. The need of the hour is a viable Joint Action Council irrespective of political colours. It is sure that the harrowing rubber crisis will snowball into an
economic crisis for the entire State. The monopolistic practices of the Perumbavoor based saw mills, the sole consumers of rubber wood, caused steep decline in rubber wood prices. The price of rubber wood which stood at Rs 6,000 per tonne two years ago has fallen to Rs 4,000 this year. Amidst State apathy, Centre’s willful negligence and cartel’s opportunistic lobby, the hapless farmers and the rubber trees are struggling to regain the lost glory.
Antidumping duty is another suggestion to stabilize the domestic prices. As far as the domestic production is concerned Kerala contributed 7,48,250 tonnes during fiscal 201314 followed by Karnataka 25,000 tonnes and Tamilnadu 23,000 tonnes respectively among the south Indian States. Adding to the woes of the local farmers the tyre manufacturers started using Technically Specified Rubber (TSR) replacing Domestic Ribbed Smoke Sheets (RSSIV). Traders Association activist , Sajan of Pothy in Kottayam District, argues that the only remedy for the indiscriminate import of rubber is to restrict the imports only through select ports and also enforce a domestic pricing mechanism to curb the menace. In a recent letter, written by Chief Minister Oommen Chandy to Prime Ministe r, suggested to use rubber for the development of National Highways so that the intense usage may rise the demand and price. But, both the farmers and traders allege that low quality rubber and used tyres were in rampant use as bitumen for tarring the roads in Kerala. The farmers lament that why don’t the State Trading Corporation procure rubber as was done during 1997 to 2002. Though it is far from reality , Chandy sought a Rs 1,000 crore rubber stability fund from the Centre as a remedial measure. The October 31 - November 30, 2014
PASSLINE
16 PROJECT OPPORTUNITIES
ACTIVATED CARBON
Prof Job K T
A
ctivated carbon is a nongraphite form of carbon which could be produced from any carbonaceous material such as coal, lignite, wood, paddy husk, coir pith, coconut shell, etc. Activated carbon manufactured from coconut shell is considered to be superior to those obtained from other sources mainly because of small macropores structure which renders it more effective for the adsorption of gas/vapour and for the removal of colour and odour of compounds. In south India coconut shell is available in plenty and Activated carbon is produced from charcoal of the shell of coconut. Activated carbon is used as absorbents. Its adsorptive properties are due to their high surface area, a micro pores structure and a high degree of surface reactivity. It is used to purify, decolourise, deodorize, dechlorinate, separate and concentrate in order to PASSLINE
permit recovery and to filter, remove, or modify the harmful constituents from gases and liquid solutions. It is used in food, pharmaceutical, chemical, petroleum, nuclear, automobile and vacuum industries as well as treatment of drinking water, industrial and urban waste and industrial flue gases. Activated carbon is available in three grades namely powder, granular and palletised. It finds hundreds of different applications. By chemical activation, predominantly powder activated carbons are made and these qualities are mostly used for waste water treatment. Granular products and pellets used for gas purification are predominantly made by gas steam activation. Global activated carbon industry is estimated to be around 1.10 million metric tonnes. Demand for activated carbon is expected to rise by 10% annually through 2014. The demand from the vegetable oil industry – the largest consumer of activated carbon, is estimated at around 30,000 tonnes. The capacity utilisation of activated carbon industry is reported to be around 80% - 85%. Activated carbon has got huge export potential due to its wide application in many industrial sectors, particularly mandating mercury removal at coal fired power plants. About 55% of value of export is contributed by UK, followed
October 31 - November 30, 2014
by Japan, South Africa, Germany and USA. Other principal buyers of Indian manufactured activated carbon include Australia, Belgium, Malaysia, Sri Lanka, Netherlands, Sweden and Senegal accounting for 30% of total exports from India. The domestic market for activated carbon is fast expanding with rapid growth of several end user industries. The per capita consumption of activated carbon per year is 0.5 kg in Japan, 0.4 kg in US, 0.2 kg in Europe and 0.03 kg in the rest of the world. The demand for activated carbon in India is increasing due to the growing awareness of water quality. Steam activation and chemical activation are the two commonly used processes for the manufacture of activated carbon. However, coconut shell based activated carbon units are adopting the steam activation process to produce good quality activated carbon. Activated carbon is produced from coconut shells by a two-step process. The first step in activation is to carbonize the shells to drive out about two thirds of the volatiles out of the shells creating carbonaceous mass full of tiny pores. This carbonized base material in the second stage is activated at high temperature (1100 degree C) in steam. Activation temperature and the amount of activation (time) are important to create internal pore network and to impart
certain surface chemistries (functional group) inside each particle. In essence, the total activation process gives carbon the unique adsorption characteristics. The process of carbonization is to convert coconut shells to Char or charcoal. The charring process (making of charcoal) is known as the Pyrolysis, which is chemical decomposition of the shell by heating in the absence of oxygen. During the carbonization of coconut shells, volatiles amounting to 70% of the mass of coconut shells on dry weight basis are released to the atmosphere, yielding 30% of coconut shell mass of charcoal. The volatile released during the carbonization process is Methane, CO2 and wide range of organic vapours. Coconut shells are carbonized by an old-age process commonly known as open pit method. In this process earth is used as an insulator and to heat the shells in the absence of oxygen. The pit Charcoaling cycle consists of three stages: 1. Pyrolysis phase of over 12 hours when gases are released 2. Pacification phase of 12 hours when the pit is closed and the char is cooled for 12 hours. 3. Unloading of charcoal and loading of fresh shells for the next cycle. Temperature in the pits is vital for
17 complete pyrolysis. Experiments have shown that the charcoal yield is directly proportional to the temperature in the pit. The amount of Methane released into the atmosphere is directly related to the temperature in the pit. By and large pits yield 30% char, which means they maintain the temperature of 500 pH Value 6.5 350to 7.5 Methylene Value adsorption mgm Adsorption capacity at % by mass (min)/ gm 190 45 to 350
Sl. No. 1 2
Adsorption capacity at % by mass (min) 45 Moisture (max.) 5% Moisture (max.) Ash (max)
5% 5%
AshHardness (max)
5% 90
Hardness
90
The activated carbon plant having a capacity of 10.0 tonnes per day will provide direct employment to 25 numbers. This includes 5 managerial staff, 12 machine operators and 8 support staff. The approximate investment requirement for setting up a 3000 tonnes per annum will cost Rs750 lakh as indicated below:
degrees. Several experiments have been conducted to measure the amount of The production capacity most activated carbon plants the country from gases released and on anofaverage 1.0 metric tonne of in coconut shellsvaries releases around121000 – 5000 per annum. A medium-sized about to 15 kg oftonnes Methane into the atmosphere. plant will have a production capacity of 10 tonnes/day (3000 tonnes per based below. on 300 working days at The activated carbon specification is givenannum, in the table single shift). Around 100 cents of dry land is required for setting up an Activated
Particulars Sales income Cost of raw materials, salary, power, depreciation, sales commission, interest on term loan, administrative expenses etc.
3 4 5
Operating Profit Break even point Pay Back Period
6
Internal Rate of Return
Amount ( Rs in lakh) 1500.00 1200.00
300.00 50% Less than 3 years 30%
Carbon Plant. The raw material commonly available and most ideal for activated
The production capacity of most activated carbon plants in the country varies The financial viability of setting up 3000 tonnes activated carbon per annum carbon plants in Kerala is Coconut Shell. Around 90,000 coconut shell will be required Activated carbonbelow: is an essential component serving many functionalities like is provided from around 1000 – 5000 tonnes per annum. A medium-sized plant will have to produce 1.0 tonne of activated carbon. Adsorption, Reduction, of Biomass & Chemicals, etc. like Due to this Activated carbon is Catalysis, an essentialCarrier component serving many functionalities Sl. No. Description Requirement Adsorption, Reduction, Catalysis, Carrier of Biomass & Chemicals, etc. Due multi-purpose role, it is used in many industrial applications like decolourisation of 1 Land 100 cents to this multi-purpose role, it is used in many industrial applications like de2 Buildings 12000 sq.ft sugar and sweeteners, drinking water treatment, gold recovery, production of 3 Complete plant & machinery consists of Jaw Rs. 400.00 lakhs colourisation of sugar and sweeteners, drinking water treatment, gold recovcrusher, Hammer mill, Vibratory feeder, Elevator, pharmaceuticals andoffine chemicals, catalytic process, off gas treatment ery, production pharmaceuticals and fine chemicals, catalytic process, off of waste Carbonization kiln, Soaking tanks, Cyclones, Rotary gas treatment of waste incinerators, automotive vapour filters, colour/odour incinerators, automotive vapour filters, colour/odour correction in wines and fruit kiln with heat recovery unit, Coolers, Centrifuge, correction in wines and fruit juices. The activated carbon industry consists of Rotary drier, Micro pulverizer, Sieving machine, juices. The activated carbon industry consists of more than 60 units spread Pneumatic filling machine etc. more than 60 units spread countrywide, most of which are in the unorganised 4 Raw materials required are coconut shell, packing 9,00,000 coconut countrywide, most of which are Due in the industrial sector. Due small-scale industrial sector. to unorganised its increasing small-scale demand worldwide, more materials shell per day for a
5 6
Direct employment potential Power requirement
to its increasing demand worldwide, more and more units have expanded operations production of 10.0 tonnes of activated to cater mainly to the international market. The global activated carbon industry is carbon 25 persons estimated to be around 1.1 million metric tonne. Demand for virgin activated carbon 100 HP
is expected to rise by around 10% annually through 2014, worldwide. The US is the
a Technology productionsupport, capacity of 10 tonnes/day (3000 tonnes per annum, based on details of machinery manufacturers and financial assistance are largest market, which will also pace global growth based on anticipated new federal 300 working days at single shift). Around 100 cents of dry land is required for available from the Coconut Development Board, Kochi. setting up an Activated Carbon Plant. The raw material commonly available regulations mandating mercury removal at coal-fired power plants and most ideal for activated carbon plants in Kerala is Coconut Shell. Around 90,000 coconut shell will be required to produce 1.0 tonne of activated car- _______________________________________________________________________ bon. Professor JOB K T is a retired Senior Faculty of Centre for Management Development, The costcarbon of project depend uponofthe10.0 sitetonnes selected thewill provide The actual activated plantwould having a capacity perfor day project, the type and size of buildings considered, the facilities and featuresThiruvananthapuram and approved consultant by Coconut Development Board, Kochi. direct employment to 25 numbers. This includes 5 managerial staff, 12 machine proposed. However, a typical unit having a plant capacity of 10.0 tonne of Presently he is the Director, Enterprise Development Service, Thiruvananthapuram, operators carbon and 8 support activated per daystaff. is proposed in the product opportunity. The projectoffering training, consultancy, asset valuation and Quality Management System The approximate investment particulars are given below: requirement for setting up a 3000 tonnes per annum will services to small and medium enterprises. He can be contacted at Mob: 9847135571 cost Rs750 lakh as indicated below: Technology support, details of machinery manufacturers and financial asor e.mail: jobkt012@gmail.com. sistance are available from the Coconut Development Board, Kochi. Sl. No. 1 2 3 4 5 6 7 8
Particulars Land Buildings Machinery & Equipment Technical know how fees Miscellaneous fixed assets Preliminary and pre-operative expenses Contingency@ 5% Margin Money for Working Capital Total
Cost (Rs in lakh) Own 180.00 400.00 2.00 25.00 30.00 25.00 88.00 750.00
The proposed means of finance is shown below: Sl. No. 1 2 3
Particulars Term Loan from Financial Institutions Financial Assistance from Coconut Development Board Promoter’s Contribution Total
Amount ( Rs in lakh) 400.00 50.00 300.00 750.00
The financial viability of setting up 3000 tonnes activated carbon per annum is provided below:
and more units have expanded operations to cater mainly to the international market. The global activated carbon industry is estimated to be around 1.1 million metric tonne. Demand for virgin activated carbon is expected to rise by around 10% annually through 2014, worldwide. The US is the largest market, which will also pace global growth based on anticipated new federal regulations mandating mercury removal at coal-fired power plants. (Professor JOB K T is a retired Senior Faculty of Centre for Management Development, Thiruvananthapuram and approved consultant by Coconut Development Board, Kochi. Presently he is the Director, Enterprise Development Service, Thiruvananthapuram, offering training, consultancy, asset valuation and Quality Management System services to small and medium enterprises. He can be contacted at jobkt012@gmail.com.) October 31 - November 30, 2014
PASSLINE
18 SANITARYWARE
E
ver heard of a company selling its products without warranty. There are. Rapol Saniplast Pvt Ltd is such a company that sells its products without warranty because, let’s listen to the confident words of its Chairman and Managing Director Paul Thachil, when he says that `` the company manufactures such a high quality innovative products which are never prone to customer complaints”. ``The products bring no complaints hence no need of warranty,” claims the Managing Director. The Artic Bath range complements every contemporary bathing space. Superior finish, easy installation and affordable pricing are the hallmarks of Artic Bath accessories. Surpass-
ing the design boundaries, they transform every bathroom to feel good rooms. Work of art never seen before in plastic, Artic speaks volumes about your urge for the finer things in life. Rapol Saniplast Pvt Ltd was started in the year 1995 in Chalakudy with a paltry Rs 25,000 and their brand name ‘Artic Bath’ signifies a group of people who are constantly thinking and innovating to deliver quality plastic bathroom fittings for their customers’ and offer the latest product solutions to cater to the customers’ requirements. In yester years customers’ preference was the brass products. Fed up with the high cost and malfunction with
Paul Thachil
PASSLINE
October 31 - November 30, 2014
the brass products; consumers opted for plastic products. Then plastic was considered a cheaper alternative which came in pale colours, low quality and designs that defined monotony. Artic revolutionized it all. Artic plastic bathroom fittings have changed the way world looks at plastic. ``We revolutionized faucets, showers and bathroom fittings by adding unprecedented elegance, unmatched quality and aesthetic designs to plastic,” Paul points out. Initially Rapol was purchasing moulds of sanitary ware and assembling them. In 2001 it started manufacturing items and supplying to the customers with an investment of Rs one crore procuring fully automatic machines . Rapol keeps up a transparent policy of dealing with the customers who always abide by the
19 policy of ` no credit’. All the transcations are made via banks and the customers who have credit balance equal to the amount of the order will be supplied with the material. The orders are taken from shops and delivery will be made against cash payment through bank. Rapol Saniplast Pvt Ltd takes pride in the fact that it could redefine the concept of plastic faucets, showers and accessories. Products are designed around your needs and reflect your aspirations and class. The product range itself is a source of relentless inspiration. On the quality front each product goes through stringent quality checks to ensure that it conforms to worldclass standards. Innovation being our watchword, we introduce new designs and models every now and then. Rapol Saniplast is also exporters of quality plastic bathroom fittings and is popular both in India and the Middle East. The modern and hightech manufacturing units along with a devoted workforce( 150 in three units) complement and go handin-hand to manufacture and deliver high-quality bathroom fittings. Apart from plastic faucets, the Artic range also comprises an exquisite range of showers and bathroom fittings. Available in smart beautifully shaped
Paul with wife Diana and children Monic, Ann, Eden and Eilin
designs, these products are the perfect blend of innovation, ergonomics and sophisticated styling. The world class finish and quality influenced by natural elements are sure to transform the look and feel of every bathoom. Ensuring minimum usage of water, the Artic range fill every bathing space. Superior finish, easy installation and affordable pricing are the hallmarks of Artic bath accessories The Artic Bath fittings are manu-
Paul Thachil receiving MSME entrepreneur award from Industry Minister K Kunhalikutty
Driving force Paul Thachil a PhD holder,Chairman and Managing Director of Rapol Saniplast Pvt. Ltd. is a perceptive, far-sighted entrepreneur. He is the driving force behind the success of the pioneering product Artic Bath plastic taps. Entrepreneurship was inborn quality in Thachil. That is why he pursued a job for 10 months in a company Perfect Flush to gain know-how in the art of making of sanitary wares and during his working period he has studied cipat technology in 1997-98. In addition to his sanitary ware business he has involved in diamond business in partnership with his brother- in- law after learning gem technology. They are engaged in diamond making and sales in a space adjacent to the sanitary ware company. Thachil is designing all products in plastic and gem and has secured patent for those products he designed and manufactured. His wife is Diana and children Monic, Ann, Eden and Eilin.
factured at our high-tech plant aided by modern injection-moulding machines and other auxiliary equipments.An ISO 9001-2008 certified company Rapol has secured award for best SSI unit in 2011-12 and also the best entrepreneur award. `` We incorporate the use of a high-grade imported virgin Polypropylene, ABS, Soft PVC, Rubber rings and washers which is a chemically inactive thermoplastic and this guarantees that all our products are lightweight, resilient and durable.We conduct and undertake meticulous quality control checks and assessments and make sure that the Artic Bath Taps and Fittings are a 100% leak proof and drip proof thus ensuring happy customers’ with overall customer satisfaction,� ensures Paul
October 31 - November 30, 2014
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October 31 - November 30, 2014
21
Road rubberization Panacea for many ills in road construction? These are all relevant questions and let us discuss them , here.
R
P C Cyriac
oad rubberization has at last caught the imagination of the Kerala Government, which is not well known for taking innovative initiatives. They have issued an order recently to make their reluctant Public Works Department start using Natural rubber-modified- Bitumen, instead of the normal bitumen used in road construction and repair projects in Kerala and elsewhere. Let me congratulate ‘Passline’ for publishing a lead-story on road rubberization in its issue dated August 31-Sept 30, 2014, spelling out the need for rubberizing our roads to make them motorable. It is obvious that the Government has taken serious notice of the Passline article . What exactly is meant by Road Rubberization? Will the roads be paved with rubber sheets? Will it not be very costly? What are the benefits out of this? Has this been tested out ? Is there enough rubber to be used
For black-topping a road, we use tar or bitumen, one of the last products obtained during the distillation of petroleum crude. Bitumen binds together the mixture consisting of coarse aggregates and sand and once this mixture is heated and spread on the road and rolled properly, we get a hard, level and firm surface for the road, making motoring comfortable, without jolts and shocks. Road Engineers have been continuously studying several modifications of this process with a view to improve the travel-comfort and longer life of the road. One of the experiments which produced encouraging results was the addition of 2 to 4 % of rubber latex into the bitumen heated to 140 degrees C. This modified specimen of bitumen gave better resilience and shock absorbing ability to the mixture and consequently to the road. It was in 1974 that the Rubber Research Institute of India ( RRII) laid out a one km long stretch of the busy MC Road , somewhere between Kottarakkara and Trivandrum, using the NR modified bitumen. The road lasted for more than a decade, in excellent shape ! A new opportunity for
improving road construction process was being created. This success generated interest in this subject and the RRII, the Central Road Research Institute , New Delhi , and the Tamilnadu Highways Research Institute, Chennai , and the Cochin Refineries Ltd embarked upon research studies and experiments to evolve the road rubberization technology. Though it is not difficult to modify the bitumen, mixing it with 2 to 4% of NR latex at the work sites, the Cochin Refineries Ltd set up a new plant in their campus to process the Natural Rubber- modified-Bitumen strictly adhering to the specifications. After the elaborate studies conducted in many locations by the different agencies it has been concluded that by using the NR Modified Bitumen , instead of the normal bitumen, the life of the road increases by about 50 to 75 %. If the road built with the normal bitumen lasts for 3 years, the one built with the NR Modified Bitumen lasts for 5 years. The NR latex addition will inflate the cost of bitumen by 15%, but the 50% increase in the life-span of the road compensates for the additional cost. There are many other advantages also. With the addition of NR latex, there will be better grip for the
tyre on the road and this prevents skidding and thus makes the travel safe. Bitumen roads melt during the summer and become brittle and develop cracks during the winter. The NR latex addition prevents both these and provides for better retention of the aggregate and reduces wear and tear of the tyre and the other vehicle parts. The cost of the annual road maintenance also comes down to the tune of 33 %. Apart from the comfortable ride, there will be a 5% fuel saving as well. It reduces the noise pollution on the road by 25% . During the current year when the rubber prices crashed, putting the small farmers in serious trouble, if a good quantity of rubber gets consumed in the road-sector, it will help improve the rubber price. Once the rubber price looks up the whole economy of Kerala will get a shot in the arm. If only the Kerala PWD rises to the occasion and embark on a massive rubberization campaign on our roads, it will be a win-win situation for the Department, the road user and the rubber grower, and of course, for the Kerala economy as well! How many birds at one shot! (The author is former Rubber Board Chairman)
October 31 - November 30, 2014
PASSLINE
22
Ten best Kerala companies ensuring lucrative returns
P
assline in its past issues published a series of articles titled GROWTH COMPANIES, projecting the growth trajectory of Kerala- based listed companies and the benefits and profits made by the investors by investing in these companies. Those articles were widely appreciated by the readers of Passline for inculcating a sense of investment in our primary investors to invest in Kerala companies. It is no doubt that compared to any other asset class, like real estate, gold; any other investment will not be appreciated like stock investment, provided the investor shows little patience, wait and watch attitude. In the latest issue of the magazine , once again we are looking at these companies in order to get an idea of the current growth scenario. Even at the times of sudden upheaval in Indian capital market due to various factors pertaining to the national and international happenings , these Kerala companies stood unchallenged and climbed high notches of growth assuring the valued customers lucrative returns.
T
KITEX GARMENTS LTD.
Geojit BNP Paribas Financial Services Ltd
T
he Geojit company has already given the investors around Rs 206.7 (dividend) returns repaid to the investors who invested Rs.10 in 1996 or Rs 20.67 repaid to the investors who invested Rs 1 in 1996 as dividend. Frankly speaking, the original shareholders investment is free as they have already received their investment in Geojit by 20 times, through dividend. The capital appreciation will come to Rs 1580 and the market price as on 24.7. 14 is Rs 39.5 on a FV Rs 1 per share. If he has invested Rs 1000, then the dividend return was Rs 20670 plus a capital appreciation of Rs 158000. As on 24 – 09- 14 the value of a single share was Rs 44.8 and a person invested Rs 1000 in 4000 shares( after the split) the total value was Rs 1,69,200.
he person who invested Rs10 in IPO has already received Rs 37 as dividend (investment received back more than double). In other words , the person who invested Rs1 in original investment has already received Rs 3.7 as dividend (investment received back in triple). The capital appreciation will come to Rs 298.45 as on 8.7.2014. As on 24 – 09- 14 the value of single share is Rs 526.40. After the split of share at the rate of Rs 1, the total value for 1000 shares will be Rs 5,26,400. Kitex’s all time low was 0.70 ps per Rs10 FV share (or Cochin Minerals & Rutiles 0.07 ps per Rs 1 FV share). The current market capiLtd (CMRL) talization of the company is Rs 2500,40,00,000 uring the public offer of the company in 1992 a grown from the original market capitalizaperson who invested Rs 10 has already received tion of Rs 4, 75, 00, 000. Rs 20.65 as dividend. The company has issued 78,30,000 shares and the investor became rich by Rs 161.1 till the date on an investment of Rs 10 in the company.
D
D
Federal Bank Ltd
uring 1988 – 90 a person who invested Rs 1000 in Federal Bank must have received Rs 22,250 as dividend. This amount is nineteen times more of his principle investment. In addition to this he got a capital appreciation to the tune of Rs 2,04,000 ( the market price of the Federal Bank share having a face value of Rs 2 was Rs 136 as on 24 – 9- 2014 ). It is also happy to know that these benefits are not received by the bulk investors of the bank but by the small time peasants who were customers of the bank by taking agricultural loans. During the time of private placement, the bank officials persuaded customers to invest in shares and for the investors, it has become a blessing in disguise.
PASSLINE
October 31 - November 30, 2014
K
KSE LTD
SE has public holding of 2,16,65,084 sharers. By just investing Rs 309 FV of a share Rs10 and premium Rs 20) these shareholders become richer by Rs 440. The market capitalization of the company has grown from original amount of Rs 16,00,00,000 to Rs 953,26,36,960 ( as of 4 – 09 – 14) . Moreover the company is situated in a hamlet in Irinjalakuda , Thrissur district and it has become instrumental to provide employment for many people in an around Irinjalakuda town. It is a personal satisfaction for the investors of this company that their small investment in the company made them to participate in the industrial growth of the State as well as the bread winners for many. The value of a single share as on 29 . 04. 2014 is Rs 440. A person who possesses 100 shares by investing Rs 3,000 the value will be Rs 44,000.
23
T
Manappuram Finance
he Manappuram Finance is another success story from Kerala. Committed leadership and professional management of V P Nandakumar , the promoter of the company made Manappuram Finance one of the leading NBFC in the country. The 58,809 people, the owners of 84,11,87,136 equity shares of Rs 2 face value made Rs 1,47,000 on their original investment of Rs 1,000 in 2001. And also the investor got Rs 10,600 as dividend and Rs 1,46,000 as appreciation. As on 29 – 09 – 2014 the investor invested Rs 1,000 for 100 shares have 4,000 shares(after split and bonus) and the value of 4,000 shares is Rs 1,26,400 ( Rs 31 .6 X 4000).
T C
State Bank of Travancore
ommenced in 1945 SBT is the largest bank headquartered in Kerala and became subsidiary of State Bank of India in 1960. The face value for single share is Rs 10 and the premium was Rs 50. The bank has been declaring dividends for the last 16 years. The appreciation of a single share as on 11 -06 14 was Rs 602.90 and till the day the investors has received Rs 128.2 as dividend for their each share valued Rs 10. As on 11 -06 - 2014 the value of 100 SBT shares are Rs 66,290.
T
Nitta Gelatin India Limited
his company is founded jointly by Nitta Gelatin INC & Kerala State Industrial Development Corporation (KSIDC). Its present equity is Rs 8.4 crore with face value of Rs 10 each.A person who invested Rs 10 in 1992 has already received Rs 201 as dividend . As on 24- 09- 2014., a person who invested Rs 1,000 will have 400 shares in possession(after split and bonus) and market price for a share was Rs 174.9, then the total value for 400 share will be Rs 69,960. Nitta Gelatin is one among the companies who gave the returns to KSIDC for its investments.
South Indian Bank ( SIB)
he SIB came into being in 1929 during the Swadeshi movement. On September 22, 1988 SIB tapped the market with an initial offer price of Rs 32 and listed the shares on the bourse on December 17 that year at Rs 18. SIB has scripted an overwhelming growth story for its investors. As on 24 – 09 – 2014 value of single share was Rs 35.05 and total value of 1250 shares by investing Rs 3200 got an appreciation of Rs 43,375 in addition to the dividend.
I
AVT Natural
n this case a person who invested Rs 1,000 during the public offer in 1990 has already received Rs 9,550 as dividend and an appreciation of the value to the tune of Rs 2,20,450. In 24 – 09 – 2014 the investment of Rs 1,000 for 100 shares grown to 4,000 due to share split and bonus shares and value of a single share was Rs 55, then the total value will be Rs 2,20,000.
In India, we do not have data like the US stating the details of returns for an investor for his investment. Below is the graph by Robert Shiller , authored by Morgan stating the maximum and minimum annual returns someone would have earned between 1871 and 2012 based on different holding periods in Wall Street. Graph categorically saying that stock is the most appreciated asset class and a person holding the investment for longer periods reap the maximum benefit. (see the graph)
October 31 - November 30, 2014
PASSLINE
24 STOCK
15 ways to find
Reap the benefit with long time outlook
A
t last Indian Equity market has seen some correction after a long run up of 6 months. Reasons being: European market is feared to be again entering deflation, commodity prices are correcting and post re-rating of Indian equity market participants are looking for visible improvement in the corporate earnings. Market has corrected by around 4% from its recent peak. The fear is whether global uncertainty can take the Indian equity market materially down from current level or not. Current correction driven by global uncertainty may continue for some more time. We may see NIFTY correcting to 7600-7700 levels where valuations will become reasonable considering the prospects of improvement in Indian Economy. This correction is giving opportunity to buy the stocks with long term outlook because, the Indian macro economic conditions and political factors are conducive for the market at present. The election results in Maharashtra and Haryana is considered as an endorsement for the policies of BJP and Modi. The repercussion was visible in the market while the election result was declared. The NIFTY and SENSEX were swelled to 7906 and 26517 respectively. The Modi ministry was also raised to the occasion and added more pace for the reforms like reallocation of coal mines, total and comprehensive labour policy, diesel price decontrol and new measurers for easing the procedures of commencing business in India etc. The re-allocation of coal mines will naturally give boost to sectors like steel, power and banking. The only itch at present is high interest rates. The RBI in its past few economic reviews left the rates untouched. Naturally the off take from the industrial sector was decimal ended up a slow industrial growth. The Industry believes that the time is ripe for the right action from the RBI Governor to cherish their dream. Hence, the following stocks can be purchased at this time with long term view Sr No Stock Name
Sector
CMP
Target Price
1
Ajanta Pharma Ltd
Pharmaceuticals
2
Dewan Housing Finance Ltd Housing Finance
Rs 320 Rs 410
3
Dishman Pharma Ltd
Pharmaceuticals
Rs 157 Rs 220
4
Dolphin Offshore Ltd
Offshore Services
Rs 157 Rs 269
5
Escorts Ltd
Automobiles
Rs 156 Rs 190
6
Everest Industries Ltd
Cement Products
Rs.250
7
Finolex Industries Ltd
Plastics Products
Rs 318 Rs 400
8
Indoco Remedies Ltd
Pharmaceuticals
Rs 278 Rs 332
9
KPIT Technologies Ltd
Information Technology Rs 160 Rs 213
10
PTC India Financial Ltd
NBFC
Rs 43
11
Sharda Cropchem Ltd
Agri
Rs 237 Rs 328
12
Yes Bank Ltd
Banking
Rs 588 Rs 678
Rs 1650 Rs 2121
Rs 52
he State government has appointed Dr G C Gopala Paillai as the Managing Director of KINFRA. Dr Pillai has 40 years of experience in management field and he was the former Chairman of FACT. He was the Founder-Managing Director of KINFRA , Managing Director of INKEL and the Chairman of RIAB. He is the Chairman of Keltron now. PASSLINE
October 31 - November 30, 2014
If
we try to convince today’s youngsters, the need of savings and investment the answer ubiquitous is no surplus money after their routine expenses. They will start complaining about the burgeoning inflation and their hardships for handling the shoestring budget to meet both the ends. We can’t take their argument in total, though it has some substance. But , as everybody knows if there is a will , there is a way. If we are ready to sacrifice our small pleasures which incur little expenses can mean thousands in savings each year. Following are the few ways and means to instill saving habits and eventually the saved amount can be invested in various avenues. It is simple and effortless. 1.
If you skip the Rs 9 a tea at 9’o clock on the way to office each working day morning, it’ll add up to more than Rs1800 of savings over a year.
2.
Don’t be afraid to use the discounts or coupons to buy goods. For eg. Wednesday discount sales in Big Bazar, Friday sales in Reliance Retail etc. If you can save Rs 250 on your monthly grocery bill, it will fetch you Rs 3,000 in extra cash over a year
3.
Buy generics prescriptions. Generics can cost 70% less than brand name drugs. 90% of pharmacists and doctors buy generics for themselves , but only 70% of all consumers do.
4.
Use your library. Use your library instead of paying rent for DVDs and buy books and magazines, take advantage of your local library or internet library.
5.
Stop smoking. In addition to being deadly, smoking is drain on your wallet. A pack a day habit can easily cost you Rs 10,000 per year
6.
Turn down the AC . You can save about 5% electric bill for every degree. Turn down AC in the summer.
7.
Make your home lighting more efficient. Next time your light bulbs need change, use high efficiency bulbs.
8.
Buy in bulk. Buying products like cereal, oil, office supplies and canned goods in bulk can save you up to 50% over buying smaller sizes. Eg. Buying vegetables from Vegetable Market, Nettoor, Wholesale vegetable shop, Ettumanoor, Fish Market, Ettumanoor or General Market, Ernakulam etc.
9.
Save your loose change. Many people dump their pocket change in a jar, only to spend it when it accumulates to a significant amount. Instead , earmark the loose change you set aside strictly for investment purposes in a pigmy bank (mann kudukka).
10.
Paying off credit card debts with extra cash could save you tons of money in the long run. If you are paying 17% interest, Rs 5,000 in credit card debt costs you Rs 850 per year that could be going in to investments.
11.
Eat in. By simply eating out one less time per month, you could save Rs.3000 per year per person! (one Biriyani may cost you Rs 200 plus)
12.
Avoid ATM fees. When you use an ATM not operated by your bank , you can be charged a fee by both the ATM owner and your bank. These fees can really add up your expenses.
13.
By going a little out of way to use your bank’s ATM instead, you’ll save about Rs 20 each time.
14.
Avoid peak time use of your car in Kochi city. Skip S A Road and M G Road, and use public transport system. If we become a habitual user of public transport, thousands of rupees could be saved monthly as fuel charges and wear and tear.
Rs 315
Appointed
T
more money for investment
15 . Work on your credit score. Higher score means lower interest and higher savings.
MENTOR
25
Gireesh Gopal
Making everybody genius G
ireesh Gopal, a multifaceted personality with an eye for detail when it comes to strategic planning, corporate tieups , executing business operations to trainings, and his specialized and much acclaimed personality development seminars. With a Master’s Degree in Personnel Management from Symbiosis Institute of Business Management and a Degree in Electronics from Wadia College, Gireesh saw an opportunity to take forward his dreams and creativity in the areas of Strategic Planning, Business Development, Conceptulaizing and Implementing Marketing and Sales Strategies, HR Management and Relationship Management. He has also been an expert in event management and space selling. Gireesh is the Managing Director of multi-dimensional organizations like Genesis One Decode Dermatoglyphic Pvt Ltd—www.godds.in, Mindlabs Learning Pvt Ltd—www. mindlabs.asia and CEO of CreatingLandmarkz. Today, these companies are expanding their reach both within and outside the country, and have become a name to reckon with in their respective areas of specialization. Gireesh has also been instrumental in launching Peak Performance Strategies -- a training company in Dubai and Travel Port -- a travel company in Bangalore. He had also been a part of the team which created and marketed a new concept of Information Channels over television to corporate bodies. With more than 20 years in this highly creative and energetic field, he has handled several high profile clients such as IIT Mumbai, Bishop Cotton School, Edify School, Gitam University, CREDAI, Kochi; Abbott Pharmaceuticals, Casino Royale , ICICI Life Insurance , White Tiger Guard Pvt Ltd, Kotak Life Insurance , Aegon, Fullerton etc.
Programmes putting ideas into entreprenurship
Gireesh is always in the endless quest for innovative ideas and fresh thinking. He has structured a workshop with minimum number of 16 participants and maximum 64 participants with 4 game tables for a 5-hour duration after which participants leave with a sense of high energy and fun combined business insights and personal reflection.
Gireesh has leveraged his rich experience to transform his creative thinking into new, unique ideas. With an undying spirit and creativity, Gireesh has set foot on the next step in adding one more feather to his cap-- FreshBiz. FreshBiz is a new, game-based workshop which fosters entrepreneurial Dermatoglyphics: thinking and and nurturThe only reason why detecting innovation in ing genius potential the Genius dip hapits participants. in a child, adults The programme pens is because of sois helps in the ciety, institutions; and Dermatoglyphics a unique method to development of parents fail to identify find out the creativMulti Dimenthe genius qualities ity and talents of a sional Entreprechild. This method is neurial Thinking. of the child and nurapplicable for adults Already played at ture the strengths also and is based on top companies to super strengths. the science. The prosuch as Google, The challenge is how gramme of finding HP, IBM, and by multiple intelligence do you identify the entrepreneurs of a person garnered strengths (genius and universiacceptance. qualities) of the child big ties worldwide, Gireesh once again the experiential to nurture them. proved his mettle by and playful style inventing this novel of FreshBiz is programme . a fun and powerful way to sharpen According to Gireesh, “Dermatoentrepreneurial minds and fuel glyphics is the way forward. Dercreative inspiration. Entrepreneurmatoglyphics refers to the branch of ship is the skill of turning ideas into science which studies the patterns reality. With a tag line of ‘Changing of skins(dermal) ridges present on the way you play business and life, the fingers, toes and soles of huexperience entrepreneurial thinkman. Dermatoglyphics is the way ing’, FreshBiz offers entrepreneurial forward. It reveals the congenital training through a powerful, creative links between our fingers and our and interactive platform. Playing the intrinsic qualities and talents. Dergame of FreshBiz is both a fun and matoglyphics has absolute scientific transformational experience that basis, with 200 years of research. It is gives participants some great muscle analysed and proven with evidence in memory around collaboration and anthropology, genetics, medicine and multi-dimensional thinking. With the statistics. Statistics show that a child necessity of inventive methods of has 98% chances of missing out on problem solving, collaboration and his or her genius potential…but with resourcefulness, participants travel the right tools, he or she has a 100% through a game of FreshBiz gainchance to unleash the mind`s full ing skills and breakthroughs that not power and lead an extraordinary life. only help them achieve their goals in the game, but in real life as well.
The only reason why the Genius dip happens is because of society, institutions; and parents fail to identify the genius qualities of the child and nurture the strengths to super strengths. The challenge is how do you identify the strengths (genius qualities) of the child to nurture them. Identifying the genius qualities by the naked eye(observation),listening or asking the child may not be accurate or might be fully wrong. Every person is born with Multiple Intelligence ( MI) and depending on the strengths of the MIs the person will behave; like, dislike things in life. Mentioned below are some of the intelligences found by Dr Howard Gardner. Verbal/Linguistic Logical/Mathematical Visual/Spatial Musical/ Rhythmic Bodily/Kinesthetic Intrapersonal Naturalist Existential Using the science of DMIT Dermatoglyphics Multiple Intelligence Test), right from the age of three , we can identify the genius qualities (inborn strengths) of an individual and help create a happier life at any stage. Hence it can be used for: kids to understand their strengths and communicate effectively to make them happy. Career planning and creating happy environment to get on the right road to happiness and success for teenagers, creating happy environment to reduce stress and understand you as a unique person as adults, understand each other`s uniqueness and understand how to communicate with each other to create a happy environment and hence a happy life under relationship management and hiring and training. Training needs analysis and productivity management for corporate bodies. It’s never too late to give yourself or your children and others a happy life. It’s all in your hands,” asserts Gireesh.
October 31 - November 30, 2014
PASSLINE
26 FINANCIAL INCLUSION
Jan Dhan Yojana
To liberate poor from poverty P D Johnny
P
rime Minister Narendra Modi had made a very significant announcement in his maiden Independence Day speech this year. He presented a very ambitious programme, christened as Prime Minister’s Jan Dhan Yojana [PMJDY], to bring all households in the country, hitherto excluded from access to banking services, within the ambit of banking services by 2016-17. The idea had been widely discussed and remained foremost in the agenda of the present political regime for some time now and consultations with all stake-holders were going on to chalk out the strategy for implementation of a Comprehensive Financial Inclusion Programme [CFIP] or ‘Sampoorna Vittiya Samaveshan’, in Hindi. The gigantic project, in its first phase of implementation, would cover about 75 million households and the ultimate objective is to cover all the 247 million unbanked households spread over 6,00,000 villages in the country during next two years. More importantly, this flagship programme of the ruling National Democratic Alliance [NDA], does not restrict its scope to merely providing basic banking facilities to PASSLINE
the marginalized sections of society. It envisages some more ‘add-on’ facilities - each such account-holder is also entitled to Debit Card with access to RuPay system, Accident Insurance cover of Rs. 1,00,000 and Life Insurance cover of Rs. 30,000. To top it all, each beneficiary, after six months of satisfactory operation of the account, can get overdraft facility of Rs. 5000, as credit component of the package. The primary document for the proving identity of the prospective account-holder is UID Aadhaar card to satisfy the ‘Know Your Customer’ [KYC] norm. This national programme was formally launched by the Prime Minister himself, on August 28, 2014 commemorating the completion of 100 days of present regime, aiming at putting into practice Modi’s slogan “Sabke Saath, Sabka Vikas’ which is reminiscent of UPA’s slogan of 2006, “Inclusive Growth’. In its magnitude, PMJDY can be said to be largest governmental effort with the participation of banks of all types. In order to ensure active participation of all stake-holders – Financial Services Department of Ministry of Finance, Reserve Bank of India, all banks and of course, the people who are its beneficiaries, the Prime Minister issued appeals to state governments and bank employees. He personally sent e-mail messages to 7.25 lakh bank employees in the country exhorting them to be active partners in the efforts meant to liberate the poor from poverty. On the first day of implementation, as many as 77,852 camps were organized in the bank branches across the
October 31 - November 30, 2014
country, to provide services to the targeted people, and these camps will remain active till next Republic Day. The final count of number of new accounts opened till the end of the day of launching, is reported as 21.4 million [source: GOI, MoF, DoFS Release of 29.8.2014], far surpassing the targeted 10 million accounts. Thus the project has taken off as a bumper success, quantitatively, and the task is expected to be fully achieved by August 2016. Though the launching of the programme taken off at jet-speed is heralded as the new government’s greatest initiative to serve the masses, its real success will have to be qualitatively assessed in course of time. For the record, this is not the first initiative from the government’s side for extending the banking services to all the households in the country. The long history of these efforts begin with nationalization of Imperial Bank of India and setting up of State Bank of India, as far back as in 1955 and the creation of seven Associate Banks of SBI in 1959, with the objective of bringing banks close to people. The much-heralded nationalization of major commercial banks in the country in two phases – 14 banks in 1969 and 6 in 1980 – followed suit, compelling the urban-oriented banks to spread their wings to semi-urban and rural areas. Another major effort can be seen in creation of Regional Rural Banks [RRBs] under its statute of 1975, in the predominantly backward areas in all states. Across the country, as many as 196 such local banks were set up between 1975 and 1991. The advent of economic re-
forms with clear bias towards private sector in early nineties halted the process and these banks are now in the merger-mode with their number coming down to two-digits. Since 1990’s, the Micro-finance institutions, through the Self Help Group [SHG] model, also have been making successful efforts by linking the poor and under-privileged sections of society, though indirectly, with banks. For increasing the out-reach of the banks, the branch licensing policy was also made very liberal during the last two decades. All these efforts were results of policy initiatives at the government level to strengthen the banking network in the country and to extend their services to the under-banked semi-urban and rural areas. The second notable effort using the term ‘financial inclusion’ came up during 2006, when the nationwide survey conducted by the National Sample Survey Organisation [NSSO] revealed that, despite all the tall claims made by the then UPA government about the impressive economic development achieved by the country, more than half of its households {51 per cent} were outside the fold of formal banking services, which in other words, meant that majority of the households were still in the clutches of informal banking system, dominated by the money-lenders. The situation in backward states like Bihar, Uttar Pradesh, Odisha, etc. was very dismal with only less than 25% of the households having access to formal banking services. [On the other hand, states like Kerala, Tamil Nadu,
27
Karnataka, Delhi, Maharashtra, etc. had enjoyed better status.] This wide disparity prompted the Government of India, the then Planning Commission and the Reserve Bank of India together to have closer look at the ground-level realities. Further, the new-look Mahatma Gandhi National Rural Employment Guarantee Scheme 2005, the flag-ship project of the UPA Government, could be successfully implemented only after ensuring bank-linkage of its prospective beneficiaries as the wages under the Scheme were to be routed through banking channels. This urgency prompted plan-makers to constitute a committee under the chairmanship of D. C Rangarajan, ex-Governor of RBI and then Principal Financial Advisor to Prime Minister, to study the issue in-depth and come out with implementable action plan. This committee made important recommendations such as relaxation in Know Your Customer [KYC] norms and introduction of zero-balance/no-frills savings bank accounts, to ensure access to basic financial services to the excluded sections of society. A nation-wide campaign was launched in 2007 to implement the action plan initially in one district in each state on pilot basis, and to replicate the success in other districts. The implementation of the programme began with a lot of fan-fare but ended up as a halfhearted one. Although intended to provide access to 100% households, financial services to all families, gradually the initial enthusiasm wore out and gave way to lethargy, leaving the task half-done. Still, these efforts towards total financial inclusion was
not entirely without success – the percentage of families with bank accounts went up from 49, as revealed in the NSSO survey, to around 60, by 2012 fiscal. As of now, 56 per cent of rural households and 67 per cent of urban ones, enjoy bank linkage. The present PMJDY or CFIP can be considered to be the third phase of efforts to achieve the objective by completing the unfinished agenda of previous governments. The recommendations in the Nachiket Mor report on financial services for small businesses and low-income households, in December 2013, also came handy for the new government to take the big step towards universalizing banking services. One of the major differences between the two packages by the successive regimes, is that the earlier version was intended to link excluded people with banks by providing basic banking services viz. savings bank accounts for at least one member in the family, while the new package has greater scope – it has integrated social security by providing insurance cover and access to technology-enabled services. Another major innovation is in its coverage – the first one had targeted one member of each family for providing banking facilities while the present version envisages bringing at least two adult members, taking a cue from the Nachiket Mor Committee recommendations. The provision for credit component, though nominal Rs 5,000 by way of overdraft based on good conduct of the account-holders, is prima facie laudable. The ‘Business Correspondents model’ which was part of the earlier package as link between the people in
the unbanked areas and the nearest bank branches, is also retained with some refinements. The intention and efforts of the Government to include the marginalized sections of society in its developmental initiatives are of course laudable. The vast resources and efforts invested in UID-Aadhaar is not being wasted – though initially there were reservations about its acceptance and continuance after the change in guard at political level. This is also emitting signals that Direct Bank Transfer of funds under subsidies and other welfare measures would continue. This is a welcome step to eradicate corruption and misuse of public funds by the undeserved and unscrupulous. Having bank accounts for all households is a pre-requisite for its success. While appreciating the sincerity of purpose on the part of the government to universalize banking services, some stray thoughts cross this author’s mind. During Indira Gandhi’s rule, there were similar frenzied action in the banking sector for summary sanction and disbursement of loans to anyone and everyone. Loan melas were organized in large number under political pressure and targets were imposed on the banks which resulted in disbursing loans even to non-existent borrowers. Obviously, such loans could not be recovered and these bad loans eventually formed chunk of the Non-Performing Assets [NPA] of the banks. Ultimately, these loans had to be written off as irrecoverable and this caused irreparable damage on the financial soundness of the banks. The
indiscriminate write-offs either by the government or the banks themselves sent wrong signals to the borrowers that the loans need not necessarily be repaid and the repayment ethics took a back-seat. Now also the provision of overdrafts, even small amount of Rs 5000 per account, if not repaid in due time, would pose threats to the banks’ financial soundness, considering the sheer number of such accounts. Another debatable point is whether the zero-balance and nofrills accounts would be prudentially operated by the new breed of customers. Can the possibility of these accounts remaining in the bank’s records as dormant ones in course of time, be ruled out? Financial literacy for the customers is a built-in factor in the comprehensive financial inclusion package and this aspect is to be stressed and followed up vigorously; otherwise banks will be burdened by large number of inoperative accounts threatening their survival, considering the transaction cost incurred by the banks for maintaining such accounts. A lot of extension services in the area of customer education will be needed to achieve the intended objects of the programme. The proposed Credit Guarantee Fund of Rs 100 crore might be too meagre to manage the credit risk staring at the banks. Another concern is the possibility of opening multiple accounts by same persons in different banks since targets are imposed on the banks to be achieved at rocket-speed. In such circumstances, the normal care to be exercised for banking operations may be compromised and even the data on the accounts opened summarily, may be inflated. The possibility of opening new accounts in the names of existing customers also cannot be ruled out. Life Insurance Corporation [LIC} is expected to administer the insurance component of the Prime Minister’s Jan Dhan Yojana. Coping with millions of low value insurance policies will also be a herculean task for the insurance company. Both the banks and LIC may have to be financially supported by the government to carry on the Programme in a sustained manner, as the mounting transaction cost and higher level of NPA could be a deterrent factor for them. Let us hope that the government would give sufficient thought to these aspects as well and initiate suitable remedial measures. The financial sector, of which banking and insurance are main segments, should remain strong as now, even after successfully implementing the ambitious programme, as the health of these financial institutions is the basis of the country’s economic stability
October 31 - November 30, 2014
PASSLINE
28 EVENT
T
his year’s Kerala Travel Mart -2014(KTM-2014) exhibited Kerala village life as theme of the tourism fair this year. It made the tour operators busy taking the tourists to the villages. The Mart made a major turning point by bringing focus on widespread product innovations to suit newer markets and also projected Kerala as a destination for wedding tourism and international MICE(Meeting, incentives, conferencing, exhibitions) . “ The visiting buyers have a clear understanding of our professional wedding plan capabilities to serve a memorable wedding function for high networth travelers.” said KTM President Johny Abraham George. “The memorable wedding venues
PASSLINE
are Kovalam, Bakel resorts, villas, hill stations at Munnar and Wayanad, jungle resorts and tourist spots . To promote kayal tourism, Kumarakom, Alappuzha, Kochi, Poovar, Kollam are showcased as wedding destinations; also backwater resorts, house boats etc are presented as wedding stages. Kerala tourism has 30 years of history with the advent of house boats which drew the global attention towards Kerala tourism”, pointed out Abraham. Kerala tourism as part of Responsible Tourism(RT) presented five Village Life Experience (VLE) packages at Kumarakom, Kovalam, Wayanad, Thekkady and Bekel which let you experience the heart of Kerala. These packages encourage the conservation of natural and cultural heritage sharing 95% of its cost with the local
October 31 - November 30, 2014
community. It is a dream opportunity to explore , observe,discover, interact and learn.
houses, making of coconut brooms and to visit the typical kitchen garden in Kerala.
Village tourism was positioned as a prime focus product and derived huge response from the visiting buyers. The venue of the Mart was set in a village ambience with artists and artisans demonstrating their activities. The idea was to create the feel of a real village and share lifestyle experiences.
Experience Kovalam: Beyond the beach-- Learn about the sun , sea and sand from local residents who live off the sea. A visit to the `Thanal’ Zero Waste Centre, Dairy farm, a unit making handicraft using coconut shells, a weaving unit, a copra unit and a crèche. You also get to visit a vegetable farm, Vellayani Lake, Vizhinnjam fishing harbor, a coir village and to get first hand experience of the local martial art Kalari Payattu.
Experience Kumararakom: A day with farmers-- Experience at firsthand coconut farming and the tender taste of coconut, net fishing, making of coir, bow and arrow fishing and a visit to a cattle farm. Two village ladies row you through two villages where you get to see the unique biodiversity of the backwaters. You also get to experience bow and arrow fishing, net fishing, learning to thatch coconut leaves for thatched roof
Experience Wayanad: Visit the amazing world of bamboos, to the local crèche and school and learn how to plough a paddy field using traditional plough and ox. Visit to an artisan making a Thudi, a local musical instrument, a unit extracting eucalyptus oil, a unit making bamboo handicraft, visit to a local plantation and crèche and a visit to the battle fields of Pazhassi Raja.
29
Visit the world of Bamboo handicraft, visit a traditional mud house, learn the art of local pottery, and also to the local Jain temple and Valliyoorkavu Temple and experience modern poly farming techniques. Experience Thekkady: visit the house of a local medical practitioner, a visit to valiyapara, learn the art of puppet making and bee-keeping, a visit to the Shantigiri ashram and see a tribal dance show. Experience Bekel: A day with artisans -- Learn the art of traditional net fishing(valaveeshal). Screw pine weaving, coconut weaving, toddy tapping, pottery, a visit to the Bekal Fort and a performance of the traditional Theyyam dance. The bottom line Responsible Tourism (RT) is economic, social and environmental sustainability with minimal negative impact. This was first implemented at Kumarakom, Kovalam, Wayanad, Thekkady and Bekel. This has been extended to other parts of Kerala. UNWTO Ulysses Award for excellence and Innovation in tourism as well as the National Award for the best tourism Project has been awarded to the Kumarakom chapter. Kerala has become a premier tourist destination in the world. Nature and culture, in other words landscape and history, are the salient features that have been at the heart of Kerala tourism. Nearly 14 lakh people are directly employed in the tourism sector and another 10 lakh indirectly. The state revenue from tourism approximately is Rs 25,000 crore. The government spend is approximately Rs 70-100 crore to promote tourism in the State while the private sector spends nearly Rs 1000 crore. When the rest of the world has suffered with financial and cultural uncertainties; luckily Kerala has somehow managed to survive the challenges. The wellness global industry is worth approximately Rs 5 trillion. However, India only contributes 0.01% of this sum. “ There are real opportunities in ayurveda to treat chronic metabolic diseases. However, the State has not been as successful in marketing this to the world. The climate in Kerala allows a multitude of medicinal plants to grow and ayurveda medicine practiced in Kerala is in the
most unadulterated and traditional form. Kerala is the best for ayurveda with its good climate, soil, water and greenery. All herbs required for ayurveda grow abundantly in Kerala and here tourism and ayurveda complement each other, said Baby Mathew”, CMD of Somatheeram Ayurvedic Resort. Medical toruism was identified as a highlight during the deliberations held at the Mart. The new liquor policy , as ensured by the chief minister, will be formulated helping the tourism industry. The participants suggested to boost cruise, medical, adventure, echo tourism zones in Kerala. According to Suman Billa, Tourism Secretary, “ four new destinations have been identified in this year’s travel mart. Cheruthuruthy, Athirapally, Cherai and Kollam are the newly identified destinations and a new initiative named NET - VENTURE to promote adventure tourism has been proposed”. “Adventure tourism has vast scope in Kerala, but tourists should be imparted well training in it”, said Luxury India Holidays MD Vishwash Mekjhija. Kayal tourism has also high potential. It should also be notified in tourism map, he added. “Kerala State Government is considering new ways to promote tourism in the state. In addition to making Kerala a wedding destination”, Tourism Minister AP Anil Kumar said. The minister added that the spice route project organized by the government gives great expectation to the tourism industry. The government has had preliminary discussions with the ambassadors of nearly 31 countries in Europe, Asia and the Far East with regard to promoting this initiative. The government has had preliminary discussions with the ambassadors of nearly 31 countries in Europe, Asia and Far East with regard to promoting this initiative. The spice route project is set to redraw the ancient trade route that linked Kerala with the world. Already a memorandum of understanding has been signed with UNESCO while discussions are taking place with these countries. The project will prove to be a milestone in the development of the tourism industry in Kerala. October 31 - November 30, 2014
PASSLINE
30 DEBT FUND
BATTLING TO CURB ‘VULTURE FUNDS’ PASSLINE
October 31 - November 30, 2014
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Many countries face a worsening debt situation compelling an urgency to set up a global debt restructuring mechanism.
By Martin Khor
E
xternal debt is rearing its ugly head again. Many developing countries are facing reduced export earnings and foreign reserves. No country would like to have to seek the help of the International Monetary Fund to avoid default. That could lead to years of austerity and high unemployment, and at the end of it, the debt stock might even get worse. Low growth, recession, social and political turmoil are probable. This has been experienced by many African and Latin American countries in the past, and by several European countries presently. When no solution is found some countries then restructure their debts. Since there is no international system for an orderly debt workout, the country would have to take its own initiative. The results are usually messy, as it faces a loss of market reputation and the creditors’ anger. But the country swallows the pill, rather than have more turmoil at home. Such was the experience of Argentina, whose public debt reached 166% of GDP in 2002. After many years of decline and political instability, Argentina defaulted in 2001. Argentina then arranged for two debt swaps in 2005 and 2010, thus restructuring its debt with 93% of the creditors, who agreed to receive about a third of the original debt value. But 7% of creditors, known as “holdouts” , did not agree to the restructuring. A few influential hedge funds (comprising only 1% of creditors) which had bought some of the debt very cheaply on the secondary market, sought a court order in New York
(where the original loans had been contracted) to be paid in full. There are several such funds, now popularly termed “vulture funds, that specialize in buying distressed debt at low prices (say,10% of the original loan value) and then insist through the courts on being paid in full with interest. Like vultures, they circle overhead and swoop to make a meal of the dead or dying bodies. Only in this case the bodies are countries and they are asked to squeeze their shriveled economies further to pay the vulture funds, like drawing blood from a stone. The united States judiciary, after a long process that went to the Supreme Court, decided a few months ago that the holdout hedge funds that took up the case should indeed be paid in full, and with interest. Further, it decreed that the 93% of creditors who had already agreed to be paid at a big discount, are now not allowed to be paid, unless the vulture funds are paid in full at the same time. The New York judge used the principle of pari passu (that all creditors should be treated the same ) in reaching the decision.
At the end of August, the Swissbased International Capital Market Association, a group of bankers and investors, issued new standards aimed at reducing the ability of holdout investors to undermine debt restructuring. Last week, the Group of 77, representing developing countries, succeeded in promoting a resolution at the United Nations General Assembly which recognized that a state’s efforts to restructure debt should not be impeded by hedge funds that seek to profit from distressed debt. The General Assembly by a vote of 124 in favour, 11 against and 41 abstentions, also decided to set up a multilateral legal framework for sovereign debt restructuring by the end of 2014, to increase the stability of the international financial system. An international debt restructuring mechanism will be a systemic solution, since countries with debt crises can have recourse to an international court or system and need not do a
messy debt restructuring on its own. There will now be an uphill battle to get the resolution implemented, since the US, Germany and Britain (all key countries in global finance), were among those which objected. Another resolution, initiated by Argentina is now being considered by the UN Human Rights Council, aimed at setting up legal frameworks to curtail vulture funds’ activities and for sovereign debt restructuring. One good thing is that the UN, which is a universal body in which developing countries have a greater say in decision-making, is now at the centre of the debt discussion. The negotiations ahead will be tough but well worth it since preventing and managing a debt crisis is now a priority for a growing number of countries—Third World Network Features. (The author is the Executive Director of the South Centre)
Argentina had already arranged with a bank in New York to pay out interest to the 93% a few weeks ago, but the bank refused to do so, due to the court order. The vulture funds want their pound of flesh. The main fund, NML capital, would make an estimated 1,600% profit. Argentina’s President Cristina Kirchner refused to bow to these funds. If she did, the country might have to also repay all the creditors the full value, which is US$120 billion, and that is impossible to do. This incredible turn of events has caused outrage among many public interest groups and anger among developing countries’ governments. The South Summit of the G77 in May in Bolivia criticized the vulture funds and called for a proper global debt restructuring mechanism. Finance ministries of developed countries have been concerned as well as they are also affected. Greece also went through debt restructuring in which private creditors agreed to take a loss, a few years ago. Accepting the court decision as the new template would make it quite impossible for any country to restructure their debts, since the now emboldened vulture funds would pounce and block it. Influential Financial Times commentator Martin Wolf has supported Argentina in its battle with the vulture funds. Wolf even went so far as saying that it is unfair to the real vultures to name the holdouts as such since at least the real vultures perform a valuable task!. October 31 - November 30, 2014
PASSLINE
32 TOURISM
Villages – Soul of Kerala tourism Abin K I
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ocated on the southern extremity of the country hugging the Arabian Sea the state of Kerala famed as God’s own country in tourism is primarily known for her scenic splendor and cultural ambience. The total area of the state comprises 38,863 square kilometers having a coastline of 580 kilometers. This tiny gift of nature with amazing physical features such as misty mountains, verdant hills, high ranges, evergreen forests, bio–sphere reserves, meadows, rivers, waterfalls, wildlife sanctuaries, national parks, backwaters, lagoons, palm-fringed coastline etc is yet to be visited by mass number of tourist from near and far. Apart from its geographical features, the picturesque settings of ancient temples, shrines, sacred groves, churches, mosques especially located in villages with their magnificent architecture are other attractions. An overview of Kerala villages A traditional Kerala village is a natural wonder showcasing scintillating views such as paddy fields, spice gardens, captivating scenery of hill ranges, variety of indigenous and migratory birds, magnificent religious festivals, grand galore of elephants pageants in temple festivals, age old heritage monuments, sacred groves, glamorous folk arts, centuries old PASSLINE
classical arts, enthralling architecture associated with churches, temples and mosques, placid backwaters, rivers, ever cool hill stations and the list goes unending. Kerala villages are famed for its traditional agriculture and farming practices. Village or rural tourism in Kerala is focused here because the state has unlimited number of small and large villages and the presence of numerous range of products for developing it. Although Kerala is visited by large number of tourists still their visit and length of stay are mainly confined to few selected tourist destinations and urban centers in the south. The existing south domination of Kerala tourism is still continuing while Malabar region is yet to make a major come back in tourism through the promotion and development of rural tourism. Village Tourism–a novel tourism approach Every village of the state is having its own diverse and unique tourism products. Kerala’s age old culture is evident from her rural village life and it is shared, strengthened and continued to the future generations. Village tourism is friendlier both in terms of tourist experience and community benefits rather than alien and much misconception about tourism can be wiped out with a friendly
October 31 - November 30, 2014
approach. Besides it also leads to a balanced regional development of all regions and the tourist will also get a chance to imbibe our authentic culture. Village tourism is an effective medium for rural development, alleviating rural poverty and fighting rural unemployment. Modern transportation has removed the obstacles of distance enabling the people to see and experience the villages.Village Tourism can be definitely used as a tool to overcome real prejudices, foster bonds and can also be used as a real force for preserving traditions, festivals, cultural heritage and bio-diversity. Kerala villages are noted for its lush greenery and they are popularly described as the green islands of the state. Village tourism is a non seasonal tourism product and it must be promoted as such in an authentic way to suit the requirements of any tourist season. During 2003 Kerala government took the initiative and gives more preference to village tourism and selected some villages as model tourism villages. Kumbalangy is the first model tourism village in the country which offers a fascinating glimpse of the simple and prosperous livelihood of the coastal villagers and it also unravels the age old, magnificent culture and heritage of the place. This model village is
a veritable treat to its visitors with the famous Chinese fishing nets and many other sights to savor. Even during rainy seasons from June to August we can attract horde of tourists to enjoy Monsoon Tourism, Backwater Tourism, Ayurvedic Tourism, Tribal Tourism, Cultural Tourism & Heritage Tourism (classical arts, yoga, retreat, martial arts like Kalarippayattu etc) which are part& parcel of Village tourism. Eco-Tourism can also be linked with rural or village tourism because the objective of the former is to throw open natural areas for tourist visit by conforming to strict rules and regulations for preserving the local and ecological fragility of the rural areas. What products we can offer in the name of village tourism? Kerala villages are spread over highland, midland and coastal regions and the products includes communities lifestyle, art forms, fairs, festivals, agriculture, cuisine, rituals, culture, history and heritage resources etc. Villages offer unique, innovative, authentic and qualitative tourism experiences to satisfy the requirements of all forms of tourist. Amenities such as better roads, electrification, drinking water supply, health and sanitation facilities, hygienic comfort stations, better eco friendly accommodation facilities like
Tribal Tourism, Cultural Tourism & Heritage Tourism (classical arts, yoga, retreat, martial arts like Kalarippayattu etc) which are part& parcel of Village tourism. EcoǦTourism can also be linked with rural or village tourism because the objective of the former is to throw open natural areas for tourist visit by conforming to strict rules and regulations for preserving the local and ecological fragility of the rural areas. home stays, farm house etc are necessary. Village tourism can preserve the rich biodiversity, local heritage and cultural traditions if effectively planned, implemented and marketed. The host community should be taken into confidence by providing suitable awareness programmes and they must feel that the project is a part of rural development activity which is meant to eradicate rural poverty and unemployment. Convenient tourism circuits with respect to each village tourism projects can be started in order to attract more domestic and foreign tourists. The progress of village tourism projects should be evaluated and monitored continuously and effective measures must be undertaken to make them highly responsible and receptive to the tourists, host community and the environment. The successful Kumarakom model is the best example. Villages are undoubtedly the life line of God’s own country having immense tourism potentials. If one wants to get authentic Kerala experience visits to the villages are necessary and it provides an opportunity to interact with the people and to familiarize with its typical resources. Similar and diverse attractions exist in every village especially in the regions of North Kerala where tourism is still in its infancy stage. Explore & experience authentic Kerala through a voyage to its colorful and vibrant villages. This tourism season is the best time to discover it.
No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.
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Prominent & Emerging Village Tourism Destinations in Kerala Kumarakom (ResponsibleUnique Selling Products/Propositions (USP’s) Tourism Destination) Name of the Village Backwaters, Traditional fishing Kumarakom (Responsible Backwaters, Traditional fishing and farming and farming practices, Village life Tourism Destination) practices, Village life etc etc Kumbalanghy (First Model Chinese fishing nets, Traditional Art Forms etc Tourism Village) KalpathyAgraharam (Heritage Traditional architecture, music and car festival etc Village) Aranmula Aranmula Mirror, VasthuVidhyaGurukulam, Snake boat races etc Kuttanad Duck farming, fishing, bird watching, paddy field visits etc Kadalundi (Coastal Village) Estuary, Mangroves and Migratory Birds Kappad(Historical Village) Beach& Stone Monument Iringal (Crafts Village) Handicrafts Munroe Island Coir weaving, traditional fishing, prawns feeding, canoe ride in narrow canals, river and backwaters. Cheruthuruthy Kerala Kalamandalam, Museum, Nila River visits, Ayurvedic Treatmentsetc Vellinezhi Kalagramam (Arts Village) Chulannur Peafowl sanctuary, Ayyappa sacred grove, Farming etc Valliyoorkavu Sacred Grove, Tribes etc Attapady Tribal hamlets, Malleswaran Peak etc Neeleswaram Sacred Groves and Theyyam Anakkara Spice Plantations
(The author is lecturer in Tourism, School of Tourism Studies, Mahatma Gandhi University, Kottayam. email: abinki64@ yahoo.com)
October 31 - November 30, 2014
PASSLINE
34 BANKING
Andhra Bank Zonal office in Kochi
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ndhra Bank Executive Director S K Kalra opened its new zonal office and a new brach with on- site ATM at Kadavanthra , Kochi. This will be bank’s 9th zonal office in Kerala. Including newly commissioned branch the bank has three branches in Ernakulam and twenty Executive Director S K Kalra inaugurating new zonal office six branches under in Kochi. P Masilamani, Zonal Manager is also seen the Kochi zone. “ Our bank has envisaged the plans for to develop its reach in the state more aggressively and after the commencement of zonal office , within two months we will start six more branches in Ernakulam and ten more in different part of Kerala. Our expectation is that to consolidate the number of branches to forty two by the end of this fiscal. As per 30 – 9 – 2014 the bank has a total business of 1500 crore in Kerala and by 2014 -15 we expect an increase of 300 crore to 1800 crore”. Said S K Kalra. To make e- banking more aggressive the bank has rolled out a special project called ‘Navasakthi ’. As a part of this, the bank will start new Navasakthi branches . Facilities like currency chest, pass book printing, net banking kiosk and cheque deposit machines will be the part of this project. The banks total business has surpassed to Rs 262 lakh crores and it has pan India presence with 2200 branches and 4100 delivery channels. P Masilamani, Zonal Manager was also present for the inaugural function
Chief Minister Oommen Chandy honours Editor of the SIB Corporate History Project M J Simon at the function to release “A Southern Odyssey – The Story of South Indian Bank” in the presence of Executive Director Abraham Thariyan; MD & CEO Dr V.A.Joseph; Finance Minister K M Mani; Lulu Group MD M A Yusuf Ali; Hibi Eden MLA ;Thomas Chandy MLA; and Executive Vice President V G Mathew
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Federal Bank observed 69th Founder’s Day
his year the Federal bank observed its 69th Founder’s Day on 18th October 2014. Lining up behind ‘Swacch Bharat Swatch Vidyalaya’ campaign launched by Prime Minister of India, Federal Bank has chosen ‘adoption of schools’ as its theme activity for this year’s Founder’s Day observance. The whole programme is christened ‘Bandhan.’ Starting from 18th October, under the program, each branch of Federal Bank will identify and adopt a school each in its territory and will take care of its various pressing needs which would include, infrastructure, toilet facility, library, skill development needs, education projects, gardens (as part of environment conservation) etc. PASSLINE
October 31 - November 30, 2014
Federal Bank H1 profit 460.53 crore
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ederal Bank has faired well in the financial quarter ended September 30, 2014. Continuing its consistent performance over the last few quarters, the Bank registered growth in business volume and operating metrics apart from further strengthening its asset quality. The asset quality of the Bank continued to improve with the Gross NPA coming down by 129 basis points from 3.39% as on 30.09.2013 to 2.10% as on 30.09.2014. The Net NPA fell by 32 basis points on a y-o-y basis from 0.98 % to 0.66 % as on 30.09.2014. Provision Coverage Ratio increased to 85.13% from 81.23% during the corresponding period in the previous fiscal. Net Interest Income recorded a y-o-y growth of 10.48% as it improved from 548.35 Crore in Q2 FY14 to ` 605.80 Crore in Q2 FY15. Other income grew by 36.58% y-o-y from 143.40 Crore in Q2 FY14 to ` 195.86 Crore in Q2 FY15. Net Interest Margin improved marginally from 3.30% as on 30.09.2013 to 3.35% as on 30.09.2014. Cost to Income reduced from 51.01% as on 30.09.2013 to 48.89% as on 30.09.2014. The Bank’s Operating Profit and Net Profit registered impressive growth during the quarter. While Operating profit increased by 20.91% from 338.91Crore to 409.76 Crore, the Net Profit went up by 6.42% to 240.30 Crore from 225.81 Crore earned during the corresponding quarter last year. Total Deposits of the Bank grew by 13.68% from ` 56793.74 Crore as on 30.09.2013 to 64563.86 Crore as on 30.09.2014. CASA registered a growth of 13.08% from 17449.80 Crore as on 30.09.2013 to 19732.51 Crore as on 30.09.2014. The Net Advances of the Bank grew by 14.79% from 42220.06 Crore as on 30.09.2013 to 48466.14 Crore as on 30.09.2014, with SME advances registering a 25.95% y-o-y growth to reach 11821.19 Crore as on 30.09.2014. The Bank continued to expand its footprint and added 11 branches and 43 ATMs during the quarter to take the tally to 1214 branches and 1435 ATMs as at September 30, 2014 ‘Bandhan’ is a pan India project and the bank expects to support 1215 schools in consonance with the total number of its branches. This program will be executed with the total participation by the entire workforce of Federal Bank irrespective of cadre. Bandhan – Adoption of Schools program signifies a long term relationship and arranging safe drinking water to children is the first move as it is a priority need. As part of this, Federal Bank has entered into a tie-up with a leading manufacturer for the supply of high quality electric water
purifier to 1215 most deserving schools across the country and to distribute the purifiers through the branch outlets. Federal Bank has also decided to spearhead projects of varied nature, one each at each of the 32 Regions of the Bank, which will last throughout the year. The projects will exclusively be oriented towards supporting the marginalized segments of society. As part of the Founders day initiatives, the bank staff are also pooling in clothes (including woolen clothes) to be supplied to those suffering in the aftermath of the recent floods in Kashmir. Even before the take off of the Bandhan campaign, the bank staff at Head Office finds delight in fulfilling the dreams of the little school children as expressed by them through a ‘Wish Tree’ that placed at the Govt. LP School at South Vazhakkulam, All the 153 kids of the Primary/Lower Primary sections have wished for things like Umbrella, Foot Ball, Watch, School Bags, Variety of Toys, Note Books & Colouring articles and we at Federal Towers, Aluva are getting the rarest chance of making the Dreams come true for the sweet little kids of this school. The Head Office and branches of the bank have all braced up for the year long observance of Founders Day that would involve each one of the work force of Federal Bank cutting across all cadres
NEWS
The 250 crore Style Spa group targets Kerala as a key market
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ndia’s largest retail chain for Furniture and Home interiors, StyleSpa, unveiled their new range of bedroom furniture “Cove”. The product was launched by C M Satheesh Kumar, Senior Vice President – Operations. Speaking on the occasion of the launch, Satheesh said “The Cove designs are ergonomic and come with a tilted back-rest. They have C M Satheesh Kumar, Sr VP operations, Mahesh, reinforced support for inclined GM, Sales & Mktg, and Rajesh, Regional Head back-rest. There is a Cove Inlet Stylespa during the launch in the back-rest for bedroom ed machinery with 3 years warranty, essentials. The furniture is a double manufactured at our 2,50,000sqft walled structure for durability. There state of the art factory “It gives is an outer panel to enclose bed and us great pleasure to introduce yet toe protection. Cove range has a another outstanding Bedroom Range large under bed storage which would in the region. The new “Cove” ensure cleaner bedroom”. range is all about functional excel“The company has been a high lence and value. We are announcquality producer of home furniture ing an inaugural offer to our Kerala for the past 20 years with 7 Flagcustomers. They can now purchase ship stores across the country, Kochi the COVE Bedroom Package at Rs being one of them. We are pioneers 39,995 which includes a Queen Size in the field of panel based home Cot (150”)* along with a three door furniture where all our furniture is premium cupboard with mirror and a crafted on CNC controlled automatbed side storage table”. He added
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Eastern ropes in ex-Google, PepsiCo execs to spruce up top deck
he Rs 800 crore Eastern Condiments, which has interests in spices, condiments, ready-to-eat food category amongst others has roped in Manoj Varghese, the first manager hire in India by internet search major Google and Ashwani Kumar Verma, a former PepsiCo executive, to spruce up its top managerial deck. While Manoj Varghese has joined Eastern as its top mentor, Ashwani Kumar, an engineering graduate from IIT Roorkee, will lead Eastern Condiments from its operational side. Manoj as Head of HR helped Google India to become arguably, one of the best companies to work for. Later he moved to Facebook to start Facebook India operations as Facebook India’s Director Operations. Manoj is an engineering graduate from REC Calicut and has done his post-graduation in management from XLRI. Firoz Meeran, Managing Director, Eastern Condiments said
“as we transition into a high performance organization it is expected that Manoj with his rich experiences and wisdom will help guide and handhold our youthful leadership team to greater heights”. Firoz Meeran added that Ashwani is tasked with creation of an Operations Excellence Council comprised of leaders representing Production, Quality, Engineering and Projects with leaders from Supply Chain, Order Fulfillment, Finance and Technology functions. As the product portfolio and supplier base diversifies, Ashwani will conceptualise, create and run the supplier quality programme which will be a benchmark in the food industry. Towards fulfilling Eastern’s vision of zero error from farm to fork, Ashwani will conceptualise, execute and run an industry benchmark global first quality model,” Firoz Meeran said
Libero launches in Kerala
Road show on Global Agro Meet & BIOFACH INDIA
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erala State Government along with Confederation of Indian Industry organized a Road Show for Global Agro Meet ln New Delhi recently. The road show was a prelude for the upcoming Global Agro Meet -—an International Conference and Exposition — to promote Agriculture and Food Processing Sector in the State during November 6-7, 2014 at Adlux International Convention Centre at Angamaly, Kochi. The Global Agro Meet is organized by Kerala State Government in participation with Confederation of Indian Industry at Adlux International Conventional Centre, Angamaly K P Mohanan, Agriculture Minister, Government of Kerala, Sanjeev Chopra, National Director, Mission for Integrated Development of Horticulture, Subrata Biswas, Principal Secretary, Agriculture, Government of Kerala, Dr Rajan Khobragade
IAS, Secretary Agriculture, Government of Kerala, Shivdas B Menon, Past Chairman & Convenor, Agriculture & Food Processing Panel, Confederation of Indian Industry, participated in the Road Show. In addition to this, Kerala Government is hosting the BIOFACH INDIA – an International exhibition on highquality organic products organized by Nornberg Messe. This program will be held coinciding with Global Agro Meet during 6-8 November at the same venue of Global Agro Meet. Both the programs are aimed to identify business opportunities, help forge business partnerships, share best practices from different countries, in India and abroad, Showcase Kerala potential, before product and technology producers and Implement manufacturers, discuss about ‘Best’ and the ‘Next’ technology, methods of value addition, products, services and Infrastructure in agriculture and food processing from India and abroad, bridge gap between government, consumers, farmers and industry, Provide information on State / Central Government Schemes / other financing options and Discuss regarding regulatory landscape
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urope’s second largest baby diaper maker SCA has launched its wide range of baby products in Kerala. Libero introduces skin friendly natural ingredients for your baby’s healthy skin in its various products. Kerala is the second state the brand has targeted on its entry to India. Recently, The Indian Medical Academy also partnered with LIBERO to educate the public on benefits of using diapers for child health and hygiene promotion using various platforms of public health programmes
Visakh Homes set to expand residential space Visakh Homes Limited, a member of the Rs 500 crore Sree Kailas Group, is set to expand their operations as one of the largest premium developers in the city of Chennai. Sree Kailas Group a diversified conglomerate with interest in paper manufacturing, logistics/industrial parks, and construction and infrastructure activities are now set to create a niche in the residential development space as a new vertical for growth. Sree Kailas Group has also developed 6 residential projects comprising 120 apartments at both Kochi and Chennai. M/s Visakh Homes has recently completed and handed over a project of 20 apartments at Tambaram West, Chennai, under the name “Shree Gajanan Apartments”. Sree Kailas Group consists of M/s Sree Sakthi Paper Mills Ltd, a public limited company which is the largest Kraft paper mill in south India , and in the logistic segment is M/s Shri Kailash Logistics Ltd having a state-of-the-art logistic park with 1 million sq.ft of constructed godown with modern and advanced technology warehouse and industrial space at Oragadam, Chennai, called the LOGICITY October 31 - November 30, 2014
PASSLINE
Personality
PASSLINE
October 31-November 30, 2014
RN 65561/94 Reg. No. KL/EKM/116/2009-2011
A Maradona fame
Passline News Service
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harles Antony came into limelight when he sang with football legend Diego Maradona.``I am the first Indian solo performer to sing a Spanish song with the Argentine soccer star in a live concert in Kerala. To sing along with him was a huge honour,” reminisces Charles Antony who is a twist of the stereotyped country singer. Clad in his jeans, waistcoat over a T-shirt and black cowboy hat Antony plays his guitar and sings in his deep bass voice the popular numbers of yesteryears. There is pin-drop silence. He has an extremely keen audience, for his songs have a positive uplifting effect in challenging times. Antony cherishes that his best experience as a musician is still the memorable four minutes when he sang the Spanish song Besame Mucho with Maradona that transformed his life to the level of an international musician. After this performance, he became an international celebrity himself, when he was sought after by the media present at the venue and received maximum national and international media coverage. What’s so unique about him is that he can sing in 14 international languages besides English, Hindi, Malayalam, Tamil and Goan songs. The foreign languages that he can sing are Spanish, Italian, French, German, Swiss, Mexican, Russian, Arabic, African, Japanese, Korean, Malay, Hebrew and Sinhalese, among others. Antony was in the UAE recently for the World Malayali Council (WMC) meeting and performed in Abu Dhabi and Ras Al Khaimah and for the Delta Group at Hatta Fort Hotel. He played at Le Meridien for a company get-together, sang at Winchester School for the Parents’ Day celebration and for family get-togethers in Jumeirah, Karama and Jebel Ali. In addition to this, well known RJs Mithun and Sindhu of 96.7 Hit FM Radio interviewed him. Based in Cochin, Kerala, Antony’s interest in music developed at the tender age of nine. He first got a chance to play the guitar when he was in grade 4 . “I learnt the guitar from my brother Jos Edward. Later on, I joined the college band. We would participate in the inter-collegiate western music competitions. At the same time, I
was the lead guitarist in a band called Drift Woods. During this period, I was more interested in playing guitar than singing,” says the enthusiastic musician. Other celebrities who have been enthralled by his music include Prince Faisal of Saudi Arabia on his visit to Kerala. Antony sang the Arabic song Habibi ya nour el ein and some old English classics on the request of his captivated audience. “I’ve played with the retired West Indies cricketer Richie Richardson during the Sachin Pavilion Stand inauguration at the Jawaharlal Nehru International Stadium in Kochi. On his urging, I sang a Caribbean song, Buffalo Soldier. After that he took my guitar and we sang Jamaican Farewell together. Recently, I sang two African songs for Kenyan athletes during the Cochin Half Marathon Race,” recollects Antony. “I enjoy singing Latino classics and old English songs. I am very comfortable singing foreign songs with the guitar and harmonica,” he says. Antony learnt foreign languages from his stints playing at five-star hotels like Taj, Le Meridien, Radisson, Hilton etc. “I learnt foreign songs from guests at the hotel. In those days there was no Internet. Tourists would teach me their traditional songs and I would record them with a small Walkman. I even have some Japanese and Korean students taking guitar lessons. They taught me their songs as well,” he adds. Antony received the maximum appreciation when he sang songs by artists like Jim Reeves, Elvis Presley, Bob Dylan, Neil Young, Don Williams, John Denver, Eric Clapton and the American rock band Grateful Dead. He admits that he does not have any particular favourite artiste and musicians from 1940-1980 inspire him. Colin D’ Souza, who is based in Cochin, is his mentor and they’ve played together for many years as a two-piece band. Because of his bass range voice, many people have told him that his voice is tuned to western country music. “In the early stages of my career, I was not bothered about my choice of music. But when I took it up seriously, I came to understand that there is nothing comparable to the old classics. This music is timeless. That is why I am
Charles Antony
known as an ‘Evergreen Singer’ from India because I don’t belt out the latest tracks,” Antony comments. He recalls that the Ambassador of India to the UAE, T P Seetharam, was really surprised to witness his performance at the Radisson Blue Hotel in Yas Island, Abu Dhabi, where the ambassador was the chief guest for the WMC event. “Many international event managers are surprised at the way I handle so many languages as a solo performer,” Antony says. Many years back Antony played in Oman, Qatar and Bahrain. “I recently did three shows at Sharm El Sheikh in Egypt. Hotel Savoy is a 7-star hotel in Soho Square. I was the
first Asian to perform there. Usually only English bands are allowed to play there. However, I got an entry and sang in all the foreign languages that I know.”Antony continues his mission as an international solo musician. With the aid of just an acoustic guitar and harmonica, he sings old English classics and lyrics of nearly 1,000 songs and brings joy to listeners around the world by allowing them sweet memories of home as he lulls them with the lilting classics of their youth, wherever in the world they may be from, across borders, nationalities and cultural barriers, bringing all people together through their common love and appreciation for music.
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