Passline December 2011 by Passline Business Magazine

From the Editor Should social media be made accountable? The second edition of the UPA ministry at the Centre seems jinxed with controversies chas-

Editor & Publisher

VARGHESE PAUL Kochi

ing it from its inception. Dr Manmohan Singh, who had an impeccable track record as an economist, has spoiled his image and the hopes of more than a billion people with his lacklustre and tepid performance and his approach to problems and issues confronting the nation. The people of India thought Dr Singh and his team would take the country to new heights when they entrusted governance to them. On the contrary, the ministry itself is beset by scams, inflation, weak industrial output, policy paralysis and, above all, the devaluation of the rupee. The inept policy decisions like the one on FDI in retail and the fiat by Telecom Minister Kapil Sibal on putting fetters on social media sites had created much furore.

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Mr Sibal’s demand that content on social network sites such as Facebook, Twitter, Yahoo and Microsoft be screened is yet another instance of the UPA ministry groping in the dark about issues and going directionless. The statement infuriated some 10 crore netizens from all walks of life. Even the main opposition party, the BJP, has come out against Mr Sibal saying that the minister should have discussed the issue before acting hastily. The minister apparently was furious because of the unsavoury comments on Facebook about Mrs Sonia Gandhi and the blasphemous and highly offensive speeches on some other sites which led him to intervene. Net users and Sibal’s critics however are not ready to buy his argument as such. Ace sharebroker and investor Rakesh Jhunjhunwala said, “Don’t think Sibal even understands the internet. All this happens when you make a lawyer the IT minister. It is like hiring Mayawati for an item song”. Author and socialite Shobhaa De said, “Sibal Saab, such outrage to protect privacy of one ‘madam’ in a country of 100 million net users?” Whatever be the arguments, we, living in a civilized society, should condemn the inflammatory contents appearing on the sites and the perpetrators should be given harsh punishment. Mr Sibal’s intention may be candid and genuine but it reminds one of the dark days of the media censoring during the Emergency in 1975 imposed by another Congress ministry headed by Indira Gandhi. The political situation in the country is almost the same in 2001 as it was in 1975, the ministries attracting the wrath of the people because of the corruption and scams. In 1975 Jayaprakash Narayan led the people’s movement; today it is Anna Hazare. During Indira Gandhi’s regime Sanjay Gandhi was instrumental in imposing the emergency and today we can’t rule out the possibility of Rahul Gandhi prompting it. Above all, the UPA Government headed by the Congress is in utter confusion and is aimless. It doesn’t have trust and confidence in the coalition partners and even in its party members. The escalating image of Anna Hazare and his movement are giving sleepless nights to Dr Singh and his companions. The people’s movement in West Asian countries against the monarchs, the “Occupy Wall Street” movement in the US and the events leading to the student massacre in Tiananmen Square in China were orchestrated by the social media sites in those countries. The direction of events happening in India is almost the same. The Anna Hazare movement gained so much support and momentum through these community sites. We can’t blame Mr Sibal for his loyalty to the Congress chief because he has to safeguard the ministry as well as his own chair. It is for the people to come to a conclusion whether it is anti-democracy or an intrusion into personal freedom.

Varghese Paul

4 erate the necessary change for dayto-day transactions.

Readers' views Waterway calls for attention When the proposal for a metro rail line was in the air, the idea of a metro airway was in the pipeline. Though a lot of space was used in newspapers and publications and many voices were heard in favour of the proposal for the water transport, nothing tangible has happened so far. The fact is that no government has bothered to look into the possibility or feasibility of inland water traffic even for Kochi, surrounded by waterways on all three sides. Experts say that the state can benefit much more from a metro waterway than from a metro railway. The advantages are many and the disadvantages few as mentioned in your article (Oct-Nov issue) with regard to land acquisition, rehabilitation, pollution, investment etc. According to reports, the Kochi Metro Rail (Chennai model) devours 32 hectares of land and involves an investment of Rs 5,146 crore (land value alone Rs 700 crore). Total investment share by the Centre is 20% and by the State another 20%, the balance being loans from foreign banks. Twenty-two trains with three bogies each will run in the first phase. But for waterway transport, experts envisage an investment of only Rs 200 crore with no hassles as in the case of a rail line.

conductors, after hearing ‘no-5’ from passengers, are often seen rummaging their wallet to give the balance as a majority of the passengers flaunt Rs 10 notes. Even if a Rs 5 note is available it is dirty, sodden and mutilated. The situation has arisen after the minimum fare in buses became Rs 5. In

Moreover, the state may indirectly become a part of the currency printing mechanism of the RBI and Finance Department, which in large term saves the cost of printing of Rs 5 denomination notes. The shortage of Rs 5 notes may also result in a double sale of the smallest lottery as the buyers often opt for two tickets for ten at a time, which will be a boost to the government exchequer. -Antony Ooden, Irinjalakuda,Thrissur Dt. and bureaucrats. Don’t we actually need a minister solely to handle the ‘portfolio’ of crimes? It is the people who should decide who will be in the saddle of the Prime Minister. The drawing, however, calls for a bit more accuracy about the sketch of Rahul Gandhi. -Vinod, Peravoor, Kannur

WMC sets examples Though the World Malayalee Council (WMC) is the global body of Malayalees, its activities and initiatives in Kerala are also exemplary. While toiling and earning for the wellbeing of their own families and kith and kin Keralites overseas never forget to work for the betterment of the people in their motherland. Although Malayalees are also known for toppling and string-pulling the spirit and unity they show for social and charitable causes is praiseworthy. “Green and clean is the watchword today. Much fire and fury is being raised on environmental pollution in the country and the world over. In this context the ‘Clean India Yathra’ from Kashmir to Kanyakumari undertaken by the WMC on the occasion of Gandhi Jayanti month (Oct-Nov issue) is something for like-minded organizations to watch and follow.

What an Idea 2G!

An added advantage is the possibility of the development of some remote villages as they are directly connected to the mainland by waterways. So the rural population can also enjoy the fruits of prosperity on a par with the urban populace. -Danny Jackson, Kannamaly, Kochi, Kerala

Rs 5-lottery F ive-rupee notes and coins, it seems, have become scarce nowadays. It is mostly people travelling in buses who face this shortage. Bus

-Kevin Koroth, Orleans, France

Tenancy Act sheds light

shops vendors give sweets or pens in exchange for balances of Re 1 or Rs2. To resolve the problem the state Lottery Department may release Rs 5 lottery tickets like other lotteries. I think the public will welcome such a lottery not only because they can try their luck but also because it can gen-

PASSLINE

Crime is prime now A cartoon can reveal more than an article can do. Madhu Omalloor’s caricature on Rahul Gandhi and Narendra Modi (Oct-Nov issue) is an outstanding example of this. Crimes are committed and manipulated in our country under the very eyes of our politicians

December 1 - 31, 2011

Kudos to PASSLINE (Oct-Nov issue). I think the article on the Tenancy Act by Bobby John Pulickaparambil was timely. I was searching for an apartment for rent when I happened to see the article. It gave me information about the rights and duties of both the owner and the tenant and also instilled confidence in me to get a hassle-free abode. -Alex Ninan, Konthuruthy, Thevara, Kochi.

COVER STORY

5 Oommen Chandy has been showing exceptional sincerity and utmost professionalism since he entered the political sphere as a student activist. He is working hard to show Keralites that he is both easily approachable and qualified for the job. This thoughtful and intense man is genuinely worried about Kerala’s future, and he wants to get the message out that people will need to change. He wants the state to keep flourishing as a haven for educational and health services, a tourist centre etc. But to ensure that that happens, he believes Keralites must get much smarter and more innovative. By Jinesh M D

S ome months ago, a medical team advised Kerala Chief Minister Oommen Chandy to have enough sleep every day after he was admitted to hospital with severe fever and physical problems. They also warned him about ‘more health problems’ in future if he continued his routine without proper sleep and rest. In normal circumstances, the amiable Chandy is not one who would violate the loving pieces of advice his doctors give him. However he decided to go on with the same style that he had been practising perhaps since he entered politics.

decisions, defers to his bosses in the party and yet manages to stay out front. His style seems to be working. He is already reinventing Kerala. He is throwing open a state that has attracted little investment in the past. He is inviting major players to enter industries. He is prodding risk-adverse locals to become entrepreneurs and making it easier for them to raise capital. People who wish the comprehensive development of the state obviously support his efforts though many of them may disagree about his handling of political issues

Professional CM

It is no exaggeration that this man always thinks about development of the state even during his sleep, so to say, or during his meals. His recent “Janasamparkka Yatra” during which he listened to the problems and complaints of the people was inspiring.

But his campaign has another, perhaps more important, purpose. This thoughtful and intense man is genuinely worried about Kerala’s future, and he wants to get the message out that people will need to change. He wants the state to keep flourishing as a haven for educational and health services, a tourist centre etc—even if factories shift production to places with much cheaper labour. But to ensure that that happens, he believes Keralites must get much smarter and more innovative. Says he: “To continue moving up from here, we can’t just carry on doing the old things.”

One reason Oommen Chandy has risen to become the most trusted and powerful leader in Kerala is his ability to build a consensus for change. He carefully involves colleagues in key

Of course, like many other politicians and ministers, Oommen Chandy has also come under the cloud of allegations of corruption. But this has scarcely affected his image. A recent criticism against him related to his “Janasamparkka Yatra”, the mass contact programme for on-thespot resolution of people’s grievances and complaints. The programme was a thumping success with participation by thousands of people. This was despite the criticism, mainly by the opposition parties, that the Chief Minister was trying to run away from political controversies. A highlight of Oommen Chandy’s governance, the programme tried to find quick and compassionate settlement of the people’s grievances. The Chief Minister received about 30,000 complaints of which some 24,500 were dealt with. A large majority sought money for medical treatment, help in getting pension, transfer of title deeds, conversion of APL ration cards to BPL ones and houses. Rs 60 lakh was disbursed by cheque as assistance to various applicants on their complaints. Applications relating to land-related issues, boundary disputes and ‘pokkuvaravu’ numbered 7,848. The departments concerned have been directed to settle the complaints within two weeks. Many cases needed policy decisions by the Government, said the Chief Minister.

At first glance it may not be very clear to those who do not know Oommen Chandy well why he is working so hard to win the hearts and minds of the people of Kerala. His detractors say that he really wants to show that he deserves to be CM on his own merits. Many disagree with this view. They say he has been showing exceptional sincerity and utmost professionalism since he entered the political sphere as a student activist. He is working hard to show Keralites that he is both easily approachable and qualified for the job.

That is because Kerala is facing the same inexorable pressures of globalization that confront all other states in the country. Oommen Chandy must win over an internet generation of Keralites who are wary of government and whose support is crucial if the state is to move successfully into the digital age.

such as the release from jail of R Balakrishna Pillai. However, they are confident that the Chief Minister is capable of fulfilling the people’s ‘development dream’ into a reality. Though Kerala has witnessed talented and visionary Chief Ministers like E M S Namboodiripad, C Achutha Menon, A K Antony and V S Achuthanandan, what differentiates Oommen Chandy from them is his professionalism which he has been showing ever since he assumed charge.

One reason Oommen Chandy has risen to become the most trusted and powerful leader in Kerala is his ability to build a consensus for change. He carefully involves colleagues in key decisions, defers to his bosses in the party and yet manages to stay out front. PASSLINE

December 1 - 31, 2011

Though none can say what the future holds for the state, the zeal for development seems to be taking root in Kerala, which may bring new investors and make it investment-friendly soon. The credit for this is largely due to Oommen Chandy’s professional approach to problems, many say, He has been constantly striving to involve the opposition parties also in his development initiatives. The transparency with which he deals with issues and his use of technology have won him kudos. He is one of those who put technology to work in their day-to-day work. Using technology in various departments also has helped the common people to get several services more easily than earlier when red tape used to play the villain. Delay in the movement of files from one section to another was

His style seems to be working. He is already reinventing Kerala. He is throwing open a state that has attracted little investment in the past. He is inviting major players to enter industries. He is prodding risk-adverse locals to become entrepreneurs and making it easier for them to raise capital. People who wish the comprehensive development of the state obviously support his efforts though many of them may disagree with him on his handling of some political issues. K M Roy (Journalist) Oommen Chandy resembles former Travancore-Cochin Chief Minister Pattom Thanu Pillai in taking fast decisions. Unlike during his previous term when technicalities came in the way of smooth execution of services and schemes and on time, this time Chandy is seen taking decisions in a ‘fast-forward manner’ without allowing technical delays. He had also proved himself to be a good Chief Minister during his first tenure. the main hurdle earlier. Today timebound decisions are possible because of the Chief Minister’s initiative. Interestingly, Oommen Chandy seems to be neither criticizing nor keeping the opposition away from his plans, always seeking their help and opinions to solve problems. He was applauded when he gave away title deeds to the landless people and initiated welfare packages for the Moolampally evictees and the endosulfan victims. Firmly reiterating his resolve to make Kerala an ideal place to invest in, he recently launched a couple of initiatives, one of which is the Indian Chapter of World Economic Forum. Refraining from blaming the opposition parties or trade unions for Kerala’s slow growth in the industrial field; he acknowledged at a function that cooperation among all political parties was necessary for development. Another is the one-year action plan

on a slew of development activities. Four companies on the model of CIAL (Cochin International Airport Limited), formation of an investigative agency like the CBI and dialysis facility at all district hospitals are among the plans

these, the information and data exchange system at the Secretariat will be implemented. Online system for the clearance of industrial projects, guidelines for CBSE-ICSE schools and steps to complete vigilance probes in

ties, has become a reality after a discussion with the representatives of the community. The Government has formed a new company to start a rapid railway system with an estimated cost of Rs 1,000 crore and also got nod from the Defence Ministry for the execution of the proposed Vizhinjam project. Construction of Kochi’s Metro Rail, the gigantic project for the city, is expected to start soon. Certain other decisions have also been taken to help different sections of people. One such is the decision to write off loan arrears belonging to the

Dr D Babu Paul (Retired IAS officer and writer) Oommen. Chandy is a mixture of the vision of C. Achutha Menon and quickness of K Karunakaran, both his predecessors, in his handling of various issues. He has been showing that he is an important part of modern democracy by all means. A person who knows the value of time, Chandy has been engaged in various issues such as development and welfare schemes. He knows the truth that the lord in a democracy is nobody other than the citizen. He can anticipate things and his vision will obviously help the overall development of the state. His various action plans are the testimony to his vision and professionalism. for the coming year. Infrastructure development, transparency, waste management, environment protection, development of the healthcare sector, human resources development and the IT sector are the areas which are focused on in the action plan. Besides

a time-bound manner are some of the efforts announced under the action plan for transparency. To support welfare schemes in the social spectrum, a Backward Class Welfare Department, a longstanding demand from the backward communi-

Perumbadavam Sreedharan (Secretary, Kerala Sahitya Akademi) Oommen Chandy has many qualities such as the ability to understand the plight of the common people and is also ready to solve their problems. Unlike many other politicians, Chandy seems to be happy when flanked by people and he is a simple man with lots of good qualities. He is a good listener to any kind of problem by any person at any time. Chandy is different from other leaders for his simplicity and he is never seen as a person with any kind of ego. He is very fast in taking decisions in a ‘K Karunakaran style’ and has the great quality of utmost tolerance towards any issue or person. PASSLINE

December 1 - 31, 2011

Maithri Housing scheme for weaker sections, which is intended to help the marginalized people. The loan waiver, to the tune of Rs 139.94 crore, will benefit 38,384 defaulters. The Chief Minister recently demanded more freedom for the State Government in the execution of various Central schemes to complete them on time without unnecessary coordination or intervention by the Central agencies. This shows that he has an eye on and is deeply involved in economic policy. Thus he is at the forefront for pushing for change and challenging the general thinking that has prevailed in the state for long. All this augurs well for a state yet to take off industrially and economically.

HEALTH & HEALTHCARE

Hospital revolution—boon or bane? Passline News Service

he public health sector has been active in Kerala with a string of hospitals, adequate medicines, appropriate equipment and efficient professionals. As in education, the state stands on top in the health sector also, with its low infant mortality rate and low death rate among the old, which is on a par with that in developed countries. Compared with other states, Kerala has a number of superspeciality hospitals in cities and even suburban areas of towns with the latest medical equipment for treatment.

Experts in the field, however, say that there is still a dearth of hospitals in Kerala for meeting the needs of the ever-increasing number of patients. No wonder leading hospital groups and NRIs are all set to kick off super-multispeciality hospitals throughout the state with sophisticated and innovative equipment. An estimated Rs 7,000 crore is being invested for this. Some eminent people in social circles are a little sceptic about the entry of corporate groups and NRIs into the hospital segment as they fear a possible fall in medical ethics because most of these hospitals will be business ventures.

Experts in the field, however, say that there is still a dearth of hospitals in Kerala for meeting the needs of the everincreasing number of patients. No wonder leading hospital groups and NRIs are all set to kick off super-multispeciality hospitals throughout the state with sophisticated and innova-

T he

setting up of new hospitals will neither be a burden on the common people nor will be against medical ethics. The medical sector in the state has only 50% of required infrastructure including hospitals and equipment. Kerala is one place where medical treatment is cheaper and affordable in contrast with the rest of the country. Besides, medical insurance and increased competition will reduce cost of treatment.

“Lack of appropriate beds is the big problem being faced by the hospital industry in the state. We need more hospitals for providing better service at

Dr B Ekbal (Public health activist and former VC, Kerala University)

Medical ethics have

ethics because most of these hospitals will be business ventures.

Dr Philip Augustine (Managing Director, Lakeshore Hospital, Kochi)

in the state. Some say that Kerala now lags behind other states in medical facilities because many hi-tech hospitals are coming up in those states.

Medical experts, however, view the coming up of hospitals as a solution to the existing problems such as lack of enough beds and other infrastructural facilities. The argument of those against the move is that corporatism will be a threat to the common people because they can hardly meet the high treatment expenses. Some say that in spite of the state’s so-called

advanced facilities in the field, several patients are forced to go abroad for better treatment. So Kerala should be made upto-date in the field with professionals from the state being retained by starting new-generation hospitals, they say. The medical sector is all set to welcome revolutionary changes with the opening of a string of superspeciality hospitals by leading players in the hospital industry and by NRIs. “New-generation diseases” are increasing affecting our

‘medical stability’, many lament. Medical colleges and superspeciality and multispeciality hospitals are the answer to the problem, they say. Unlike in the past when people afflicted with serious diseases used to give up hope, many now go either to other states or go abroad hoping for recovery. Besides, it is estimated that 40% of Arabs who seek better treatment choose Mumbai and New Delhi, not Kerala, despite the relatively low cost of treatment

Hospitals which have been following medical ethics face a dilemma today: they find it difficult to keep efficient staff from going abroad on better offers. The dilemma has created a situation where management is left with the option of either retaining the staff by abandoning ethics or keeping ethics by allowing the staff to go anywhere they like. However, reverse brain drain has been a comfort for such concerns, experts say.

become a victim since the coming of superspeciality hospitals in the state. Treatment has become very costly in the last couple of years after a new culture of business-oriented medical system has appeared. Most of the sales of small landholdings in Kerala have occurred because of the huge burden of medical treatment people have to bear. As there is no Government regulation to curb unethical activities in the medical segment, starting of any new super-or multispeciality hospitals will follow the existing culture of ‘squeezing’ the patient by unnecessary diagnoses and checkups. It is not a mere allegation but a fact that many doctors prescribe a new medicine by a company only because of a nexus between the two. affordable cost. The upcoming hospitals are expected to meet the demands of patients,” Dr Philip Augustine, Managing Director, Lakeshore Hospital, Kochi, says, strongly supporting the entry of new hospitals and expansion of present ones. However, most of the hospitals like Apollo and Fortis in Mumbai, New Delhi etc are run by major business

tive equipment. An estimated Rs 7,000 crore is being invested for this. Some eminent people in social circles are a little sceptic about the entry of corporate groups and NRIs into the hospital segment as they fear a possible fall in medical PASSLINE

December 1 - 31, 2011

8 groups. Even though those new-generation hospitals give treatment for most of the diseases, they are criticized for being “business-like”. Observers of the medical scene insist that corporatism in the field is a threat to medical ethics. “Cost of treatment has been increasing alarmingly as a result of the entry of super- and multispeciality hospitals. Lack of Government intervention has led many private hospitals to do anything to make profits in the name of check-ups or supply of medicines,” Dr B Ekbal, public health activist, author and former Vice-Chancellor of Kerala University, says. Corporates’ entry may affect existing hospitals. Their hospitals which seek only profits, like any other businesses, will obviously be the end of medical ethics,” Mr Faisal Khan, Managing Director, NIMS Group of Hospitals, says.

found better?” they ask. “The allegation against doctors prescribing ‘unnecessary’ tests or medicines cannot be generalized. There may be some doctors doing it”, says Mr E M Najeeb supporting the view. Hospitals which have been following medical ethics face a dilemma today: they find it difficult to keep efficient staff from going abroad on better offers. The dilemma has created a situation where management is left with the option of either retaining the staff by abandoning ethics or keeping ethics by allowing the staff to go anywhere they like. However, reverse brain drain has been a comfort for such concerns, analysts say. Outflow of experts and experienced professionals has been a stumbling block to the development of the medical field in Kerala. This certainly has made a dent in the quality of service. The last couple of

Leela Menon (Journalist, social activist)

Establishing new superspeciality hospitals will only benefit a minority because of their business-oriented attitude. Life-saving drugs are very costly now, a situation which exists only in Kerala. Doctors are forced to prescribe medicines of a select few companies lured by attractive gifts/ other offerings. Doctors impose unnecessary medicines on poor and hapless patients. The Government should intervene to regulate unethical trends in the segment. Some people also want more participation by the Government in medical matters. “The Government should have a greater role in the medical sec-

E M Najeeb (Executive Director, KIMS Hospital)

Though Kerala has a

There is criticism about many hospitals asking patients to have “unnecessary” tests and diagnoses which are costly. Doctors also come under attack for prescribing medicines of only certain companies. “Many doctors are tempted by offers by medical companies. This is demoralizing for the profession”, Mr Faisal Khan says. Some experts disagree with this view and say such incidents are rare. “Doctors do not prescribe a particular medicine to please a particular company. Should doctors say no to new medicines because of this allegation? What is wrong with prescribing a new medicine if it is

years have witnessed an alarming level of migration of experts from the state to other states and to other countries. “But for the brain drain there is a reverse brain drain taking place”, says Dr Philip Augustine. “Many professionals have returned to Kerala after being offered better salary packages,” agrees Dr Ekbal. It is clear that the state needs both development of the medical sector and preservation of ethics. Patients can benefit from new hospitals with latest medical methods. But many say that a medical culture should be developed along with this which will help both the haves and the have-nots.

number of super speciality hospitals, the state still is unable to meet the requirement of beds. New hospitals can bring more medical facilities to the state. The standard of service and the number of beds are, of course, above the national average, but the state can be the medical hub of the country only new ventures come up. With lifestyle diseases increasing alarmingly in the state, Kerala needs more hospitals. As there are Indian Medical Association (IMA) guidelines on curbing illegal activities by hospitals, new high-tech hospitals will never pose any threats.

It is clear that the state needs both development of the medical sector and preservation of ethics. Patients can benefit from new hospitals with latest medical methods. But many say that a medical culture should be developed along with this which will help both the haves and the have-nots. Some people also want more participation by the Government in medical matters. tor to curb unethical practices by some private hospitals and also act as the preserver of public health. The primary health system should be strengthened and preventive measures taken against diseases. Diseases can be identified and treated properly at the early stage if the Government strengthens the public

Faisal Khan (Managing Director, NIMS Hospitals)

Kerala has the potential to start new hospitals despite there being a number of superspeciality hospitals in various parts. NIMS has always been for following medical ethics and will remain so it in the future also. The entry of corporates into the field may hamper medical ethics. New entrepreneurs should learn from hospitals run by Christian missionaries how medical ethics can be scrupulously followed. PASSLINE

December 1 - 31, 2011

health sector,” Dr Ekbal says. “The private hospital sector in the state is far above the public sector in offering treatment and remuneration to professionals. This is the reason the reason why people and professionals prefer private hospitals,” says Mr E M Najeeb, Executive Director, KIMS Hospitals.

Major hospitals in the pipeline Aster Medi City, a subsidiary of Dubai-based DM Healthcare Proceeds; 1,040 beds, spanning 38 acres, near Cheranelloor, Kochi. A waterfront project. Medical Trust Group, Kochi. Being expanded with the starting of a medical college and multispecialty hospital at a cost of Rs 750 crore at Erumbanam. The project will have 1,500 beds in addition to the 750 beds at Medical Trust, Pallimukku, Kochi. Lakeshore Hospital, Maradu, Kochi. It is planning to expand its current strength of 380 beds to 1,200. A Rs 1,000 crore 1,000-bed hospital by Qatar - baised NRIs, in which cricketer Kapil Dev has a stake, at Kadamakkudy, Kochi. An 800-bed hospital by Kozhikodebased Baby Memorial Hospital is coming up in Kochi at Kakkanad. Cost Rs 450 crore. Thiruvananthapuram-based NIMS Medicity, focusing on organ transplantation, is set to expand to 400 beds.

Drugs Why not a Corporation?

The skyrocketing prices of life-saving medicines make the poor desperate. There are Government hospitals in the state but have their limitations and the working of most of them leaves a lot to be desired. There are not enough beds, doctors and equipment and they do not have important medicines. The poor cannot afford to go to a private hospital and are not cared for by the authorities.

By Ziad P S

ajan, a bus conductor and the breadwinner of his family, was taken to a Government hospital near his house after he showed symptoms of cardiac arrest. The doctor told a relative of Rajan that he needed the immediate administration of a life-saving injection which, unfortunately, was out of stock in the hospital store. The poor family was asked to get it from outside where the medicine cost more than Rs 3,000 which it did not have at the time. What was the family to do?

medicines at subsidized rates? Do the Government’s interpretations of the situation carry any weight? The Government appears to be a mere spectator with regulatory norms remaining on paper as just words, because of strong lobbying by interested parties. The ultimate control over medicine prices remains with manufacturers, both national and international. “Why medicine prices are spiralling is because of the clout manufacturers carry,” says Mr A N Mohan, President, All Kerala Chemists and Druggists

A plan is in the pipeline with the All Kerala Retail Druggists’ Association, an organization formed by retail shoppers within AKCDA, for bulk purchases directly from the companies. With contributions from all its members, AKRDA, as an organization, can buy large quantities from companies. This will, in turn, enable retailers to get drugs at wholesale rates. If that works as planned, customers will be getting medicines at rates lower than the MRP. This is a regular scene in Government hospitals across Kerala. The only difference is the type of disease and medicine. Every time the poor, as though by fate, are left to bear the burden of heavy medicine prices. The skyrocketing prices of life-saving medicines make the poor desperate. There are Government hospitals in the state but have their limitations and the working of most of them leaves a lot to be desired. There are not enough beds, doctors and equipment and they do not have important medicines. The poor cannot afford to go to a private hospital and are not cared for by the authorities. Questions naturally arise, and remain unanswered: What has the Government been doing to tackle the unaffordable prices of drugs? What provisions are there for the poor to have

Association (AKCDA). At present there is no provision for major drug companies to sell medicines directly to retailers. All drug majors are bound to distributors because of their bulk buying capacity. “The margin for distributors and retailers is poor as most drug companies do not produce drugs which come under the Drugs Price Control Order. Thus, retailers are compelled to sell drugs at the MRP rates,” says Mr Mohan. There are more than 1,500 distributors and 10,000 retailers in Kerala. “There is no stiff Government regulation to control the companies. Seventyfour life-saving medicines were included in the Drugs Price Control Order 1995, which made up almost 30% of total medicines and marketed on costbased pricing. Later, the companies gradually reduced the number of mediPASSLINE

cines. Thus the availability of life-saving drugs at lower rates is drifting, compelling people to choose alternative medicines at higher prices,” says Mr Mohan. Since bulk purchase is the key factor that prevents drug companies from selling to retailers, a plan is in the pipeline with the All Kerala Retail Druggists’ Association, an organization formed by retail shoppers within AKCDA, for bulk purchases directly from the companies. With contributions from all its members, AKRDA, as an organization, can buy large quantities from companies. This will, in turn, enable retailers to get

drugs at wholesale rates. If that works as planned, customers will be getting medicines at rates lower than the MRP. Currently, there are some big retail networks in the state which offer discounts on purchases for their privileged customers. So do some Government agencies. Government-run Consumerfed is one such agency, where medicines are sold at subsidized rates. Unfortunately, you are not going to find many medicines there as those are unavailable owing to the lobbying in the industry. A discussion is underway between Consumerfed and major drug companies for bulk purchase, avoiding middlemen. In a recent statement, it had said it could sell medicines through its Neethi Stores at much lower prices if commission that is being given to the agencies was avoided. Besides, it has December 1 - 31, 2011

also decided to build warehouses in all districts to store medicines. The drugs industry, no doubt, is a big one with strong demand for its products and huge sales, even surpassing those of liquor (except, perhaps in Kerala!). Kerala is (in)famous for its record selling of liquor and its consumption. Liquor is sold by the Beverages Corporation of the State Government. This, no doubt, enables customers to have good alcohol at cheap rates. The revenue the Government earns by selling liquor is higher than that it earns through its other endeavours The intention of the Government in setting up the Beverages Corporation was to stop illegal selling of hazardous liquor and provide good-quality drinks at afford-

able rates as the people’s health and safety is so important to the Government. Then, why not a Drugs Corporation? Everyone knows that medicines are more important than anything else, including liquor. And in sales they surpass those of liquor. At the same time they are more lucrative than liquor. Moreover, its proper distribution is a service to society. If medicines are sold through Government-run Drugs Corporation outlets, the competition in the field will disappear and the poor can buy life-saving drugs at lower prices. The corporation can consider the Civil Supplies ration system to ensure that the service is rendered to the right person. At least, high-cost medicines at low prices should be made available to people who are below the poverty line.

10 Passline News Service

rs Gladeese Fernandez of Kochi consulted a doctor some time ago. Her problem: she was obese with a heap of illnesses including high blood pressure, diabetes and cholesterol. The doctor suggested rigorous exercises, suiting her age and body, to burn her calories. He cited lack of proper exercise and chunky food as the contributors to her obesity and frequent illnesses. A housewife living in a flat, Mrs Fernandez used to have little exercise. Nor had she tried to change her eating habits because she liked the food that she used to have because it was, she said, ‘delicious’. The middle-aged Mrs Fernandez chose a health club near her flat for regular exercise and eventually managed to trim excess fat from her body.

Of late people have started bothering about a fat-free body to keep diseases away. Many opt for walking to reduce fat. Others prefer exercise. This has resulted in health clubs mushrooming all over with all kinds of equipment.

Fitness centres mushrooming the range of beauty concepts and vital statistics. But of late people have started bothering about a fat-free body to keep diseases away. Many opt for walking to reduce fat. Others prefer exercise. This has resulted in health clubs mushrooming all over with all kinds of equipment.

Mrs Fernandez is a typical representative of lakhs of Kerala women who have become regular visitors to fitness centres or owners of health centres in their homes. In other words they have become body-conscious as lifestyle diseases are showing an alarming increase among Keralites. A chubby body with a pot belly had been a status symbol among Indians for many decades while lean and fit people were considered unhealthy and outside

vogue. “Youngsters today want to be lean but with a good physique”, says Mr Vibin Xavier, Branch Manager, Talwakers Fitness Centre, Kochi. Health clubs mainly focus on aerobic exercises which stimulate cardiovascular functions helping one to possess a healthy body free from fat. Aerobic pieces of equipment seen at fitness centres—tread mill, weight board, chest pressing machine, pull-over, seated row, shoulder pressure, smith machine, leg extension machine etc—are believed to substitute natural exercises like walking or swimming. People with good incomes spend on average Rs 4,000 a month on these exercises.

Unlike in gyms where a sculptured body with six-packs has been the obsession with the youth, fitness centres offer exercises for a fat-free body to keep diseases away. While gymnasiums for body building which mainly offer anaerobic exercises, health clubs are meant for body maintenance mainly through aerobic exercises. Kerala has turned fertile ground for health clubs because it tops in lifestyle diseases. More and more people are frequenting these. The state is all set to witness a plethora of health clubs and fit-

ness equipment shops. While the middle-aged and elderly visit the clubs for getting their calories and weight reduced, youngsters go there to keep their bodies fit and attractive. A lean and fit body is today’s

Fitness centres function in a very professional manner offering full-time service by orthopaedists, dieticians and physiotherapists along with qualified trainers, many trained abroad. Physical training for

clients at fitness centres is provided after consultation with the medical team. The dietician suggests suitable food for the person after evaluating their body mass index (BMI) and food habits. The physiotherapist determines suitable exercises depending on the client’s physical condition and the orthopaedist decides the exercises for people suffering from arthritis or bone-related diseases. Patients with cardiac or other severe illnesses are admitted after the necessary medical certificate from the doctor/hospital concerned. Experts say physical engagement at health clubs contributes only 30% towards weight loss, the rest purely depending upon dieting. “Dieting plays the most important role in weight reduction. Rigorous exercise with heavy food intake will not reduce weight. Only a combination of workout and dieting will bring results,” Ms Juin Lionel, Dietician, Medical Trust Hospital, Kochi, says. Most people visit fitness centres for weight reduction, while others come on medical grounds after doctors’ suggestions. “Ninety per cent of the people visit here for weight reduction, while the rest 10% on doctors’ suggestions,” Mr Vibin Xavier says. Three hundred people are estimated to visit health clubs in Kochi daily. Large numbers of people now make a part of their home a fitness centre after buying the necessary equipment. This trend has led to the starting of shops selling comparatively cheap equipment. Experts say that while a treadmill in a health club costs lakhs, one for domestic use costs only about Rs 40,000. So a new culture of ‘home-based fitness centres’ is also seen. “Unlike a few years ago, today people seem to know about the importance of exercise. This is obviously a good omen for the health sector,” Ms Juin Lionel says.

Fitness centres function in a very professional manner offering fulltime service by orthopaedists, dieticians and physiotherapists along with qualified trainers, many trained abroad. Physical training for clients at fitness centres is provided after consultation with the medical team. The dietician suggests suitable food for the person after evaluating their body mass index (BMI) and food habits. The physiotherapist determines suitable exercises depending on the client’s physical condition and the orthopaedist decides the exercises for people suffering from arthritis or bone-related diseases. Patients with cardiac or other severe illnesses are admitted after the necessary medical certificate from the doctor/hospital concerned. PASSLINE

December 1 - 31, 2011

ECONOMY

The European debt crisis

Lessons for India Establishment of ESM (European Stability Mechanism) by June 2012. ESM will run alongside the present euros 440 billion EFSF. These measures are expected to lead to a “sequenced path” towards recovery in the EU. Once national governments commit to fiscal adjustment, the ECB will start proactive buying of stressed country bonds ensuring that the yields on bonds will not go beyond levels that will make it impossible for stressed countries to finance their deficits.

By Dr V K Vijayakumar

''P

oliticians will recognize the need for change only when they feel the absolute necessity for change, and they will feel the absolute necessity for change only when confronted by a crisis.”— French economist Jean Monnet The ability of politicians to postpone the inevitable was clearly evident in India’s economic reforms initiated in 1991. Even though well-known economists like Jagdish Bagwati were arguing for liberalization even in the sixties, our politicians waited for the balance of payments crisis of 1991, which left them with no alternative but to reform. Recent developments have shown that politicians in the developed countries are also prone to this disease of postponing the inevitable. It took eight summits for leaders of the European Union to formulate a strategy that has the potential to, hopefully, prevent a disruptive default by an EU member and the demise of the euro. Before we move on to the European debt crisis and the attempts to resolve the same, some background: The euro is the official currency of the euro zone which consists of 17 of the 27 member states of the European Union—Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. The European Union came into existence following the Maastricht Treaty signed on February 7, 1992. The name euro was officially adopted on December 16, 1995 and it was introduced to world financial markets as an accounting currency on January 1, 1999. The euro is the second largest reserve currency as well as the second most traded currency in the world after the dollar. Over 175 million people worldwide use currencies which are pegged to the euro, including more than 150 million people in Africa. The euro zone is the second largest economy in the world. Economists like Martin Feldstein had cautioned against going for a monetary union without a fiscal union. But dissenting economists and euro-sceptics were brushed aside and the euro was launched with great expectations. Soon cracks started emerging in the highly heterogeneous euro zone with strong economies like Germany powering ahead with robust export performance aided by the single currency while the weaker countries of southern Europe started faltering with a weakening fiscal situation. The problem became a crisis with the global financial meltdown of 2008 and the Great Recession that followed in 2009. Implementation of fiscal stimulus to tackle the recession led to deterioration of the finances of the troubled southern European countries. The norms of the Maastricht treaty regarding fiscal deficit and debt were observed more in the breach than in compliance.

Areas of concern: Even though the summit consensus is a step forward, it falls short of a lasting solution to the crisis. There are serious concerns such as:

ber of the euro zone, also had a huge fiscal problem. See the table: Country

Fiscal deficit:

Debt:

GDP (2010)

Greece

13.9

115

Spain

9.3

Italy

5.3

116

Portugal

9.3

10.9

Source: IMF The huge deficit became unsustainable when the bond yields (borrowing costs) rose sharply for Greece. The market was discounting a possible default by Greece when the interest demanded by the market for Greek bonds rose above 10%. The troika—the ECB, European Union and IM— intervened and bailed out Greece on strict condition of austerity. The EFSF (European Financial Stability Facility) was set up to provide financial assistance to stressed countries. But when the credit rating of Italy and Spain was lowered, serious concerns were raised because Italy and Spain are too big to bail. The possibility of a disruptive default by Greece, a banking contagion and the possibility of another global recession loomed large. Many summits by European leaders failed to reach a consensus. Political heads rolled in Greece, Italy and Spain. Now, after much tough bargaining an agreement was reached by the European Union—Britain opting out—on December 9. The highlights of the agreement are: Establishment of a fiscal compact: This is expected to enforce fiscal discipline among EU members. Rules for fiscal compact are to be laid down soon. There will be “steps and sanctions” against member states exceeding the norms of fiscal compact. EU countries to provide an additional funding of euros 270 billion to the IMF. This is to provide emergency funding to stressed economies, ie PIIGS.

According to the Maastricht treaty, the fiscal deficit and public debt as percentages of GDP should not exceed 3% and 60%, respectively. But the southern European countries, now referred to as PIIGS— Portugal, Ireland, Italy, Greece and Spain—violated these norms by a wide margin. The UK, not a mem-

The strategy correctly focuses on the basic cause of the crisis—monetary union without fiscal union—but does not suggest an immediate solution to the present debt crisis. A game-changing solution would have been a declaration that the ECB will play the role of the lender of the last resort. This did not happen. The UK opted out of the deal: Brits have always been euro-sceptics. The proposals need to be signed and ratified by March 2012: parliamentary approvals from member countries are necessary. Will other EU countries take a cue from the UK and drop out? The amount allocated for emergency funding to IMF—euros 270 billion—is highly inadequate. The philosophy behind the new strategy is austerity. Fiscal compression during an economic slowdown is dangerous. This will ensure that the Euro zone will be in a very slow growth phase at least for the next four years, with high possibility of recession in 2012. The European debt crisis is, without doubt, the outcome of the faulty strategy of going for monetary union without fiscal union. The single currency preempted the flexibility that devaluation provides under national currency. Fiscal profligacy—particularly in Greece’s case— and the shock administered by the Great Recession of 2009 widened the macroeconomic fault lines resulting in the worst debt crisis to hit the developed world. Lessons for India: The Indian economy has done well since liberalization. During 2000-11, India grew by 7.3%. During 2005-11, the growth rate climbed to 8.5%. India has been the second fastest-growing economy in the world during this period. Even though there are temporary problems caused by high inflation, rising interest rates, falling industrial output and negative investment sentiments, the India growth story is intact. However, one has to concede the fact that the reforms failed in a critical area—in enforcing fiscal discipline. One of the primary reasons for the sustained inflation in India is the high fiscal deficit caused by the inability of the Government to live within its means. The FRBM Act had fixed a target of zero revenue deficit and 3% fiscal deficit by 2008. We failed to achieve the target and this year we are likely to overshoot the fiscal deficit target of 4.6% and touch 5.6%—a costly miss. The biggest lesson from the European debt crisis is that fiscal indiscipline can wreck economic havoc. Since India is growing at a good rate (7% is good in the present sluggish global environment), we are not yet in a crisis situation. But if we learn the right lessons from the European debt crisis, we can certainly avoid “the repeat of history as tragedy.” (The writer is Investment Strategist at Geojit BNP Paribas, Kochi)

PASSLINE

December 1 - 31, 2011

12 The monopoly of Government-regulated wholesale markets has prevented the development of a competitive market system in the country providing no help to the farmers. Direct marketing, organized retailing and adoption of innovative marketing technologies are closed to the Indian farmer. The Task Force on Agricultural Marketing Reforms has stated that if the present condition of the farmer has to improve, new and competitive agricultural markets should be promoted which would encourage direct marketing. The Task Force has recommended steps to help the farmers get a better price for their produce. It is in this context that the FDI in retail has an important role to play.

Dr N Ajith Kumar

FDI in retail a bonanza for farmers

or the past six decades we have been listening to this oft-repeated adage, “The Indian farmer is born in debt, lives in debt, dies in debt and bequeaths debt.”Other than lip sympathy the poor marginalized farmer has to date not received anything sizeable to call the fruits of his labour. So much is the trauma which the Indian farmer is facing these days that in most states we find the farmers not encouraging their children to take up this occupation and conse-

The large retailers who are expected to enter the market would never engage intermediaries during procurement. It is the small suppliers who are being mercilessly exploited by the middlemen. The FDI investors have to build a customer base and would not like to be at the mercy of the middlemen for supplies. They would therefore pay more and guarantee higher offtake to the small farmers in exchange for consistent and continuous supply of quality products.

quently the number of farmers in the country is showing a clear declining trend. In states like Kerala the area under cultivation has dwindled to such an extent that even if we produce full throttle in the area available it would be hardly sufficient to meet the domestic requirements of the state. Though liberalization and globalization have provided some succour to the farming community it is far from sufficient when compared to the problems the farm sector now faces. Why is it that the farmers of India are not able to derive the benefits which have been accorded to them by successive governments at the Centre and in the states? In most of the agricultural states of India like Andhra Pradesh, UP, Bihar, MP and Orissa the entire system of agricultural marketing is guided by the State Agricultural Produce Marketing Act 2003, according to which the entire agricultural farms are divided into different regions within a state and each region comes under an Agriculture Produce Market Committee (APMC). Once a particular area is declared a market area under APMC, no person or agency is allowed to carry on wholesale marketing activities with any other institution. The price fixed by the Government alone would be available to the farmers. In fact states have conceded their inability to raise these prices and the poor farmers have no alternative but to sell their produce to these designated APMCs. The paradox is that there exists a long chain of intermediaries between the APMCs and the final consumers and it is estimated that the farmers receive hardly 30% of the price paid by the final consumers. So this is the current scenario that exists in the farm sector. The monopoly of Governmentregulated wholesale markets has prevented the development of a competitive market system in the country proPASSLINE

viding no help to the farmers. Direct marketing, organized retailing and adoption of innovative marketing technologies are closed to the Indian farmer. The Task Force on Agricultural Marketing Reforms set up by the Ministry of Agriculture has stated that if the present condition of the farmer has to improve, new and competitive agri-

continuous supply of quality products. One of the biggest problems which the farmers face is the absence of adequate storage facilities as well as measures to protect their crops from the vagaries of nature. It is here that the FDI investors would come to the assistance of the farmers. To ensure quality the investors have been per-

cultural markets should be promoted which would encourage direct marketing. The Task Force has recognized the role of large trading companies to undertake procurement of agricultural commodities directly from the farmers by offering competitive rates. The Task Force has further recommended the complete revamping of the APMCs to help the farmers get a better price for their produce. It is in this context that the FDI in retail has an important role to play.

mitted to develop what are called back-end infrastructure in the form of warehouses, processing units and even construction of roads and minor irrigation canals. These investors are all set to make use of information technology to provide market-led extension services to the farmers. Exposing the farmers to new techniques is bound to be part of this programme. Most importantly the active participation of FDIs is bound to attract better talents to this sector. In short FDI investment in retail is sure to be a boon to the farming community. There would be no exaggeration if one is to conclude that FDI in retail would make Indian agriculture shed its traditional character of being a “way of life” and get a modern outlook of being a “commercial proposition.”

(Dr N Ajith Kumar is a freelance writer).

13 The rupee at 50 against the US dollar seemed to be a distant possibility not too long ago. Believe it or not, today it is hovering around 52 against that currency. First, the deteriorating external environment drove investors to the US dollar as a flight to safety, hitting almost all the Asian currencies. The depreciation in the rupee accentuated when the weakening domestic environment in the form of widening current account deficit, coupled with a rising fiscal deficit, came to the fore. In the wake of an impending global slowdown and weak fundamentals at home, nothing augurs well for the rupee in the months ahead.

his analytical piece is an endeavour to compile a mix of external and internal factors, which we believe would continue to push the Indian rupee northward to the 54-55 levels in FY12. Twin deficits worrisome: A widening current account deficit and higher fiscal deficit (known as twin deficits) have raised serious macroeconomic concerns for India. These can be said to be one of the underlying reasons for the sharp fall in the Indian rupee. Though the Government is still eyeing the targeted fiscal deficit of 4.6 for FY12, it looks overambitious, considering the shrinking tax revenues and lower proceeds from the disinvestment process. It looks very likely that the fiscal deficit for FY12 would hit the psychological mark of 5% of GDP. On the trade front, the dwindling consumption in the developed world has already started showing slippages in India’s exports. The latest numbers show that India’s exports fell to a 12-month low of $19.9 billion in October, pushing the trade deficit to a fouryear high of $19.6 billion. As a result, the current account deficit for FY12 may breach 3% of GDP against the estimated 2.6%. In view of the emerging

from December, the tone of the RBI could turn a little dovish from here on which would not correspond with a stronger rupee. Real effective exchange rate (REER): REER measures a domestic currency’s competitiveness against other major currencies and is an indicator of its relative value versus foreign currencies after adjusted for inflation. Though a lot has been said about the sharp depreciation in the rupee, the intrinsic value indicates

Expensive and tight supply of ECB: Many corporates knocked on the window of external commercial borrowing (ECB) after the rate increases by the RBI surged the cost of capital in domestic markets. However, on the back of the surging LIBOR rate (international dollar-funding rate), the external commercial borrowing window also seems to have narrowed of late, capping the dollar inflows further. Looking at the dollar crunch in the global markets, the dollar funding rate is likely to remain elevated. Against this backdrop, coupled with the lower risk appetite of Western banks to lend to emerging markets in the prevalent uncertain environment, India Inc is less likely to raise funds through the ECB route in the coming days, despite the RBI relaxing overseas borrowing norms. Moreover, the low investment sentiment with the falling rupee is not too conducive for corporates to tap the ECB route, which could take a toll on the demand for ECBs. Demand-supply dynamics: The dollar demand has clearly outpaced supply since early August this year. Henceforth, we believe that this equation will continue to remain in play for the rest of FY12. On the one hand, dollar supply is very less likely to be robust, taking the subdued inflows, drying exports, fragile external environment and falling external commercial borrowing into account, and, on the other, the dollar will find a strong bid on the back of higher

The aging rupee

RBI intervention—a limited option: The RBI has time and again reiterated that its ability to stem the fall in the rupee is limited considering that this fall is driven largely by external factors where the RBI has little or no control. Moreover, the RBI looks unwilling to taper off foreign exchange reserves especially when India’s BOP is facing a challenge on account of global and domestic headwinds. However, we do not rule out small interventions from time to time which we believe would help more to control the pace of the rupee depreciation instead of lending any significant strength to the rupee.

A widening current account deficit and higher fiscal deficit (known as twin deficits) have raised serious macroeconomic concerns for India. These can be said to be one of the underlying reasons for the sharp fall in the Indian rupee. Though the Government is still eyeing the targeted fiscal deficit of 4.6 for FY12, it looks overambitious, considering the shrinking tax revenues and lower proceeds from the disinvestment process. It looks very likely that the fiscal deficit for FY12 would hit the psychological mark of 5% of GDP. On the trade front, the dwindling consumption in the developed world has already started showing slippages in India’s exports.

Change in RBI stance: Considering that inflation has remained persistently much above the comfort zone of the RBI for almost two years, the central bank persevered with its anti-inflationary stance during the current year. However, the RBI gave due consideration to growth risks at the last policy review meet, reflecting the moderating growth concerns. The policy stance has been calibrated broadly in the context of inflation-growth dynamics with more emphasis on containing inflation. Now with signs of moderation in demand and the RBI’s projections of a decline in inflation and inflationary expectations

that the rupee looks fairly valued. The six-currency REER stood at 108.75 at the end of October, showing that the rupee was overvalued to an extent of 8% against the six major trade-weighted currencies. However, the rupee has fallen by another 6%-7% from October end, which would have brought it at just about fair valuations. So this gives cushion to the RBI to not be overly worried about the depreciation of the rupee and retain its noninterventionist approach.

global headwinds, the balance of payment (BOP) would continue to remain under pressure for the remaining part of FY12, translating into a persistent weakness in the rupee.

PASSLINE

December 1 - 31, 2011

oil and gold import bills. Moreover, with no significant solution to the euro zone debt crisis in sight, global uncertainties are most likely to keep investors interested in the US dollar in the coming months. Recommendation: The rupee may show some strength at the current levels which could be termed a “sentimental pullback” against the steps taken by the Government to relax ECB norms and enhance FII limits in Government and corporate debt securities. We believe the level of 51 is a good level to go long in the USDINR pair for a target of 54-55 by the end of FY12. Disclaimer: This document has been prepared by N B Commodity Research (a division of Nirmal Bang Commodities Pvt Ltd). The information, analysis and estimates contained herein are based on N B Commodities Research assessment and have been obtained from sources believed to be reliable. This document is meant for the use of the intended recipient only. This document, at best, represents N B Commodities Research opinion and is meant for general information only. N B Commodities Research, its directors, officers or employees shall not in any way be responsible for the contents stated herein. N B Commodities Research expressly disclaims any and all liabilities that may arise from information, errors or omissions in this connection. This document is not to be considered as an offer to sell or a solicitation to buy any securities. N B Commodities Research, its affiliates and their employees may from time to time hold positions in securities referred to herein. N B Commodities Research or its affiliates may from time to time solicit from or perform investment banking or other services for any company mentioned in this document.

Inflation pestering economy: Rangarajan Inflation in the country has been a disturbing element in recent years. Headline inflation in the wholesale price index (WPI) stands at 9.7%. This is likely to come down to 7% by March next year. Primary food inflation is still fairly high. There is also the lacklustre industrial production. Dr Rangarajan said the extraordinarily high level of inflation seen in the last two years was due to certain supply constraints, particularly of agricultural products. Though inflation was triggered primarily by supply side shocks, it did not mean that the monetary policy had no role to play in such conditions. The series of actions taken by the RBI to raise the interest rate to control inflation should be viewed in that perspective.

Passline News Service

r C Rangarajan, Chairman of the Prime Minister’s Economic Advisory Council, said the other day that inflation continued to remain an area of concern this year. “It has been a disturbing element in recent years. Headline inflation in the wholesale price index (WPI) stands at 9.7%. This is likely to come down to 7% by March next year. Primary food inflation is still fairly high. The other problem is the lacklustre industrial production. In July and August, industrial production was below 5%. Even if the rate of growth picks up in the second half of the year, the overall rate may be well below the projected 7%. The world economic situation is also not very encouraging,” said Dr Rangarajan. Dr Rangarajan was delivering the keynote address at the 12th Commemorative Lecture organized at Aluva, near Kochi, by the Fedbank Hormis Memorlal Foundation on “The Indian Economy—Prospects and Constraints”. He said that in 2010-11, inflation was triggered by the rise in the prices of vegetables, fruits, fish and meat. ``The increase in vegetable prices has been significant,”’ he said. The late rains had a severe impact on the supply of some vegetables, including onions. The persistence of food inflation has led to the spread of inflation in other sectors. Dr Rangarajan said there was an urgent need to create more employment opportunities and improve productivity across all sectors of the economy. It is important to narrow the economic disparities across and within states. He lamented that India was still in the bottom league of nations when it came to the UNDP’s Human Development Index. The Indian economy was also being hampered by the low yields in major cereal crops, as compared to countries like China. “We have large science and technology establishments for agricultural research, but the results in terms of productivity leave much to be desired. It is a polite way of saying that they are white elephants. The rationalization process in the pricing of petroleum products is still to be completed. This may, of course, have an impact on price levels in the coming months.’ “ We cannot protect the consumers for long from the impact of what is happening internationally”, Dr Rangarajan said. Despite retail prices of petrol ruling high, the Centre was planning to go ahead with the proposal to deregulate diesel and LPG prices which would reflect the behaviour of international crude prices. In his view, the most apt time to deregulate diesel and petroleum products will be when the headline inflation inkling slips down.

“Another major problem is the shortage of infrastructure, especially electricity. A shortage of electric power leads not only to production losses, but also impacts profitability and competitiveness”, he said. To give an idea of our lack of competitiveness, Dr Rangarajan said that China added to its capacity in power in one year what India took five years. ``That is the big gulf between us and China”, he said. “The coming decade is very important for India during which period there will be high economic transformation in the economy as fhw cointry will be listed as a middle-income country from the present low-income one.”

The current-year GDP growth rate is fluctuating between 7.5% and 9%. Nevertheless, Dr Rangarajan’s overall message is positive: if India grows at 9% per annum, the per capita GDP will increase from $1,600 to $10,000 by 2025. “Then we will become part of the middle group of countries”, he said. “ It is necessary to have a strong growth rate to provide employment to the growing numbers of young people who will join the labour force.” In his welcome speech, Mr Shyam Srinivasan, MD and CEO of Federal Bank, praised the visionary qualities of the founder, K P Hormis. “Today, the bank does business worth more than Rs 80,000 crore, has 825 branches, 867 ATMs and employee strength of 8,500”. The huge turnout at the hall of the Gateway Hotel indicated the cream of Kochi’s intelligentsia as endorsed by Mr P C Cyriac, Chairman of the bank. Mr Raju Hormis, Mr P V Mathew and Mr P P Varghese, trustees of the foundation, were among those present. Earlier, Dr Rangarajan opened a customer care contact centre of the bank at Thottekkatukara, near Aluva, and interacted with its differently abled employees. The centre is a unique feature of Federal Bank as part of its corporate social responsibility (CSR). Commenting on the identity of the centre Mr Shyam Srinivasan said the bank was aiming to give equal opportunities to the differently abled persons through the centre.

Dr C Rangarajan

PASSLINE

December 1 - 31, 2011

YOUNG ACHIEVER

From teen

Technopreneur His first blog was about ‘blogging tips' itself, mextena.com (now kisswebmaster.com), which slowly started getting noticed in the blogosphere (blogging world). Then he slowly started building a community around him and he got enough internet marketing friends. Passline News Service

e is not just a blogger as is being hyped but a Technopreneur as well, making awesome revenue by effective writing. Jijo Sunny, 17, an 11th-grade student from Kozhikode, is one of the most successful teen bloggers in the world. His Mextena.com is a wellsought-after website on the internet. “I’m the proud owner of some 15 blogs and a couple of websites, besides Mextena.com and JijoSunny.com”, says Jijo. He has about four years’ experience in the social media, affiliate and search marketing. In his words, “I’m earning doing what I love doing.” Like many other teenagers, he was also attracted to internet browsing, gaming and social network at the age of 13. “However, I just didn’t want to be ‘yet-another-boy’ who uses the computer for gaming and internet for Facebook. I also believed in the power and enthusiasm of self-employment”, says Jijo. When he realized the marketability of doing something on the internet for earning some revenue, he started

blogging without a penny in hand at its early phase. “Later, I stumbled upon a local newspaper article highlighting the advantages of blogging and ways to make money through it. It sounded amazing and I thought of giving it a try. It was three or four years ago. I started with a free blog, and slowly it started earning money for me. Apart from the money I made, blogging helped me improve my language and writing skills and taught me how to face and overcome failures”, he explains how things came his way. Jijo tested out everything a beginner could do, without earning even a single penny. However, he admits his interest in this field slowly brought him patience and dedication. “I started ‘having a voice’ and I feel like I’m listened to by thousands of people, which is quite amazing”, Jijo says explaining how destiny brought him success. What does distinguish him from

other bloggers is the ability he gained in search engine optimization (SEO), an imperative technology to take your content to the masses. Does it astonish you when you hear he is a professional SEO at a teen age? “As I told you earlier, I was not serious with blogging until I was paid a couple of years ago. Besides, I love to experiment every bit of internet marketing methods, and those experiences are making me a better teacher,”

particular subject with international standards. His first blog was about ‘blogging tips’ itself, mextena.com (now kisswebmaster.com), which slowly started getting noticed in the blogosphere (blogging world). Then he slowly started building a community around him and he got enough internet marketing friends. “Right now, I manage 25+ blogs on a variety of topics (like technology, health and sports)”, says Jijo. According to Google analytics, Jijo’s blogs receive about a million pageviews (visitors) a month. His brother Simjo Sunny and cousin Athul Santan also help him in his work. “In fact, we three dream of building a company ‘Mextena’ and my ambition is thus to take Mextena to heights,” he says.

Jijo Sunny Jijo says. How do his writings get this much attention of the masses? Could you imagine an ordinary article getting awesome hits on the internet? It is because of the effective writing on a

Jijo did his lower schooling at Silver Hills and is now an 11th-grade student at Chinmaya Vidyalaya in Kozhikode. He was ranked first in web designing certificated by the Kerala Government and obtained the Junior Animator certification by G-Tech Computer Education. He is also listed third among the world’s top 100 youngest bloggers by the youngestblogger.com.

Electra Motors: ushering in a ‘green’ bike revolution! Electra Motors, the leading dealer in ‘green’ electric bikes, has introduced the new high-performing torque gear motor technology that enables the ‘green’ electric bike commuter to climb up even steep slopes. This marks a notable feature, different from the other existing conventional electric bikes on roads. This is a revolutionary technology developed by extensive research and analysis by the Coimbatore-based manufacturer, Green Electric Vehicles (P) Ltd. The pioneer in this path-breaking technology has used high torque gear motor in the ‘green’ electric bikes. This new technology has resulted in the ad-

vanced performance of the ‘green’ electric bikes. Electra Motors claims an ever-increasing demand for these new-generation bikes, packed with inherent technological advancement. The steady increase in the fuel prices, day-to-day hassles like frequent checks by the authorities on other conventional modes of transport and the practical advantages like the zero running cost and the absence of any licence, tax, registration etc make the prospect of buying a ‘green’ zero emission, non-pollutant electric bike an ever-attractive option for the public.”There is an ever-increasing demand for the ‘green’ electric bikes from the young and old, traders as well as students and male and

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female office-goers alike,” says Mr K V Padmanabhan, General Manager of the Electra Motors Group. Mr Padmanabhan has gained valuable insight and knowledge through more than 25 years of experience in the field of bikes. It is Mr Padmanabhan and his dynamic team of equally experienced partners who have brought this advanced technological marvel in electric bikes to Keralites. The rapidly expanding ‘green’ electric bike outlets of the Electra Group throughout the state have pushed the sales of the green brand electric bikes. Electra provides excellent after-sales service by highly trained and courteous service personnel.

PRODUCTS

16 K ohler Co, a global leader in kitchen and bath design, has complete bathroom products including toilets, lavatories, faucets, bathtubs, whirlpools and showers. The US-based company has established its India business headquarters in Gurgaon, Haryana, and is expanding operations across the country. The manufacturing unit in Gujarat will be Kohler’s 50th worldwide production location and one of its largest manufacturing facilities in Asia. The plant in India will serve as an export hub catering to the European and US markets. The company and each associate share in the mission to contribute to a higher level of gracious living for those who are touched by the company’s products and services.

Kohler products

Tough and beautiful

Kohler offers a diversity of products and a powerful portfolio of brands that continually set new standards in design, craftsmanship and innovation— all knit together by a single level of quality over a broad range of price points.

tarian; they are integral components of the overall bathroom design. When every element in a bathroom is aligned in perfect harmony, the results are spectacular. All are built to withstand the rigours of the daily bathroom routine.

tomized services to suit all spaces and moods.

Kohler has been designing and manufacturing plumbing products of incredible quality from start to finish for over 135 years and has built the reputation on the extraordinary performance of the products. So it’s not enough to simply meet industry standards but push performance further by designing holistic solutions.

Every product is elegant, enchanting, cute at the same time sturdy as inspired by art forms spanning centuries and cultures, drawn to elements of nature and motivated by ever-evolving technology. Kohler creates faucets that often exceed the imagination.

Finally, Kohler employs innovative features to simplify installation. Many of the kitchen faucets have flexible connections that increase mobility for connectors and eliminate the need for multiple tools. Kohler faucets save your time, effort and money on each installation.

Kohler fixtures are not simply utili-

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Before making faucets beautiful, Kohler makes them tough with only premium materials for one reason: they provide greater strength and durability than any others.

Manumax in Kochi is the franchisee of Kohler products in Kerala.

17 Passline News Service

Is this the right time to invest in or buy property? Investors and end-users have this question always on their minds or discuss it with real estate brokers or with people who know about the sector. You can get an effective and useful reply to this question if you visit a wellarranged property show. What is the purpose of a property show? Besides being a platform for buyers and investors to choose their property it is a mine of information on new trends and possibilities in the real estate market. You may be a first-time buyer or investor, a seasoned property consultant or a person looking for a second or third investment. A property show is a onestop shop for all your needs. It gives you the opportunity to speak to experts and gather vital information for developing your information. It is therefore sure to answer all your queries and clear all your doubts. Another valuable service that a good exhibition on real estate provides is that it showcases options from property developers, builders, banks, home finance companies and home dĂŠcor products manufacturers. It brings the best and most reputed names from the real estate industry to interact directly on a one-to-one basis with prospective clients. What does a property show hold for investors? If you are serious about making money from property investments, a realty show is the ideal place for obtaining reliable and up-to-date property market information on investment and property to buy. Access to accurate information is essential to successful investing. On this platform, where the whoâ&#x20AC;&#x2122;s who of the construction industry will be available, you will

Property expos a mine of information be able to get a fair idea of the current market scenario and can take expert advice and help you need to make the right decisions. You donâ&#x20AC;&#x2122;t have to be a property expert to come to the show. If you are just getting started, you will find the show to be an invaluable resource for planning your first investment and help-

ing you to make the most of the property opportunities open to you. You can listen to and talk to industry experts and use these sources to make informed decisions about your first property acquisition. A property show is also the right place and the best way to find the right company to deal with.

What one should do at a property show Visit the stalls and interact with the people there Collect brochures, fliers and information related to their projects Find about finance options and mode of payment Discuss the market scenario and collect data on the upcoming locations to invest in Get an idea of the market by comparing the information gathered from all the stalls.

Tier II, III cities in for boom The real estate sector in the country is passing through a peculiar growth trajectory: growth is taking place only in tier two and three cities. There demand from actual users, mostly middle-income groups and salaried classes, is rising. Though the interest rates are spiralling, the aspirations of moderate income groups whose number is growing are now well supported by expanding credit availability, with relatively low land prices compared with those in big cities. Besides, big players in the Indian realty sector have also started ventures in tier three cities. According to them, the market in metros has already reached the saturation point with rates coming down drastically day by day, eating into their wafer-thin margins. The high inflation, political uncertainties and rupee devaluation coupled with national and international economic factors are also deterring buyers in big cities. All this may give an impetus to growth for the sector in Kerala since none of our cities enjoy the metro status. Though scams, high interest rates and uncertain-

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ties in West Asia have been stumbling blocks for some time, the rupee depreciation has turned out to be a blessing in disguise for the real estate sector since it predominantly looks to NRIs for business. The other factor favouring the industry in the State is the slew of developmental projects announced, particularly in the IT sector, such as the Smart City and the HDIL Techno City which will need large numbers of employees. The timely completion of these developmental projects will certainly give a fillip to the sector and demand for dwellings will spurt. Another important plus point is that after the eruption of the scams almost all unscrupulous elements who indulged in cases of fraud and cheating have now been totally removed from the scene. The market has now become refined and those remaining in the field can create trust and confidence in the minds of their clients. Some proactive measures taken by the UDF ministry have also created a favourable atmosphere.

18 Anna Properties, the realty wing of the famed Anna construction group, is building a high-profile superluxury villas complex near Lakeshore Hospital at Panangad, near Kochi. The Rs 22-crore project, named Eden Garden, provides Western-style poshvilla living, each villa costing Rs 60 lakh to Rs 1.8 crore. The realty sector, like all other sectors, too had a harrowing time when the country’s economy country was going through a difficult pace following the recession. Unable to cope with the situation, some left the scene in search of greener pastures. Some others quit the field in the name of diversification and a few existing ones put a break to their projects and are left in the lurch. Anna Properties, however, took the recession time as a challenge and ventured into the field announcing a novel method of changing the lifestyle of Malayalis. Many were sceptical about the sector achieving any growth. But this did not deter Mr Dileep Jose, Chief Executive Officer (CEO) of the firm, from going ahead with his project. Customers warmly welcomed the ‘limited-edition’ project with most of the 28 villas in it having already been booked. By year-end the villas will be handed over. The energetic and enthusiastic entrepreneur Dileep Jose, whose guts and grit enabled him to climb the steps of success, entered the real estate sector by a strange quirk of fate. Initially it was property development that he focused on. Then he moved into construction. Till now four projects, all budget ones, have been completed. It was the desire to do something different that made him think of building high-end villas. After months of planning he prepared the blueprint of Eden Garden, which is spread on a 2.5-acre site. The project, one would agree, is a world of wonders, a dream world. It offers those who wish to enjoy every minute of their life everything—yes, almost: indoor swimming pool, clubhouse, gymnasium, playgrounds for children and adults, shuttle court, video game room, CCTV camera, high-end video system room, door camera, intercom… For those who crave Western-style living, Eden Garden is the place. There are strict security and vigilance measures adopted here. “We are selecting a negative-model marketing system for the project. It is its drawbacks that are projected to customers first. Initially customers may be reluctant. Later, thinking of the proud status of living in such villas, they will become eager to own one. This has been the experience we have had”, says Jose. As the residents of the villas are people who follow the same living styles and status, the company is able to fulfil the main purpose of the project. For five years, occupants are not allowed to undertake any repair work or alterations either inside the villas or on the frontage. Landscaping is fully done by the company. No fresh plants and also pets will be allowed in. There is a special area meant for clotheslines. To those clients who complain that if there is no freedom to plant even a hibiscus on their own yards after spending crores of rupees what freedom they enjoy, the CEO has a clear answer: “If one plants a jasmine on one’s yard the neighbour may plant a jackfruit sapling on his/hers. Later when the branches of these trees stretch out to or fall on other dwellings, altercations may arise, leading to the project losing its charm. But alterations can be effected if the residents’ association comes to a consensus.” The villas are so designed as to suit the tastes of kids, the youth and the aged. From the entrance the conveniences offered are strikingly different from those available in other such projects. Either side of the 300-foot road is lined with majestic paving tiles. And Cuban palms are used as ornamental trees. The 28-foothigh Royal and Cuban farms are imported.

Eden Garden

Posh-villa living guaranteed From the main entrance, everything is under the control of the camera. There is provision for seeing guests from inside the house and giving the necessary instructions to let them in. If guests are not to be invited inside, arrangements can be made to have talks with them in the lounges. There are also strict arrangements for preventing strangers from getting inside the complex. Eden Garden will be active till late at night. Kids and the aged can assemble, talk or play during the time. As the electric lights are arranged in such a way as to flash the beam to the floors there is no disturbance caused to those in other villas during parties etc.

fencing that will decide the boundaries. In cases where occupants go abroad after buying their villas, a special team of workers will be deployed to maintain them and nurse the gardens. “Another project of Anna Properties is Queenslands, coming up near Amrita Hospital at Edappally. As a builder my aspiration is to build a few quality housing projects, projects with a rural touch and background having pocket roads, ponds, wells etc’’, reveals Jose. —Response Feature

The swimming pool is built in such a way as the whole fam-

ily can use it conveniently. There are separate timings for men and women and shallow spaces for children. It will be underground cabling for electrical work. Facilities like 24-hour security, guest car parking, utility bill payment, driver’s rest room, caretaker, LPG supply through pipes, power transformer, solar water Projects from Anna Properties always have a heater etc will be availunique look and style in conformity with the Western able in the villas. style of living which Keralites nowadays crave for. These novelties are there in the company’s latest There won’t be walls projects too. A glaring example is its new villa project around and gates for vil“Casa Bonitta” premium villas at Puthenkurissu near las. Instead, it will be Trippunithura. dwarf iron Today everyone is excited about the muchhyped Smart City project, coming up at Kakkanad, which will employ techies in large numbers. They and their families and dependants are sure to seek an elite style of living around the megaproject. Anna Group’s villas, especially Casa Bonitta, provide ultramodern dwelling and these villas are a stone’s throw from Smart City. For Infopark inmates too, Casa Bonitta is very close to their workplace. Its closeness to the KochiMadurai Highway and Global Public School adds to its attractions. Religious and pious people Dileep Jose looking for a residence at Puthenkurissu near the old royal palace city of Trippunithura, a place of worship, may find Casa Bonitta an ideal place to live in.

Cruise to Puthenkurissu for Casa Bonitta

Apart from this, peace-loving, nature-friendly people looking for a serene and salubrious atmosphere will readily opt for Casa Bonitta around which is available pure natural water and calm beautiful scenes.

Sitting inside, inmates can watch each movement outside the villas through special cameras. It is possible to watch the outside activities of children and their talks with people through these cameras. PASSLINE

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19 NeST Infratech is the realty and

to be unparalleled in the finishes and amenities offered. It is a dream project of NeST Chairman Dr Javad K Hassan and will have 2 penthouses and 46 residential apartments.

infrastructure division of the multinational, billion-dollar NeST Group conglomerate, headquartered in Chantilly, Virginia, the United States. It has offices in locations across Europe, Japan, India, the Middle East and Australia. Founded in 1991 by brothers Dr Javad K Hassan and N Jehangir, the NeST Group has helped companies across various industries leverage technology to implement solutions that dramatically increase employee productivity, reduce cost of operations and ensure the highest level of security for their business data. Today, it brings the same dedication in excellence and innovation to creating the finest homes across India. NeST has been able to gain a firm foothold in the IT sector, which, in turn, has spurred it to diversify into other feasible sectors. The group today is a well-diversified global company having established businesses in manufacturing various verticals like electronics, RF and wireless, cable and wire harness, fibre optics, sheet metal, plastics, box build, IT and ITES, expertise in engineering software applications, business applications, insurance, GIS and call centres. The group has forayed into non-technology businesses like food processing, mineral water and distribution.

It is packaged with gold-class amenities like centralized air-conditioning, personalized lift, video doorphones, private landscaped gardens, infinity pool with waterfall, sky squash, tennis/badminton courts, private boat jetty and home automation systems.

Orchid Park

NeST Infratech Traditional Kerala-style

Nalukettu villas ors and imposing facades. They do not have open terraces but have roofing. English villas were based on the Roman villas of earlier times, and gradually they also evolved from their earlier vast sprawling areas to suburban bungalows.

JKH Signature

NeST JKH Signature is an ultraluxury waterfront apartment project on the banks of the Periyar that is claimed

The convenEvery division of the group tional Kerala has a success story to tell. The group has its own engineering Dr Javad Hassan Nalukettu villas have always figcollege, school and a finishing school ured in the dreams of for fresh engineers and MCAs. It was after setting benchmarks in Keralite home-seekers, other segments that NeST entered the more so if they are nonresident, since they are realty sector with the launch often nostalgic of NeST Infratech, which offers about the byexclusive living options at gone days. planned locations across InNalukettu villas, dia. It is powered by the dymeticulous in namic character and vision of their details, are its directors, Dr Javad Hassan, NeST’s glowing Chairman, Jehangir, Managing to Jehangir tribute Director, F M Shamier Kerala’s rich arMarickar (Director and CEO, NeST Infratech), and Althaf Jehangir (Execu- chitectural tradition. It is hoped that this project will herNeST Infratech is pioneerald a revolution ing the concept of integrated of sorts by maktownships in the name and ing housing afstyle ‘The World.’ These worldfordable to all. class integrated townships These towncomprise villas and apartships will have ments starting from Rs 10 lakh all modern onwards. A unique feature is Shamier Marickar world-class fathe international model of inclusive development with Mediterra- cilities, including superior nean, English styles and contempo- landscaping by internarary and traditional Kerala style tional architects, large Nalukettu villas. open spaces for recreation, tenThe contemporary-style vilnis, badminton las at ‘The World’ cater to a and squash new and fashionable trend in living and offer privacy, space courts, swimand comfort and the security ming pool, and of a gated community living. jogging tracks. ‘The World’ conA villa was originally an Althaf Jehangir cept is being ancient Roman upper-class countryhouse. Since its origin in the launched in Aluva and Roman villa, the idea and functions of Thalassery and shall a villa have evolved considerably. soon be replicated in all Mediterranean villas are major cities across characterizsed by their palatial interi- Kerala. tive Director, NeST Group).

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NeST Infratech is also building Orchid Park, a 2BHK and 3BHK superluxury apartment project, situated at Kalathippady in the heart of Kottayam town. Located in the land of letters, latex and lagoons, Kottayam is a vantage point to places of relevance and reverence, be it educational institutions, religious shrines, conveyance or convenience stores.

Electroville The first special economic zone in the private sector in Kerala, the Rs 2,500-crore, state-of-the-art project is coming up in 30 acres of land at Kinfra Park at Kalamassery, Kochi. —Response Feature

Godrej Security Solutions, Near Infopark, Eadachira, Kakkanad, Kochi -682030. Tel : 0484 - 6612621, 704. Doortend India Pvt Ltd. Dorcare Complex, Next to Holiday Inn Hotel, NH 47 Bypass, Kochi 26, Tel : 0484 - 4042601, Mob : 9746472419. Jcube Systems & Solutions Pvt Ltd. 5th Floor, Chackos Towers, Padma pulepady cross, MG Road, Kochin. 35, Tel : 0484-2353440.

Asset Homes—the responsible builder

eldom has a builder carved a niche for itself in the building industry within 48 months of inception. Seldom has a builder been loved by its customers for the projects delivered. Seldom has a builder been looked up to for the high standards it has set in construction and service. If there’s one builder that has done all these and more it is Asset Homes. Asset Homes owes its birth, growth and success to three gentlemen—K A Mohammed Saleem, the founding visionary of Asset Homes, and his partners Sunil Kumar and Anil Varma. Today Asset Homes is one of the most trusted builders in Kerala and also the most awarded. It has won several awards and accolades since its inception in 2006. To a name a few, it has been honoured with the real estate industry’s most prestigious award—International Property Awards in association with Bloomberg TV and Google 2011. Asset Homes was also the recipient of the coveted CNBC Awaaz Crisil Credai Award in 2010, for India’s most innovative project.

Providing value-added service to customers is another key feature of Asset Homes. By this it has diversified its brand with Asset Care for valueadded customer care, Zing for lifestyle interiors and Summit Suites business hotel. Asset Care takes care of any need in interior designing, property management, rental services and maintenance. Zing offers a wide range of exclusive lifestyle interior furnishings and decorative.

Mohammed Saleem

Sunil Kumar

company has formed a charitable trust to support education, health and environment. These activities help us achieve excellence, while contributing to the environment we live in,” says Director Sunil Kumar.

"If Asset Homes has grown to be a trustworthy and respected brand today, it’s because of the four pillars associated with it— Good Location, Quality Construction, Quality Service and On-time Delivery," says Mohammed Saleem. And along with this unprecedented growth, the brand positioning too has moved from Celebrating Relationships to The Responsible Builder for a simple but solid reason—because the ultimate customer delight can be provided only by a responsible builder. And the responsibility is not just confined to the customer but also to the environment, society and the employees.

Asset Homes devotes a considerable amount of its resources to community development. Saleem is an active Rotarian, one of the key initiators for the Anil Varma Cooperative Hospital, Kakkanad, In fact it has been able the Founder Member of the Pain and to accomplish many projects, simulPalliative Clinic, Kodungallur, and the taneously, in different locations across Director of Organic Kerala. These roles Kerala and perhaps it’s the only builder have given him an opportunity to fulfil that has completed 24 projects in a his social responsibilities and contribrecord time of just 48 months since its ute towards empowering society. “The inception. PASSLINE

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" The group’s dream is to spread its wings to more towns in Kerala. And it will soon be venturing into automated construction with adherence to Government policies", adds another Director, Anil Varma.

Trinity for high-quality premium flats and villas T

rinity Builders and Developers, the dynamic housing organization with its corporate office at Edappally, Kochi, has a clear vision to raise the quality of standards of house construction in the state. The vision is outlined by its team who are drawn primarily from the fields of construction and real estate. Mr C J Mathew (IRS–retd), Chairman, Mr Roy Joseph, Managing Director, and Mr M J Louiz, Director (Marketing), are the team behind, whose commitment to quality puts Trinity firmly on the course to excellence. These visionaries, Trinity’s directors, are all well respected in their own fields. The reputation and credibility of the company and its promotC J Mathew ers have assured the buyers that Chairman Trinity’s projects are first-rate investments which promise a gracious lifestyle. Known for its speedy and quality construction, the company offers a comprehensive portfolio of villas and apartments in Kochi’s finest locations. Trinity homes are fast altering the cityscape.

offing. All these four projects at Kakkanad are meant to cater to a large chunk of the IT and IT investment crowd. Aluva, one of the fastest-developing localities around the city, is the other location with Trinity having a superluxury villa project, “Trinity Garden”, having 43 villas. Of these, work on 26 villas has been completed and a few have already been handed over. Work on the remaining 17 villas is nearing completion. Trinity’s prestigious waterfront project at Aluva on the banks of the Periyar, “Trinity Periyar Sands”, was recently handed over after completion. Two other projects, “Trinity High Grove-I” and “High Grove-II”, both near Model Engineering College, Thrikkakkara, were also handed over after completion recently.

Roy Joseph Managing Director

Trinitys first four projects—”Trinity Castle”, “Trinity Crest”, “Trinity Coral” and “Trinity Crown”—at Edappally, one of the most vantage points of Kochi, had already been completed and handed over.

Trinity has grown steadily since its inThe company has so far taken up 13 ception. The company’s intention is to have projects which include completed and onsustained and managed growth by maintaingoing, located in Kochi’s prime locations ing a low debt-to-equity ratio. The company’s like Edappally, Thrikkakkara, Kakkanad and success lies in its ability to attract and reAluva. “Trinity Jupiter” at Kakkanad, just 200 tain experienced and competent executives metres off Airport-Seaport Road, is poised and staff thanks to its good HR policies. It for handing-over in February-March 2012. is also extremely price-competitive and M J Luiz “Trinity Mercury”, in the same spot at Director highly quality-conscious, executing only preKakkanad, having simplex- and duplex-type mium projects packed with modern living amenities two-bedroom flats, is fast progressing. “Trinity Ve- and providing world-class sales and after-sales envinus” and “Neptune” projects at Kakkanad are in the ronment to all, small or big.

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Quality is Kunnel’s way of life K

unnel, winner of the Vishwakarma Award 2009, instituted by the Construction Industry Development Council (CIDC) of the Planning Commission, for the best professionally managed company, is the first ISO-certified construcM V Antony tion company in South India. Backed by 61 years of experience, it is managed by a high-profile team led by its Chairman and Managing Director, Mr M V Antony, who is also the Secretary General of the International Federation of Asian & Western Pacific Contractors’ Associations (IFAWPCA). The company has given shape to homes running into millions of square feet with thousands of satisfied clients, which are the credentials of Kunnel. Kunnel was also the first builder to offer homes with a lifetime guarantee. Trust, quality and impeccable reputation are the keys to the success of the brand Kunnel. Quality from Kunnel is par excellence, made affordable by optimization, innovation and continuous improvement of products. Quality is Kunnel’s way of life. For Kunnel, quality is quality products, quality service and quality relationship. Kunnel has pan-India presence, with projects at Bangalore, Kolkata, Coimbatore, Chennai, Kottayam and Kochi.

Kalpaka: building homes for relationships With a happy blend of history, culture, cuisine, foreign influences, NRIs, spices, plantations and breathtaking tourist attractions, Kochi is gradually gaining the world’s attention as a premium lifestyle destination. As industry, infrastructure, transportation and the IT sector open up in Kochi, more and more people are converging on this new city of opportunity and plenty. It is in this context that housing solutions are becoming a matter of priority and the demand for quality homes is on the upsurge. Kalpaka Builders Pvt Ltd brings the ultimate homes of one’s dreams. State-of-the-art construction, top-class amenities, exclusive locales, excellent facilities and personalized service are made available to the clients at affordable prices. Personal spaces are designed exclusively with the client in mind. There is an amalgamation of aesthetics and intelligent design in every home Kalpaka builds. A choice of exciting residential addresses welcomes intending buyers to Kalpaka Builders.

utility care and support services for the client.

Kalpaka offers so much more than mere suggestions when it comes to Kalpaka’s in-house personnel pro- designing these special spaces. The living room is responsible for vide assistance in the day- to-day running of the buyer’s household, ensur- first impressions. Make it the best! Showcase the best exquisite ing a comfortable and headart collection or simply let ache-free stay. one’s hair down. Let the living It is Kalpaka’s ongoing enroom tell the world just who deavour to ensure that it gives the buyer is. Kalpaka’s designthe buyer more than just a ers will be only too happy to mere house. A dream home? do this and more, for the A dwelling they would like to buyer. come home to. An abode that Sunith Vasudevan The relevance of a practical is an extension of who the and tastefully designed kitchen can never buyer is. And so its in-house interior be underestimated in a modern housedesigners in consultation with the clihold. Because here’s where it all hapent can design and deliver their dream pens. The necessity of ergonomics as home to them on a platter. well as aesthetics in a kitchen takes on The dining space is where one can new import, what with the modern workhost many a party. From intimate dining woman, who would still love to cook ners with the family to formal functions for her family. And yet, her time is limwith colleagues, let the ambience set ited. And so, Kalpaka can provide any the right tone every time. That’s why, kind of design from new-age modular

Merging of quality and reliability, timely completion and delivery of projects, unmatchable after-sales service—Kalpaka Builders, which stands atop in the construction field, is second to none with a string of unique services. One of the fastest-growing builders in Kerala with over a decade of experience, Kalpaka Builders brings to its clients a splendid selection of housing projects at several spots in Kochi. Kalpaka has a qualified, efficient and dedicated crew behind its success by carrying out various services including home loan assistance for the clients to occupy their dream homes. With this team of engineers, supervisors and others, Kalpaka ensures the timely completion and delivery of all its housing projects. The company is committed to a service mission that entails delivery of nothing less than top-notch quality and impeccable service. “At Kalpaka, the relationship with the client does not end with the structure of a house. I believe in building dream homes and relationships with the proud owners. And, so, Kalpaka offers the client an array of services so essential to every homeowner. This is just to reiterate the commitment to the client”, says Managing Director Sunith Vasudevan. Mr Sunith Vasudevan is a high-profile architect with 25 years of innovative experience in the real estate field. Under his stewardship Kalpaka Builders has completed and delivered 12 projects As a proud homeowner, the buyer should be assured of absolute peace of mind to match the serenity of their new home. The company’s commitment to the client promises just that. Its expertise extends itself to its efficient Home Care Services, a unique service option offering a wide range of PASSLINE

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kitchens to essential and practical workspace, or combine the best of the new and old. To this end Kalpaka has focused its attention on the spheres of home building, interior designing, homecare services, after-sales services and home loans. Kalpaka Vrindavan, Kalpaka Castle, Kalpaka JMJ, Kacherippady, Kalpaka Blue Diamond, Vyttila, Red Ruby, Vyttila, Fort Palace, Edappally, Suvarna Apartments, Elamakkara, and Kalpaka Villas, Elamakkara, are a few among its successful projects in and around Kochi. ISO certification and membership of CREDAI (Confederation of Real Estate Developers Association of India), KCCI (Kerala Chamber of Commerce and Industry) and KMA (Kerala Management Association) authenticates the credibility of Kalpaka Builders. —Response Feature

23 Neptune Readymix Concrete Pvt

Neptune Readymix

Ltd started its operations in Kerala by establishing the first readymix concrete manufacturing company in Kochi in 2003. The company was established by two eminent personalities of the industry, Mr Prince Joseph and Mr Alex Thomas, who had a clear vision about the future prospects of this emerging area of readymix concrete. Neptune was taken over from its promoters in 2006 by RDC Concrete India Pvt Ltd, the second largest standalone readymix concrete company in India. During the last seven years it has been successful in promoting the concept of readymix concrete in the construction industry in Kochi.

important structures, the company gives priority to transparency and reliability while dealing with customers of all kinds. Neptune is committed to enhancing customer satisfaction and achieving customer delight.

With the vision of emerging as the most preferred supplier of readymix concrete, Neptune has set clear objectives and targets. As the supplier of an engineered product which goes into

State-of-the-art technology is implemented in production, transportation and delivery of concrete. Coupled with a trained workforce, Neptune is equipped to provide the advantage of

The concrete advantage!

Living in the lap of nature N

Neptune Readymix has also proved to be a responsible corporate entity by its liberal involvement with several welfare projects associated with educational institutions. Neptune offers a free and friendly working environment to its employees as employees are the best asset to any company. The Central and state Public Works Departments, Indian Railways and major builders and contractors etc are the leading clients.

Amrutha: expanding market

homes oel Greenature is the pioneer in green building in Kerala providing ecofriendly projects conforming to the ‘green’ concepts that are rapidly catching on in the building industry. With two decades of experience, Noel is today being acknowledged as one of the most credible builders in Kochi. Noel Serenia is the perfect setting for a greener life.

readymix concrete for today’s fastpaced construction giving quality due importance. Readymix concrete is an improvement on conventional concrete by which the concrete is produced in computer-controlled batching plants which ensures correct proportions all the time and also the proper and exact water-cement ratio can be maintained which is the most critical element in controlling the quality of concrete.

The company is at present run by a competent group of qualified professionals led by Mr Prakash Padiyath, Business Head-Kerala. “The prime advantage to the customers of readymix concrete is the huge saving in time, labour and storage expense and our value-driven professional approach and quality-consciousness has led to an ever-increasing demand for this product’’ , says Mr Padiyath.

rary architecture with green features and all matching amenities—a neighbourhood that will be defined by wonderful greenery, wide open space and an uplifting sense of safety, security and community.

With an uncompromising passion for quality, Noel re-scripted the dynamics of the builder-customer relationship by making During the course of a the aspiring buyer an active parbusy life there are moments ticipant in the art of where everything seems to housemaking. Unrelenting be just as it should be. The commitment to providing imsun shines. The air hums. maculate designs and unique John Thomas You treasure these moments projects took Noel a notch because they are rare. Now they can higher. Noel’s success, the company be yours always and easily. And you says, is the rightful mix of integrity, reare calmed by the harmony of urban liability and technological brilliance. refinement and suburban style. “Noel initiated the green living concept As part of Noel’s vision to create for the first time ever in Kerala by introthe way of quality life, Noel Serenia, ducing Greenature Villa apartments. consisting of premium apartments, This green initiative from Noel is aimed promises to be a green community at fulfilling its social and corporate redesigned for contemporary living in a sponsibility in a meticulous manner,’’ natural setting—a modern lifestyle in says Mr John Thomas, Managing Parta haven of peace and tranquillity. The ner, and Ms Geetha John, Executive design approach is to unify contempo- Partner, Noel Villas and Apartments.

mrutha Electricals, established in 1995 at Palakkad by Mr P Rama chandran, a veteran marketing manager of two decades’ service in major capacitor industries in the country, later entered the field of distribution of HT/LT/MF capacitors and water-cooled capacitor control panels, Harmonic filters and capacitor-related equipment. Today the firm has developed into a major player in its field by dint of his dedicated P Ramachandran service to customers and quick and reliable after-sales service. He has always been keen to ensure the best quality in his supplies and services. He attributes his success to his vast experience in the field, which enables him to solve any applicational problems of his customers. “Amrutha Electricals has gained the trust of its customers and earned a reputation in the market by its service based on ethics”, says Mr Ramachandran. Amrutha has now diversified into new fields and developed new market areas in industrial appliances such as switchgears, control and digital analogue measuring instruments, motor starters and protection systems, automatic power factor correcting equipment, control panels, meter boards, submersible pump panels etc. It is the authorized distributor for major brands like Indo Asian, C & S, Moeller, Dhandapani, BCH, Shreem, Mahan, Power KELTRON, Samrat Sycon, Himlite, Sunny etc.

Solar: keeping pace with technology R

acold has introduced ‘Solare’ solar water heaters with the evacuated tube technology, engineered to provide maximum heating efficiency. Each evacuated tube is made up of two concentric high-quality glass tubes of optimum length to ensure excellent solar absorption. The inner container is insulated with hi-density injected PUF to provide maximum heat retention. The heater delivers hot water at all times. Thrivikraman Namboodiri

Solar water heaters give amazing savings on electricity and power bills. They are fully guaranteed for their performance. Their design makes them almost maintenance-free. A well-installed solar water heater will give you trouble-free performance for years. The Kerala Head of the Solar Division is Mr Thrivikraman Namboodiri, Senior Engineer, Sales & Service. PASSLINE

December 1 - 31, 2011

24 S

eiken Builders has been making living a good feel rather than mere existence with its decade-long experience in the building sector. It offers togetherness of community living in the lap of nature and helps bring about harmony and fraternity among different people. Seikon provides a life close to nature, which is a rare bliss in urban life today. It is a true blessing if the conveniences of the city are blended with the refreshing ambience of green nature. That is exactly what Seiken Builders intended while visualizing its latest villa project at Kozhikode, Seiken Courtyard. These luxury villas, inspired by nature as their tagline goes, indeed is a testimony to eco-friendly living.

Community living at its best rooms while premium vitrified tiles are used in bedrooms and vitrified tiles for kitchen and work area. The master bathroom is designed with imported

vision for water purifier and dishwasher. Facilities like perimeter compound security system, video door phone system, LPG gas leak sensor, fingerprint lock system for entry door etc ensure security for living.

Seiken Courtyard, a harmonious blend of private homes set within the ambience of community living, consists of 19 individual Located just 350 metres from Thondayadu villas, and is atop a gentle, natural, elevated Bypass, Seiken Courtyard lies within close terrain, nestled in a cloak of nature. Each proximity to reputed hospitals, educational invilla, 1,959-2,848 sq ft, is an inspiration in stitutions, shopping complexes and commerdesign and aesthetics, crafted to provide discial establishments. tinctive individual spaces and privacy, with a Seiken Properties, a fully integrated housing host of modern conveniences and amenities development company initiated by Kerala Roadfor a luxurious lifestyle. Modern amenities Sakhariya V K Saleem C S Siraj M K ways Ltd, has been a trusted name in residenJoint Managing Director Chairman Managing Director including a well-appointed clubhouse, swimKerala Roadways Seiken Properties Seiken Properties tial and community development projects in ming pool, snooker, recreation hall, health Kerala for over a decade. With a host of succlub, Wi-Fi system, automatic remote entry sys- marble and designer ceramic tiles. All the bedrooms cessful projects both in Kozhikode and Kochi, and tem, designer landscaped garden, caretaker room, and living rooms have provision for TV while there is over 250 extremely satisfied customers, Seiken condriver’s resting room and automatic streetlight set provision for telephone in all bedrooms, living and tinues its commitment to provide high-standard qualthe ambience for a safe and secure upmarket social dining rooms and the kitchen. All the toilets are emity, value and efficiency in a trusted and professional lifestyle. bellished with superior-quality chrome-plated fittings manner, making each new project a beautiful home Imported marble is used for the living and dining along with provision for geyser. The kitchen has proand a wonderful investment.

Relcon Properties An array of Relationships built products through trustworthiness Started in 1978, Tanzeel Builders is a pioneer in the construction field promoting relationships through transparency, timeliness and trustworthiness through its various projects. Closely monitoring the pulse of the people Tanzeel makes dream homes according to its clients’ needs and tastes. Various projects under this established banner with unique features and utmost security and safety in many parts of the State have stood testimony to the company’s reputation for the past 33 successful years. ‘Chalet’, a deluxe project coming up off Jawahar Nagar at Kadavanthra in Kochi, is another feather in Tanzeel’s cap. This project offers two- and three-bedroom apartments

A A Nayeem

A A Vaseem

with attractive amenities and facilities. Blending style with substance, Chalet is a dream home project, says the company. ‘Tanzeel Park’ at Chittoor Road, Pachalam, Kochi, an earlier project, is a superb example of Tanzeel’s craftsmanship and calibre. ‘Elbony’ at Kakkanad, another deluxe apartment project with a slew of modern amenities, shows the distinguished workmanship of the company. Many Kochi hubs like Kacherippady, Pulleppady, Basin Road, Mullassery Canal Road and Chittoor Road are dotted with elegant Tanzeel projects. Mr Nayeem and Mr Vaseem are the directors of Tanzeel.

Almonard diversifying W

idely acclaimed for its fans, Almonard Pvt Ltd had a humble beginning in Mumbai 52 years ago. Its growth since has been steady, with its industrial fans commanding the No 1 position in the country today. The company has also started its home appliances division with mixer P L Davis grinder, water heater, pumps, irons, toasters,blenders etc, which have been well received by customers.

An ISO-certified company, Almonard has two branches in Kerala, one in Kochi and the other in Kozhikode. Almonard’s pollution control division produces devices to solve industrial dust problems. The company also manufactures axial flow fans, air curtains and mancoolers for industrial purposes. Mr P L Davis, Regional Manager in charge of Kochi and Kozhikode, has raised the sales within a short period. PASSLINE

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Relcon Properties is an all-

rounder in the real estate field with a large number of distinguished housing projects and corporate offices throughout the State besides providing exceptional after-sales service and customer satisfaction. A subsidiary of Kerala’s real es- T K Alexander Vaidian tate conglomerate Relcon Group, Relcon Properties is known for quality construction and an array of different types of projects. Relcon has to its credit several shopping malls, corporate buildings, business shops as well as star hotels in and around Kochi and Thiruvananthapuram that speak volumes for its building acumen. Relcon is also known for its commitment to using quality materials and perfection in construction by strict supervision at every stage of project development. “Besides luxury hotels and opulent mansions for high-end customers in Kochi and Thiruvananthapuram, Relcon also tries its best to meet the acute housing needs of Kerala’s IT city. It has come up with numerous housing projects to suit the varying choices of customers. Customer has the final say,” says Mr T K Alexander Vaidian, Managing Director of the Relcon Group. Relcon Green Woods, off N H bypass, Vyttila, Kochi, Relcon Ashiyana, a gated community villa project, off Kalamassery, Ayur heritage villas at Nedumudi on the Alappuzha-Changa nassery Road, Relcon Travancore Heights, Thiruvalla, and Relcon Castle, Thiruvanantha puram, are a few of the company’s celebrated projects.

IN LIMELIGHT

New jewel on Tata crown It was after a year’s search, after 18 meetings by the selection committee, that Cyrus Pallonji Mistry has been selected, a year in advance of present incumbent Ratan Tata’s retirement. It was not clear how the mantle fell on Cyrus with half the committee members favouring Cyrus’s brother-in-law, Noel Tata.. It may be the 18.5% shareholding of Cyrus’s family in Tata Sons, the holding company of the 83.3 billion Tata Group, and his greater involvement in the conglomerate that clinched it in his favour.

Cyrus Pallonji Mistry

By A Special Correspondent

o the iconic Ratan Tata, the scion of one of India’s wealthiest families and Chairman and Managing Director of perhaps the country’s most beloved company, is going, entrusting charge to Cyrus Pallonji Mistry from December 2012. Cyrus is to be the master of the majestic Tata empire which consists of companies that produce steel, cars, lorries, power plants, hospitals, hotels, tea and coffee and owns Videsh Sanchar Nigam Ltd (VSNL), the longdistance telephone operator, and Tata Consultancy Services (TCS), Asia’s biggest software firm. Yes, the 143year-old giant looks awesome, with 114 operating companies (more than onethird of them publicly traded) and 4,25,000 employees worldwide, India’s largest private-sector employer, its biggest taxpayer and its greatest foreign exchange earner. It operates the country’s biggest private steel manufacturer, its largest chain of luxury hotels and its biggest private power utility. It is this empire that the relatively unknown Cyrus, 43, is called upon to preside over. An announcement from Bombay House, the Tata headquarters in Mumbai, had some time ago said that the successor to Ratan Tata would be chosen by a selection committee. It was after a year’s search, after 18 meetings by the committee, that Cyrus has now been selected, a year in advance of the incumbent’s retirement. It was not clear how the mantle fell on Cyrus who was not close to the process, with half the committee members favouring Cyrus’s brother-in-law, Noel Tata, Ratan Tata’s step-brother who is married to Cyrus’s sister. It may be the 18.5% shareholding of Cyrus’s family in Tata Sons, the holding company of the 83.3 billion (Rs 4 lakh crore) Tata Group, and his greater involvement in the conglomerate that clinched it in his favour. Besides, Ratan Tata himself had said in an interview to a British publication that Noel was not ready for such a huge responsibility. Cyrus, to be the sixth Chairman of Tata, will have a formidable task before him. It is not his age—he is the youngest-ever head of the group—but his being a greenhorn is also cited as one of his handicaps. He has to manage a behemoth which reigns supreme

in sectors from salt to software and from automobiles to electric power. But Cyrus is a qualified civil engineer and worked within his family concerns, the Shapoorji Pallonji Group, which, many say, has ‘control’ over Tata. Having worked in a family environment, Cyrus may find it a challenge to work with senior professional executives of companies in the group like Tata Steel, Tata Motors, TCS etc and thousands of shareholders, as he has to win them over. But, then, Ratan Tata himself was very much in the same situation when he was named to succeed J R D Tata about three decades ago. There were strong contenders like Russi Mody who was almost the emperor of Tata Steel at the time. Cyrus’s record shows that under his leadership, Shapoorji Pallonji’s construction business has grown from

to face the fact that the two biggest companies of the group—Tata Steel and Telco—have been losing their value during Ratan Tata’s stewardship. Group revenues have increased two and a half times since the early 2000s, but profits have not kept pace with them. The results would have been worse without TCS, which has been seeing the earnings jump severalfold for long. “Managing a group like Tata is a collective task. Each company has a strong board and different management practices. It requires a clear mind to maintain the Tata ethos with a decisive mind,” says a brand expert. “Cyrus with his pedigree and education has the necessary qualifications to head the group,” he says. Cyrus is the youngest son of Shapoorji Pallonji Mistry, from whom

MEN WHO SHAPED TATA Jamshedji Nusserwanji Tata (1868-1904) Sir Dorabji Tata (1904-1934) Sir Nowroji Saklatvala (1934-1938) J R D Tata (1938-1991) Ratan Tata (1991-

)

Cyrus Mistry (Chairman designate)

THE TATA EMPIRE Founded by Jamshedji Nusserwanji Tata in 1868 No of group companies 114 Countries where its companies operate 80 Total group revenue (2011) $83.3 billion International revenue $48.3 billion Jamshedji Nusserwanji

Number of employees worldwide

a turnover of $20 million to $1.5 billion and evolved from a pure construction company to executing projects under BOT and EPC delivery methodologies. The group’s activities have now spread to 10 countries. He was also responsible for building the infrastructure development vertical in the Shapoorji Pallonji Group starting in 1995 a 106 MW power project in Tamil Nadu followed by the development of Tata’s largest biotech park near Hyderabad in partnership with the Andhra Pradesh Government.

he took the reigns of the 147-year-old Shapoorji Pallonji Group in 2006. One of his big achievements has been the acquisition of Afcons Infrastructure and growing it from a Rs 200-crore company to a Rs 1,042-crore one. Still there are people who say that Cyrus will find many difficulties in getting a grip on the Tata Group, which has 114 companies in 80 countries, because about 80 of these companies

Once appointed, a Tata Chairman can stick around till the age of 75. Cyrus has therefore a reign of more than 30 years ahead of him to shape things at the empire. Even if the internal challenges of Cyrus may not be many and serious, observers feel that the picture is not so impressive about business challenges. Cyrus is known to be an introvert and is soft-spoken and mild-mannered. But he will have PASSLINE

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Ratan Tata

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are relatively small and contribute to barely 10% of the group’s turnover. Perhaps his greatest challenge might be that his appointment now as Deputy Chairman has come at a time when the global economy has gone weak and unstable again and is impacting Tata businesses in steel, automobiles and chemicals The slowdown in our own economy, the rising inflation, high interest rates, the falling rupee—all these call for business and financial acumen. In addition, there is the economic debt burden of more than Rs 1 lakh crore on the group’s books. Most of this debt was taken to acquire British steelmaker Corus (now Tata Steel Europe) and automobile unit Jaguar-Land Rover. These buys have not produced any good results so far. Again, the Tata image and name have taken a beating after the Singur (West Bengal) land acquisition and the Radia Tapes-2G scam. Cyrus will therefore need to seek the advice of the highly respected, veteran Ratan Tata. It is certain that even after Cyrus assumes charge in December 2012 Ratan Tata will be very much around and may be looking after the Tata Trusts, which own about 60% of Tata Sons. The rise of Cyrus Mistry to the helm of India’s biggest corporate house reinforces the clout that the Parsi community wields in the industrial field in the country. Mumbai’s Parsis are descendants of Persians who first landed in India in the ninth century. It is no secret that the community had led the city’s commercial development from sleepy fishing islands to one of the world’s business capitals. Giant business families like Godrej and Wadia, besides Tata, keep that tradition alive today. Cyrus’s father Pallonji Mistry is the world’s richest Parsi. Cyrus studied at Cathedral and John Connon School in Mumbai, Imperial College, London (BE in civil engineering), and London Business School (MSc in management). He is married to Rohiqa Chagla, daughter of lawyer Iqbal Chagla, and has two sons.

STOCK MARKET

26 â&#x20AC;&#x153;The high rate of inflation, gold price rise, increase in bank interest rates, low GDP growth, rupee depreciation and lacklustre industrial growth cause investors to lose faith in stock markets. The global economic crisis, especially in European countries, paves the way for low participation by foreign institutional investors in the Indian markets. But Mr Kulirani says that this is the apt time for investors to opt for investments in select shares. As India is a growing economy, not depending heavily on exports, the rupee depreciation is unlikely to affect our economy. We should not expect a bull trend in the market for at least six months.

Govt inertia pulls the bull back U

ncertainty looming large over the Indian stock markets for the past three months recording the 30- stock BSE sensitive index Sensex and the 50stock national index Nifty dilly-dallying between 16,000 - 17,000 points level and 4,000-5,000 points level respectively. As the Quarter-3 results of financial institutions are to be out with one-two months Passline has sought the opinions of a couple of experts in this field whose opinions come in conformity with the hazy development in the stock market front. Mr Ignatius Kulirani, Regional Head (Broking) of Karvy Stock Broking Ltd, says that there are positive and negative factors that dominate the market now. The high rate of inflation, gold price rise, increase in bank interest rate, low GDP growth, rupee depreciation and lacklustre industrial growth cause investors to lose faith in stock markets. The global economic crisis, especially in European countries, has resulted in low participation by foreign institutional investors in the Indian markets. But he says that this is an apt time for investors to opt for investments in select shares. As India is a growing economy, not depending more on exports, the rupee depreciation is unlikely to affect our economy. We can expect a bull trend in the market only after six months. As the proposal for foreign investment in retail sector has been dropped it seems the market lost its sheen in that sector. Now the market

projects the FMCG, pharma sectors as the prospective area for investment, he says. The bank interest rate rise does not make

much headway as the rate on deposit, if attracts more investments, the same phenomenon on lending rate may invite low remittances, thereby more defaulters. Mr Varghese Mathew, Member, Cochin Stock Exchange, has also similar views when talking about the Indian stock markets. The euro crisis, Asian markets and the US election too come to his mind while mentioning the internal issues like the high inflation, low GDP, export, gold price, rupee depreciation. He says all these factors dominate the market for the Sensex and Nifty to dangle between the 15,000-16000 range. If the Quarter-3 results of the financial institutions show a profitable margin there is possibility of the Sensex to touch at 17,000 points. The gold price rise is another phenomenon. Even though the invest-

â&#x20AC;&#x153;The euro crisis, Asian markets and the US election are also relevant when we consider situations like the high inflation, low GDP, export, gold price and rupee depreciation. All these factors affect the market and cause the Sensex and Nifty to dangle in the 15,000-16000 range. If the Quarter-3 results of the financial institutions show a profitable margin there is possibility of the Sensex touching 17,000. The gold price rise is another phenomenon. Even though the investment in raw gold remains the same there is good response to the exchange traded fund (ETF) as it is a good option for a profitable investment and as an assured deposit for the future.â&#x20AC;? ment in raw gold remains the same there is good response for the exchange traded fund(ETF) as it is a good option for a profitable investment and a assured deposit for the future.Regarding the foreign investment in shares, he sees a moderate inflow now. When the American presidential election round the corner in the next year we can not expect that the US will take any hard measures now. It is not because of the poor performance of Indian institutions that the slump on Indian bourses is occurring. It is the outcome of the global clues, according to Mr Raghavan V, Regional Head of Nirmal Bang Broking Ltd. The chain of scams has tarnished the image of the Central Government and its inactiveness is the main reason for the economic slowdown in the market. He does not expect a revamp in the Quarter-3 results of companies. So there is not much hope for a bullish trend in the stock market for a couple

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of months. The US market is somewhat improving now with the unemployment rate diminishing and manufacturing improving. Buying and selling rates remain almost neutral. The slump may push the Nifty down to the level of 4,400-4,200 and the Sensex may come down to 14,600-14,000 points. As India is not an exporting market the rupee depreciation may not benefit the Indian market much. But it affects importers, mainly oil marketing companies and petrol and diesel prices. Mr Raghavan thinks that the market posts hope in the coming couple of months as February is a month of budgets. If the Union budget offers more sops for the share markets to thrive there is possibility of the market scaling new heights and the Nifty and Sensex may go up to 5700 and 19,000, respectively. Mr Raghavan sees the FMCG, pharma and IT sectors showing a bullish mood in the market now.

ISSUES

27 The issue of wayside meetings and processions will now be debated in the Supreme Court, but its stand on judicial activism in the wrong direction was quite refreshing, considering the all-round tendency towards authoritarianism in Kerala society. By K Vijayachandran

Malayalee middle classes, especially NRIs, are unhappy with the quality of governance and infrastructure in Kerala. They see shortcomings everywhere and are ashamed of what they see around compared to the quality of life in the cities of the US and the UK and other European countries or the Middle East. Sanjay Gandhi, who overnight razed down hundreds of Delhi slums, under

developed societies. They have been trying to market theories on a shining India based on the galloping sales of IT ware and conventional white goods in the country, despite damaging statistics around poverty lines and the rapid degeneration of Indian culture and polity. Elitist opposition to wayside meetings and processions is typical of the Indian middle-class dilemmaâ&#x20AC;&#x201D;to look or not to look modern. As a matter of

fact, only very few of our towns and panchayats own and manage their own public places, parks or maidans. Facilities like town halls, conference halls, marriage halls, culture halls etc are a luxury in Kerala as well, and are confined to very few of our municipal towns and corporations. None of the five city corporations has a modern exhibition facility, a very common experience in the towns and cities of developed countries. We have quite a few dilapidated cinema halls and school and college buildings: Quite often they double up as venues for public functions. Public functions, especially open political meetings on the waysides, serve as training grounds for social activists who play a key role in our grassroots-level democracy, and society looks at them with appreciation, despite the little discomforts and irritation they cause on the roads and traffic junctions. Wayside election debates, organized by our visual media,

with dozens of plastic chairs and tables arranged for the discussants as well as lay participants, have now become an essential part of our parliamentary democracy. Considering the socio-political relevance and importance, such street-corner meetings and public functions are regulated by the police force with the cooperation and consensus of local people. The judge who decided in favour of an outright ban on wayside public functions was in a hurry to reform society, and in his impatience failed to appreciate the ground realities as well as the rule of law as presently practised in Kerala. Jayarajan was only speaking the minds of the working people of Kerala when he criticized this sort of judicial activism by its High Court. His language, no doubt, sounded harsh and the judge was naturally hurt. But the judge hurt himself even more by rushing his critique to the jail for contempt of court, and now profusely

SC blow to judicial activism the cover of the emergency, is often their political hero. On similar terms, the Kerala High Court Judge, who banned wayside meetings and processions by political parties, turned their instant hero. However, their enthusiasm was dampened by the Supreme Court as it refused to endorse the judicial activism of the Kerala High Court in rejecting the bail petition of Jayarajan, a well- known political leader and former member of the state Assembly.

The judge who decided in favour of an outright ban on wayside public functions was in a hurry to reform society, and in his impatience failed to appreciate the ground realities as well as the rule of law as presently practised in Kerala. Jayarajan was only speaking the minds of the working people of Kerala when he criticized this sort of judicial activism by its High Court. His language, no doubt, sounded harsh and the judge was naturally hurt.

The issue of wayside meetings and processions will now be debated in the Supreme Court, but its stand on judicial activism in the wrong direction was quite refreshing, considering the allround tendency towards authoritarianism in Kerala society. The Kerala High Court has indulged in this sort of judicial arrogance several times in the past. It had tried to directly monitor the mosquito eradication programme of the Kochi Corporation and also manage the godly affairs of Sabarimala temple. This tendency has its roots in the impatience of our elite classes to be seen and counted as real civilized people in the eyes of

bleeds under the impact of the Supreme Court judgment that has bailed out his prey. The entire debate on wayside meetings sounds rather absurd and unreal, but it is in tune with the times, when the four pillars of our six-decade-old parliamentary democracy is showing signs of fatigue and is de facto falling apart. In the early years of our democracy, ratha yaathras were mostly the sole prerogative of opposition leaders. This tradition now stands broken by Oommen Chandy, the present Chief Minister of Kerala. He has literally taken his Government to the street, and marketing it on retail. Despite several long years of administrative reforms, panchayati raj, zilla and block panchayats and peopleâ&#x20AC;&#x2122;s planning, real political power continues to play hide and seek in the dark corridors of our century-old secretariat building. Oommen Chandy seems to be determined to carry on with his campaign of administrative activism to the district headquarters despite his Finance Ministerâ&#x20AC;&#x2122;s reported complaints about

M V Jayarajan

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To page 29

ENTERTAINMENT

28 For some years Mollywood has been limping with the huge costs of production playing the role of the villain. Though the increasing remuneration for the ‘superstars’ is cited as the main reason for the lull, dearth of touching stories and spectators and unprofessional producers also contribute to the mess that the industry is in today. The last couple of years have witnessed a series of flops mainly because of these factors.

Passline News Service

fter a series of strikes by various industry organizations, the Malayalam film industry is getting back to normal with the release of a number of films. For some years Mollywood has been limping with the huge costs of production playing the role of the villain. Though the increasing remuneration for the ‘superstars’ is cited as the main reason for the lull, dearth of touching stories and spectators and unprofessional producers also contribute to the mess that the industry is in today. The last couple of years have witnessed a series of flops mainly because of these factors.

Only cost reduction

can save Mollywood gers. Whatever the reasons for the failure of those films, no efforts were made to retain some of the eminent producers and film-making companies in the segment.

Producers think that they are the ‘vicIndustry analysts tims’ as they have to say that production of endure the financial low-cost films is the burden caused by lone solution to the their films flopping. existing problems. “Producers are being Shaji Pattikkara How do we make a termed the ‘enemy’ of film at a low cost by ensuring the Malayalam film segment. success in comparison with No producer is either rebig-budget ones? Does it have spected or treated as the perany formula or tricks? These son who invests money for the are the questions raised by whole production,” says Sabu the industry and also by specCheriyan, Chairman of the tators. If you can find the anKerala State Film Developswers to these, experts feel, ment Corporation and himself the film industry can go back a producer. to its past glory. Those close to the indusSelection of the right locatry say that it is unlikely to tion and proximity, low-priced expect the time when direcequipment (such as camera) tors, producers and actors reon the technical side, a touchspected one another to come ing story, completed and edback. Now it is the actors who ited script, right casting withrule the scene. With the shootout any recommendation or ing up of cost because of the consideration—these are the high remuneration for actors, ingredients for the making of a directors and technical staff good film, according to indusand insistence on the “right” try watchers. “Location seleclocation for “perfection”, maktion in the special interest of ing a film has become a nearsomeone, shoot of song impossible task for the proscenes abroad and unnecesducer. The entire class of prosary crew accompanying acducers is said to be on the tors like parasites are the mabrink of extinction. It is a situjor cost-increasing factors,” ation in which only either of says Shaji Pattikkara, producthem, the producer or the action controller of many films. tor, survives. “Even though the Cost reduction attempts face number of flops is on the inobstacles when actors decrease, both actors and direcmand more ‘facilities’ like tors still remain without being caravans, mostly seen as a hurt, while the producer class luxury symbol, during the is disappearing from the scene shoot. after setbacks”, says Shaji. Several film-making comMany say that the lack of panies and producers disapsincerity towards the profespeared from the scene after a sion by some newcomers is a series of flops burnt their fin-

disturbing trend, which is also cited as the reason for the increasing number of flops. “Some directors use Malayalam cinema only as a platform for them to reach Bollywood or Hollywood. With this aim they demand expensive equipment for the shooting resulting in the shooting up of the cost of production”.

sary 25% additional cost because of unprofessional producers as well as production executives,” says Shaji.

While ‘superstars’ are said to be dominating the field, some say they cannot be blamed for the failure of films. “If these actors raise their remuneration, we have the option to not choose them Sabu Cheriyan. Low-cost films are for our film. ‘Superindeed the need of the hour. stars’ neither demand a role “Eighty per cent of Malayalam nor force their presence in a films are bearing an unneces- particular film,” says Sabu

Cheriyan. In short, an appropriate blending of economic discipline, anticipation, good script, experienced producer and other crew including the director and actors can go a long way in making a film without exceeding the budget. Appearance of new producers, most of whom are NRIs, is also a reason for the decline of the Malayalam film industry. These producers are said to be ignorant about the industry which eventually leads to their films becoming flops.

Lack of foresight cause of failures: Santhosh Pandit Santhosh Pandit’s has been the most- film-making but I was forced to make a film heard name in the last couple of months. He with a very limited capital. I didn’t have a huge created ‘his-story’ on celluloid with his amount as I wanted to complete the film debutant film Krishnanum Radhayum. The within my small budget. I own an editing stusmall-budget film and he himself received dio which obviously helped to reduce the severe criticism from spectators and critics cost. The camera rent was only Rs 2,000 a for the manner in which he used ‘negative day; however the quality of cinematography publicity’ for it. Though it was criticized, the was not bad. film is learned to have cost only How could you finish the film about Rs 5 lakh until its release. within your very small budget? As the Malayalam film industry What measures were taken to refaces a lull because of the alarmduce the cost? ing increase in cost of production, Since the budget was low, I enKrishnanum Radhayum has brought sured economic discipline from the to centre stage the advantages of beginning of the shoot. Besides, only and the need for making of low-cost Santhosh Pandit nominal amounts were given to the acfilms. The following are excerpts tors in accordance with the agreement earfrom an interview with him: lier. Unnecessary expenses as part of shootHow much did you spend on the film ing were avoided at all possible levels throughuntil it reached the theatres? out the entire shooting. The film came to the theatres after the What do you think is the problem the certificate of the Censor Board with a cost of Malayalam film industry has been facabout Rs 5 lakh only. ing in recent years? Did you have any idea of low-cost film-making before you started your first venture? Actually I didn’t have any idea of low-cost PASSLINE

December 1 - 31, 2011

Lack of foresight by producers and directors is the main culprit in the failure of a series of flops. Another reason is lack of education among producers.

29 says. “These owners are controlling the industry.” The only way is through wide

Passline News Service

There is cause for worry for Kerala’s film industry—the number of theatres in the state is dwindling at an alarming rate. In 1990 there were 1,400 but today there are just 480— 270 A-class, 60 B-class and 150 C-class. Among those which have been closed down are 600 B- and C-class theatres. The reason? Lack of profits. Many have already converted their halls into marriage reception halls, shopping malls, supermarkets, toddy shops, cement godowns and even churches! But according to Mr V Mohan, President of the Kerala Cine Exhibitors Association (KCEA), “the dictatorship of the Kerala Film Exhibitors Federation (KFEF) is the reason for the closure.” “Some (A-class) theatres affiliated to the KFEF control the shifting of films. They continue to screen films as noon shows. As a result, most B- and Cclass theatres do not get films on time. That is why many theatres, with good facilities, have closed down. Wide release of films can change the situation,” says Mohan. “If that happens, many theatre owners will From page 27

this high-cost initiative. Neither the Chief Minister nor the Finance Minister seems to appreciate the fact that the root cause of the crisis of governance in the state is the near-total takeover of its financial and functional autonomy by the Central Government in Delhi. The State Government has been forced to withdraw from key areas of responsibilities, and in this process its capacity to plan and manage infrastructure has been badly eroded. The drastic loss of capacity of the executive to govern gets reflected on the legislature as sheer helplessness: the Kerala legislature has been under strain for the past several years with the opposition staging routine walkouts on a daily basis and in desperation. Shouting down the opponents, attacking the watch and ward, and nursing the constituency is seen as the key responsibilities of the members of the state legislature, who look at the numerous House committees as a sheer waste of time and a lucrative source of extra incomes. The Kerala legislature makes plenty of noise but is conspicuous for its general lack of activism and innovative ideas.

Alarming fall in number of theatres

Running cinemas has become uneconomic for owners in the state. The decline in the number of theatres is so alarming that in the place of 1,400 in 1990, there are just 480 now. be ready to improve their amenities, too,” Mr Sabu Cherian, Chair-

man of the Kerala State Film Development Corporation, agrees. “The owners of first-

class theatres are not ready to shift the new films to B and C class theatres,” he

release. “Otherwise, most people will watch films on the internet or through pirated CDs,” he says. But this argument is countered by Liberty Basheer, President, Kerala Film Exhibitors Federation (KFEF). He says that the absence of the State Government’s support and the lack of good films are the reasons. “Wide release does not protect the film industry and theatres,” he says. “It is a baseless argument. In fact, more than 300 theatres affiliated to KFEF have also closed down. The Government should step in to protect the theatres.” Districtwise figures show that in Thiruvananthapuram the number of theatres has gone down from 101 in 2005 to 60 now; in Kollam from 77 to 30; in Alappuzha from 56 to 28; in Pathanamthitta from 29 to 9; in Idukki from 40 to 13; in Kottayam from 56 to 26; in Ernakulam from 91 to 52; in Thrissur from 127 to 57; in Palakkad from 118 to 51; in Malappuram, from 101 to 53; in Kozhikode from 116 to 42; in Wayanad from 43 to 14; in Kannur from 91 to 33 and in Kasaragod from 40 to 12.

Legislature makes only noise Among the four proverbial pillars or estates of parliamentary democracy, possibly the press plays the most active and innovative role in Kerala. The innovative street-corner

election debates organized by the visual media were already commented on. With the State Government losing its planning and management capabilities, the print media with their popu-

Among the four proverbial pillars or estates of parliamentary democracy, possibly the press plays the most active and innovative role in Kerala. The innovative street-corner election debates organized by the visual media were already commented on. With the State Government losing its planning and management capabilities, the print media with their populist slogans play the role of development planners.

list slogans play the role of development planners. They help big capital, foreign as well as Indian, in promoting their business in Kerala, and simply upset social and developmental priorities of the state. The numerous development projects floated by the Cochin Port Trust (CPT) are typical examples. The CPT has turned a losing concern as a result; neither is it serving the development needs of Kerala. Ill-informed newspaper campaigns have often distorted the priorities in power, rail, highway and waterway development in the state. The Kochi Metro, a virtual product of newspaper activism, is not anywhere near the optimal solution for the traf-

fic needs of the emerging metro of Kerala. Smart City, which does not have a detailed project report even today, could be another god that failed. Development campaigns by the media are driven by their own narrow selfish interests, and targeted at the markets for circulation and readership. There is all-round confusion in Kerala about the role and functions of the four pillars or estates of parliamentary democracy and, as a result, the state machinery has turned totally dysfunctional and corrupt. The recently launched Fifth Estate Movement was based on the perception that parliamentary democracy, as practised in the state, was a big failure or non-performer. This discomfiture of our middle-classes is not confined to Kerala alone. We have seen and experienced the Anna Hazare phenomenon and the campaigns and fasting against corruption that drew support from large sections of our urban middle-classes. And, street meetings and demonstrations have suddenly caught the imagination of the middle classes all over the world.

PASSLINE

December 1 - 31, 2011

TRENDS

According to market analysts, the coffee chains market in India will witness phenomenal growth soon as overall consumer spending is increasing in the country. Rising per capita income, increased literacy and rapid urbanization have caused changes in demand patterns. The availability of more disposable income is driving consumers to experience high-end products. But the players in the industry need to be more innovative to gain a big share of the ever-growing coffee consumption market in India, say analysts.

Passline News Service

an you imagine a day without a morning coffee or tea? It would be a dull day for most of us. Having a tea or coffee at regular intervals is a habit of most Indians, particularly people in the South. Tea is the second most widely consumed beverage after water in the world. Similarly, coffee is also one of the most consumed beverages. However, these two beverages are not intoxicant; still the demand for these is higher than that for anything else. How did these beverages grab the interest of billions? A major ‘attraction’ is the content in them called caffeine, a stimulant. The consumption of caffeine-containing drinks or food would make people keep awake, alert as well as energetic. You would feel relaxed at the same time energized after a cup of coffee or tea. The content of caffeine is not equal in coffee and tea, coffee having more of it. Caffeine is most commonly consumed by humans in infusions extracted from the bean of the coffee plant and the leaves of the tea bush, as well as from various foods and drinks containing products derived from the kola nut. In humans, caffeine acts as a central nervous system stimulant, temporarily

warding off drowsiness and restoring alertness. It is the world’s most widely consumed psychoactive drug, but unlike many other psychoactive substances, it is both legal and unregulated in nearly all parts of the world. Scientists have developed various theories to explain caffeine’s “wake-promoting” power. The consensus today focuses on the drug’s interference with adenosine, a chemi-

Caffeine is most commonly consumed by humans in infusions extracted from the bean of the coffee plant and the leaves of the tea bush, as well as from various foods and drinks containing products derived from the kola nut. In humans, caffeine acts as a central nervous system stimulant, temporarily warding off drowsiness and restoring alertness. It is the world’s most widely consumed psychoactive drug, but unlike many other psychoactive substances, it is both legal and unregulated in nearly all parts of the world.

Coffee culture in the offing cal in the body that acts as a natural sleeping pill. Caffeine blocks the hypnotic effect of adenosine and keeps us from falling asleep. Since caffeine has also been shown to enhance mood and increase alertness in moderate amounts, it’s a potent potion for students and scholars stuck in the lab at three in the morning.

consumer is ready to spend more and be a part of global lifestyle and culture, coffee parlours in the country are on an expansion spree. From small-sized parlours to classy lounges leading coffee retailers such as Cafe Coffee Day, Barista and Costa Coffee have all been fighting hard to lure India’s growing middle-class.

Even though coffee is common everywhere, the trend now is for people to go to luxurious coffee shops, where you will find a variety of coffees. It can be said that coffee is a trendsetter. A number of coffee houses have been started across the country, especially in South India, where it is a favourite drink. Several of these are corporate chains. Despite the high rates, people are seen thronging these places.

India has emerged as one of the favoured destinations for coffee shops, popularly termed “cafes”. The coffee chains have witnessed robust growth and are expected to grow further. With the Indian middle-class

More than 1,200 cafes have sprung up across India in the past decade, mostly from six organized chains, clocking an average annual growth rate of 40%. They have made the cafe industry—currently capped at Rs 1,000 crore—one of the fastest-growing organized retail segments. Chains such as Cafe Coffee Day (CCD), which recently acquired Czech label Cafe Emporio, Barista and Costa PASSLINE

December 1 - 31, 2011

Coffee plan hundreds of outlets in major cities over the next two-three years, pinning their hopes on the deep pockets of India’s growing class of young professionals and students. Industry estimates show that there is scope for 5,000 or more outlets which can be strategically located near offices, colleges and shopping malls. That’s the space the foreign chains want to tap. New Delhibased research and consultancy firm Technopak Advisors says there are more than 1,500 coffee cafes in India at present. Of these, about 1,000 have opened in the past five years. Stirring up the market is India’s growing youth segment: some 50% of India’s 1.2 billion people are 25 or younger. By 2015, this is expected to increase to 55%. For this segment, particularly those with steady, disposable incomes, coffee shops serve as a social hub. In Kerala, there are few big corporate coffee shops. Other majors are planning to open their outlets eyeing the likely IT boom and other industrial initiatives in the state in the next five years. The existing coffee outlets are getting good response across the state particularly in Kochi. Almost all age groups, especially those between 18 and 35, are seen greatly interested in this newgeneration coffee culture.

NEWS

31 HAL production unit may be ready soon The strategic electronics manufacturing unit of state-run aerospace major Hindustan Aeronautics Ltd (HAL) at Kinfra Industrial Park at Seethamgoli near Kasargod may become operational soon. This is the first HAL manufacturing unit in Kerala, whose foundation stone had been laid by Defence Minister A K Antony on August 23, 2008. Coming up on 200 acres of land at an investment of Rs 200 crore in the first phase, during which period about 100 people will get jobs, the unit, on completion, is expected to employ 2000 people. Initially the facility will assemble, test and manufacture six types of air-borne mission computers and later shift to production of other systems and sub-systems for various aircraft, such as medium lift helicopter and fifth-generation aircraft. The unit is an extension of the Hyderabad Avionics Division, which manufactures a wide variety of electronic equipment in the areas of communication, radar, navigation, computers and electronic warfare.

HIGH-SPEED RAIL NETWORK Kerala Govt forms Rs 77,000-cr company The Kerala Government has formed a new public limited company, Kerala High Speed Rail Corporation Ltd, for implementing an ambitious high-speed rail network estimated to cost Rs 77,000 crore. The 630-km network will connect the state capital Thiruvananthapuram with Mangalore in neighbouring Karnataka in the north. The corridor will use a green field route to keep the rehabilitation task to the minimum. The width of the land required to be acquired for the corridor is 13 metres. The Kerala State Industrial Development Corporation (KSIDC) has been appointed nodal agency to develop the project and the Delhi Metro Rail Corporation (DMRC) assigned with the pre-feasibility study. The new company was formed on the basis of the pre-feasibility report submitted by DMRC, according to an official release. Further technical studies and economic evaluation are being planned, it said. The proposed corridor will have two parallel tracks in the standard gauge system as the case with Delhi Metro Rail. The high-speed corridor will have an alignment independent of the existing alignment of the Indian Railways in the state. The project will be implemented as a joint venture between the state government and a suitable private partner to be selected later. Mr T Balakrishnan, Additional Chief Secretary (Industry and Commerce), Mr Alkesh Kumar Sharma, Managing Director, KSIDC, and Mr T P Thomas Kutty, Executive Director, KSIDC, are the first Directors of the new company. The company will undertake detailed feasibility report for the project and identify suitable rail technology for implementing the high-speed corridor. Steps have also been initiated for release of a notification for the acquisition of the land needed for implementing the project. Thiruvananthapuram, Kollam, Kottayam, Kochi, Thrissur, Kozhikode and Kannur are the district headquarters proposed for the stations. The current rail traffic network in the State is very busy in the passenger and goods traffic and going to be busier in the goods transportation segment when the International Container Transshipment Terminal (ICTT) at Vallarpadam near Kochi is in full swing.

Farmers assured of fair prices A ffirming the the State Government’s commitment to protect the interest of farmers by ensuring fair prices, Chief Minister Oommen Chandy has said state-of-the-art warehouses will be set up to solve warehousing problems. The State will put in joint efforts with the Central Government to see that farmers are not exploited, he said delivering the keynote address at a seminar, “Commodity Futures Market with Special Emphasis on Natural Rubber”, conducted by the National Multi-Commodity Exchange of India Ltd (NMCE) and the Forward Markets Commission (FMC) in Thiruvananthapuram the other day.

in both rubber production and productivity and the contribution of rubber to the state’s agrarian society is very high,” Mr Chandy said. Welcoming the introduction of electronic price ticker boards in Kerala, the Chief Minister promised the State’s full support for identifying suitable spots to position them. Union Minister of State for Consumer Affairs K V Thomas who presided over the function said the Centre had allotted Rs10.5 crore to Kerala for starting 100 consumer clubs and for setting up effective helplines. Allaying fears that futures trading was responsible for price rise, he said futures trading was

being practised in many countries including China. A lump sum amount has been kept aside for conducting awareness campaigns on futures trading in the state, Mr Thomas said. Mr Ramesh Abhishek, FMC Chairman, made a presentation on how the commodity exchanges helped in price discovery and price risk management. Mr Rajiv Agarwal, Secretary, Department of Consumer Affairs, also spoke. A question-answer session followed in which representatives of rubber traders, small growers and the Automotive Tyre Manufacturers’ Association aired their problems.

About the lack of quality warehousing in Kerala, he said the Government would help to identify space for setting up state-of-the-art warehouses. On futures trading, he said that the effort should be to maximize benefits after discussions with stakeholder representatives. “Kerala has a high-ranking position

Chief Minister Oommen Chandy inaugrating NMCE seminar.

Divine programmes on ‘Goodness TV’ D ivine television programmes will soon be accessible on a satellite channel in the country with the inauguration by Chief Minister Oommen Chandy of Goodness TV of the Divine Retreat Centre, Chalakudy, on November 20. Mar George Alenchery, Major Archbishop of ErnakulamAngamaly, blessed the launch of the programme. According to Divine Retreat Centre sources,

with the launching of Divine Vision people can see the realization of the vision that God planted in us for the Word of God for every home across the globe. “Divine Vision is available as a free channel, it has no commercials and shall convey the gospel in the light of the teachings of the Catholic Church. We always knew that we should not put a price to the Word of God and that

any desperate soul anywhere in the world at a moment of distress can access the Divine Vision programmes and be comforted by the life-giving message of the Lord,” they say. Cardinal Leonardo Sandri, Prefect of the Congregation for Oriental Churches, had inaugurated Divine TV-Europe and the Middle East at Divine Retreat Centre on November 7, 2008, and

had encouraged the Vincentian Fathers to never tire in their mission to proclaim the Gospel to the ends of the earth. Divine TV went officially on air as a free channel on December 24, 2008 in the UK, Europe and the Middle East. It was launched in Canada and the US on May 25, 2009. Union Minister Vayalar Ravi and church dignitaries attended the inauguration ceremony.

CSL: 26th batch of marine engineers pass out T he passing-out function of the 26th batch of marine engineer trainees of Cochin Shipyard Limited (CSL) was held on December 8. The chief guest at the function was Mr Paul Antony, Chairman, Cochin Port Trust. There were 106 cadets. Mr Paul Antony also gave away prizes to the cadets who excelled in various disciplines. CSL’s Marine Engineering Training Institute (METI) had been imparting marine engineering PASSLINE

training to graduate mechanical engineers since 1993. The cadets passing out from METI will be qualified for induction as marine engineers in merchant ships. The duration of the residential course is one year.

Mr Antony Paul, Chairman, Cochin Port Trust, chief guest, at the passing-out ceremony of marine engineering trainees of CSL being led by Cmde K Subramaniam, CMD, CSL. Mr Ravikumar Roddam, Director (Finance); Mr P Vinayakumar, Director (Technical); and Captain R S Sundar, Director (Operations), are also seen.

December 1 - 31, 2011

The training imparted at METI has special focus on onboard training to the cadets to acclimatize them to the ship environment and onboard equipment. This stands the cadets in good stead for service on ships.

32 APPOINTMENTS

KFC bond issue collects Rs IOO cr Kerala Financial Cor-

BoB GM Mr S Kalyanaraman has been appointed General Manager (South Zone) of Bank of Baroda (BoB). He was Chief Executive of the bank in Hong Kong.

poration created history on December 8 with its entire bond issue of Rs IOO crore getting subscribed within five working days from the date of opening of the issue. The issue which comes from Kerala after a gap of six years evoked unprecedented response from individuals/PF trusts/societies/corporations and institutions across India. The major investments came in from Gujarat, Pune, Bangalore, Orissa, Jharkhand, Tamil Nadu and Kerala. Finance Minister K M Mani had inaugrated the bond issue in Thiruvanan thapuram.

KMML ED M r Sunil

Chacko has been appointed Executive Director of Kerala Minerals and Metals Ltd (KMML), Chavara, Kollam. He had been the General Manager (Finance) for the last three years.

“Considering the response and the faith people have in the corporation it has been decided to exercise the green shoe option of retaining another Rs 100 crore to give an opportunity for investors to be a part of the growth story of Kerala,” says the corporation.

been appointed Chairman of Kerala State Financial Enterprises (KSFE). He is the State General Secretary of the Kerala Congress.

Capt R S Sunder assumes charge Capt R S Sunder,

The corporation today is one of the healthiest and most vibrant organizations in the state and is considered to be one of the leading financial corporations in the country. “The success of the bond issue is also an indicator of the people’s faith in the improved fiscal performance of the Kerala Government, the professional management of KFC and the dedication of its employ-

ees,” says the organization. The corporation had come out with a bond issue of Rs 100 crore with a green shoe option of Rs 100 crore to tap the bond market in the first week of December. The bonds are in the nature of debentures with the unconditional, irrevocable guarantee of the Government of Kerala. Further,the bonds are redeemable, non-convertible and taxable and

are rated “A-(Sol)” by Brickwork Rating Agency Pvt Ltd. The face value of each bond will be Rs 10 lakh with an annualized yield of 10.23% and maturity 10 years. However the investor will have the option to redeem the bond at the end of the fourth year at 25% a year from the fourth year to the seventh year. The bonds will be listed on the Bombay Stock Exchange (BSE).

‘Small units answer to job creation’ “Small is still beautiful”, says Sir Mark Tully. “The small may not be fashionable in the global villages today, but is all the more relevant in the context of the global economic crisis, and much more in India,” said the veteran journalist delivering the “ISED (Institute of Small Enterprises and Development)–Annual Small Enterprise Lecture 2011” at the ISED in Kochi the other day. The ISED annual lecture is a focal point of debates on MSME policy and practice. This year’s theme was “Small is Beautiful”. “In most countries of the world today, the challenge is to create employment opportunities on a massive scale. The

India MSME Darshan 2011”. Mr Shyam Srinivasan, Managing Director & CEO, delivered the keynote address.

Sir Mark Tully delivering the “Annual Small Enterprise Lecture 2011” organized by ISED Kochi. Also seen in the picture are Dr G C Gopala pillai, Chairman, Indo-American Chamber of Commerce, Mr Syam Srinivasan, Managing Director Federal Bank, Dr Kabra, Chairman, ISED, and Dr P M Mathew, Director, ISED.

answer is small enterprises. There is no other course,” Sir Tully said. “Small enterprises are more creative and humane in the workplace. They have the great advantages of nurturing a sense of neighbourhood and community.

Airstrips planned in Kasargod, Wayanad Tourism Minister A P Anilkumar has said that the Government has plans to start airstrips in Kasargod and Wayanad for improving connectivity to draw more domestic and foreign tourists to tourism destinations in the region. “Work on these may begin this financial year. The Government has 60 acres of land 12 km from Bekal and another 40 acres will be acquired soon as 100 acres is required for the airstrip,” the Minister said at Kannur recently. He said 10 places had been identified for the proposed Wayanad

KSFE Chairman Mr P T Jose has

Policymaking should come down from the domain of economists to a multidisciplinary approach of learning from the people at the grassroots level. Policy should also come down from the extensive focus on GDP growth to more

people-oriented indicators. The event, organized by ISED jointly with the Indo-American Chamber of Commerce (IACC), also marked the deliberations of the all-India programme of the institute, “ISED-Federal Bank

Sir Tully also introduced to Kochiites the institute’s prestigious annual documentation, “India MSME Report 2011”. The report was earlier released at the national level, at the Commonwealth India-Small Business Competitiveness Conference at Bangalore in June this year. At the day’s deliberations presided over by the ISED Chairman, Dr Kamal Nayan Kabra, Dr P M Mathew introduced Sir Tully to the audience. The IACC Chairman and former CMD, FACT, Dr G C Gopala Pillai, also spoke.

ApolloTyres Q2 profit up by 46% Apollo Tyres registered 46% increase in its consolidated net profit at Rs 77.7 crore for the second quarter ended September 30, 2011 on the back of the robust performance of its European business. Apollo’s European operations Vredestein helped the company to maintain its bottom line. Vredestein contributed with a profit of Rs 55 crore. On the other hand, its PASSLINE

Indian operations were under stress during the quarter because of high natural rubber prices. The company had posted a net profit of Rs 53.2 crore for the corresponding period last year. Consolidated net sales also jumped by 47.3% to Rs 2,871.2 crore during the second quarter from Rs 1,948.9 crore in the same period last year.

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Indian Navy (retd), has assumed office as Director (Operations) of Cochin Shipyard Ltd (CSL) Kochi. In a professional career spanning over three decades, Capt Sunder has held various important positions in the Indian Navy. Before joining CSL, Capt Sunder was the Project Director for building 17 ships (stealth frigates) for the Navy at Mazagon Dock Ltd, Mumbai, and led the team to deliver two ships, INS Shivalik and INS Satpura, to the Indian Navy.

Jyothi Lal is Agriculture Secretary The Kerala Cabinet has decided to post Secretary (General Administration) K R Jyothi Lal as Secretary(Agriculture). His posting assumes significance as Mr Lal will be overseeing part of the implementation of the package for victims of endosulfan in the district. Mr Jyothi Lal signed the committee report on use of endosulfan when he was Director of Agriculture under the previous Oommen Chandy Government in 2004 as representative of Kerala Government in the committee.

TCL Chairman M r Antony Raju has been appointed Chairman of Travan core Cements Ltd (TCL). He is the State General Secretary of the Kerala Congress.

33 APPOINTMENTS

Emmanuval comes to Kochi B ollywood

Arthur Levinson in place of Steve Jobs Mr Arthur Levinson has been appointed Chairman of Apple Computers following the death of computer icon Steve Jobs in October. Levinson, 61, was the Chairman of Genetec International. He had been acting as the Director of Apple from 2005. Walt Disney Company CEO-President Robert Iger has been appointed Director of Apple .

Supplyco MD D r M Beena

has been appointed Managing Director of the State Civil Supplies Corporation (Supplyco). She will also have the additional charge of Vyttila Mobility Hub Society.

actor Shahrukh Khan inaugurated the Kochi showroom of Emmanuval Silks at an impressive function held at the Jawaharlal Nehru International Stadium at Kaloor on December 4. The showroom, situated near Edappally bypass and spanning five lakh square feet, is claimed to be the largest textile showroom in the world. It offers facilities for parking 1,000 cars at a time, a VIP lounge on every floor, fancy stores for matching ornaments, ATM, food court of 4,500 sq ft, kids’ play area, free internet café, state-of-the art interior, fulltime doctor’s service and prayer hall. According to Emmanuval officials, the showroom provides an international shopping experience

Abdul Azeez CREDAI Kerala Chairman Mr K V Abdul Azeez with facilities like handling of 200 wedding parties at a time, unmatched service by 400 staff members, all the national and international brands, availability of famous fashion designers and advice by famous models to select costumes.

Balakrishnan, Mr P Rajiv, MP, MLAs Benny Behanan and Anwar Sadath and Emmanuval Silks Managing Partner T O Byju were also present on the stage. Emmanuval Silks also plans to launch new showrooms at Thiruvananthapuram and Kozhikode and in Qatar.

Cooperation Minister C N

VYAPAAR 2011 from Dec 21-25 The trade show will host a diverse range of products, suppliers and service providers, ready to discuss and demonstrate their technology and expertise. It will also feature a wide variety of sessions related to one’s specific areas of interest. There will be participation by over 200 Indian and global companies, brands and organizations offering different products and services.

specific areas of interest.

VYAPAAR 2011, the trade show on ONE ROOF ASSIGNMENTS is a full technology, electronics, textiles, tourservice agency whose team has more than ism and kids, will be held from Decem100 professionals from different destinaber 21 to 25, 2011, at Mascot Hotel, tions with offices at Bangalore, Chennai Thiruvananthapuram. The show, being orand Dubai. With a regional presence for Siji Nair, ganized by ONE ROOF ASSIGNMD, One Roof India, about seven years, it has successfully conMENTS, Thiruvananthapuram, will host organizer of Vyappar 2011. ducted different projects for over 350 intera diverse range of products, suppliers national and local clients. It handles a diverse portand service providers, ready to discuss and dem- folio offering 360-degree solutions to a number of onstrate their technology and expertise. It will also industries, encompassing events, promotions, feature a wide variety of sessions related to one’s exhibitions and marketing.

Kerala Feeds Chairman Mr P C Joseph has been appointed Chairman of Kerala Feeds.

Leading share broking firm Acumen Capital Market (India) Ltd’s Angamaly branch at Thachil Tower near Little Flower Hospital being inaugurated by former minister Jos Thettayil. Angamaly Municipal Chairman C K Varghese, Acumen Director Arvindakshan Nair, Training Division Head Sanil Kumar, branch Manager Benoy Pankajakshan, Relationship Officer Raju Paul and Thachil Tower Association President K K Varghese are also seen.

JV by KSIDC, US firm for e-scooter unit The Kerala State Industrial Development Corporation (KSIDC) has signed a memorandum of understanding (MOU) with US-based Parallel Group to set up a joint venture (JV) to assemble and manufacture electric scooters and allied products in the state. The MOU was signed by Mr Dennis Gross, Managing Director, Parallel Intelligent Transportation,

and Mr Alkesh Sharna, Secretary (Industries) and Managing Director of KSIDC, in the presence of Kerala Industry Minister P K Kunhalikutty the other day. The JV will set up a production centre in the state. In the first phase, completely knocked-down (CKD) parts will be imported and the vehicles assembled and distributed in the country. In the next phase, the PASSLINE

CREDAI Kerala has 130 builders as members spread over Kochi, Thiruvananthapuram and Kozhikode.

According to the organizers, there will be participation by over 200 Indian and global companies, brands and organizations offering different products and services. Vyapaar Business sessions will provide ultimate opportunities to all the manufacturers, suppliers and endusers to interact with one another, say the organizers.

Travancore Sugars Chairman M r Paul Joseph has been appointed Chairman of Travancore Sugars Chemicals. He is the State Vice-Chairman of the Kerala Congress (B) and has served as the Chairman of Meat Products India and the President of the Muvattupuzha Bar Association.

(Skyline Group CMD) has been elected Chairman of CREDAI Kerala. Mr Raghuchandran Nair (MD of SI Property Kerala Private Limited) is the Secretary General. Mr K V Haseeb Ahmed (Managing Partner, Crescent Builders) is the Treasurer.

components and parts will be manufactured and in the final stage, the complete production stage will be established. KSIDC will arrange the required land for setting up the assembly unit. The state’s promotional agency will also provide financial support and other assistance to start the project in Kerala, according to sources.

December 1 - 31, 2011

James Valappila K3A State President Mr James Valappila, MD, Valappila Communications, has been elected State President of the Kerala Advertising Agencies Association (K3A). Mr P Sunder Kumar, Ramya Advertising CEO, is the General Secretary and Mr Raju Menon (Maitri) the Treasurer. The Vice-Presidents are Mr Sasthamanga lam Mohanan (Varna chitra), Mr Jacob Tharakan (Asia Ad) and Mr Ram Prasad (Calicut Publicity) and the Joint Secretaries Mr Muhammed Imthias (Sayanora) and Mr P Jayachandran Nair (Image Creations).

Seethram Textiles Chairman Mr Jacob Thomas Arikupuram has been appointed Chairman of Seethram Textiles Ltd, Thrissur. He is the Alappuzha District President of the Kerala Congress.

CSB to adopt 91 eco-clubs

SBI net up 12.4% State Bank of India (SBI) pegged 12.4% growth in net profit in the September quarter at Rs 2,810.43 crore, even as concerns over rising bad loans pulled down its share price recently by about 7%. However, on a consolidated basis, the bank reported a 48.60% jump in net profit for the JulySeptember quarter. Gross non-performing assets (NPAs) increased to 4.19% of total assets as at September end, from 3.38% a year ago. Provisioning of bad loans stood at Rs 4,664 crore at the end of September, an increase of 21% over the corresponding period a year ago. Shares lost over 7% following announcement of the result during the intra-day trade. The scrip later recovered some ground to close at Rs 1,862.50 , down 6.76% on the Bombay Stock Exchange. During the quarter, advances grew by 16.93% to Rs to Rs 8.10 lakh crore. Deposits too rose by 13.78% to Rs 9.73 lakh crore. Total income rose 23.43% cent to Rs 29,394.32 crore on a standalone basis during the July-September quarter this year. Total income of the group rose to Rs 41,249.08 crore during the period under review from Rs 37,925.44 crore in the same period last fiscal.

Soman Baby

Dr Sudhir Parikh and Obama Administration National Adviser Purnima Voria (both from the US) have also received the award. The awards were announced in Ahmedabad, Gujarat, by Vision Foundation founder Rotarian Naren Shah.

winning of online lotteries. To protect their interests, customers should take precautions prescribed by banks while using technology-based products like ATMs, internet banking, mobile banking etc, he said. He praised CSB for its corporate social responsibility activities. Mr V P Iswardas, MD and CEO of CSB, welcomed the gathering and Mr T S Anatharam, Director, proposed a vote of thanks. Mr V P Nandakumar, President, Trichur Management Association, felicitated the bank. The bank’s customers, well-wishers, directors, staff, retired employees and people from various walks of life attended the function.

Special deposit scheme: CSB has introduced a special deposit scheme for customers Mr Padmanabhan also delivered the 91st founchristened Interesting@91, according to which dation day lecture of the bank on “Recent Develcustomers will get 8.5% opments in Payment interest on deposits of and Settlement Sys91 days. For 991 days tems.” He asked and 91 months, the banks to leverage the rates are 10.25% and technology platform 10%, respectively. Seto ensure a reliable, nior citizens are eligible economic and effifor 0.5% extra in the cient payment systime slabs of 991 days tem for the common people and cautioned Mr G Padmanabhan, RBI Executive Director, inaugurating the 91st foundation and 91 months. The them against online day celebrations of CSB. Also seen in the picture (from left to right) are Mr T S scheme will be open CSB Director, Mr V P Iswardas, MD and CEO, Mr Bobby Jos C, only till December 31, attempts at fraud like Anatharaman, Director, and Mr V P Nandakumar, President, Trichur Management Association. 2011. e-mails regarding

Dhanlaxmi Bank bags award

WMC Visionary Award for Soman Baby M r Soman Baby, World Malayalee Council (WMC) Global Chairman and Bahrain-based Daily Tribune Managing Editor, has bagged the Non-Resident Indian (NRI) Visionary Award. Dr B R Shetty, Abu Dhabi-based NMC Healthcare Managing Director and CEO, is the other award winner from the Gulf.

Dr G Padmanabhan, Executive Director, Reserve Bank of India, recently inaugurated the adoption by Catholic Syrian Bank (CSB) of 91 eco-clubs at schools and colleges by handing over saplings to Mrs Shiby Antony and Mr Deepak Raj, Coordinators, Eco Club, St Thomas Thope High School, Thrissur, as part of its 91st foundation day. CSB will be associating itself with the adopted clubs on different school and college campuses to create awareness among students and the public about the need for environmental conservation, reducing CFC (chlorofluorocarbon) emissions, reducing use of plastics, undertaking social forestry and such other activities. The bank also distributed free solar study lamps to financially challenged students.

Dr Shetty

“NRIs who have demonstrated professional excellence and social commitment and contributed to enhancing the image of their country are being selected for the Visionary Award every year,” he said at a ceremony at Tagore Hall in Ahmedabad recently where the awards were presented. Gujarat Chief Minister Narendra Modi had accorded a reception in honour of the award winners at his office.

Dhanlaxmi Bank has won the Best Mid-Sized Bank Award in terms of growth, according to Business Today-KPMG’s Best Banks Survey of 2011. The survey, which covered 63 scheduled commercial banks, was conducted on three broad parameters—growth, size and strength. The data used was based on published annual reports and Reserve Bank of India’s Profile of Banks 2010-2011. Under the growth category, Dhanlaxmi Bank was given the award for its surge in deposits, loans and advances, fee income, operating profit, absolute market share of deposits and current account savings accounts, or CASA;

This is the second time in three years that the bank has been recognized as the fastest-growing midsized bank in India. It was awarded the Best Mid-Sized Bank Award under the growth category in 2009. The bank has also won the Information Week EDGE Award-2011 for using information technology to transform its technology infrastructure and maximize business impact. InformationWeek India is one of the leading IT magazines and is part of New-York headquartered Information Week.

SBT opens 11 new branches

Another vessel delivered Cochin Shipyard Limited (CSL) has delivered a platform supply vessel ‘Brage Supplier‘ to Brage Supplier KS, Norway. This is the second high-technology offshore vessel constructed and delivered by CSL this year. The protocol documents of the ship were signed by Mr Vinayakumar P, Director (Technical), on behalf of CSL and Mr John Nielson, representative of Brage Supplier KS. The vessel is of PSV 09 CD type designed by STX OSV Norway and classed under the rules and regulations of Det Norske Veritas and is flagged under the Norwegian regulations. The 86x19-metre vessel, a high-end diesel electric PSV, has four 1665KW diesel generator sets and two 2200-KW contra rotating propellers. It can accommodate 44 people. The shipyard is constructing two more of the same class of vessels for Norwegian owners.

three-year compound annual growth rate, or CAGR, of total deposits, loans and advances, fee income and operating profit.

Foam Matics Chairman Mr C Venugopalan Nair has been appointed Chairman of Foam Matics India. He is the State General Secretary of the Kerala Congress (B). He has been the Chairman of KLDC, Director of Oushadi and member of the Minimum Wages Board. PASSLINE

T he Thiruvananthapurambased State Bank of Travancore (SBT) opened 11 new branches on November 11, 2011 (11-1111). Of these, seven are in Kerala and four in Tamil Nadu. The bank is now in a branch expansion mode with a target of 1,000 offices by March 2012, according to Mr P Nanda Kumaran, Managing Director. It has also started commercial business group (CBG) branches to boost wholesale banking business at select centres. Initially, 11 branches located at important emerging business centres in the country have been included in the group. The bank already has commercial network branches in metros and large cities to cater to serve big companies. December 1 - 31, 2011

Dhanlaxmi posting for Ramesh Krishnan D hanlaxmi Bank has appointed Mr Ramesh Krishnan as Head of Treasury. Mr Krishnan was the Chief Credit Officer of the Bank of Maldives, and was also its acting CEO in Male for nine months. Announcing the appointment, Mr Manish Kumar, President, Human Resources, Dhanlaxmi Bank, said recently: “Mr Krishnan brings with him in-depth knowledge in diverse areas of treasury and risk management ranging from domestic markets to foreign exchange. His appointment will help the bank in strategically allocating its resources and hedge risks and enhance trading profits.” Mr Krishnan is a Certified Associate of the Indian Institute of Bankers (CAIIB). Foundation Day: The bank recently celebrated its 85th foundation Day. In the one-week-long celebrations medical camps were held under the aegis of various branches. Seeds and saplings were distributed. Social activities were also held focusing on geriatric homes and orphanages.

PASSLINE

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