Passline magazineJjuly - Aug 2013 issue

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From the Editor Trivializing the problem of poverty

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Editor & Publisher

Varghese Paul

Kannur Srikanth P 9846274973 Chennai Augustine Joseph Ph: 09381000534 Bangalore Jayachandran 0988699331 Manager-Marketing Sajan K 09895344485

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he Planning Commission recently ‘invented’ that the poverty rate in India has come down by 15% during the UPA rule. It states that the percentage of people living below the poverty line had come down from 37.2 in 2004 -05 to 21.9 in 2011-12—a decline of 15.3%, during a period that roughly coincides with the first seven years of the UPA rule at the Centre. In urban areas, the poverty rate fell 9.8 percentage points to 13.7 from 37.2, while in rural areas 16.3 percentage points to 25.7 from 42, according to the data released recently. These rates, however, are based on the poverty line figures of 2011–12 based on the assumption that anyone who spends more than Rs 33.33 in urban areas on food, education and health is not poor and those who spend Rs 27.20 per capita per day in villages also do not fall under BPL. The Planning Commission derived these figures based on the controversial Suresh Tendulkar methodology that evoked sharp criticism from civil society. There is no doubt that these calculations are utter nonsense and ridiculous, to say the least.

Kerala is one of the states which have formulated their own criteria to decide the BPL line with nine parameters and the families which meet four or more parameters are classified as BPL. But everyone knows that it is impossible for a person to live with Rs 33.33 per day in Kerala. Even canteens of Government departments charge Rs 30-Rs 40 for a meal. If you go to a cheap restaurant in Kochi you have to shell out a minimum of Rs 65–Rs 70 to have food three times a day thanks to the spiralling food inflation in the state particularly in cities. Even if you cook food at home it needs a minimum of Rs 100 for two people without eating pulses, vegetables, eggs, fish and meat to get the required proteins and vitamins. There have meanwhile been reports about tribal children in Attappady in Palakkad district dying of malnutrition. This is in a state like Kerala which boasts the highest human development index (HDI) in India. All this is an eye-opener for those who indulge in image-boosting exercises for the ruling UPA aiming at the 2014 election. Only people who shed crocodile tears for the rising poverty line and also fear that if poverty goes down or if the ‘oppressed masses’ are liberated they might be out of business and will face a sharp fall in their political and social stock at time will fall for such gimmicks. It is a happy sign that about 134.4 million people have been lifted above the poverty line over the seven-year period. Now, according to the claim of Tendulkar, the number came down to 269.7 million in 2011-12, a reduction of 33%, compared with 407.2 million in 2004-05.

Of course, the opinions about the method of calculating the poverty line may vary but there is agreement that the bar set is very low at Rs 33 when compared with the rising inflation. Though it is a commendable achievement, it still leaves some 270 million poor just hovering above that line and is likely to fall below it in a year of severe flood, drought or other calamities.

Let us wait for the revised Rangarajan poverty norms to be released soon and also hope that it will be more precise, realistic and pragmatic than the present window-dressing and booster for the UPA’s staggering image before the 2014 polls.

Kochi-682 036 Marketing : +91 484 4010075 e-mail : passline.com@gmail.com

Varghese Paul July 31 - Aug 31, 2013

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INBOX

Inquisitive policy As the new academic year is on the move the article on `Policies for Educational Risks’ (June issue) is timely. The table on insurance for arts and science students is very informative but inquisitive as it lacks details. As the courses span over 2 to 5 years, the sum insured and premium differ. For example, the total premium shown for a three-year course is Rs 555. Is this for the three-year period or for a year and which is the insurance company that offers such policies? As I am a regular subscriber of PASSLINE, I seek a reply through its columns and if the scheme is found viable I would like to contact the writer of these columns for more details.

Metro Rail model for development The last Emerging Kerala Summit held in September 2012 had put forward many viable projects in the industrial and tourism sectors. According to Tom Jose, Managing Director of Kerala State Industrial Development Corporation (KSIDC), development in Kerala is a tough task because of difficulties in acquiring acres of land, high cost and opposition from some people and vested interests (June issue). In this context he proposes a vertical model of development for a state like Kerala.

This is not the first time we hear about such a model for growth. On one occasion our Industry Minister P K Kunhalikutty was heard stressing this model while inaugurating an industrial complex at Angamali which was built in a similar fashion. Besides the vertical model, we find the Metro Rail model exemplary for executing a project in days instead of years and the countdown begins on the date of finishing the project. In the Metro Rail case it is targeted to be completed in 1,095 days. This mode of countdown will expedite its implementation and completion on fast track.

The Metro Rail model of development can be adopted not only for mega-projects but also for medium and mini-projects also.

V Srinivasan, Kanjoor

Gladwin George, Vallarpadom

NEWS BUSTERS

Amby is world’s No 1 taxi

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ndia’s Ambassador car is taxiing up to be the world’s best taxi. Once ubiquitous on Indian roads it has been billed as the best sturdy car in India from time immemorial in the nation’s automobile history. The stubborn and virtually indestructible Hindustan Ambassador car has now been adjudged the world’s best taxi.

Russia.The Ambassador started life in Britain as the Morris Oxford, but, with a quick name change, it went on to become one of India’s most enduring vehicles and called `king of Indian roads.’ It is also affectionately called Amby with 15 variants of price ranging from Rs 5.22 lakh to Rs 6. 32 lakh.

The car won the crown for the world’s best taxi at the Beaulieu’s World of Top Gear motorsport show by seeing off formidable rivals from Britain, America, Germany, South Africa, Mexico and

In the second instalment of the show, now in its 20th series, Top Gear’s Executive Director Richard Hamond organized a world taxi shootout to find which car could claim the crown as the world’s best taxi. And, the winner was India’s Hindustan Ambassador. This taxi will join a whole host of vehicles at Beaulieu created by the Top Gear presenters for some of their most ambitious challengers.

Of Bharat Ratna mettle

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etro Man E Sreedharan is in the news nowadays as the days for the completion of Kochi’s Metro Rail are set at 1,095 days—from Friday, June 7, 2013 when Chief Minister Oommen Chandy flagged off the work and announced its completion. This may be the first time that the people of Kerala, or perhaps the people of the whole country, were hearing of the new way of finishing a project days-vice. We are accustomed to ‘leaders’ laying the foundation stone of a project, which may take months or years for completion. Most probably, the foundation stone may soon be seen gathering moss and the project may either move at a snail’s space or end in limbo or a fiasco.

But in Metro Rail’s case Keralites are more euphoric than the hands behind it because the worldrenowned Padma Vibhusan E Sreedharan is the Principal Adviser for the project. And Sreedharan has set examples earlier, like in the case of the Pamban Bridge in Tamil Nadu. His achievements continued. In 1970,

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All-women bank CEO

sha Ananthasubramanian is to be the Chief Executive Officer (CEO) of Bhartiya Mahila Bank. Finance Minister P Chidambaram has identified the Executive Director of Punjab National Bank to be the CEO of the all-women bank which will apparently start its operations from Bangalore with six branches.

Currently Usha is heading the core management team which will be looking after all the operations so that the bank can be started according to the plan.

Once the Reserve Bank of India confirms the licence to start the all-women bank, the Government will officially announce the name of the CEO. Usha is a dual master’s degree holder in Statistics and in Ancient Indian Culture

he was put in charge of the implementation, planning and design of Calcutta Metro, the firstever metro in India. He was CMD of Cochin Shipyard in 1981 when the first ship, mv Rani Padmini, was built.

Though he retired, the Government needed his services and he was appointed CMD of Konkan Railway on contract in 1990 by then Railway Minister George Fernandes. Under his stewardship, the company executed its mandate in seven years. The project was unique in many respects. It was the first major project in India to be undertaken on a BOT (build-operate-transfer) basis; the organizational structure was different from that of a typical Indian Railway set-up; the project had 93 tunnels along a length of 82 km The total project covered 760 km and had over 150 bridges.

which she completed from Mumbai University. In 1982, she started her career from Bank of Baroda as a specialist officer in the planning stream. Since she has rich experience in the field of banking where she witnessed the formation of Bank of Baroda’s life insurance joint venture, her experiences will definitely help her handle situations better.

When the Finance Minister announced the allwomen bank in his budget speech this year, he mentioned that the bank would get an initial capital of Rs 1, 000 crore from the Government. After starting the bank’s operations in six regions, the branches are expected to increase to 500 within four years of its operation. However, the bank will have to follow the rules that are drawn by the RBI though there are no concessional rates for women.

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MONEY EXCHANGE

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urrency is essentially a medium of exchange and a measure of value. People are concerned about how much a unit of currency can buy. Inflation erodes purchasing power. The purchasing power of the currency also depends on the exchange rate. Depreciation of Dr V K Vijayakumar the currency, particularly if it is sharp and swift, can have profound consequences.

On June 11, the rupee hit a record low of 58.98 to the dollar before recovering to close at 58.39. The rupee has been sliding since early May. In May alone the rupee depreciated by 5%. From May 1 to June 11, the depreciation has been a whopping 7%.

Why is the rupee sliding like this? At what level will the rupee stabilize? What are the consequences of this slide?

These are the relevant questions.

Exchange rate is the rate at which one currency exchanges for another.

In other words it is the price of a foreign currency. For instance, if the exchange rate between the rupee and the dollar is $1= Rs 58, it means that Rs 58 is the price of one dollar.

Under a free floating exchange rate, as India now has, the value of the dollar, the world’s number one reserve currency, is determined by the demand for and supply of the dollar.

The demand for and the supply of the dollar depend on the current account; ie whether the current account is in surplus or deficit. If the current account is in deficit—the foreign exchange expenditure exceeding foreign exchange earnings—the demand for the dollar will be in excess of its supply and therefore its price goes up. Therefore, sustained current account deficit will depreciate the domestic currency. However, in the short run, the exchange rate is influenced more by capital movements and expectations than by the current account.

Currency crash: an emerging market phenomenon It is important to note that the present slide in the currency is not an India-specific phenomenon. In fact, it is an emerging market (EM) phenomenon caused by global capital movements. The currencies of most EMs had depreciated in May. See the table:

Depreciation from May 1 to June 11

Currency Depreciation (in %) Rand(South Africa) 11 Real (Brazil) 7 Peso (Mexico) 6 Ruble (Russia) 3 Rupee (India) 7 It is a fact that countries with higher current account deficits have been impacted more. South Af-

rica, which has the highest current account deficit among the above countries, has been impacted the most.

QE 3 taper—the trigger for the slide The trigger for the current wave of currency slides was the announcement in the last FED meet that the FED might consider tapering and slowly unwinding the QE (quantitative easing) programme, which had unleashed humongous liquidity into the global economy. Hints about the tapering and eventual unwinding of the QE programme led to capital flight from EMs depreciating their currencies and spiking the bond yields in the US. The FED hinted at the taper on signs of American economic recovery. Expectations that the FED will slowly tighten monetary policy led to spike in bond yields (decline in bond prices). Capital flight from EMs weakened their currencies. Countries with higher current account deficits, like India, were hit harder.

In India, the rupee slide gathered momentum when FIIs started selling in debt due to declining yields in India and rising yields in the US. The yield

on 10-year US treasuries which was hovering at low levels (1.32% in June 2012) rose to 2.25% on June 11. This was in contrast to the decline in bond yields in India. India received around $10 billion of FII investment in debt during the last 18 months. Of this, $4 billion has already moved out impacting the rupee.

The impact The slide in currency is not an unmitigated disaster. It has its advantages, the most important being enhanced export competitiveness. The slide in the rupee will be a blessing for India’s exporters particularly in the IT, pharma and textile industries.

It will also augment the remittances into the country from abroad. This will benefit states like Kerala. The higher cost of imports will make domestic companies more competitive.

The worst negative impact of rupee depreciation is the inevitable ‘imported inflation’. When the cost of imports like crude increases, it will raise transportation costs leading to cost-push inflation. Consumer states like Kerala, which depends on other states

for most of consumption, will be impacted by the increase in petroleum prices. Higher crude prices will also lead to higher fuel subsidies and thereby to higher fiscal deficit.

Companies with foreign debts on their balance sheets will be impacted by higher debt servicing. The foreign debt servicing of the Government will also increase.

Limits of intervention The ‘free float exchange rate system’ that India has is, in practice, a ‘managed float system’ where the Central Bank intervenes to stabilize the currency during times of extreme volatility. Since sharp appreciation and depreciation of the currency are undesirable, the Central Bank intervenes by buying and selling dollars in the foreign exchange market. On June 11 the rupee recovered by 60 paise when the RBI intervened and sold dollars. But this intervention will be effective only if the Central Bank has adequate foreign exchange reserves. Even though India’s foreign exchange reserves are adequate from the macroeconomic perspective, it is not good enough for effective intervention. Presently, the transaction volume in the foreign exchange market is around $70 billion. The RBI can intervene effectively only if it can sell $2 to $3 billion a day for a few days. The RBI doesn’t have resources for an intervention of that magnitude, particularly when there is a global trend of capital movements. That’s why RBI Governor Subharao said “no intervention is better than failed intervention.”

Government measures The Government can mitigate the problem through a combination of short- and long-term measures. Increasing the import duty on gold, as the Government did recently, can have only a marginal impact. Expecting a spurt in exports in the present scenario of a sluggish global economy will not be realistic. In the short run, the Government can go for an NRI bond issue to raise some dollars. The long-run solution to the problem is to bring the current account deficit under control, to say, 3% of the GDP from the present 5%. This will require substantial reduction in gold imports. The Government will have to focus more on inflation control so that the investment-demand for gold (as a hedge against inflation) declines.

Since India has a high and unsustainable current account deficit, we are vulnerable to capital outflows.

If the announcement of tapering of QE leads to capital outflows from emerging markets, India is likely to be impacted and the rupee will depreciate further. On the other hand, If India can get back to more than 6% growth soon, it will again become an attractive investment destination. With a liberal FDI policy and high growth, we can attract substantial capital flows into the country. This will stabilize the currency in the medium to long run. However, in the short run, some volatility and its consequences appear inevitable.

(Dr Vijayakumar is Investment Strategist, Geojit BNP Paribas) July 31 - Aug 31, 2013

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COVER STORY

Passline News Service

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and many other parts of the world are not favourable for Keralites to thrive in those places. Government estimates show that some 50,000 unskilled and semi-skilled people have reached the state. But the actual figure may be much bigger. “The Government can easily tackle this situation if the Industries Department and its bureaucrats heed the demands for the urgent need to revive the SME sector since the state is facing an acute shortage of labour. Business and industry totally depend on migrant labour for their requirements. The labour intake of large industries is minimal because most of those units are highly mechanical” says K P Ramachandran Nair, President of the Kerala State Small Industries Association (KSSIA).

sector. This means that only an abysmally small number of enterprises in Kerala are in the manufacturing sector.” KM Nair added.

he Government is always boasting about the ‘single“Unless immediate corrective steps window clearance’ meant for are taken to build up the manufacturhassle-free formation of an industry at ing base, the state is sure to encounall its industry and investor meets. But ter a miserable economic setback. The there is no such facility in our state. It trend can be reversed only when we is only on paper and the speeches of learn to assimilate the entrepreneurial the authorities. All our departments are culture and stop the divide between scattered, with the different portfolios a muthalali (even a small proprietor headed by separate ministers. There with less than a Rs 1-lakh investment is no coordination among them. If an is treated as one) and a thozhilali (he investor sees trouble here he will shift may be a person earning lakhs) is syshis investment plans to other states tematically addressed in our political because of the harassment of departsystem.” KM Nair warned. ments. Kerala is one of the worst examples of “The Government is always boastthis. There is no point ing about the ‘single-window clearin conducting investor ance’ meant for hassle-free formation meets etc to showcase of an industry at all its industry and the state without makinvestor meets. But frankly speaking, “According to the ing a congenial atmothere is no such facility in our state. It is fifth census of MSMEs sphere in the state for (micro, small and me- only on paper and the speeches of the investors, particularly dium enterprises), there authorities,” says Ramachandran Nair. for SMEs. K P Ramachandran Nair are about 260 lakh such “All our departments are scattered, Because of the lack units in the country. Of with the different portfolios headed by of infrastructural facilithese only 15.64 lakh separate ministers. There is no coordities, Kerala is not the place for large- are registered ones and almost 95% nation among them. If an investor sees scale industries, but is ideal for small- are micro enterprises. The sector ac- trouble here he will shift his investment scale units. But this sector is also not counts for 8% of the GDP and employs plans to other states because of the productive. Unless something is done, over 732 lakh people.” Says K M Nair, harassment of departments. Kerala is one of the worst examples and immediately, there will be little former Country Head of of this. There is no point in left in the state, only the educated Small Industries Developconducting investor meets unemployed. So when capital is shy ment Bank of India (SIDBI) or any other propaganda and large industries refuse to flourish, and former Managing Dito showcase the state withwhether because of workers’ volatility rector of Kerala Financial out making a congenial ator other geophysical factors, small and Corporation (KFC) mosphere in the state for medium ventures alone can gainfully investors, particularly for “Kerala has about 15 employ the swelling ranks of the jobSMEs. Our association is lakh MSMEs out of which less force in the state. fighting for it and as an iniabout 1.5 lakh are regisThe Kerala State Small Industries tered and the remaining tial step we have submitted K M Nair Association (KSSIA) has submitted a unregistered. Going by staa five-point proposal to the five-point proposal to the State Gov- tistics, the state accounts Government. Till now, we ernment in order to rejuvenate the al- for 10% of the registered MSMEs in have not received any response from ready beleaguered small and medium the country, next only to Tamil Nadu, the authorities,” Ramachandran Nair enterprises (SME) sector, the largest Gujarat and UP. However, 99% of the says. provider of employment, after agricul- registered units and almost the entire The main hindrance to the growth ture, in the state. The recent unprece- set of unregistered ones are micro endented exodus from the Gulf countries, terprises. That leaves just about 2,500 of the SME sector, it is pointed out, especially from Saudi Arabia, because units in the small and medium catego- is the mountainous range of formaliof their governments’ policies to em- ry. Interestingly, almost all the micro ties awaiting it from the very primary ploy locals in preference to foreigners enterprises and some of the SME units stage. They start with getting the proand the recessionary trends in the US would fall in the segment of the service visional registration; submission of

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the application for land allotment in the specified industrial area preparation of the project report and its submission to and approval from the District Industries Centre (DIC) preparation and submission of the building plan for approval by the DIC and the panchayat/local body for the factory getting loan from financial institutions for construction getting approval for water and electricity connections etc.

of sacrifice is made and many hurdles are crossed, what awaits him is that he ceases to have little right in the unit he has built up and is at the mercy of political parties. Even for financial requirements he has to give collateral security besides the primary security of all his industrial assets. Even interest reduction for small units is only on paper.

When regular employees are there, it is barbarous for politically supported trade union militants to seek loading and unloading rights.

trade unionism to create a congenial atmosphere for productive work and leave the SSI sector alone, the Government can even withdraw the so-called concessions and jut leave land, electricity and water at reasonable rates.

Rules and regulations are there for running the units, for the wellbeing of the employees and for enabling the Government to earn revenue, but nowhere is there any intention of protection of the entrepreneur.

Though the small-scale sector generates more employment per unit of capital employed thus reducThe Government is very keen to In the circumstances, to bring ing unemployment by using more plug loopholes in small-scale units, confidence among the people and manpower per unit of production and but it is disheartening that little rethe entrepreneurs, political interfersupplies small quantities of specialized production in which large units will not be interested as The following are the proposals submitted by they believe in bulk production, the Kerala State Small Industries Association (KSSIA) to the State Government: it lacks protection and support 1. Make awareness among the general public and the bureaucrats that the existence of the small-scale sector from the Government. As a reis inevitable for the economic as well as the social sector development of the state. Pseudo-environmental sult of this, the number of sick lovers are creating havoc for the smooth functioning of industries by raising namesake environmental issues. units in the small-scale sector Bureaucrats are also considering the entrepreneurs as second-class citizens and people who are doing has increased phenomenally something untoward to society. This attitude must change, for which the Government should make clarion over the years. calls among the general public and urge the bureaucrats to expedite matters pertaining to industries.

The rulers in the state 2. A slogan has to be developed for the betterment of the SMEs in the state proclaiming the necessity of indusseem to be not caring about trial development in the state. The protection of the industry by the legislature is the need of the hour. the needs and problems of the 3.

A firm and specific industrial policy must be evolved for the SME sector with the consent of industrialists. It small entrepreneur who starts a includes the approval and licensing of respective industries, land allocation, coordination of different departventure not only to support himments, rules regarding the labourers and employees etc. self but to provide employment 4. The infrastructure must be developed for SMEs throughout Kerala. The Revenue Department must identify to a few others. They also seem Government land in each district suitable for industries. There are a number of illegal encroachments in every to be unaware of the risks innook and cranny of the state. The Government must retrieve them. To avoid public ire the Government must volved in starting a unit and the provide forest land for industries having toxic effluents or odour without endangering the environmental balliabilities forced upon the proance. moter. A small unit’s liabilities are more than a builder’s or a 5. The Government must sponsor and conduct national and international workshops and technological expos contractor’s. The latter’s liabiliexclusively for the sector. It should also provide opportunities for exhibiting our products at the international ties end once the contracted arena and conduct B2B meets for easy access to outside markets. Technology must be another gray area work is over, whereas the inwhich needs huge investment. The Government must provide a platform for the industry for easy access of dustrialist has to shoulder the technology providers for technology transfer. The association is anticipating some fresh measures from the burden till he breathes his last.

State Government to polish its image and convince investor-aspirants that the state is emerging fast to be an Living standards and wages in MSME-friendly one. the state are much higher than elsewhere in the country and hence the cost of production and ence in the SSI/SME sector should gard is paid by public servants to sale prices tend to be up—a factor be curbed. The incentives given are spend/utilize money purposefully. which cannot be overlooked making nothing compared to the risks and It is time we thought out a soluresponsibilities the entrepreneur has the venture a profit-making one. tion to bail this small-in-name but to shoulder and the mental agony he Once an entrepreneur’s dream undergoes. So if political parties are big-in-size segment of industry out project becomes a reality, after a lot prepared to sacrifice their militant of the plight it has fallen in July 31 31 -- Aug Aug 31, 31, 2013 2013 July

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MANAGEMENT GURU

Debashis: IIMs help empower women IIM-Kozhikode has become the first IIM to get operational autonomy. How do you evaluate this and what makes the institution different from the other IIMs in the country?

IIM-K now has specific functional autonomy in terms of appointment of Chairman of the Board of Governors and Directors. We have also been given autonomy in respect of appointments of personnel or professionals.

IIM-K is the first IIM in the country to go digital.

Is IIMK’s tie-up with Leeds B-School part of academic collaboration with foreign universities?

Passline News Service

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ebashis Chatterjee, Director of the Indian Institute of ManagementKozhikode (IIM-K), is an internationally acclaimed management guru. In an exclusive interview, he discusses the present status of management education in the country with particular reference to that at IIMs and IIM-K and how these institutions groom and mould entrepreneurs and managers, especially women. Excerpts:

We have had this academic collaboration for quite some time. Academics from Yale, Harvard etc have been visiting IIM-K. Our basic mission is to globalize Indian thought, which helps to balance agility with stability, hitech with hi-touch and equity with excellence.

Do you have any plans to start campuses abroad?

There is no need to start brick and mortar campuses abroad when advanced electronic infrastructure is available. We have a new continent called the internet, which has no geography and can consistently exchange ideas. It is a campus on its own which has multilocations, and multiple agencies are connected to it. We are taking our ideas abroad through cyber space.

You have 35% women at IIM-K. Do you think women make better managers?

In a broad sense the world is moving into the future with the kinds of jobs that are available today. It is important to realize that these jobs involve balancing of multiple situations, priorities, sensitivities, emotional resonances and their complexities. Commitment to ecology is also important. Women tend to have these qualities much

Debashis Chatterjee

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more than men. There are also fundamental differences between women and men in how they lead. Men like to lead from the top to the bottom, whereas women lead from the centre. This centre is connected to every field. The model of organization of the future will give attention to the nucleus at the centre to the periphery because technology has flattened the hierarchies. So women find it a natural space for them to migrate to.

How do you help encourage entrepreneurs?

Entrepreneurs are creative people, like poets or painters. They become entrepreneurs by virtue of their heart.

We create contexts for them to flourish. Entrepreneurial energy is already in the system. For students at B-schools we facilitate the process, provide the right structures and opportunities, connect them to established entrepreneurs and give them insight and input training.

This year you have come up with a long-term woman empowerment programme for high-potential women.

What is the intention of this?

It was Kerala’s Social Welfare Minister K M Muneer who conceived the idea. IIM-K is an institution that looks at gender diversity as a serious issue.

Actor Revathy flagged off the marathon to create aspirations that make women realize that the world is changing, India is changing. This century largely belongs to them, and they don’t have to be constrained by social and political barriers. In 10 years, India will attain the position of being the third biggest economy. Fifty percent of its population cannot afford to sit at

9 home. IIM-K gives exposure to right, talented girls and provides them with the necessary skills. We give 20 scholarships to the best-performing students every year; of these 50% are girls although our composition is 35:65. If you give them equal opportunity they will do very well. India needs to give women access, opportunity and aspiration.

Then they will do better than boys.

Tell us about the diversity that you bring about in the subject profile of students.

The analytical quantitative capabilities of engineering students are good for cracking tests.

But when it comes to managing people, these will not help. One may need other kinds of capabilities. We wanted diversity of subjects, and wanted learning to be made more interesting and meaningful. We have students from medicine, architecture, arts, science and commerce.

So an IIM classroom is a mix of subject diversity, gender diversity and different nationalities with some 10% being foreign students. For the first time CAT (Common Admission Test) is going ‘international’ by competing with GMAT (Graduate Management Admissions Test).

Infosys mentor Narayana Murthy said that American universities focus on solving problems and relating theories to reality. Both these aspects lack in Indian education. What do you think?

I totally agree with Narayana Murthy, but he did not have IIMs in mind. IIMs are fairly practical.

The Indian system used to be largely based on conceptual knowledge but the situation is changing very quickly. Institutions now offer highly pragmatic courses. I think things are getting changed.

Do you think that mushrooming of B-schools will affect the quality of management education?

The mushrooming of colleges has diminished but the quality of education has not been affected. When students can no longer connect their education with job prospects, they naturally will abandon the institutions. Large numbers of engineering colleges have been closed down recently, and the same will happen to management schools. If they don’t live up to the expectations of students and don’t provide value for money, they will close down.

Fluctuations in the economic sector cause constraints to recruitment, ie students lose multiple choices. What is IIM-K’s agenda to overcome this?

Economies always fluctuate. But it is good for students as it makes them more competitive. Recession helps us to test our capability. Even in times of recessions we have lots of job offers and increases in salaries. So a recession will separate the capable from the incapable and also helps you to have a more realistic appraisal of yourself and your future.

How do you introduce your academic and professional talent into IIM-K? We are always looking for multidimensionality. I always think myself as a student of life. You are created by the universe so you have to create something in life. The only way we have to leave a mark is: you have to be unique. So to translate the desire for multidimensionality, you can be a painter and a manager. These are aspects of many facets of life which enrich the experiences of life. At IIM-K, we have professors for literature,

history and for the social transformation of India all of whom will enrich our classroom, and help you to be a fully functional human being. Please tell us about your books.

I have finished the book called Timeless Leadership. It got endorsement from Narayana Murthy and is being published in the US and Singapore.

The book is dedicated to Lord Guruvayoorappan.

It says that it is a corporate Kurukshetra that is prevailing in India now and it is the battle of the minds. It is the mind that will win the corporate war. We will soon have a global edition including one in Russia.

What are IIM-K’s future development plans?

I want this institution to have an extraordinary impact. We are not just talking about finishing a curriculum. Our students are our creations. They should go out and take the mission out. We want our students to run for government, run MNCs, do something for themselves and be successful in different dimensions. We have a vision for 2047 when we will be 50 years old and independent India will be 100. There will be a legitimate place for IIMK. Do you have message to IIM aspirants?

IIMs are great institutions. Only one out of 600 applicants gets admission there. My message is for those who can’t make it: IIM is not the limit of the world, there are many opportunities waiting outside. Our job is to provide value for many and value for money. I congratulate those 360 who make it. I also congratulate those who do not make it because they still have the hunger for achievement

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RESORTS

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T

he voluptuous beauty of the Arabian Sea along with the enchanting greenery around turns Kovalam a perfect location for tourists visiting the southern tip of the Malabar coast. A beach with unearthly charm, a high rock promontory, a calm bay of blue waters and sights of the waves lashing at the rocks naturally make Kovalam bewitching. The beach also abounds with richly gilded hos-

heart of this world-renowned beach village stands Uday Samudra (popularly known as UDS) Leisure Beach. Hardly 15 minutes away from the Trivandrum International Airport and a stone’s throw from the beach front, UDS is nothing less than a golden feather in the cap of Kovalam beach. The exuberant hospitality offered by the angelic beauties of UDS throws a wind of relaxation to people who come from across the globe. With its sleek and stylish design, this four-star hotel, located just 15 metres from the

its products and services and has placed it at the top position in Kovalam.

Overlooking the seafront, UDS is characterized by its charming coconut grove. Adding to its attraction are the pool and the beachside dining facilities.

Everything at UDS—the ambience, people, spa, cuisine and its whole philosophy—is dedicated to your personal wellness, in a luxurious environment. Since the landscaping has its own serenity, as it features harmony of a defined architecture, spacious lawns, blue water pools, you can feel your stresses starting to flutter away.

Rajashekharan Nair, Managing Director, RR Holiday Homes, which owns UDS, believes that true world-class status is achieved only when a hotel or a resort combines the tradition of its host community, with exceptional service, luxurious living conditions and incredible attention to detail. This distinction has elevated UDS into the upper rank of hotels for sophisticated travellers from around the globe.

Rajashekharan Nair and wife Radha Nair (film actress of yester year) receiving the World Luxury hotel award pitality ventures. It is also finding a new significance in the light of several salons and recuperation and regeneration resorts which provide a wide variety of ayurvedic treatments for tourists.

An epitome of traditional hospitality right in the

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July 31 - Aug 31, 2013

sea, can well be categorized into a destination in itself. Its philosophy of combining the best elements of incomparable lifestyle with the convenience of today’s modern world through exceptional standards of luxury, elegance and services is well reflected in

Spread in four acres, UDS comes with 207 units of accommodation facilities comprising three presidential suites, deluxe suites and an exotica atrium.

Each unit is beautifully appointed, spacious and decorated with an excellent view of the sea, swimming pool and garden.

Christened Marigold, Hibiscus and Bougainvillea, UDS’s presidential suites are exquisitely finished and offer a breathtaking view and unmatched facilities.

They come with a large living area, a dining area, a

11 separate guest restroom, a reception area and a spacious balcony facing the sea. All rooms are equipped with modern communication amenities, mini-bar and Jacuzzi, adding more spice to the luxurious stay. While its deluxe suite rooms are air-conditioned, luxuriously finished and supplied with branded amenities, its suite rooms are known for their elegant Scandinavian designs and classic decor.

If you are the one who likes to be away from the crowd, then you can opt for the Exotica Atrium, which offers a panoramic view of the swimming pool and backwaters. Situated in an ecofriendly zone and near the poolside dining facility, these rooms are priced in the medium range. You also have another option in Exotica—it offers premium accommodation, where you can enjoy an unhindered view of the sea and the pool.

To offer a pleasant stay, UDS has in it a number of multi-cuisine restaurants, offering a lavish and an elaborate a la carte and buffet spreads for breakfast, lunch, dinner and special occasions. At the restaurants you can savour your delicious food listening to the live band. One option for dining is Cafe Charlie, UDS’s exclusive western model coffee shop which offers a variety of European culinary delights in a casual and intimate setting. Here you

can dine outdoors, enjoying panoramic views and fresh sea breezes.

At UDS, you can also dine at its multi-cuisine restaurant Grass Hopper, discovering the exotic blend of Chinese, Continental, Italian, Mughal and Kerala cuisine, in a traditional ambience. Set in a lively atmosphere, the restaurant offers all kinds of culinary delights. Grass Hopper also provides the view of the gleaming swimming pool, surrounding green lawn and bewitching beach beyond.

If seafood is your craving, head to Aqua Marine for a seafood fiesta. Aqua Marine serves a host of mouth-watering Kerala seafood delicacies and here you can savour delicious prawns,

shrimps, cuttlefish and lobsters. UDS also houses a lounge, its snack bar that serves pizza, burger, sandwich etc, and a grill, its unique restaurant

that serves seafood grills and continental delicacies.

Other than quality accommodation and dining options, UDS also offers ample infrastructure to make your stay at the hotel a memorable one. In fact it is the only hotel in Kerala with three magnificent swimming pools facing the sea. The poolside sunken bar will allow you to enjoy your drinks, while utilizing the pool to your taste.

travellers across the globe, moves are now on to build his space in his own state’s hospitality sector, with a new project at Shankhumugham and eyeing destinations such as Alappuzha and Wagamon to launch new projects.

Uday Suites, the only four-star business class airport hotel at Shankhumugham balances the style and hospitality of an intimate hotel with the space and comfort of elegantly appointed luxury suites, specializing in stays of a week or more.

Uday Suites is the new addition to the World Luxury Hotel Award-winning Uday Samudra family. The majestic construction, the garden and the large pool create a calm and an idyllic ambience. The multi-cuisine restaurant offers an elaborate a la carte and buffet spreads for breakfast, lunch, dinner and special occasions. With a personalized service from a well-trained staff, it is made a memorable experience.

The modern stylish design of Uday Suites creates a dynamic blend of a resort and a business hotel, making it unique. Uday Suites helps achieve a business traveller’s dream—combining work and pleasure. Ayurveda spa, health club and pool give immense relaxation possibilities to a traveller.

By venturing into the education and flight catering fields, Rajashekharan Nair has clear intentions to diversify his business into different horizons. One of the major projects in the pipeline is a convention centre, with a capacity to accommodate more than 2,000 people, at Kowdiar, near the Golf Club, Thiruvananthapuram. Next project is a catering college, again, in Thiruvananthapuram.

In spite of his tight business schedule, family comes first to Rajashekharan Nair. He is married to Radha Nair, a famous and much-admired South Indian film actress of yesteryear. They are blessed with three children

To cater to the growing need for wellness/health tourism, UDS houses an Ocean Spa, an Ayur Ashram, a health club and a beauty parlour. At Ocean Spa, you can experience the soothing natural and traditional techniques of Thai healing, while Ayur Ashram provides all the age-old techniques of ayurveda, including ayurvedic massage, herbal treatments and rejuvenation therapy.

It was after cementing his place in Mumbai that Rajashekharan Nair returned to Kerala. If destiny had forced him to go to Mumbai penniless, it was with grit and determination that he returned to Kerala.

His hardships and episodes of life in Mumbai had taught him many lessons and turned him into a man of clear vision.

Today, with over three decades of experience in the hospitality sector and several accomplished projects to his credit, Rajashekharan Nair can well be regarded as a synonym for success.

He operates four hotels in Mumbai, under Nair Estate and Hotels, and one brand in Kerala, under RR Holiday Homes. Having established UDS Kovalam as a preferred destination for July 31 - Aug 31, 2013

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POLITICS & POLICIES

Will the UDF deliver?

P C Cyriac erala’s United Democratic Front (UDF) Government has completed two years, despite a wafer-thin majority in the Assembly and the many controversies that it has had to face. Chief Minister Oommen Chandy who began a new innings with the motto, athivegam bahudooram (very fast and very far) had chosen an innovative mass-contact programme as his opening salvo. He went to each district headquarters town and met petitioners along with the officers from the various departments of the Government, heard their grievances and issued orders on the spot wherever possible and followed

K

During the current UDF tenure, though the CPI (M) tried to launch two agitations, they were shocked to find that they could not mobilize the cadres for the agitations as they were totally demoralized by the factional fights and the TP murder case. Taking advantages of this serious discomfiture of the CPI (M), the UDF Government should have gone ahead with the policy decisions essential for the long-term healthy development of Kerala and for revamping its agriculture, industry and infrastructure.

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up the other cases till final orders were passed. At each centre, he began the proceedings early in the morning and continued without any break through the day and into the night, ending the sessions only by daybreak—a phenomenal display of endurance, patience and firm commitment and determination to solve problems and bring relief to the aggrieved. No doubt, there was criticism that the Chief Minister was doing the work of the village officer, the tahsildar and the police inspector and wasting his time. But, by this venture which won international acclaim, he created for himself and his Government an enormous amount of goodwill.

And when the Chief Minister declared that his office would function in the most transparent manner and went on and installed even a web-camera in his office room, webcasting the proceedings there to the whole world, throughout the day, it created a terrific impression. (No wonder, the Opposition is trying hard to exploit the ongoing ‘solar scam’ to tarnish the image of the Chief Minister).

Another favourable development for the UDF was the very serious crisis which the Opposition LDF found itself in. Actually, the crisis was that of the CPI (M), where the two factions led respectively by party Secretary Pinarayi Vijayan and Legislature party leader V S Achuthanandan were in conflict. The ruthless attitude of the party leadership which acquiesced in the cold-blooded daylight murder of the dissident leader of Onjiyam, T P Chandrasekharan, was an eye-opener for the people of Kerala. The Marxist Party leadership could not at all present before the people a convincing explanation for the involvement of the party cadres in this gruesome murder.

This made the Opposition LDF lose its credibility in the public eye. Naturally they were on the defensive and could not take on the Government for their many acts of omission and commission. (The extraordinarily virulent campaign about the ‘solar scam’ that the CPI (M) has presently mounted could be seen as a desperate attempt by the party to come out of this defensive rut that it has fallen into).

In the past, the UDF Governments in Kerala was always prevented from taking up and implementing any new policy initiatives by the determined LDF in opposition. All attempts to implement reform measures or policy changes by the UDF Governments through the years were stoutly resisted by the LDF which used to indulge in no-holds-barred, violent agitations.

July 31 - Aug 31, 2013

But during the current UDF tenure, though the CPI (M) tried to launch two agitations, they were shocked to find that they could not mobilize the cadres for the agitations as they were totally demoralized by the factional fights and the TP murder case. Taking advantages of this serious discomfiture of the CPI (M), the UDF Government should have gone ahead with the policy decisions essential for the long-term healthy development of Kerala and for revamping its agriculture, industry and infrastructure. The Chief Minister and his team totally failed to seize the opportunity and rise to the occasion and take any such initiatives.

Instead, they engaged themselves in pointless and frivolous internal disputes like the Muslim League’s fifth Minister issue, the Balakrishna Pillai-Ganesh Kumar tussle and the sex scandals involving Ganesh Kumar and the PAs of the Chief Minister.

What exactly are the major issues affecting the state which the Government should earnestly take up in the long-term interest of the state, at this juncture?

In Kerala, the primary and secondary sectors of the economy, agriculture and industry, have both collapsed. The farmers who cultivated paddy and coconut, the most important crops of Kerala from time immemorial, are in distress and the area under both the crops has come down. For example, paddy which was cultivated in eight lakh hectares in 1956 (when Kerala state was formed) has shrunk today into only 2.50 lakh hectares. This drastic reduction in area under the crop is the achievement of the militant trade unions in Kerala’s granary of Kuttanad. And when faced with a shortage of labour in the farm sector, the Government failed to facilitate the unhindered utilization of farm equipment and machinery. In fact, when the desperate farmers tried to bring in machines like tractors and combined harvesters at their own initia-

13 tive, from outside the state, the unions obstructed them, often indulging in violence and the Government was only a passive spectator.

As far as coconut is concerned, it has been a story of total failure by the inept successive governments of Kerala which let down the hardworking farmers. The Agriculture Department of the Government and the Agri University failed to organize research studies on the various diseases which began attacking the crop and inflicting heavy damage and come out with preventive measures. In fact, the only thing that the Government did was to advise the helpless farmers to cut down the trees.

One expected that the present UDF Government, in view of the terrible shortage of labour on the farm front, would make a firm declaration that all available mechanical devices would be permitted to be used in the farms, and that any obstruction by vested interests would be dealt with strongly. ( In the farm sector of Kerala today, most of the labour requirements are met by workers from states like West Bengal, Orissa, Andhra Pradesh and Tamil Nadu). For saving coconut, the Government should have organized research and extension services on the lines of what the Rubber Board has done for rubber.

Further, one expected that Oommen Chandy, who had issued a Government order during his brief stint in 2005 permitting three organizations in the state to set up units for manufacturing ‘Neera’ from the juice extracted by tapping the coconut flower stalks (and which the successor LDF Government had cancelled on coming to power in 2006), would at least re-issue the same order in 2011. This single step of permitting the farmers to manufacture Neera would rejuvenate the coconut sector. (Neera has no alcohol in it and only when it is fermented does it become toddy. And states like Karnataka and Maharashtra have already permitted the farmers to make Neera).

Instead, the CM formed a committee to deliberate the issue. At last the Government on July 16 this year decided to permit tapping of Neera. Though belated, the decision is welcome and will be a boost to tappers and others.

It is true that Kerala does not possess deposits of iron ore, coal, nickel or aluminium necessary for heavy industries. Nor do we have a lot of dry lands which could be allotted to set up industrial units. We are also afraid of industrial effluents damaging our rivers and backwaters. Yet, we have the mineral sand deposits on our beaches which remain unexploited. In fact, a lot of damage is done to the environment

by a few private firms who now undertake a haphazard and unscientific mining operation, simply digging out and washing and shipping the mineral sands out. Instead of permitting this, the Kerala Government should launch a massive mineral sand industry complex, processing the mineral sands and taking up value-added production right up to titanium metal, using the latest technology and following scientific mining procedures. This will ensure that the environment damage is prevented and 98% of the soil removed would be put back, thus restoring the topography of the mined area, as it existed earlier.

This massive mineral sand project should be got implemented inviting global tenders and selecting a technologically sound and financially strong promoter in a transparent manner.

The state need not have to invest any money; it will get massive amounts as royalty and tax money, apart from the generation of employment, prevention of damage to the environment etc. Will the Government do this at least now?

A lot has to be done in quickening the process of giving approvals for the projects of the entrepreneurs through a single window. The travails which the pioneering Kitex Group had to go through with their expansion projects in Kizhakkambalam show how things should not be done. The irritants which discourage entrepreneurs ,like the ‘nokku kooli’ and the monopoly handed out to the loading and unloading workers’ unions, are widely seen as serious disincentives to new investors and to even the existing businesses. The UDF Government has done precious little to discipline these unions and liberate the people of Kerala from their clutches. In short, the Government has not done enough to promote industries or to improve the industrial culture, so far, during the present term.

For agriculture or industry or for any productive venture in any sector to thrive, the state has the responsibility to provide the basic infrastructural facilities like power, roads, railways, ports, water etc in good quality and at a reasonable cost. Here again, the Kerala Government has not been able to live up to the expectations, during the last two years. During the previous LDF re-

gime, though a controversial decision was taken initially to restrict the width of the four-lane national highways in Kerala to 30 metres, wiser counsels had prevailed and a consensus was reached to develop the four-lane highways with a width of 45 metres. If the UDF had come forward to implement this decision to which the LDF itself was a party, the LDF could not have agitated against it, despite their habit of opposing everything done by the UDF. Yet, the UDF which is committed to the strengthening of infrastructure has not acted at all on the widening of our highways and implementing the consensus so far. (But one has to ad-

mit that the quality of the surface of the existing roads has seen a tremendous improvement during the UDF regime).

The State Government has not been able to do much in acquiring the land required by the Railways for their track-doubling projects nor have they exerted sufficient pressure on the Railways for upgrading the signalling system, which is most essential to improve the line capacity and enable them to run more trains in the Thiruvananthapuram-Mangalore sector. Instead of concentrating on this, we are making noises for things like a separate Railway zone, more weekly trains to upcountry centres etc!

Kerala’s financial position is also continuing to be fragile. Kerala is one of the states with a large debt burden.

Each successive government in Kerala manages to double the state’s debt burden! Even the most experienced Finance Minister, K M Mani, with 11 budgets behind him, has taken only two initiatives for cost-reduction—the increase in the retirement age by one year and the implementation of the contributory pension scheme for the new employees joining the State Government from April1, 2013.

Nothing at all has been done in controlling the spiraling losses by the two very important public utility services, the KSRTC and the KSEB. The

KSRTC’s losses, for example, are more than Rs 100 crore a month, and that too when the bus fares in the state are 75% higher than those prevailing in neighbouring states like Tamil Nadu, and when the private operators collecting the same fares make enormous profits.

It may be recalled that both the electricity charges and the bus fare have been increased twice during the last two years and yet the losses are mounting. Drastic and urgent measures are required for arresting leakages and toning up the efficiency of operation and of course to improve la-

bour productivity and bring in pension reforms in both these PSUs. Some of the other areas crying for attention in Kerala are the collection and treatment of waste materials by the local bodies, improvement in sanitation and health and education. Innovative and viable initiatives are urgently required in these sectors. To tackle challenges described earlier along with these areas will be a tremendous task which will unnerve any government.

The hope is that the Oommen Chandy Government will be able to address these issues and take effective, forceful and earnest steps to solve each of these problems in a ‘do or die’ mood, without getting distracted by controversies like ‘Solar Saritha ’etc.

But, in order to take bold measures, the Government will need to re-establish its lost credibility by improving the standards of governance and ensuring that each and every decision is taken only in the public interest and in a lawful manner, through a transparent process. Will Oommen Chandy rise to the occasion? If he fails, Kerala cannot take the usual alternative of another LDF Government with their policies not relevant to the present century. The people of Kerala will then be forced to think of entrusting the state to a new political formation.

July 31 - Aug 31, 2013

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14

PVT BANKERS

Gold loan: private financiers in dire straits I

loan against their pawned jewellery we are forced to give it.

n 1958, there were only few private moneylenders in Kerala. There were no restrictions on their activities. With the reorganization of the states and the formation of Kerala state, a new bill—Kerala Moneylenders Bill—was introduced in 1958, which restricted the activities of moneylenders. This bill and the Kerala Debt Relief Bill introduced in 1957 were adversely affecting the moneylenders in the state, which prompted them to form an organization to protect their interests.

The falling gold price made a dent in the fortune of private financiers who are dealing only in gold loans as their core area of business in the state. There are more than 10,000 such regis-

C J Joseph tered lenders in Kerala and the number will be more than double if we take into account the unorganized sector.

Gold is a craze rather than a fashion for our people, especially from Kerala and other southern states.

The reason is simple because the yellow metal has easy liquidity, is a valuable investment and is easy to store. For liquidity people approach large commercial banks, mighty NBFCs or private financiers to pawn their gold articles and get maximum money according to the market price of the metal from time to time. Commercial banks have a gamut of business products, and gold loan is the best among them which has only a miniscule share in their total business and large NBFCs with hundreds of branches and high capital bases can also cash in on this unexpected price fall of gold to some extent. But a majority of private financiers are in dire straits. Why? C J Joseph, President of the All Kerala Private Bankers’ Association, told PASSLINE: “ fifty percent of our members are doing only gold loan business for their livelihood and most of them are retired people and returnees from abroad who want a hasslefree life. Apart from their own capital they must have raised funds from their immediate relatives also for capital buildup. The unexpected fall in gold price has drained out not only the interest margins but also the capital base of their business”. “Most of us are doing business in our native villages or native hamlets. Only few of us have offices in cities and towns. Naturally, our customers are friends and acquaintances.

When they ask maximum amount as

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July 31 - Aug 31, 2013

If the gold price dips most of them will never turn back to close the gold loan which makrs the lenders losers.

Many of our members lend Rs 2,500 and above per gram which is very high according to the current market rate.

Our organization has certain rules and regulations and business ethics for the members. Unlike big NBFCs we charge only 22% interest. They advertise in the media an interest rate of 12% which may end up at 48% over a period of time. The organization will never support our members doing unethical business or fleecing the public with enormous interest rate if it comes across any complaints”, says the association President.

The approximate turnover of private financiers doing gold loan business in the state is about Rs 10,000 crore. Recently, the Central Government and the RBI have imposed a number of stringent norms and regulations applicable to this sector of the banking industry. Earlier, they could have accepted deposits from anyone without any ceiling of amounts. Later, the RBI restricted deposits from a maximum of 250 people for a financing firm having 10 partners. But, recently at the behest of Union Finance Minister P Chidambaram there amendments were introduced in the existing bylaws according to which a financier can take deposit only from his immediate relatives, that too from a maximum number of 21.

“Almost every member of the association is struggling to run their business modestly. Thirty to 40 percent of lenders are facing the music as far as the working capital is concerned.

According to the new regulation, we can auction the gold after one year and seven days of the pledge. In that case also, we cannot ensure ourselves whether we get back the money we have advanced as loan with interest due to the current slide in gold price.

Unless the Government eases the conditions regarding the mobilization of deposits from the public, this ageold traditional industry and people involved in this business will perish,” laments Joseph

STORY OF NEGLECT

Benyamin: the untold story B

K Vijayachandran

enyamin, an NRK Project Engineer working in the Middle East for the past two decades, has endeared himself to the NRK community through his dozen or so short stories and a couple of novels in Malayalam. His novel titled, Aatujeevitham (Goat Life or Living Like a Goat), first published in August 2008, has simply stormed the NRK community in the Gulf.

Benyamin has retold the story of Najeeb, an immigrant NRK worker, who had flown into Riyadh, capital city of the Kingdom of Saudi Arabia (KGS), in 1992.

He recalls that the regional economy had just kickstarted by then, after the first invasion of Iraq, with the US on the lead. Benyamin himself had landed in the city state of Behrens, as an immigrant technician, on the same day when Najeeb flew into Riyadh. He had met Najeeb and listened to his 50-month-long adventures in KSA, several years later.

Najeeb and his fellow-traveller, Hakkim, had left Mumbai and landed at Riyadh international airport, supported by perfectly legal documents as Indian citizens, with work permits and legitimate KSA visas for working in a particular construction company. How-

ever, representatives of this company did not turn up at the airport to pick them up, as promised by the recruitment agent in Mumbai. They were cleared by the emigration officials in the early hours of Thursday, April 9,1992, and waited for their sponsors in the lounges of Riyadh airport until late evening. They were, then, unlawfully picked up and transported across desert lands to far-off animal farms, operated

by Arab landlords.

These were large isolated desert farms set up for the rearing of sheep, goats and camels within barbed wire enclosures or fencing. These are the modern KSA farms. Unlike the traditional Arab ones, they follow business models that need only very few hands; one or two immigrant farm hands per farm and an Arab supervisor for a cluster of three or four farms, safely separated by fairly large patches of desert.

These farms are located far off from commercial centres that take away the raw farm products such as milk, wool and slaughter animals. In turn, farms

are supplied with animal fodder, water and cooked food for the sustenance of farm hands. The business model inevitably provides for in-house mini-trucks for goods transportation.

Immigrants, who are in direct charge of the animals in such pseudo-modern farms of KSA, have an animal-like existence. They get on the job training in the tending of goats, sheep and camels as they begin to live among them, right from day one of their capture in modern air terminals or labour camps that double up as informal labour markets. They work 24 hours a day, seven days a week with no monthly or annual breaks: There is no chance for them, whatsoever, to meet anybody other than their own Arab supervisors, who are expert task masters equipped with powerful guns and equally intimidating binoculars. Communicating with anybody else in any manner under such isolated desert environment is simply impossible.

Najeeb and Hakkim were living and working in the same neighbourhood for more than four years. They met occasionally by chance or by design and debated on their fate. Otherwise, they were two totally lost souls left to themselves and their personal gods. It was mere chance that they could elope, guided by a well-built Turk, Ibrahim Kadiri. Hakkim succumbed to dehydration in the desert. After a week-long adventure, Najeeb was rescued by an Arab motorist and then taken care of by Kunjikka, an NRK teashop owner. He was finally deported back to India by KSA police and the Indian embassy as the member of an 80-strong team of NRI immigrants.

Such deportations of NRI immigrants from KSA, possibly, are a routine affair: Benyamin tells the Najeeb story through 220 printed pages, with very little of drama or suspense. But, in every one of these printed pages is reflected the mental and physical torture as well as the pain of cultural and spiritual deprivation of lower-class third-world immigrants, who are forced to leave their native countries in search of livelihood. In that sense, every page of this book is an indictment of the callousness and failure of State machinery of the Kingdom of Saudi Arabia as well as that of the Republic of India.

Najeeb and Hakkim had travelled to KSA with valid travel documents of international standards.

These Indian citizens were not orphans: they had their friends, comrades and close relatives, who would have, surely, apprehended the local government and registered police complaints on loss of contact. KSA is not a lawless country not to take follow-up action on such complaints, unless somebody influential in local government had a stake or vested interests. Nothing happens on these lines in the novel. Benyamin is silent on acts of omissions and commissions, criminal neglect or irrational behaviour on the part of the authorities in KSA as well as India. He seems to accept the disappearance of Najeeb and Hakkim as something perfectly normal and natural.

15

Maybe, such criminal neglect or irrational behaviour by the State machinery on both sides of the migration border is a reality or common life experience of the vast majority of low-skilled Indian workers that migrate to KSA, Kuwait and several other countries of the region. Work permits and visas are generally organized and exchanged by private recruitment agencies. Regulation and overview by official bodies are minimal, grossly inefficient and even open to corrupt practices in India as well as in the Middle East countries.

In the Middle East, recruitment agencies collect the low-skilled immigrant workers at the airport: They are then parked in lodgings and forced to surrender passport and other travel documents. The agents act as arbitrators for finding a suitable employer for the new arrivals, and also for fixing the terms and conditions of engagement. This by itself is illegal because an immigrant is not supposed to enter these countries without a perfectly valid work permit or visa. Thus, an immigrant worker in a Gulf country is forced to break the laws of the land on the very first day of his perfectly legal arrival. Heroes or antiheroes of Benyamin could not have been an exemption to this general practice. Around 10% of Keralites work or stay outside India and the bulk of them are in the Middle East. Immigrant workers from Kerala had played a key role in building up the petrodollar economies of most Gulf countries. Their remittances have helped their families to lead a slightly better life.

But the heavens they built on foreign soil with their blood and sweat were certainly not theirs and the net benefits they accrue are hardly commensurate with the inevitable pains and sacrifices in the bargain.

Those who rule the country eulogize these immigrant workers as part of a great Indian diaspora and look at their remittances only as a foreign exchange resource for promoting their own pet schemes. Our embassies in Gulf countries hardly treat them as citizens to be cared for. Najeebs and Hakkims are hunted down as criminals and extradited back to India in large numbers.

During the current season, more than 5,600 Keralites have returned from KSA till May end thanks to the new immigration practices. Soon, this number will be around 15,000 and by end of June 35,000 or even 80,000 by the yearend. There are reports of widespread harassment of immigrant workers in Kuwait: Even workers with valid work permits are being arrested or jailed for questioning and even directly sent to deportation camps. There are complaints that embassy officials hardly intervene in the interest NRI citizens.

The Benyamin story has proved to be an instant hit among NRK emigrants in the Middle East, because it was their own story written in their own language and idiom, a story of gross neglect by their own country and Government and then a story of crude exploitation by their employers in foreign land. The book has crossed 50 editions within the short span of three years, a record in Indian language publication.

Editions in other Indian languages are reportedly on the way and Penguin has already brought out one in English.

(The author can be contacted at: kvijaya40@ gmail.com) July 31 - Aug 31, 2013

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ACHIEVERS

Ranjith B Raveendra

Ranjith the IIM farmer

“N

ever look at prestige, just go for what your heart says,” says Ranjith, an IIM graduate who has stepped into agri-business with the launching of a firm named Adi Agri Innovations.

If you think farming is all about ploughing in the field, Ranjith B Raveendra is one who has turned his career to the agriculture business after pursuing his MBA from the Indian Institute of Management, Calcutta (IIM-C). He was alarmed by the way the business of agriculture, the foundation of India’s economy, actually worked. He found it inconvenient that middlemen and market fluctuations played a bigger role in the life of an ordinary farmer than annual seasons and weather changes.

Adi Agri Innovations has produced ‘crushed tomato’, which is the essence of real tomato having six months’ life. This is going to be the next revolution in the Indian FMCG field, Ranjith feels He says that while the prices of technological products like television, mobile phones and refrigerators are coming down, the need for and prices of food commodities are increasing.

“Our first innovative product was crushed tomato. A 100-gram packet serves you eight tablespoonfuls of the paste which is equal to eight tomatoes. We are coming up with new products like juices of fresh vegetables. Our upcoming new products are from cucumber and green chilly,” he says. The major challenge they are facing, he says, is from the Government of Kerala. In other states governments are very supportive while in Kerala they have to keep on waiting for approvals or subsidies. Ranjith plans to extend his activities to Chennai and Gujarat.

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“I saw huge potential in agriculture as the demand for food is increasing throughout the world and the prices of agricultural commodities are also increasing. So there is scope and need for sustaining food items for longer periods. It was this thought that made me start an agri-based business,” Ranjith says.

The new farming technique ‘greenhouse precision marketing’ is going to help a lot as greenhouse supports all types of vegetable farming.

Greenhouse is incorporated in various technologies like drip irrigation systems, automatic temperature controlling systems etc to form a complete artificial farming area which is insulated from outside climate. One can grow any plant at any place at any time by providing suitable environmental conditions inside the greenhouse.

It is not much popular in Kerala so the Adi Group is planning to come up with such an innovative idea and to make vegetables without any pesticides available. The main advantages of greenhouse farming are that high-quality agricultural products can be produced, the volume of production increases, off-seasonal production is possible, disease attacks get minimized, plant growth rate and lifespan are high and modern technologies can be applied.

Ranjith believes that this will attract youngsters towards farming which in turn will give rise to new ideas. Agriculture, he says, offers tremendous opportunities and this is the best time to capitalize on it. “This can only be done with the support of other entrepreneurs and the Government.”

17

GROWTH COMPANIES-VII

Making shareholders richer year by year

A

VT Natural Products Limited, a part of the A V Thomas Group, is a public limited company incorporated in 1986 under the Companies Act 1956. The shares of the company are listed on the Mumbai, Chennai and National Stock Exchanges. The company is managed by a team of professionals. The Board of Directors includes Ajit Thomas, who is the Chairman of the company. The other Directors are M S A Kumar, Managing Director; Habib Hussain, Shyam B Ghai, P Shankar, IAS (retd) and M A Alagappan.

The A V Thomas Group dates back to 1925. It has interests in plantation, tea retailing, spices, leather export, biotechnology and healthcare. The group has successful global alliances to service the international market.

This includes joint ventures with McCormick USA for spice export and with Teleflex USA for healthcare.

AVT Natural Products Limited has its corporate office at Chennai and administrative office and factory at Vazhakulam, Kochi. Specializing in food and natural extracts, AVT Natural Products is one of the leading players in the processing and export of marigold oleoresin. The company has diversified into the production of spice oleoresins, essential oils, natural food

USA, to service the international spice market. Incorporated in 1994, this venture has brought together the expertise of a 116-year-old international spice giant and years of plantation experience of AVT. Its result is a company which offers spice ingredients of high quality and safety standards, tailor-made for its international customers.

AVT Natural Products Limited has two M S A Kumar wholly owned subsidiaries, AVT Natural Pte Limited, Singapore, and AVT Tea Services Limited, United Kingdom. AVT Natural Pte Ltd, Singapore, has a wholly subsidiary in Heilongjiang AVT Bio Products, People’s Republic of China, which caters to the marigold feed market in Mexico, US and Asia. AVT Tea Services Limited, United Kingdom, is the global marketing arm for decaffeinated and instant tea and would strengthen the company’s position in the global valueadded beverages market.

AVT Natural: Established in 1994, AVT Natural specializes in the extraction of active ingredients from natural sources like spices, flowers, fruits and leaves. The extract is used as natural coloor and flavour in the food industry.

It also finds application in the nutraceutical industry. Its three business segments are marigold extracts used for eye care, value-added teas products and spice oils and extracts.

AVT Natural’s critical strength lies

Annual results for the last 3 years ( Rs crore)

Particulars Sales Other income Total expenses Operating profit Interest Profit before tax +depreciation Depreciation Taxation Net profit Equity capital--paid up

2012-13 255.96 0.10 171.74 84.22 4.96 79.36 3.66 25.15 50.57 7.61

colours and extracts and value-added beverages for the global food ingredients market. It is located in Integrated Spice Project which also has AVT McCormick unit which deals in ground spices. AVT McCormick is a 50:50 joint venture of AVT with McCormick & Co,

2011-12 218.35 0.56 135.28 82.91 5.25 78.35 3.23 24.74 50.41 7.61

2010-11 138.90 0.15 115.09 23.81 4.31 19.65 3.20 5.63 10.81 7.61

in its ability to secure the entire supply chain from seed to the final extracted product. For the marigold oleoresin business, it has a strategic alliance to supply nutraceutical-grade extract to service the complete requirements of Kemin, the world leader and patent holder for free lutein. By collaborat-

ing with leading players, AVT Natural has leveraged its expertise in seed development and seed production to provide high-yielding seed varieties to its farmers. This coupled with years of experience in plantation has helped to develop a robust contract farming model. Its farmers conform to Good Agricultural Practices.

The continuous monitoring of farming activities ensures that the products meet the most stringent global quality standards. The process of extraction, purification and enrichment of active ingredients is done in the most modern production facilities which are ISO 22000- and ISO 9001-certified. These facilities are in the process of being FSSC 22000- and ISO 18000-certified.

The facilities are also audited and certified by many of the leading global players. Thus, through this fully integrated supply chain, it is able to provide Kemin

Dividend payout details

Financial year 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2000-01 1999-00 1998-99 1997-98 1996-97 1993-94 1992-93 1991-92

Dividend % 125 50 30 30 35 30 50 40 10 20 90 25 10 10 10 20 20

Bonus share @ 1;1 was issued in 2006.

gory. The award is powered by CRISIL and ICICI Bank.

AVT Natural was in the latest Forbes List of 200 Best Companies under a Billion Dollar from the AsiaPacific region in 2012. The robust business model of AVT which continuously emphasizes strengthening of its fundamentals has paid rich dividends to the company in this rather difficult global scenario. high-quality marigold oleoresin which meets the most stringent quality standards at the best prices possible.

AVT Natural has also developed a significant presence in the spices oil and oleoresin segment. It services some of the major food ingredient makers in the Japanese, European and US markets. It exports 33 products to 27 destinations around the world. These products find application in colouring and flavouring food and as nutraceutical products.

AVT Natural does decaffeination of tea for leading global brands like Finlay and Harris Freeman. It follows a toll processing model which makes it a highly cost-effective decaffeination base. It also exports its own instant green tea and instant black tea products to global markets. AVT also produces green tea extracts for various applications. It also produces other nutraceutical tea products.

In 2006, AVT Natural Products Limited had won CNBC–TV 18 Emerging India Award ‘SME of the Year’ in the FMCG, Food and Agri-Business cate-

Financials and dividends: AVT Natural’s sales for FY 2013 are Rs 255.06 crore and NP is Rs 50.57 crore. The company was listed on the stock exchange in 1987. Its present EPS is 6.60 on a FV of Re 1 and present equity Rs 7.61 crore at an FV of Re 1. The promoters are holding 5,65,96,550 shares, ie 74.33% of the total equity. Its present book value is Rs 17.70 (March 30, 2013) and market capitalization is Rs 217,00,47,000 (MP as on June 25, 2013 is Rs 28.50 on a FV of Re 1 a share).

The company gave a dividend return of Rs 95.50 (considering only up to Interim dividend of 2012-13) to people who invested Rs 10 in 1990. It declared a 1:1 bonus in 2006. In other words, a person who invested Rs 1,000 in 1990 got an appreciation of Rs 47,400 and dividend return of Rs 9,550. Alternatively, the company created wealth for the owners of 7,61,42,000 shares making them richer by Rs 47.30 plus Rs 9.50 on an investment of Re 1 in 1990.

(Information provided by Babu Vettoor, Contact No: 9895356723 )

July 31 - Aug 31, 2013

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18

Vision for development

G77: key components of a ‘people-centred development agenda’

T

Ranja Sengupta

he Group of 77 and China has called for a “structural transformation of economies of developing countries, especially African economies, through industrialization that induces value-addition and economic diversification” to generate employment and decent work for all, at the opening of the fourth session of the United Nations General Assembly Open Working Group (OWG) on Sustainable Development Goals (SDGs) on June 17at the UN headquarters in New York.

The three-day meeting (June 17-19) addressed two themes: the first is employment and decent work for all, social protection, youth, education and culture, while the second is health and population dynamics.

Discussions were on concepts, poverty eradication, food security and nutrition, sustainable agriculture, desertification, land degradation and drought: and water and sanitation.

The G77 outlines its vision for development as the UN works towards a new agenda post-2015

Employment and decent work for all The G77 and China stressed that “the employment-generating capacity of growth strategies is essential for achieving sustainable, sustained and inclusive economic growth, which when fairly distributed, can bring millions of people out of poverty worldwide.” According to the group’s statement, “despite a decline in the number of the working poor, namely those employed, but living below the $2 a day poverty line, the majority of workers in the developing world remain in informal and vulnerable jobs.

This implies irregular incomes and little or no social protection for these workers. In turn, such workers are increasingly becoming more vulnerable and less resilient to cope with social, economic and environmental risks and shocks: It is imperative, therefore, that developing countries, with the support of the international community and developed partners, build new and more inclusive development pathways with the aim to provide equal employment opportunities to all people in the economy, including the adoption of objective action-oriented affirmative programmes to assist the poor and the marginalized.”

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July 31 - Aug 31, 2013

An inclusive approach to migration

Youth unemployment a matter of concern The G77 and China statement also highlighted

the issue of migrant workers and the need to integrate them and their families into society. “The international community should give its due consideration to the linkages between migration and development in the implementation of the Programme of Action of the International Conference on Population and Development beyond 2014, and in the elaboration of the post-2015 development agenda. Ambassador Thomson drew attention to the “urgent need to improve market access to rural farmers to mitigate the flow of rural-urban migration. In this respect more equitable access would imply limiting agricultural subsidies by governments in the developed countries that create an imbalanced trading system favouring developed countries. Agricultural policies need to be aligned with country priorities and global realities and take into account marginalized groups, such as smallholder farmers.”

He said that employment objectives need to become central to global actions and mechanisms. “These objectives need the support of international cooperation that supports developing countries through: (1) actions at the level of international economic, financial, trade, technology and social systems, to support and enable developing countries’ efforts: and (2) refrain from actions by developed countries that create barriers to developing countries’ efforts and progress.”

Recognizing youth as an emerging group that needs special attention, the G77 and China pointed out that youth unemployment threatens the skill sets and productive capacities of entire generations in several developing countries and sustained bouts of youth unemployment lead to higher rates of migration, loss of national capacities and resources, as well as leading to other social problems including aggravating national insecurity and violence.

Culture and education as drivers for sustainable development The group highlighted ‘culture’ as an integral part that permeates the three dimensions of sustainable development. Culture also acts as both an ‘enabler’ and a driver of sustainable development. “Development approaches should be adapted to local contexts and should therefore rely on the cultural resources while respecting cultural rights. Culture also drives

Social protection needs scaling down of austerity measures On social protection, the G77 and China underscored the impact on reducing inequality while boosting productive employment. The group especially emphasized the need for social protection and inclusion of various vulnerable groups such as women, adolescents, the elderly, the disabled, migrants, people living with HIV/AIDS etc. In this context, the group made a strong statement against the austerity measures imposed by the global consensus which necessitate budget cuts especially on social expenditure, especially targeting social safety nets, including old-age pension.

development within a number of cultural sectors including the creative industries, cultural tourism and heritage, both tangible and intangible,” according to the statement. Underscoring the importance of a good education, the G77 and China emphasized quality as opposed to quantity.

19 As before, the group highlighted the need for special attention to be given to “traditionally vulnerable groups, who are girls, working children, rural and indigenous children, those with disabilities, children living with HIV/AIDS, children in conflict, migrants, orphans and linguistic and cultural minorities”. “Inequalities need to be addressed through a case- by-case approach, rather than a one-size-fits-all target for countries,” it was stressed.

Health and access crucial On the issue of health, the G77 and China was of the view that “health permeates all areas of sustainable development. It is closely related to the social, environmental, economic, cultural and political spheres.” The group said that because of changing demographics and population dynamics, it is time to call for “innovative, cross-cutting goals that reflect the changing health concerns facing men, women and children. Dense urban areas call for greater synergy between different sectors to address the failures of providing infrastructure of providing infrastructure and basic services to one-third of the world’s urban population that live in informal settlements.”

growth as well as knowledge and skills transfer, The stigmatization of marginalized migrant groups in countries other than their own is a threat to national stability and security, and often leads to human rights violations. Ensuring better integration and the respect of human rights should become a priority in our globalizing reality.”

Expressing growing concern over rural-urban migration, the group said, “Focus on creating better employment and working conditions in rural areas will curb the wave of rural migrants moving to urban areas in hope of finding better jobs. Rural migrants easily fall trap to a mostly low-wage, perilous and irregular work cycle with little chance to climb the vocational ladder.

What is more, rural work migrants typically settle in the fringes of urban areas that are prone to landslides and flash flood, with little or no access to basic services and infrastructure.”

Call for global supportive action: Highlighting the crucial importance of global cooperation and supportive actions, Ambassador Thomson ended with a call for a strong means of implementation mechanism, to be embedded within each specific SDG. “In order to respond to the call for a transformative global development agenda post-2015, the Group of G77 and China reiterates the importance for the SDG framework to address the goals on global supportive actions and objectives through an enhanced partnership for sustainable development, which should include means of implementation within each of the specific SDGs”.

The G77 and China statement was supported by the Least Developed Countries CARICOM (the Caribbean Community), the Africa Group and others.—TWN Features (Ranja Sengupta is researcher with the Third World Network)

Ambassador Thomson specifically highlighted the issue of non-communicable diseases (NCDs), such as diabetes, heart and respiratory diseases, which accounted for 34,5 million deaths in 2010, of which 80% were in low- and middle-income countries. According to the group’s statement, this figure is expected to double within the next 20 years. “This development trend is unacceptable and policies must be proactive and include access to health information and services, information on consumption and lifestyle and how to prevent health risks. Not only will this reduce health provision costs, but also contribute to economic benefits through a growing capable workforce,” the group graphically added.

Population dynamic and migration have critical roles to play In relation to population dynamics, the G77 and China acknowledged improved family planning as an effective way to address population growth. In this context, the statement highlighted a clear gender dimension. In particular, a strong correlation exists between greater access to education for young girls in developing countries and reduction of the number of teenage and unwanted pregnancies. Again, “increasing literacy and computing skills among women has shown to be effective in improving individual household finances, creating innovative and creative entrepreneurial activities.”

The group also underscored the need for attention to the elderly and people with disabilities, adding that their inclusion in society needs to be assured through the provision of social protection instruments. In the context of population dynamics the G77 and China highlighted again the link between migration and development.

In strong words, the group argued that a “paradigm shift needs to take place that recognizes migration as a catalyst for economic July 31 - Aug 31, 2013

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20

hEALTH

Rice bran oil—the healthy edible oil O

Dr Meena Mehta

ne may wonder how any edible oil can be healthy. Considering the public’s general perception of the adverse effects of eating edible oils and deep-fried products, one can hardly realize that a particular kind of edible oil can also be healthy and can favourably act as an antioxidant, help lower LDL (bad) cholesterol and total plasma cholesterol along with increasing HDL cholesterol levels.

Further, various researches have also found this edible oil helping in reducing menopausal symptoms, and can also be used as muscle growth boosters to promote enhanced physical performance.

Wondering which is that one and only edible oil variety that has such properties? It cannot be any other than refined rice bran oil produced in India which can claim to be the largest producer of such oil in the world.

It is true that not many are aware of rice bran oil (RBO), except in large cities where the demand for its branded variety is growing thanks to the increasing awareness among consumers about the advantages of using this ‘health oil’ thanks to the crusade carried out by the Solvent Extractors’ Association of India (SEA) to encourage its production and use through a number of seminars and regional workshops in the last 15 years.

RBO is healthier and more economical. It is absorbed less (almost 20% lower than other oils) and the food cooked in it has fewer calories.

The lower absorption rate is due to the viscosity of the oil. RBO has a delicate flavour, is odourless and non-sticky.

Whether used for sautéing, frying, baking, or as a salad dressing, it has no after-taste whatsoever.

RBO has a balanced fatty acid composition compared with other oils

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and is the only oil that comes close to the ideally recommended fat percentage. The ratio of saturated fatty acids in rice bran oil is closest to World Health Organization (WHO) recommendations. RBO has a wide range of essential phytochemicals, which are health-beneficial. It also has antioxidants, like vitamin E, which help fight free radicals and delay the ageing process. Because of its nutritional advantages, many other vegetable oils are blended with RBO.

The National Research Institute of Brewing in Japan mentions that RBO appears to have a beneficial effect on high blood pressure, high cholesterol as well as high sugar. Another study conducted in Taiwan has confirmed that it is beneficial in type-2 diabetes.

It is estimated that 347 million people worldwide have diabetes and that in 2004, 3.4 million people died from consequences of high blood sugar. More than 80% of diabetes deaths occur

A case study In a case study, Mrs Jahangir, a 45-year-old woman diagnosed with pre-diabetes, gained 20 kg in one and a half years. She tried to lose weight through crash dieting like soups and salad only or just fruits for some days. She said she got some results but they were temporary and that she was not able to continue a lowcalorie diet for more than two days at a stretch.

She weighed 90 kg. The blood glucose during fasting was 107 and PP 155. She used to have three large meals consisting mainly of rice. She was not used to midmeals at all.

She was counselled on the problem areas and was explained the importance of short frequent meals. She was also told about low GI (glycemic index) foods and a diet regimen planned accordingly. Her dietary concerns and preferences were kept in mind so that she could change her lifestyle slowly and steadily.

The following changes were seen at the end of the third month: She started using brown rice instead of white rice but still ate white rice in the form of idlis and dosas; meals became more frequent and smaller; she learnt to choose low-moderate GI foods over high GI ones; she felt less hungry as she was full for longer periods of time; addition of fruits at the right time made her feel better; she did not feel lethargic and sleepy after a meal contrary to earlier meals; her weight came down to 81 kg, blood glucose (fasting) to 100 and (PP) to 143.

Lifestyle modifications (diet, physical activity, weight loss) are the mainstay of treatment, although sometimes medications are used.

Studies suggest that even moderate reduction in weight and only half an hour of walking each day reduce the incidence of diabetes by more than one half.

With a low level of cholesterol, RBO protects the heart and arteries. This is thanks to gamma oryzanol, an ingredient not found in any other vegetable oil. It can significantly reduce the bad cholesterol (LDL) without adversely affecting the good cholesterol (HDL).

July 31 - Aug 31, 2013

in low- and middle-income countries.

WHO projects that diabetes deaths will increase by two-thirds between 2008 and 2030.

Healthy diet, regular physical activity, maintaining a normal body weight and avoiding tobacco use can prevent

or delay the onset of type 2 diabetes which usually occurs among those above the age of 40.

The adolescent age group population of society invites health problems because of incorrect eating habits. In particular junk food items like pakoda, vada and burgers are prepared from fats and oil and refined flour. It is essential to know the characteristics of the fats and oils used for their preparation since they are the responsible factors for health disturbance. Common vendors of junk food might not use quality oil that meets the characteristics of the frying oil for preparation of items.

However, if these junk food items are prepared by mothers at home to satisfy the young ones, they should take care for the quality of oil for frying. A good quality of vegetable oil will provide the necessary nutrient requirement to the consumer and reduce the chance of health-related diseases. A recent survey indicates that the individual family consumes junk food once a week.

Nutritional awareness among parents, cooks and chefs at restaurants and hotels can reduce the risk of healthrelated problems originating from fats and oil.

When buying oil, one should make sure to opt for the physically refined variety, as against the chemically refined one. This is because the former retains more essential vitamins, nutrients and natural antioxidants. It has also a good shelflife, and hence one can store it for a long period of time.

RBO requires no special treatment and can be stored like any other oil.

The best way to store cooking oils is in dark-coloured bottles or steel containers with air-tight lids to avoid exposure to light and air.

RBO improves the quality of food.

Hence it qualifies scientific solutions to nutritional needs. With RBO great taste meets nutrition.

(Dr Meena Mehta is Associate Professor, Food Science and Nutrition, at Dr B M Nanavati College of Home Science affiliated to SNDT University, Mumbai)

21

CASH CROPS

Help maintain the rising price trend of coconut T

Joseph Alapatt

They suggested a ‘panchsheel’ for coconut revival:

he wonder crop that is coconut has a history of 3,000 years to its credit in Kerala. It is undoubtedly the oldest and the most useful crop of the state. Once upon a time, the pride and fame of the state, it has now become a crop of neglect since it fetches no fair price and sufficient buyers. Heaps of raw coconut mount in every farmhouse and five million poor farmers lament the rotten state of the once-valued crop.

The story of the magnificent coconut tree and its fruits is interesting. It is said that thousands of years ago a big tsunami devastated the Pacific islands causing some forest crops, mainly dried coconuts, to fall into the sea. The waves drifted the all-giving fruits far and wide. Some reached the Malabar coast and a few the Ceylon coast. They grew; people ate them and drank their glucose-rich water and consumed the kernels, which oozed oil. The leaves of the trees sheltered many and their shells turned into pots, fuel and what not! Thus the amazing crop called coconut fed humanity.

Then came into the midst of coconut trees a mite in the form of root-wilt ravaging the sporadic lush greenery.

Farmers are now used to it. Research is being carried out to destroy this menace. But scientists have their limitations. The result is that the coconut

(1) Ask your Government to stop forthwith the flow of palm oil to Kerala to safeguard the dwindling coconut industry and the perishing five million small and marginal coconut farmers.

(2) Produceor perish, diversify or die. This is the present coconut scenario. A special coconut package for the dying coconut.

decline started.

Affluent farmers migrated to neighbouring Tamil Nadu. There they created a mini-Kerala. What farm produce Kerala lost Tamil Nadu produced on its virgin soil. This is the result of Government measures there. With no land grab, much Government help and very low farm wages, the coconut farmers and their plantations flourished, whereas their counterparts in Kerala perished. The small farmers here could not withstand this onslaught. They sold their entire farm at throwaway prices and migrated to towns. A new kind of aliens called the land mafia was born.

They threatened many and got hold

The writer (second row 1st right) at the World Coconut Meet farmer, once a symbol of prosperity, wealth and status, has become a symbol of debts. He has also become a victim of apathy by the authorities, having been forced to own just five acres of land for a family, the rest being taken over as a result of the land grab agitation, crippling the farmers’ farming interest. It was thus that the farmers’

of the land where they uprooted the whole greenery. A concrete jungle in the shape of villas, resorts and shopping malls appeared on these lands.

Malayalees’ job mania, white-collar phobia, created an aversion to farming, Their Gulf dreams made the land of Kerala the land of the dying coconut. The Union Government’s policy

of encouraging the cultivation of more oilseeds to make the country self-sufficient in edible oil also crippled the coconut oil industry.

Years ago, we had a Central minister with a clear vision, the late C Subramaniam. He foresaw the impending dangers and passed a law that every vanaspati factory must use 30% of pure coconut oil in the product. He was so strict and farm-friendly that he could avert an impending danger to the coconut industry. When he died the vanaspati giants simply rejected the coconut oil. We have an oil technology mission to promote edible oil growth to avoid imports. Hundreds of crores are pumped into it every year. What is its present status? We import palm oil in huge container ships from Malaysia and Indonesia. What is the logic in this? There are huge edible oil tycoons involved in it and making crores as middlemen. The Government must come out with a white paper to let people know what is our edible oil position. So far no Government press release has come out. Palm oil is crushing the poor coconut oil. Who is to be blamed?

At the World Coconut Meet which took place in Kerala some time ago, this writer, to which he was a special delegate, was asked by delegates from the Philippines, another coconut country, “what had happened to the Mecca of coconut, Kerala. Once you mesmerized the coconut world by discovering the hybrid seed of coconuts called the dwarf D x T variety in 1938.

You started organized coconut research in 1916. The book The Coconut Monogram by Dr K P V Menon and Dr Panadalay is our coconut bible in the Philippines. Now why this sordid state of affairs? The Government’s inability or neglect?”

(3) Diversification is the only way out. Take the case of Sri Lanka. It is cashing in on diversification in tendercoconuts by making toddy into `Neera’.

Foreigners call their tender toddy the Lankan champagne. They have monopolized the Gulf market and parts of Europe.

(4) You have every technology and infrastructure to do it quickly. The Coconut Board has all the guidelines.

Coconut is the small man’s crop here.

Let the leaders take up the problems of the coconut industry. Fiji and Western Samoa and to some extent Thailand are giving their farmers half of the daily farm wages as subsidy to keep the farm workers in their farms. We know your farm wage is the highest and something unbearable for the farmers.

(5) What has happened to Kerafed, the hope of small farmers? What sort of procurement are they adopting? Is it copra? Interestingly, no farmer in Kerala makes copra. And whose copra are they procuring? Let them procure small farmers’ raw coconut for a support price and crush it and sell that oil only in Kerala. The Philippines has almost the same set-up called `Cocofed’ like your Kerafed. Its farmers call it their oxygen, a great help.

Even the darkest cloud has a silver lining. Now the price of coconut is slowly increasing. Coconut economists and expertsed must know the real reason. Is the increase due to market forces or something else? Find out the root cause and make this rise a permanent phenomenon. Let us bring back the state’s old coconut glory and the monopoly of Kerala once again. The coconut palm is a divine tree. It will never ditch its masters.

(Joseph Alapatt is a veteran coconut farmer)

July 31 - Aug 31, 2013

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22

MUST SEE DESTINATIONS

K

erala Tourism is one of the country’s best brands in tourism and is famed globally. The state has effectively marketed its traditional and unique tourism products such as tranquil backwaters, serene beaches, exotic wildlife sanctuaries and national parks, holistic ayurvedic treatAbin K I ments, colourful festivals, fairs and snakeboat races to attract tourists from all over. With only a single beach destination,Kovalam, during the early 1990s on the tourism map, the state has now transformed itself into a multiexperience tourism haven offering varied products.

products and services. To make the state a cultural tourism hotspot it has to offer festivals and fairs of rural areas besides the famed Thrissur Pooram, Aarattupuzha Pooram and Aattukal Pongala.

Even though we have a 580-km coastline,only beaches like Kovalam, Varkala, Fort Kochi and Alappuzha attract plenty of visitors. Why do tourists ignore other beaches? It is due to the absence of positioning, promotion and lack of infrastructure facilities there. Beaches like Nattika, Thirumullavaram, Snehatheeram, Kappad, Muzhappilangad, Padinjarekkara, Kadalundinagaram, Poovar etc should be developed and positioned as the prime beach destinations by being provided with more amenities and facilities.

The tagline`God’s Own Country’ is a general one and can be applied to almost all the states. It should be replaced with something specific that will clearly communicate the nature of our tourism products without creating any confusion in the minds of tourists. ‘Kerala – Land of Unlimited Experiences’, `Must-see Destination’, `Discover Kerala and Experience the Difference’ are ideal choices.

Even though the state is blessed with rich history, heritage and vast culture these resources have not been tapped effectively to promote its tourism.

Muziris is one among such destinations which needs more attention and care as a cultural heritage des-

TOURIST ARRIVALS IN KERALA FROM 2007 to 2011

‘Destination Kerala’had a perfect space in the mindscape of Year Domestic tourists till recently. Europe was the Tourists state’s main tourist-generating market. A unique feature of European tourists was that they were repeated visitors coming in small and big groups. But now the situation has 2007 6642941 totally changed with tourists expe- 2008 7591250 riencing a decline in the quality of 2009 7913537 their experience. Kerala Tourism is 2010 8595075 under pressure to attract and retain its customers with its existing prod- 2011 9381455 ucts, and calls for repositioning and modifying its products and services to serve the existing markets better and to act new ones and also all forms of tourists.

The slogan`God’s Own Country’ has become hackneyed, embarrassing and unjustifiable. The tourism industry in Kerala has been badly affected by frequent hartals, lack of basic infrastructure, sanitation facilities, adequate waste management strategies, facilitation centres and amenities. So it should be rehabilitated and rejuvenated. Stakeholders have for some years have been raising the question what the state as a tourism destination can offer beyond its backwaters, festivals, snakeboat races and ayurveda. They feel that to entice more tourists year round it has to offer novel, incredible and innovative

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July 31 - Aug 31, 2013

(DOMESTIC & FOREIGN)

% of Foreign Foreign % of % of increase over Tourists increase over E x c h a n g e increase previous year earnings (Rs previous year in crores) 5.92 14.28 4.25 8.61 9.15

515808 598929 557258 659265 732985

20.37 16.11 -6.96 18.31 11.18

2640.94 3066.52 2853.16 3797.37 4221.99

32.82 16.11 -6.96 33.09 11.18

Total revenue generated from Tourism (direct & indirect) Rs in crores 11433.00 13130.00 13231.00 17348.00 19037.00

% of increase

25.28 14.84 0.77 31.12 9.74

Source– Department of Tourism, Kerala – 2012

The accommodation sector is also facing serious shortcomings. Shortage of rooms in prime tourist locations and rural areas, quality and hygiene are areas of concern. Besides star hotels, the state should also utilize traditional houses to accommodate tourists. The recent climatic changes like harsh temperature and acute shortage of rainfall will surely create serious problems for the tourism business because the state is known for its greenery. Monsoon tourism will also become a casualty if this situation continues.

Too many modification scan ruin a tourism product, the best example being the houseboat and tree hut going beyond luxury day by day.

tination. The Muziris Heritage Tourism Project is a network linking museums, palaces, forts, temples, churches, synagogues and other historical monuments along with traditional weekly fairs and the integrated circuit of monuments and events mostly connected through water transport. The nearby Kodungalloor has the oldest church, synagogue and mosque in the country having enormous potential as a pilgrim destination. The upcoming Nila Heritage Tourism circuit linking cultural and pilgrim centres on the banks of the Bharathappuzha should be implemented as an attractive package soon. Spice tourism and plantation tourism projects should be set up in Idukki district.

Continue to next page......

INSURANCE

Agricultural insurance

A

gricultural Insurance Company of India Ltd (AIC) aims to provide insurance coverage and financial support to farmers for failure of any of the notified crops as a result of natural calamities, pests and diseases. The purpose is to encourage the farmers to adopt progressive farming practices, high-value inputs and higher technology and to help stabilize farm incomes, particularly in disas-

Given below are the premium and the insurance amount for one-acre land

Crop Insured sum (Rs) Premium (Rs) Paddy 14,000 350 Arecanut 18,000 1080 Pepper 16,000 960 Ginger 40,000 2,400 Sugarcane 12,000 720 Turmeric 24,000 1,440 Cardamom 16,000 960 Coconut 14,000 840 Pineapple 12,000 720 Plaintain/banana 40,000 2,400 The amount is calculated on the basis of the report submitted by 131 weather observatory bureaus spread across Kerala. ter years. The plan provides comprehensive risk insurance for yield losses due to natural fire and lightning, storms, hailstorms, cyclone, typhoon, tempest, hurricane, tornado, inundation, landslide, drought, dry spells, pests/diseases etc. .....from previous page Kerala Kalamandalam at Cheruthuruthy should be positioned and promoted as the cultural centre of Kerala Tourism with attractive packages besides the ongoing package `A Day with the Masters’.Thirunavaya, famed for the Mamankam remains, and Trithala for temples, can be developed as archaeological and heritage destinations.

Birding tourism is an added option by linking Purathoor, Chamravattam, Valapattanam, Chettuva, Kattampally, Ashtamudi and Vembanad. Kadalundi-Vallikkunnu community reserve should be developed as a benchmarking destination for mangrove-based eco-tourism. Mass tourism activities should be prohibited here. The Hill Palace Museum in Trippunithura,the Fort area in Thiruvananthapuram and Kalpathy in Palakkad should be developed as model heritage spots. Munnar, Vagamon, Ponmudi and Nelliyampathy should be promoted as hill stations. Art forms like Theyyam, Mudiyettu and Padayani should be promoted as cultural tourism products.

The Western Ghats should be promoted as a must-see and unique natural wonder. Besides health tourism, medical tourism should also be de-

AIC, for the first time, is implementing climate-based insurance scheme with the Central-State Governments’ subsidy for 10 main crops in Kerala— paddy, coconut, banana/plantain, pepper, pineapple, cardamom, ginger, arecanut and sugarcane.

The scheme provides 75% premium for paddy. For other crops,

23

The districtwise list of the crops to be insured is given below: Tvm

Paddy, banana/plantain Paddy, pepper, turmeric, coconut, banana/ Kollam plantain Kottayam Pepper, pineapple, plantain/banana Paddy, pepper, ginger, sugarcane, turmeric, Idukki cardamom, coconut, pineapple, plaintain/banana Ernakulam Paddy, turmeric, pineapple, plantain/banana Thrissur Paddy, arecanut, coconut, plantain/banana Paddy, arecanut, pepper, ginger, sugarcane, Palakkad turmeric, cardamom, coconut, banana/plaintain Paddy, arecanut, pepper, turmeric, coconut, Malappuram plantain/banana Areacanut, pepper, turmeric, coconut, planKozhikode tain/banana Paddy, arecanut, pepper, turmeric, ginger, Wayanad cardamom, coconut, plantain Paddy, arecanut, pepper, coconut, plantain/ Kannur banana Kasaragod Paddy, arecanut, pepper, coconut

50% of the premium is paid as Government subsidy. So the insured are liable to pay only 25% premium for paddy and 50% for others. It is because of variations in weather that our crops are destroyed. Climatic changes like surplus, insufficient or unseasonal rain, low atmospheric tem- Details can be had from: AIMS Insurance Broking Pvt Ltd at perature or high temperature are the Ph: 0487 2386364, 0487 2389703 Mob: 90 37032400 risks covered by this insurance during July. The risk for each crop varies according to the period of the yield. That from September 15, 2013, and the other crops means banana/plantain and pineapple cover risk from the first week of July

veloped.New destinations having immense potential like the Kadalundi and Poovar estuaries should be promoted along with the eminent ones. Responsible tourism packages based on rural areas are becoming huge successes.

Special tourism zones, areas and tourist circuits need more sustainable strategies, attractions and attention.

The state should be classified into three major tourist zones and circuits

-Malabar, Kochi and Travancore. Each district should have its own iconic tourism products and tourism wonders should be classified as natural, cultural and heritage-based. Kerala Tourism should tie up with the Indian Railways to run a tourist train linking major tourist destinations. More private entrepreneurs should come forward with creative products and innovative ideas.

‘Tourism Vision 2025’, apart from sustainable development, also envisages guidelines for marketing and conservation of natural, cultural and heritage resources. It would also help in formulating long-term plans that would do no harm to the ecology and culture of the land. To regulate tourism development in accordance with ecological guidelines we have formulated the Kerala Preservation and Conservation of Tourism Areas Act 2005, the first legislation of its kind in India.

A major drawbacks of Kerala Tourism is that it does not have balanced development.

During the last two decades activities have been mainly based upon the destinations in southern regions and we had suffered the heavy pressures of it especially on the sensitive eco-systems on destinations such as Kovalam beach, Vembanad backwaters, Ashtamudi wetland, Munnar hill station and wildlife of Thekkady and Rajamala etc. We need a shift in backwater tourism into Biyyam Lake, Valiyaparamba etc. The excessive number of house-

boats operating in the Vembanad Lake should be diverted to other water bodies. Destinations like Edakkal should be promoted as a cave tourism spot.

Recently Gavi has made a huge impact on the tourism map. Thenmala should be modified with attractive eco-tourism activities.

The ballads of Malabar should be promoted as an innovative product by linking spots having historical significance in and around Sokanarkavu.

Iringole sacred grove should be set up as a biodiversity-cum-pilgrim destination. Spots in Malabar like Nilambur, Aadyanpara, Kottanchery, Ranipuram, Pythalmala, Kakkayamand Silent Valley are blessed with enormous biodiversity and breathtaking scenery. There are also islands like Pathiramanal, Munroe, Dharmadam and Kuruva. Idukki, Wayanad, Palakkad and Malappuram districts have great scope for rural, village and tribal tourism activities.

(The writer is Lecturer in Tourism, School of Tourism Studies, MG University, Kottayam. E-mail: abinki64@ yahoo.com)

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STOCK MARKET

‘Bull market climbs on wall of worries’ Passline News Service

T

he total disbelief in the stock market rally is a perfect sign of the beginning of a bull market as ‘the bull market climbs on the wall of worries’. Is it possible for someone to predict precisely how the stock market will behave in the next few days? No, it is impossible. In that case everyone would become richer and they would refrain from their activities and investments which end up in losses. According to Morgan Housel, the renowned financial columnist, ”the single most powerful variable, when trying to predict the future, is the X-factor that represents human psychology, historical unknowns and random chances. It doesn’t care about your political views or what you think about the market.”

In the last 35 years the Sensex has grown from 100 to 20,090.68 (April 1979- 24-7-2013—see the box) and in the same period there were 37 market falls (see the box). The highest surge in the index on a single day was on November 5, 2010 when the market closed at 21,004.96, for its first close above the-21,000 mark. To date, this is the all- time-high close for the market as well as the only time index that closed above the 21,000 points in the history of Indian stock markets. As regards the downfall, 1,408.35 points on January 21, 2008 was the major hit on a single day and is the record till today. One who scrutinizes the box given along with this article will find that the average of the rise and fall will al-

tunities even in downfalls. According to Peter Lynch, the famous investment adviser, “In my experience for the last 30 years, I usually buy stocks when the mar-

scrip prevails at any amount above my initial investment of $12 it will give me at least a decent margin for my investment.”

• 100, 1979 • 1000, 25 July 1990: On 25 July 1990, the Sensex touched the four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon and excellent

corporate results.

• 3000, 29 February 1992: On 29 February 1992, it surged past the 3,000 mark in the wake of the market-friendly budget announced by Manmohan Singh.

• 5000, 11 October 1999: On 11 October 1999, it crossed the 5,000 mark, as the Bharatiya Janata Party-led coalition won the majority in the 13th Lok Sabha

election.[2]

• 7000, 21 June 2005: On 20 June 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL, Reliance

Energy, Reliance Capital and IPCL made huge gains. This helped the Sensex cross 7,000 points for the first time.

• 10,000, 7 February 2006: The Sensex on 6 February 2006 touched 10,003 points during mid-session. It finally closed above the 10,000 mark on 7 February 2006.

• 12,000, 20 April 2006: On 20 April 2006 it crossed 12,000 and touched a peak of 12,004 points during mid-session on BSE for the first time.

• 15,000, 6 July 2007: On 6 July 2007 it crossed the 15,000 mark for the first time.

• 17,000, 26 September 2007: On 26 September 2007 the 17,000 mark was reached for the first time.

• 20,000, 11 December 2007: On 29 October 2007 the 20,000 mark was crossed for the first time during intra-day trading, but closed at 19,977.67 points. However,

it was on 11 December 2007 that it finally closed at a figure above 20,000 points on the back of aggressive buying by funds.

• 21,000, 5 November 2010; on 8 January 2008 the 21,000 mark was crossed for the first time, reaching an intra-day peak of 21,078 points, before closing at

20,873. However, it was not until 5 November 2010 that the SENSEX closed at 21,004.96, for its first close above 21,000 points.

• 19 February 2013: The Sensex becomes S&P Sensex as BSE ties up with Standard and Poor’s to use the S&P brand for Sensex and other indices. 17 May

2013: On 17 May 2013 it closed at 20,286.12, its highest peak in 28 months.

• 20,090.68, 24-7-2013

ways favour the upward trend of the market. This is nothing but the universal truth that for every up there is a down, but in the stock market there are oppor-

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ket is attractive. I know that it will go further down. If I buy a scrip for $12 it may fall to $2. But it will bounce back and it may end up at $30 or more. Even if the

There is a wise saying about the market, “Always expect the unexpected”. When Nifty was hitting lows of 5,480 a few months ago, the whole media were

25 speculating giving lower targets of 4,800-4,600 thus making the sentiment further down and forcing the investors to exit the market. According to a stock market expert, the stock markets nowadays are going index-prone as it gives more thrust to the index-

Major falls

On the following dates, the Sensex index suffered major single-day falls (of 430 or more points): 1.

21 January 2008 1,408.35 points 2.

24 October 2008 1070.63 points 3.

17 March 2008 951.03 points 4.

3 March 2008 900.84 points 5.

22 January 2008 875 points 6.

6 July 2009 869.65 points 7.

11 February 2008 833.98 points 8.

18 May 2006 826 points 9.

10 October 2008 800.51 points 10.

13 March 2008 770.63 points 11.

17 December 2007 769.48 points 12.

7 January 2009 749.05 points 13.

31 March 2008 726.85 points 14.

6 October 2008 724.62 points 15.

17 October 2007 717.43 points 16.

15 September 2008 710.00 points 17.

22 September 2011 704.00 points 18.

18 January 2008 687.82 points 19.

21 November 2007 678.18 points 20.

16 August 2007 642.70 points 21.

17 August 2009 626.71 points 22.

2 April 2007 617 points 23.

1 August 2007 615 points 24.

27 June 2008 600 points 25.

28 April 1992 570 points 26.

17 May 2004 565 points 27.

24 February 2011 545.92 points 28.

20 June 2013 526.41 points 29.

27 February 2012 477.82 points 30.

15 May 2006 463 points 31.

22 May 2006 457 points 32.

31 May 2013 455.10 points 33.

19 May 2006 453 points 34.

16 November 2010 444.55 points 35.

4 February 2011 441.92 points 36.

12 November 2010 432 points 37.

13 May 2013 430.65 points based shares. He says ``there is a cycling impact as far as the bulls and bears are concerned and it takes the up-and-down turn after every six years. We wit-

Name of the Company Kitex Rs.1000 KSE Geojit Manappuram SBT Nitta Gelatin AVTNPL Federal B ank(not IPO) South Indian Bank

Growth companies of Kerala

investment in 1990- 2000 around Rs.3000 Rs.1000 Rs.1000 Rs.6000 Rs.1000 Rs.1000 Rs.1000 Rs.3500

nessed a bullish trend in 2008 and the market has since been volatile till this period despite the Government’s and RBI’s steps to revamp the economy and curb inflation.”

The Indian stock market and prices of gold and silver are likely to remain weak in the coming days as signs of continued economic recovery in the United States and Europe are visible. The general expectation is that Fed may reduce the pace of asset purchases in the coming months if policymakers can be confident of sustained improvement in the respective economies. These led the investors to cut their bullish positions in gold and silver.

The stronger dollar also supported the fall in gold prices and other countries’ currency values. This led FIIs to sell stocks in emerging countries leading to a panic situation in the Indian stock market too. The fall in the Indian rupee and FIIs’ selling badly affected the stock market sentiment. Now, the RBI has taken a lot of steps to make the rupee stable and it is showing the sign of recovery in the market. The Government is also taking strong steps, by clearing various projects and approving a hue of pending issues. But the first quarter results of corporate houses are jeopardizing the expectation of the market. The recent slump in stocks is attributed to this though it is short-lived. Good monsoon and the positive measurers being taken by the RBI and the Government will drive the market for better growth in the second half of this financial year. The rupee depreciation and deep fall in stock prices have turned Indian stock markets more attractive to FIIs and the market is expecting more money flow to the market in the coming months. Nifty projects at 5,400-5,600 range and can go up to the 6,200-6,300 level very soon. Now valuations are very attractive. Investors can buy good shares for short-term and long-term investments.

Present appreciated amt as on 5.7.2013 Rs.55200 Rs.20700 Rs.86000 Rs.43000 (after the great gold crash) Rs.50000 Rs.45400 Rs.48500 Rs.120000 Rs.29200

Given below are certain shares expected to have movement in the coming 6 to12 months: Federal Bank: Largest private sector bank from Kerala. Its stock came down when its results were below expectations due to significantly higher provisions (100% provision for NAFED and slippages from two large accounts). Now the shares are trading around Rs 350; can go up to Rs 470.

V-Guard: Largest electrical equipment manufacturer from Kerala, In Q1 FY14, VGuard Industries fared well, projecting 28% YoY revenue growth to Rs 408.2 crore and 7.8% QoQ. This was primarily driven by strong revenue growth of 31.1% YoY in the electronic segment (stabilizers, UPS and inverters) and 24.8% YoY in the electrical segment (cables and wires, water heaters etc).

The shares are now trading at Rs 526, can expect a target of Rs 596.

Indoco Remedies: IRL is a vertically integrated company with strong brand portfolio of 120 products across various therapeutic segments with its top 10 brands contributing about 53% to its domestic sales. Exports contribute 35% of the total revenues. The shares now trading at 64, can go up to Rs 104.

Praj Industries: Established in 1984, Praj Industries Ltd (PIL) is a technology-driven, knowledgebased company providing value-adding solutions to bioethanol facilities, alcohol and brewery plants, water and wastewater treatment systems and process engineering, plant and equipment globally. The company sees technological innovation as its main source of competitive advantage. Shares now trading at Rs 37 can peg at Rs 60.

GIC Housing Finance: GIC Housing Finance is a small-size housing finance company catering mainly to the middle- and lower-middle-income customers with a ticket size of Rs 10-Rs 15 lakh. It is concentrated more in western and southern India with 95% focus on salaried classes. Shares priced at Rs 97 can target Rs 140

July 31 - Aug 31, 2013

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Rupee fall proving a boon to realty

aking advantage of the rupee fall the realty sector in Kerala is slowly looking up after a long lull. Increasing demand from NRIs who had abstained from the market because of scams and the entry of some fraudulent players has revived the sentiments to a great extent. Business is visible in high-end villas and apartments promoted by trustworthy players in the industry. The gold price crash and the instability in the stock market have caused NRIs to turn to real estate in which to invest their surplus income.

The end of the uncertainty in the commencement of work of the Smart City project and the speedy work in progress of Metro Rail, both in Kochi, have fuelled the demand.

waste management and sponsoring of e-toilets in the cities in association with corporations and municipalities for better hygiene and sanitation which certainly has given developers a reputation among the people for their good work and also increased their credentials among investors. Though the industry is reeling under tremendous shortage of labour, escalation of raw material prices at wafer-thin margins, the recent demand has given it a much-needed fillip.

processes from different departments

The real estate sector today presents a cleansed scenario as the poncey companies have almost become tales of the past. Credai, the association of builders, is engaging itself in a slew of community services like solid

The State Government’s relaxations of FAR (floor area ratio) rules have given the industry a boost in recent times. However, the industry’s longstanding demands like stamp duty reduction and expedition of clearance

and other burning issues of national

‘Trinity World’, one of the most coveted projects, comprises four towers— Jupiter, Neptune, Mercury and Venus.

This premium apartment project promises to help its residents lead a luxu-

features. For instance, the magnificent central atrium is one of the largest atriums in any apartment project in Kochi. Facilities at Trinity World like clubhouse, health club, swimming

at Seaport-Airport Road, about 1.5 km from Smart City/Infopark and only 6 km from NH bypass, makes Trinity World an ideal choice.

are still pending and this is dampening growth. Today many people seem to prefer premium apartments or villas at prices ranging from Rs 25 lakh to Rs 30 lakh, which they consider to be affordable.

The interest rate cut is a long-cherished dream of budget home purchasers but the RBI and the banking industry are turning a blind eye to inflation interest. There is no doubt that a rate cut will give an impetus not only to affordable housing projects, but also the whole realty sector

Trinity— maker of projects with a human touch E

stablished in 2005 by construction and business entrepreneurs, Trinity Builders and Developers has emerged as one of Kochi’s leading builders in a short span of time. Trinity’s directors include C J Mathew (IRSretd), Roy, head of the well-known RJ Constructions, a civil contracting and engineering firm, and Louis, owner of Jos Electricals (Agencies), which runs the largest lighting showroom in South India. Though relatively young as an organization, the decades-long experience of Trinity’s directors makes it extremely effective.

Trinity Builder has set its other masterpiece, ‘The Garden’, a thoughtfully planned and executed villa project, at Aluva. Each home at Garden is a luxurious four-bedroom villa set in eight sprawling acres with a total of just 42 villas. Situated at Aluva, the bustling satellite city of Kochi, you are just around 8 km from the Cochin International Airport. Also, the project is very near to the timeless River Periyar which is accessible by a leisure stroll of less than five minutes.

Positioned as a thinking builder, Trinity carefully selects and plans its projects. The company has successfully delivered six projects to date and another half a dozen are underway.

Trinity’s core advantage is its speed and ability to understand customer needs, a fact that Trinity’s peers in the industry have themselves acknowledged.

Customer preferences are researched extensively and these preferences are the building blocks on which projects are designed. Trinity’s collaborations with talented architects have resulted in innovative and aesthetic living options.

Trinity has projects that are in diverse locations—city-centric, IT-oriented, scenic and waterfront.

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Trinity takes pride in bringing to its customers projects that are luxurious and grand while maintaining their personal touch at the same time.

rious and comfortable life right near their workplace.

‘Trinity World’ offers many unique

July July 31 31 -- Aug Aug 31, 31, 2013 2013

pool, indoor games centre, party area, business centre, home theatre, centralized gas supply, generator backup etc are amongst the best. Coming up

Trinity’s credibility gets further corroborated by the fact that within the first three years of its inception, 270 apartments have been completed spread over four projects. Since then Trinity has moved from strength to strength, with over 1,500 dwelling units having been conceived across 13 different projects, offering superior finish at attractive rates

27

Yasoram for affordable homes

W

ith more than a quarter century of proud history behind it, Yasoram Construction Co started with a noble, yet highly productive, dream to provide quality housing to the general public at affordable prices. A R S Vadhyar, the mastermind behind the venture, has traversed a long way, both as a pioneering businessman and a visionary.

His entrepreneurial skills have been marked by his determination to fight against odds and to bring in

path-breaking ideas. Highly innovative projects like Sky City are proof of his penchant for blazing a trail. Vadhyar is also famous for introducing the concept of terrace farming and gardening in India.

Breaking the perceived notion about a builder, Vadhyar has forayed into activities

that might bring positive changes in society.

A R S Vadhyar

The extent of his social activities has cut across class and creed. Vilayil Apartments, Aluva; Valluvaserry Enclave, Eranakulam; Haridas Apartment, Chottanikkara; Praseeda Apartments, Gandhinagar, Kadavanthra; and Lakshmi Apartment, Kochi; are the major ongoing projects of Yasoram.

Yasoram has so far completed Thejus Apartment, Indradhanus, Jaladarsini, Pancharatna Apartments, Victoria, Sivadas Towers, Triveni, Gosreepuram, Indraprastha, Himagiri, Shanthivan Apartments, Diamond Towers and Sreyas Apartment

Kalpaka—building homes that are benchmarks

C

ommitted to excellence since 2000, Kalpaka has become a globally recognized builder enjoying an unrivalled track record of consistent growth ever since. Incorporated under the leadership of M V Sunith, Managing Director, Kalpaka Builders places great reliance on quality, using only the finest materials and craftsmen to create homes that are widely lauded as benchmarks. Kalpaka homes are located at the best and immaculate locations in and around Kochi.

M V Sunith

Kalpaka has a qualified, efficient and dedicated crew behind its success led by Sunith. “At Kalpaka, the relationship with the clients does not end with the structure of a house. We offer the clients an array of services so essential to every homeowner. This is just to reiterate the commitment to the clients,” says the MD who is an expert in the realty field with more than 25 years of experience.

Kalpaka Rangoli is a new offering in residential apartments near the International Stadium, Kaloor. It has all the requisite necessities and comforts to make living a pleasant experience for the whole family. Kalpaka Lakeside Villa Project, Kalpaka Florence Apartments, Kalpaka Virndavan and Kalpaka Castle are the ongoing projects of Kalpaka Builders. ISO certification and membership of CREDAI, Kerala Chamber of Commerce and Industry (KCCI) and Kerala Management Association (KMA) authenticate the credibility of Kalpaka Builders July31 31--Aug Aug31, 31,2013 2013 July

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Noel—initiator of the green living concept

oel Villas and Apartments, the pioneer in green building in Kerala, provides eco-friendly projects conforming to the green concept, which is rapidly catching on in the building industry. Noel, established in 1993, has become one of the most acknowledged and credible builders in Kochi, aiming at high standards of quality in design and architecture and in the use of the latest building technology. It works on the philosophy of integrity, reliability and impeccable service to customers. Noel offers you a green living space where you will be calmed by the harmony of urban refinement and suburban style.

As part of this vision of creating quality life, its latest projects like Noel

more space. Greenature is being constructed as a green building according to IGBC specifications.

John Thomas Serenia and Noel Greenature promise to be a green community designed for contemporary living in natural setting—a modern lifestyle in a haven of peace and tranquillity. Noel Greenature is the combination of a sky-villa apartment at Kakkanad within 750 metres from the Civil Station. The project is designed with 2 FAR, providing

The World

Choondy, Aluva

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Orchid Park

Kalathipady, Kottayam

The residents of the building can enjoy improved energy efficiency, increased water saving, toxin-free materials, negative environmental impact and improved asset value and marketability. “Noel initiated the green living concept for the first time ever in Kerala by introducing Greeanture villa apartments. This green initiative is aimed at fulfilling Noel’s social and corporate responsibility in a meticulous manner,” say John Thomas, Managing Partner, and Geetha John, Executive Partner.

Both are engineering graduates with over 25 years’ experience in the building industry. With an uncompromising

Campus Woods CUSAT, Cochin

passion for quality, Noel has re-scripted the dynamics of the builder-customer relationship by making the aspiring client an active participant in the art of housemaking.

Unrelenting commitment to providing immaculate designs and unique projects has taken Noel a notch higher.

Noel Casa Theera, Noel Ecotat, Noel Serenia, Noel Geernature,Noel Arcadia and Noel Focus are Noel’s major ongoing projects

JKH Signature Aluva, Cochin

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E

Exclusive living spaces from Nest Infratech

stablished in 1991, the Nest Group is today a multifaceted information technology company with headquarters in Chantilly, Virginia, and offices in Europe, Japan, India, the Middle East and Australia.

It was after setting benchmarks in all the areas it touched that the multibillion-dollar conglomerate entered the realty and infrastructure sector with the launch of Nest Infratech.

Offering exclusive living spaces at planned locations across India, Nest Infratech is powered by the dynamic character and vision of its promoters, Dr Javad Hassan, Chairman; Jehangir, Managing Director; F M Shameir Marickar, Director and CEO, Nest; and Althaf Jehangir, Executive Director, Nest Group. Nest Infratech is pioneering the concept

of integrated townships in the name and style of its projects, ’The World’. These world-class integrated townships comprise villas and apartments, starting from Rs 20 lakh.

Dr Javad Hassan

Althaf Jahangir

Jehangir

Shameir Marickar

The international model of inclusive development with Mediterranean and English styles and contemporary and traditional Kerala Nalukettu villas is its unique feature.

Presently ‘The World’ concept is being launched in Aluva and Thalassery and will soon be replicated in all major cities of India.

The Electronics City coming up at Kalamassery, Kochi,

is among Nest Infratech’s projects.

The first special economic zone in the private sector in Kerala, it is a Rs 2,500-core state-of-the-art project with two million sq ft of notified space for electronic hardware manufacturing. Another project, ‘Orchid Park’, is being launched this year.

This superluxury apartment complex is coming up at Kalathippady in the heart of Kottayam town. ‘Electro Ville’, the latest project, is a luxury apartment that takes shape at Electronics City, Kalamassery, which is one of Kochi’s most elite residential neighbourhoods

July31 31- -Aug Aug31, 31,2013 2013 July

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Heera: synonym for excellence

T

he Heera Group is well known for completing its projects ahead of the scheduled time because of meticulous planning and rigorous quality control that have made it a household name. Dr A R Babu, Managing Director of the group, says the steady growth of his firm is due to the three pillars of his business—quality, economy and comfort.

Established more than two decades ago in Goa, with diverse business activities like property development, hotel operations, civil contracting and tourismrelated projects, the Heera Group later extended its arms to Kerala and other states. With more than 100 lakh square feet of built-up area to its credit, the

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group is now one of the most reputed builders in South India.

In 2001, Dr Babu received the Vishishta Prathibha Award sponsored by Kerala Chamber of Tourism & Allied Industries for his achievement in the construction industry. In 2004, the Gandhi Puraskaram from Mahatma Gandhi Peace Foundation went to him for excellence in the housing sector. By 2003, his fame had spread internationally. At the Indo-Nepal Conference Dr A R Babu on ‘India-Nepal Friendship and Economic Cooperation’ held at Kathmandu (Nepal), he was the recipient of the International Gold Star Millennium Award for superb achievements made in the construction industry. He was also given a Doctorate in Construction Management by the University of Honolulu, US. Heera Constructions won the world-renowned Century International Quality Era Award (CQE) in the Gold Category for 2012 at the International Convention held on March 11, 2012 by Business Initiative Directions (BID). With the able leadership of Babu, the

company gained the rare recognition of earning a Seven Star rating from Crisil for its prestigious Heera Infocity project, near Technopark, Thiruvananthapuram.

The ratings take into account the quality of construction, legal and financial quality, innovation and sponsorship. Heera has completed some ambitious projects like Heera Blueberry, Heera Towers, Bluebells, Heera Crescent, Heera Heritage, Heera Vastu Hills, Heera Kinara, Heera Grace, Heera Point, Heera West Court, Heera Central, Heera Castle, Heera Palace and Heera Twins in Thiruvananthapuram, Heera Plaza in Kollam, Heera Vastu Gramam in Kochi and Green Court in Kottayam.

The other major projects include Heera Grandville, Heera 4 Pillars, Heera High Life and Heera Dreams in Thiruvananthapuram. Heera Breeze in Kottayam and Heera Wind Faire in Kochi are other attractions.

The ongoing projects of the group are Heera Swiss Town and Heera Golden Hills in Thiruvananthapuram and Heera Lifestyle and Heera Cyberview in Kochi

31

News

Kovalam beckons NRKs for Sangamam T

he World Malayalee Council (WMC) Kerala is organizing a two-day NRK meet to bring Malayalees from different parts of the world under one roof where they can share their experiences and business thoughts.

This year the famous beach of Kovalam will play host to the Sangamam.

The NRK SangamamK J Varkey 2013 will be held on August 9 and 10 at the Uday Samudra Beach Resort (UDS), Kovalam, which is a four-star leisure resort located just 15 metres from the sea.

The Kovalam meet provides a

platform for Malayalees worldwide to meet and exchange views and business ideas and build lasting relationships among themselves. The two-day event will be conducted amidst serene surroundings and secluded palm-fringed beaches fronting Kovalam.

The organizing committee expects 150200 families from various Ajith Kumar parts of the world to participate in the get-together. ``There will be seminars on relevant topics like investment, real estate and rehabilitation opportunities,” says Commander K J Varkey, Chairman of the Sangamam.

Programmes of women and children will be another attraction of the event. ``There will also be a business meet on the sidelines of the Sangamam,” says Mr. Ajith Kumar, Chief Coordinator.

Union Minister Shashi Tharoor, state Food and Civil Supplies Minister Anoop Jacob, former Education Minister M A Baby, former WMC ChairAnoj Kumar man D Babu Paul, former Indian Ambassador T P Sreenivasan and Kairali TV MD John Brittas will attend the function.

“This year the Sangamam Committee is expecting participation from leading NRIs and various Malayalee organizations all over the world. The WMC Kerala Province is trying to make the two days a memorable event.” said Mr Anoj Kumar and Mr ET Mohan the Chairman and the President of WMC Kerala Province Last year the Sangamam was organized ET Mohan in the misty mountains of Idukki district at an altitude of 4,000 ft.

The three-day event was conducted in the midst of lush green tea plantations of Kuttikkanam sea

MCMAT—consistently top-ranked B-school T

he Marthoma College of Management and Technology (MCMAT) is owned by the MTEA Society which is the creation of the Mar Thoma Evangelistic Association (MTEA). MCMAT was established in 2005 as a full-fledged business school. The college has ‘Minority Educational Institution’ status granted by the National Minority Commission for Educational Institutions of the Union Government.

MCMAT offers MBA programme affiliated to Mahatma Gandhi University, recognized by the Government of Kerala and approved by the All India Council for Technical Education (AICTE). The two-year MBA programme with 120 seats is conducted in four semesters and offers a wide range of specializations. MCMAT has a number of programmes including on-the-job training with reputed corporates like The Times of India and a strong industryinstitutions networking for mentoring students by leaders in industries and Rajan Varghese organizations to enrich the university curriculum. Every year, MCMAT student teams conduct international academic projects in the Middle East with Badr-Al-Sama and Mars International Group of Companies.

A strong team of faculty members with academic, industry experience and consultancy activities has helped MCMAT to grow into a consistently highly rated B-school in surveys of The Week (2013), Business World (2013), Indian Management (2013), India Today (2012), Business India (2012) and Business Today (2012) at ‘A+’ level. These B-school surveys have consistently ranked MCMAT as one of the top five colleges in Kerala and top 25 in India. Dr Rajan Varghese is the Dirctor and Principal of the college.

MCMAT has links with overseas universities and is conducting international academic programmes in collaboration with Bellarmine University, US, regularly. Regular faculty and student exchange programmes and technology-supported classes for knowledge and resource sharing are conducted between both W Fielding Rubel School of Business of Bellarmine University and MCMAT. MCMAT provides separate hostel facilities for boys and girls July31 31- -Aug Aug31, 31,2013 2013 July

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Bourn Hall: born for IVF babies J

uly 25th 1978, Louise Brown, the world’s first test tube baby, was born. The achievement was due to the untiring efforts of Dr Patrick Steptoe and Sir Robert Edwards and Subsequently Sir Robert Edwards was also awarded the Nobel Prize in 2010.

People are becoming more aware about the medical issue on infertility.

But even today there is a lot of myths around infertility among the Indian population. Due to the increase in awareness of the medical issues surrounding infertility, more people are now taking to the treatments to have their own family. ``Early Embryo Viability Assessment (EEVA): This new non-invasive assessment test is designed to improve IVF outcomes by providing us with objective information that will enable us to predict embryo viability with a new level of accuracy,” says Ganesh Lashmanan, Regional Business

Director, Bourn Hall Kochi. “There are various types of treatments based on the various issues surrounding infertility. Hence each treatment is individual and the pricing is variant but more or less it’s affordable.” Ganesh added.

Bourn Hall Clinic is Asia’s only infertility clinic to have a clean room IVF lab which is so important to carry out procedures Ganesh Lashmanan like Single Embryo (Blastocyst) Transfer.Speciality Treatments include In Vitro Fertilization (IVF), Intra Uterine Insemination (IUI),Frozen Embryo Transfer (FET), Intracytoplasmic Sperm Injection (ICSI), Egg Freezing ProgrammesTESA / M-TESA. The pioneers in Infertility treatment ,Bourn Hall made possible its medical

Lulu NRI Shopping Festival be gins

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ne of the biggest NRI shopping and entertainment festivals in Kerala has started at Lulu Mall,Kochi.The festival, the Lulu NRI Shopping Festival, brings in entertainment, special performances and bumper prizes.

M A, Director, Lulu Group India; Shibu Philips, Business Head, Lulu Mall; and Swaraj N B, Media Head, Lulu; were present.

Bhavana also gave away prizes to the daily winners of the ‘Shop More

and ethical practices are considered to be benchmarks of IVF treatment in the world. Bourn Hall has helped more than 5,00,000 babies.

According to Ganesh “Five important things that one must keep in mind before opting for fertility treatments

Spicing up his journey to create a vital new record

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veryone knows that Suresh Joseph, former General Manager of Dubai Ports World, is bitten by the travel bug. He can’t resist packing his bag and getting behind the wheel to get lost in long and lonely drives.

He’s now embarked on a new expedition. Find out more.

“Life is either a daring adventure or nothing”, opined Helen Keller, the celebrated American author and political activist once. Suresh Joseph, who had earlier served the Indian Railway Traffic Service, can’t but agree.

Actress Bhavana inaugurating the Lulu NRI Shopping Festival at Lulu Mall. Rajesh Menon, Manager, Josco Jewellers; Jose Skaria, Chief Manager, Federal Bank; C J Philips, DGM, New India Insurance; Nishad M A, Director, Lulu Group India; Shibu Philips, Business Head, Lulu Mall; and Swaraj N B, Media Head, Lulu; were also present.

Lasting till August 31, the festival was inaugurated film actress Bhavana. Rajesh Menon, Manager, Josco Jewellers; Jose Skaria, Chief Manager, Federal Bank; C J Philips, DGM, New India Assurance; Nishad

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Win More contests’ as a part of the festival. Neethu Hormis from Manjapra and V P Shyson from Paravur were selected as the ‘super- shoppers’ of the day

July 31 - Aug 31, 2013

are that one should be counseled properly. This is one of the most important factors in the whole cycle of the treatment.

They should opt for a clinic which has transparency and sharing of information so that they could make an informed decision.

There should not be any surprises during the procedure and they should be able to view the embryology lab and should opt for a clinic which has transparency in treatments. This can avoid unnecessary hassles. The patients should opt for a full time dedicated team of doctors and embryologists. There should be a clinic which has regular clinical and quality audits”

What’s more, the 55-year-old civil servant believes one completes half the adventure by remaining young at heart. That’s why he has taken up a fresh round of adventure finishing the Golden Quadrilateral Expedition in a record time.

The expedition which officially started on June 8 from Bangalore was, in fact, informally flagged off from the corporate office of the Kerala-based Eastern Group, which has now grown into a global brand, on

Suresh Joseph, presently a consultant based in Kochi, needs no introduction, especially among adventure enthusiasts. In the past, he’d traversed an astounding distance of 23,355 km touching 28 Navas Meeran, Chairman, Eastern Group, handing states in the country over the key to Suresh Joseph and the headquarters of the 17 zonal railways in 124 days June 4. “The current Limca Record is setting a new record in the Limca 96 hours and 10 minutes. It was creBook of Records. Besides, he has ated in 2011. To break this record, I bettered the solo drive timings for obviously would need to better the the North-South, Coast-to-Coast and timing”, said Suresh pondering over East-West four-wheeler expeditions. the arduous journey

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S Rajmohan Nair and Jibu Paul elected as President and Secretary of KMA

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Other elected members of the Managing Committee are G Krishnakumar, Dy Chairman, Cochin Port Trust; R Manomohanan, Chief ExJibu Paul P Premchand, ecutive Officer, m a n a g e m e n t Muthoot Capital c o n s u l t a n t , Services Ltd; S is the Senior Gopakumar, Unit Head , Apollo Tyres Vice-President Perambra Plant; Dr Francis CheruniS Rajmohan Nair and Prasad K lam, Professor, School of Management PanStudies, CUSAT; Mathew icker, Executive Director, Jose Urumbath, ManagBPCL-Kochi Refinery, is ing Partner, U M Thariath Vice-President. Vivek Krish& Company; V R Nair, na Govind, Partner, Varma former Factory Manager, & Varma, Chartered AccounHindustan Unilever Ltd; tants, and L Nirmala, GenK A Mohamed Saleem, eral Manager, Flora Airport Chairman, Asset Homes; Hotel, are theJoint Secretary K Rajan George, CEO, and Treasurer, respectively.

RG Consultancy; Dr P K Abraham, Chief Editor & S R Nair S R Nair, Managing DiExecutive Director, Veekrector, Team Frontline Ltd, shanam; and.Cherian Pewill continue in the committer, Chief Marketing Officer, Muthoot tee as Immediate Past President.

Finance Ltd Rajmohan Nair, Development Officer, LIC of India, has been elected President and Jibu Paul, CEO and Brand Engineer, Brandbrains, Secretary of the Kerala Management Association for the year 2013-14.

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Lulu Group HQ in a modern wonder

he Lulu Group, one of the leading groups in the Gulf, has moved into its swanky new head office, the Y-Tower, an amazing architectural wonder. The new headquarters has come up on two acres of land provided by the Abu Dhabi Government.

The total cost of the 12-storey building is 80 crore dirham (about Rs 1,280 crore).

Yousef Ali, Managing Director, announced recently that all the global operations of the group would be consolidated from this headquarters.

To this end, elaborate and most modern communication facilities had been installed in the headquarters which would enable constant monitoring and interaction with all group offices around the world.

Yamaha unveils ‘Ray Z’ scooter

Yousef Ali expressed his heartfelt gratitude to the distinguished rulers of the Gulf countries who are kindhearted, visionaries and gracious.

He also extended his thanks to the Malayalees in the Gulf and other countries who have been with the group throughout its growth.

Y

He also announced that the group would be launching five hypermarkets in one year: one in Oman and

The Ex Showroom Price in Kochi will be at Rs.49,542/-

amaha Motor India Sales has launched ‘Ray-Z’, a scooter to target young male users in the age group of 18-22 years. The company forayed into the scooter segment last year with the launch of Ray targeted for female customers.

two each in Saudi Arabia and the UAE. The Lulu Convention Centre at Bolghatty Island in Kochi would start functioning after Ramadan and 50% of the Logistics Centre at Aluva was complete, he said.

As part of the opening of the new headquarters, all his 30,000 employees were given a gift of 500 dirham.

Group Finance Controller Parameswaran Namboodiri said that the group achieved a turnover of $5.15 billion (about Rs 26,000 crore) for the year 2012 and that a turnover of $5.65 billion (about Rs 35,000 crore) for the current financial year was expected.

Nandakumaran Nair, Group Corporate Communications Manager, said the new headquarters was named Y-Tower because ‘Y’ was the first alphabet of Yousef Ali

Sabu Thomas CFO of the Year

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abu Thomas, Financial Controller of Kerala Financial Corporation (KFC), has been given the Chief Financial Officer (CFO)) of the Year award by the Confederation of Asian Business and Stalwarts of the Industry Group. This award is given in recognition of the contributions made by him to corporate governance.

The design of Ray Z is highlighted with a smoked-finish visor for a motorcycle-like image, aluminum rear wing-shaped tandem rider grab-bars, a new instrument panel with a carbon fibre-patterned background, a carbon fibre-patterned seat cover material and 5) dynamic colouring and graphics.

Ray Z has a 4-stroke 113cc engine with CVT (vontinuous variable transmission) which, the company says, has great fuel economy. It will be available in red, white and black colours and will be priced at Rs 49, 542 (ex-showroom, Kochi)

The best CFO of the year is presented to recognize CFOs who play a key supporting and advocacy role in promoting good governance, disclosure and transparency.

It also acknowledges CFOs who are exemplary role models in corporate financial disclosure by going beyond the regulatory financial requirements and help create longterm shareholder value.

Sabu Thomas has also been awarded the Best CFO Sward by the CFO Institute, Mumbai. A chartered accountant, he is a native of Kottayam district

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Technology great enabler for small tourism businesses: CM

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hief Minister Oommen Chandy has urged young entrepreneurs with small, startup businesses in the travel and tourism sector to take advantage of digital technology which is opening up vast global markets that were once unreachable through traditional marketing tools.

Inaugurating the country’s first International Conference on Travel Technology (ICTT) at Thiruvanan-

thapuram the other day, Chandy said India, which is ranked 41st in terms of international tourist arrivals, has a long way to realize its full potential, given its natural and cultural attractions. However, a key step forward is the arrival of a large number of educated youth and qualified professionals in the industry which is driving innovation and growth, he said. “And technology is fuelling this surge of entrepreneurship by providing platforms to market their products and services.”

Shashi Tharoor, Union Minister of State for Human Resource Develop-

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ment, in his keynote address said one of the most important uses of the web for the tourism business is review and response to customer feedback which is increasingly influencing travellers’ decisions.

“The real danger from the web is that it is an unmediated platform. Opinions can easily be doctored or manufactured. The best way to counter fake reviews is to put out correct information. Alert hoteliers and destination managers must come up with quick responses,” he said.

Tharoor, a well-known Twitter user with over 1.8m followers, is also the quizmaster of an innovative daily online quiz organized by Kerala Tourism that offers generous prizes. He described the project as an example of “the creative use of the web to stimulate interest in a destination”.

Tourism Minister A P Anil Kumar, who was the guest of honour, said “the Kerala Government was among the pioneers in marketing tourism through the web and has had a longstanding policy of utilizing the internet for tourism promotion.” “Our marketing strategy based on the internet is headed the right way. IT has not just complemented our promotional activities, but has helped reduce expenditure and significantly lowered our consumption of print products,” he added

Seminar on IPR

he Indian Chamber of Commerce and Industry (ICCI) along with US Commercial Service, Chennai, organized a seminar on Intellectual Property Rights (IPR) in Kochi recently. Kalpana Reddy, First Secretary for Intellectual Property, US Em-

Kalpana Reddy explained the basic IP regimes and IP practices in various organizations especially in the US. Patents, copyrights, trademarks and trade secrets which small businessmen should be aware of were explained. IPR procedures and legal

Startup Village firms sweep BizSpark regional challenge

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cloud-based social decisionmaking platform, a potentially revolutionary multimedia device and a gesture-based touchless interface for Windows have emerged winners of the regional round of the prestigious Microsoft BizSpark Challenge 2013.

The winner of the competition DecideQuick has produced a novel tool to help people make smart and informed decisions. According to its developers, it is the first-ever platform to use social data analytics and co-own private social data to help people choose products and services.

The programme gives recommendations to the user-based on real-time analysis of the opinions of friends, influencers and the public on social networks, saving them the hassle of trawling through tons of data online.

QEdge, the first runner-up, is the only campus startup to make its way into the regional rounds of the BizSpark Challenge. Its three co-founders—Nithin George, Jibin Jose and Jacob Mani—are still in college and are currently incubating their firm at Startup Village.

Their flagship product is the QPlay hardware device which is capable of turning a normal television set into a smart TV. By allowing home users to stream media files in any format from any mobile and PC wirelessly, QPlay can potentially re-

define media viewing experience in the home living room.

RHLvision Interactive LLP, the second runner-up, is again a nascent establishment at Startup Village that has developed a touchless interface for Windows smartphones that enable users to change songs or play games using gesture control.

The winner and the two runnersup at the Challenge held on May 29 receive a purse of $4,000, $2,000 and $1,000 respectively. They also claim an exciting array of non-cash prizes including Windows Phones and a BizSpark Plus membership, besides exclusive connects with venture capitalists, technical assistance and support for online promotion campaigns aimed at helping them expand their businesses.

“Our facility is a mine of talent, novel business ideas and innovative products; and events such as the BizSpark Challenge provide an opportunity for young entrepreneurs to gain the validation and mentoring their businesses need,” says Startup Village Chairman Sanjay Vijayakumar.

According to Sijo Kuruvila George, the CEO of Startup Village, the response to the competition was amazing, not just from within the Startup Village community but outside as well.

“The fact that Microsoft has brought its BizSpark Challenge to Kochi for the first time shows just how big an impact Startup Village has had on entrepreneurship in Kerala. In these two years we have seen such a flow of creative energy, new ventures and quality innovations that we are proud to say our state is truly on its way to becoming a global technology hub,” he said

Photo Caption: ICCI President Nishesh Shah welcoming the gathering at the IPR seminar. Also seen are S Venugopalan Nair, Kalpana Reddy and VicePresident A A Abdul Azeez. bassy, New Delhi, and S Venugopalan Nair, IP Consultant and IPR Counsel of Toonz Group, Technopark, Thiruvananthapuram, led the seminar.

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aspects were clarified by Venugopalan Nair. The participants familiarized themselves with the basic theory and practice of IP regimes

July 31 - Aug 31, 2013

Chief Minister Oommen Chandy inaugurating the KSIDC workshop on energy. (Seated from left) Tom Jose, P K Kunhalikutty, Aryadan Mohammed and K S Sreenivas.

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KFC declares 8% dividend

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erala Financial Corporation (KFC), the pioneer industrial financing institution of Kerala, has declared a dividend of 8% to its shareholders. The decision to pay the high dividend has been taken after the corporation registered its highestever profit of Rs 66.83 crore for the FY 2012-13 with 46.38% growth.

The State Government, being the largest shareholder with more than 97% of the equity, will get P Joy Oommen approximately Rs 16.46 crore as dividend. KFC is the only state financial corporation in the country paying dividend continuously to its shareholders.

With improvement in all operational areas, KFC has increased the qual-

ity of its assets and reduced its net NPA to 0.36%. It has also registered record growth in critical operational areas like sanction, disbursement, recovery, interest income etc for the financial year.

KFC’s net worth has increased to Rs 383.76 crore with 17.77% growth.

The capital adequacy ratio (CAR) is at 24.94% which is far above the minimum norm of 9% prescribed by the RBI According to P Joy Oommen, KFC Chairman and Managing Director, the corporation could achieve these results essentially through inspired performance by its employees, efficient fund management, resources mobilization, scientific appraisal and systematic efforts in recovery of dues

HDFC named Best Investor Relations Bank

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DFC Bank has been voted Best Bank in Asia on the list of ‘Best Investor Relations Companies’, based on a survey conducted by global magazine Institutional Investor. The survey also ranked HDFC Bank third on the list of Best Companies in India.

The 1,500 respondents of the survey also recognized the bank’s top management. Aditya Puri, MD of the bank, was voted Best CEO in Asia in the banking sector. Other top CEOs in their respective sectors included Rajiv Bajaj of Bajaj Auto (auto and auto parts sector), Mukesh Ambani of Reliance Industries (oil and gas sector) and N Chandrasekaran of TCS (IT sector).

Sashidhar Jagdishan, CFO, HDFC Bank, was named Best CFO in Asia by buy-side analysts.

he entire non-SLR bonds of Rs 200 crore issued by Kerala Financial Corporation (KFC), Kerala’s pioneer industrial financing institution, have been fully subscribed well in time. KFC had come out with nonSLR bonds of Rs 100 crore, with green shoe option of another Rs 100 crore on May 7, 2013. The bonds were in the nature of debentures with unconditional and irrevocable guarantee by the State Government offering 8.72% interest payable semi-annually.

The bonds of Rs 100 crore were subscribed within nine days. Considering the unprecedented response, the green shoe option for another Rs 100 crore was exercized and that also stands fully subscribed now.

The bonds were rated ‘A-(SO)’

by Brickwork Rating. The bond issue evoked unprecedented response from individuals/ PF trusts/societies/corporations/ institutions across India. The major investments came from Karnataka, Maharashtra and Andhra Pradesh. According to P Joy Oommen, Chairman and Managing Director, KFC, the success of the issue is the indicator of the people’s faith in the improved fiscal performance of the State Government, the professional management of KFC and the dedication of its employees

Geojit Q1 PAT up by 95% Commenting Geojit BNP Paribas Finanon the results, C cial Services has reported conJ George, Mansolidated revenues of Rs 59.33 aging Director, crore for the quarter ending said in Kochi the June 2013, compared to Rs other day: “Capi58.85 crore for the same quartal market operater of the previous fiscal (up by tions continue to 1%). Net profit increased by be under pres95% to Rs 16.48 crore from Rs sure due to weak 8.47 crore, which includes an C J George macroeconomic exceptional income of Rs 6.94 fundamentals of crore (which represents the receipt of last instalment of payment the economy. Nevertheless, Geojit on account of the sale of stake in BNP Paribas was able to increase the institutional JV that concluded its profits because of tight cost last year). Profit before tax during control as well as improved perforthe period went up by 22% from Rs mance by its subsidiaries and joint ventures.”

13.67 crore to Rs 16.63 crore.

in the overall list of ‘Most Honoured Companies in Asia’, with Infosys being the only other Indian company ahead of the bank at number 4.

These rankings were the results of a survey conducted by Institutional Investor to pick its All-Asia Executive Team for 2013. The publication surveyed buy-side analysts, portfolio managers and sell-side analysts at securities firms and financial institutions across non-Japanese Asia. These analysts and investors were asked to name the best CEOs, CFOs, investor relations professionals and companywide IR efforts in their domains

Blackberry Q10

KFC bonds fully subscribed

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HDFC Bank took the ninth position

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lackberry Q10 becomes the second costliest product from the Canadian smartphone maker, after the P9981costing about Rs 1.40 lakh. The Q10 comes with a 3.1-inch touch screen with the iconic Qwerty keyboard, available in India at Rs 44,990, costlier than its previous product Z10 priced at Rs 43,490. This product reportedly claims to have 14.8 days of standby time on 3G networks and it gives 13.5 hours of battery life as talk time.

It also supports the fourth-generation (4G) networks and has a megapixel

camera and high-definition (HD) video recording facility. The handset has connectivity, allowing you to easily exchange music, pictures and any other data with other devices. It also has a 16 GB memory to help. There is also a warranty included—18-month manufacturer warranty.

Notably, Japan’s Panasonic Corp launched its first smartphone, P51, in India in May, while South Korea-based Samsung Electronics Ltd the Galaxy S4 in April. Also, Chinese handset maker Lenovo Group Ltd launched a few smartphones in India on June 5, 2013

M Ravindran is Director (HR), GAIL

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the National Capital Region.

He was also the first CEO of GAIL’s wholly owned subsidiary, GAIL Gas Limited, from 2008 to 2011.

Ravindran has taken over as Director (HR) of GAIL (India) Limited.

A mechanical engineer and a master’s in Management, Ravindran brings to the GAIL board over 33 years of rich and diverse experience in the fertilizer and oil and gas industries, particularly in gas transmission, petrochemicals and city gas distribution sectors.

Before his present appointment, Ravindran served as Managing Director of Indraprastha Gas Ltd (IGL), a joint venture of GAIL and BPCL and the largest supplier of compressed natural gas (CNG) and piped natural gas (PNG) in Delhi and

Ravindran joined GAIL in 1990 and has been associated with a number of prestigious projects of the company including the commissioning activities of GAIL’s first integrated petrochemical plant at Pata, UP, and later headed operations of HVJ, GAIL’s first cross-country highpressure natural gas pipeline, Dahej Vijaipur Pipeline and other associated spur pipelines, besides the company’s largest LPG recovery units at Vijaipur in Madhya Pradesh

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