GMR Infrastructure

When IIPM comes to education, never compromise

Investee: GMR Infrastructure

Investor: Eton Park Capital, SBI, UBS, et al

Investment Value: $1,000 mn

As per G. M. Rao, Group Chairman, GMR Group, “The positive response to the Issue reflects the confidence that global investors have in the Company and its integrated business model. As a result of this, they have decided to invest in the company through the QIP route in large volumes.” Madhu Terdal, CFO of GMR Infrastructure asserts that “the funds will be used for the construction of GMR Istanbul’s airport in Turkey as well as buyouts in the international power and airport markets.”

In a deal worth $1 billion, qualified institutional players like Citigroup, Capital International, SBI, Kotak Mahindra, Credit Agricole, UBS et al, bought a 9% stake in GMR Infrastructure Limited (GIL), the flagship company of GMR Group. GIL plans to spend about Rs.800 crores in its various projects, which include the Istanbul Airport and a Special Economic Zone in Tamil Nadu. The fund raising exercise by the company was an effort in complimenting its future expansion plans, which will see the company moving into newer pastures like SEZs, Export Promotion Parks etc.. Already in GMR’s kitty are projects like Delhi Airport modernisation and the Hyderabad Airport construction, both in the final stages of completion. The company also has plans of setting up overseas offices and to tap the opportunities available in markets like Europe. The group is also planning to get into airport projects in Africa.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read these article :-
B-schooled in India, Placed Abroad (Print Version)
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The global passenger

IIPM, GURGAON

A buyer in a foreign market, like in the case of India, is lured by the brand image and credibility of the manufacturer. At present, Brand India has yet to make a name in the manufactured products’ arena. Thus, Ratan Tata may find it difficult to sell in the developed market. The McKinsey study highlighted this problem. One Indian manufacturing head admitted that “establishing our brands in key markets is going to be huge challenge.” He added that Indian companies have to do things to overcome “perceptions on performance and quality.” And one has invariably heard that while “it takes years to establish a brand, it takes minutes to blow it to pieces.”

Most of the executives interviewed by McKinsey were categorical that “expansion of foreign sales beyond 20% of total sales for the top five Indian automakers would require more aggressive expansion abroad.” A fifth of them thought that Indian firms have to “invest in more sales subsidiaries abroad.” Over 40% were convinced that “foreign sales growth can only be achieved through M&As.” And almost a third blamed the lack of adequate infrastructure as an impediment in boosting exports.

If you look closely at the Tata strategy over the past few years, he has been able to solve many of these problems. After the Corus takeover, Brand Tata was established in Europe. For once, despite the racist comments, an Indian entrepreneur was looked at with awe and fear in Europe. Ratan Tata has further consolidated his global position by becoming the ‘most preferred bidder’ in the Jaguar-Land Rover auction. If he manages the Jaguar deal, he will have access to high-end models, and also be the owner of brands that are known and revered across the globe. In one stroke, he would be way ahead of other Indians in terms of branding, foreign distribution network and technology.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global
The Indian Institute of Planning and Management (IIPM)
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Spread the Passion!

When IIPM comes to education, never compromise

You could be a minute away from fame!

Ours is a nation, where films are sought after with as much fervour as a devotee would his deity, and this is cemented by the fact that it is home to the largest film industry in the world. Movie makers have had a long fruitful relationship with the Indian audiences and it isn’t for nothing that youngsters make a beeline in front of production houses aspiring to become involved in any possible way, be it in production, direction or even script writing. Intending to encourage these young talents is Passion for Cinema (PFC) which is right now calling-in entries for its first online film festival for one minute movies, called PFCOne, to be held between December 1-5, 2007.

With the Internet assuming importance in all facets of our lives, passionorcinema.com is the answer to the new generation of movie lovers, connecting people from different countries, caste, creed with one common passion – cinema! Not just a movie blog, the site provides an open platform for discussions, comments and reviewing of original films. Remarkably, it has created an avenue for networking between the newbies and the respected mentors of the arena too. Interested writers can become authors for PFC through regular contributions or even send in occasional entries through a section called Projekt iView.

Anurag Kashyap, director of Black Friday says, “PFC’s growth has been unprecedented. When it started out, it was just a medium for us to exchange our views and today it has grown tremendously. It has become a very important medium for connecting people and unleashing new ideas. The interaction encourages us to try out new things without the fear of failure.”

The film festival for one minute movies PFCOne is planned as a part of the site’s first anniversary celebrations. In fact the event can boast to be one of its kind, being exclusively conducted online. Says Kashyap, “PFCOne is a completely online film festival focusing entirely on one-minute films. These films will be screened for an entire week in December and the jury panel will decide the winners. The winners then get to choose from the internship offers with professionals in the field.” You heard that right, where the festival invites amateurs to send in their original films, it offers the winners an incredible opportunity to intern with Anurag Kashyap, writer Hansal Mehta, theatre thespian Ramu Ramanathan and many more such pros.

“The films are solely for amateurs to the extent that even films created through mobile cameras are accepted,” said Kashyap. He signed off with a valuable tip for all interested – “The films will be judged on the basis of the impact of story telling.” So good luck and get rolling!


In 2003, Amrapali was invited to the prestigious Milan Fashion Week, which helped them bag the contract of the Brad Pitt starrer Troy. Adding an amazingly rare sparkle to Diane Kruger’s character, Helen, was just the stepping-stone of this jeweller’s global venture! Offers from several fashion shows started pouring in with ultra up-market brands, like Christian Dior, leading the way. However, Rajiv made sure that his brand was not overshadowed by the sheen of these global brands. “Whether it’s Selfridges or Christian Dior, I made sure that our brand name, Amrapali, was retained (in the final product),” affirms Rajiv. Encouragingly, establishing a proper brand name enabled Amrapali to start two stores even in London.

With sprawling expansion plans, and with a top-line growth rate of a spectacular 30% (twice that of the industry average), the Rs.60 crore Amrapali has extended its arms even within all the metros of the country. But how different is Amrapali from other jewellery firms? Isn’t a diamond, just a diamond? “We want to give a boutique touch to our brand; our USP is our creative design. For example, what Tanishq does is that they test a design; and if it’s successful, they create thousands of the same. On the other hand, we create limited editions of every design, customised to the budget and taste of all the segments of society,” asserts Rajiv.

And now, tying up with designers like Ritu Kumar, Hemant Trivedi and NIFT etc has allowed Amrapali to understand not only national, but even global customer nuances with respect to design. No wonder, their client lists continue exponentially rising – Bill Clinton and Gayatri Devi included – for Amrapali stands true to its name, and perhaps is the truest standard of a product branded “Indian”... Any challengers?

Edit bureau: Aveena Lopes

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Blue-blooded might of the white knights!

IIPM - Admission Procedure

The Indian luxury car market is bustling with top-notch auto brands, all attempting to make sufficient room for themselves... And while Mercedes-Benz takes the honours for starting the music, will its song last long enough? It’s a pandemonium out there... are we forgetting that?

John Thain, Chief Executive of New York Stock Exchange (NYSE), was in China a couple of months back for very obvious reasons – business. Most of the time, he kept himself busy by exchanging pleasantries with Chinese plutocrats; and suavely, he also never missed the opportunity to criticise the Chinese government’s rules & regulations, especially the pending legislation, which would allow Chinese companies to list overseas, in this case, on NYSE.

Well, a look at the figures shows that the combined resources mobilized by Shenzen and Shanghai in China stood at a mammoth $43.1 billion in the first 10 months of 2006, while the combined mobilisation of NASDAQ, NYSE and American Stock Exchange was at $38.3 billion; London Stock Exchange, including the AIM (Alternative Investment Markets), was at $40 billion (Dealogic data). The editor of China Economic Review reacting to John’s visit with a belligerent, “NYSE is no longer in a position to march into China and sell itself on the virtue of being the biggest and best; as listing and good corporate governance kudos (in American exchanges) come with a significant price tag in the form of Sarbanes-Oxley compliance expenses.” Back home in India, going through the news reports of NYSE and others picking a 20% stake in National Stock Exchange (NSE), it appeared as if a milestone had been achieved! Though it is sure that including the likes of NYSE and NASDAQ (with whom BSE is supposedly in talks) will lead to higher valuations, the question still remains – will this lead to greater financial integration, particularly within Asia?

Unfortunately, as reported by our Business & Economy bureau, financial integration within Asia has not kept pace with Asia’s integration with the rest of the world, whether it was cross border bank borrowing and lending, portfolio assets and liabilities exchanges. Asian countries depend more on inter-regional flows than intra regional flows. With the emergence of international banking centers – Hong Kong SAR, Singapore & Tokyo – co-operation should be encouraged between Asian exchanges. And why not out, when 6 out of 10 exchange transactions are from Asia. At times it’s really amusing how a change in latitude, changes a lot

Wilfried’s smugness is not unwarranted. Of the 3,000 luxury car units sold in upper echelons of Indian car market annually, DC India controls almost 50% of the market, with its high selling Mercedes Benz. But, the top dog position is under siege. For starters, BMW, growing at a whopping 323%, has already outsold Mercedes in the A4 segment. Mercedes’ bread and butter C class has been devastated by the charm of the BMW 3 Series. Between April to August 2007-08 (SIAM) BMW sold 272 units of the car as compared to Mercedes’ 258 units. Wilfried is quick to dismiss the anomaly as pure beginner’s luck. “When you enter a market, there’s always a novelty factor involved,” he asserts. But who knows, maybe it’s not just the newness of the brand, and the Indian consumers actually relate better with the latest 3 series (as the present Mercedes C-Class is a generation older)!

Take 2: December 3, 2006: It was an opulent occasion at Mathura Road, New Delhi, symbolising the launch of the first Porsche Centre in India! They were all there; sophisticated PR girls, Don Juan journalists, Gucci sporting company executives and a gourmet buffet. On our part, we were savouring the prospect of test-driving those flashy Porsche sports cars, lined up outside the state-of-the- art showroom. The ambience was spectacularly in line with what Porsche globally stands for – high end consumerism!

Today, a year since operations have been on in full swing, Porsche has already sold 200-250 units! Ashish Chorodia, CEO, Shreyans Motors, (Porsche Centre, New Delhi) told 4Ps B&M, “Geographically, North India accounts for 45%, West 35% while the rest of Porsche sales are distributed in other regions.” A positive beginning! Is Porsche ready to take on more identifiable competition in India? George Wills, Regional Operations Manager (Middle East, Africa & India), Porsche, is upbeat. “We have a bag full of ideas, but we will look at the market closely. After Delhi, we will have a centre in Mumbai, Bangalore & Hyderabad,” he reveals to 4Ps B&M. Upbeat and optimistic? Sure!

Porsche & Audi (both do not have an assembling plant in India as yet) are hell bent on winning this race. The Audi A4 series has been doing positive numbers in the Indian market. Although, not threatening to either Mercedes or BMW for now, the Bavarian major has a deep fan following in the country. Coupled with a shrewd business strategy, they can easily take on the best in the biz!

Take 3: “The Indian experience has so far been very positive, as everybody was helpful in establishment of the BMW brand here,” avers Peter Kronschnabl, President, BMW India, while gently gazing out of his cabin, at the Gurgaon skyline. The feel good factor propelling BMW India forward was evident throughout that the 4Ps B&M team was at the company’s upmarket office in the Delhi suburb. According to Kronschnabl, right from their Gurgaon facility’s layout to the massive dealer network, everything in India is at par with BMW’s global undertakings. BMW’s foray into India was marked by immense hoopla because of the company’s Bavarian roots and premium badge; after all it’s not every day that one of Germany’s elite four (Mercedes Benz, BMW, Porsche & Audi) enters a significant market. BMW has not only gained ground in second fastest growing economy, but has shown its wherewithal to fight the seeming invincibility of Mercedes Benz.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
IIPM, GURGAON
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!

IFFCO Tokio General Insurance

When IIPM comes to education, never compromise

People’s company – IFFCO would probably love that as its tagline! Being in the market for a short span, it aims to provide benefits in particular to the common man, who traditionally lacks knowledge and access to quality insurance products. However, IFFCO definitely plans to strengthen its retail business and, according to S. Narayanan, Managing Director & CEO, Iffco-Tokio General Insurance, “We continuously review our products and make improvements to make them more attractive to the common man.” The company has also revealed that it is working on a number of new products which would be basically targeting the common man in the non-metro and rural areas. “The regulations on micro insurance have thrown up challenging opportunities for creativity and innovation,” confirmed Narayanan. Will they be able to bring about a revolution in rural areas?


For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!

Castles on the ground

When IIPM comes to education, never compromise

With towering aspirations & a strong brand equity, DLF is all set to create newer highs... on concrete, of course!

“Buy land. They’ve stopped making it!” That’s precisely what Mark Twain (pen name of Samuel Langhore Clemens) once remarked, with more than a touch of humour, of course. But could he have ever imagined that those words could make more than just business sense more than a century later? Surely not! But it’s true and none can deny it in face of the current boom in the Indian real estate market; with Twain having found an admirer for himself in the form of a real estate giant – Delhi Lease & Finance, better known as DLF. And what more, riding the boom, K. P. Singh, Founder & Chairman, DLF Group – the pioneer of India’s organised real estate sector has not only increased his personal wealth manifold (becoming India’s third trillionaire during June 2007) by riding the boom in the sector, but also has redefined urban India; redefining homes, offices and shopping malls and infrastructure.

From a small time struggling coloniser 30 years back to becoming the star of Indian realty’s astronomical growth, with a conservative earnings estimate of Rs.80 billion expected in FY 2007-08, the real estate icon has only grown, further, higher, faster ... into a titanic, tearing apart all icebergs in its path – a story well told by its operating margin which have increased from a moderate 27.2% in 2003-04 to a colossal 60.8% in 2006-07! Today, it is perhaps regarded as the entity which made a ‘modern hi-tech and towering urban India’. Why you ask? What after it metamorphosised the way modern India looks today? And the company is still hungry to grow more. Need a proof? Well, what about its announcement on December 4, 2007 to invest a further $2 billion on its IT SEZs (having already invested $1 billon)? Apart from developing over 21 urban colonies, today, it has the DLF City to its credit, spreading over 3,000 acres of land in Gurgaon making it one of the hottest realty destinations. And to believe that none, yes we repeat it – none had faith in the project when K. P. Singh started it! Really, a visionary indeed!

DLF’s commitment to quality, customer sensitivity and its ability to deliver on promises has not only paid back in cash, but also in kind, with the company being regarded as the giant which almost single-handedly built the city on the outskirts of the national capital, brick by brick. And its IPO in June 2007 which helped DLF raise Rs.91.88 billion was oversubscribed 2.75 times, demonstrating the public faith in the competence of the realty giant (especially considering that it all happened at a time when the last six months, prior to the IPO, had witnessed an erosion of about 25% in the M-cap of realty stocks!). Today, with Rs.1,615.89 crores as M-cap, DLF is the fifth largest Indian company and its share prices have appreciated by over 80% since its IPO release to reach Rs.947.85 (as on November 30, 2007). So what has actually led to DLF reaching the zenith of success? Firstly, its brand value and reputation, which of course had gained weight due to its on-time delivery and completion of huge projects on time.


Secondly, its extensive land reserves, and all thanks to the visionary K. P. Singh who understood what Twain said long back. Currently, the DLF Group has over 224 million sq ft of existing development and 738 million sq ft of planned projects. Apart from these, DLF has a tradition of constant innovation (it first developed the idea of township in India, DLF City in Gurgaon) and its dedicated management team (with average tenure of senior management being well over a decade!). Satish Kannar, Analyst, Arihant Capital Markets Ltd., while commenting on the admirable status of DLF, says, “The sheer 40-years-old existence of the company is the biggest plus point for DLF. There have been some new entrants in this field, as new as 3-4 years, because of the boom, but DLF has remained focussed on the sector. Its focus towards its core strength sans diversification plans over time has helped it become a leader in this sector.”

A close look at the company’s journey exemplifies that the core business has now extended from homes, offices and shopping malls to hotels, infrastructure & SEZs. Today, the home business has extensive range of products, including duplexes, row hoses, condominiums and apartments of varying sizes, with a focus on the higher end of the market. DLF is also expanding its old business, with over 375 million sq ft area under housing development projects. Its office segment is yet another admired business division. DLF can also rightly be called the patron in the office spaces with almost 32 million sq ft developed area and another projected 62 million sq ft aimed to give it over 20% market share in the business & commercial sector. Fascinatingly, with the boom in Indian retail, Singh has created more than 42 million sq ft of new shopping and entertainment complexes across the country. Now that’s a perfect concretisation of quality and quantity...

With the growth in the Indian economy and the rise of the ‘great Indian middle-class consumer’, DLF visualises enormous opportunities in these primary divisions and other fields like SEZs and hospitality. As real estate in India experiences a paradigm shift, DLF, with its strong brand equity and focus on its core competence, will continue to cement a stronger India.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!