NEWS INCINDIA

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The purpose of
a business is to
create and keep
customers.
Theodore Levitt
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"Vande maataraM
sujalaaM suphalaaM malayaja shiitalaaM
SasyashyaamalaaM maataram
Shubhrajyotsnaa pulakitayaaminiiM
pullakusumita drumadala shobhiniiM
suhaasiniiM sumadhura bhaashhiNiiM
sukhadaaM varadaaM maataraM
Koti koti kantha kalakalaninaada karaale
koti koti bhujai.rdhR^itakharakaravaale
abalaa keno maa eto bale
bahubaladhaariNiiM namaami taariNiiM
ripudalavaariNiiM maataraM
Tumi vidyaa tumi dharma
tumi hR^idi tumi marma
tvaM hi praaNaaH shariire
Baahute tumi maa shakti
hR^idaye tumi maa bhakti
tomaara i pratimaa gaDi
mandire mandire
TvaM hi durgaa dashapraharaNadhaariNii
kamalaa kamaladala vihaariNii
vaaNii vidyaadaayinii namaami tvaaM
Namaami kamalaaM amalaaM atulaaM
SujalaaM suphalaaM maataraM
ShyaamalaaM saralaaM susmitaaM bhuushhitaaM
DharaNiiM bharaNiiM maataraM "
1 August - 15 August, 2006 Volume –II, No. 15
2
TULSI TANTI HARNESSES SUZLON
• Tulsi Tanti, the billionaire entrepreneur behind Suzlon Energy, wants to
control the entire gamut of the wind turbine generator space through a
vertical integration exercise.
• Tanti plans to set up facilities to manufacture Suzlon’s entire needs for rotor
blades, turbines, gear boxes, forgings, rings, shafts and towers – all of
which go into making windmills and generating power from it.
• Vertically integrating his business helps him reduce dependency on outside
vendors and at the same time keep a leash on costs.
• The first move towards verticalisation was made in March when Suzlon
acquired Hansen, a turbine maker in Belgium, for Rs 2,511 crore
• Next year, Suzlon expects to earn 60% of its revenues abroad. The wind
mill turbine market has been 100% growth in recent years. Tanti says
orders are already stacking up from customers based in the US, Europe,
Australia and New Zealand.
• Suzlon’s verticalisation gambit will mean straddling Vadodara,
Coimbatore, US and China to integrate all the stages of windmill
production and power harnessing.
• The total bill for the vertical integration and other expansion plans comes to
Rs 1,500 crore.
• Suzlon has Rs 500 crore in its kitty, while the remainder Rs 1,000 crore will
be through debt, said Tanti.
• The company currently has a production capacity of 1,500 mw. By June
2007, it will have added another 1500 mw.
• In the process, the number of employees in the Suzlon roster will also
increase from 3,000 to 7,000.
MAGSAYSAY AWARD FOR ARVIND KEJRIWAL
• Social activist Arvind Kejriwal, who heads the Delhi-based NGO
Parivartan, was selected for this year's Ramon Magsaysay Award for his
contribution to India's Right-to-Information movement and empowering
poor citizens to fight corruption.
• A statement from the award committee said: “In electing Kejriwal to
receive the 2006 Ramon Magsaysay Award for Emergent Leadership, the
board of trustees recognizes his activating India’s right-to-information
movement at the grassroots, empowering New Delhi’s poorest citizens to
fight corruption by holding government accountable to the people.”
3
• Besides Kejriwal, the other five selected for the award are Sanduk Ruit
(Nepal), Ek Sonn Chan (Cambodia) Park Won Soon (South Korea) and
Eugenia Duran Apostol and Antonio Meloto (both from the Philippines).
• They would be presented the award, Asia's version of the Nobel Prize, at a
ceremony in Manila on August 31. The annual awards are named after late
Philippine President Ramon Magsaysay.
• “The brazen corruption of the high and the mighty may grab headlines, but
for ordinary people it is the ubiquity of everyday corruption that weighs
heaviest.
• Kejriwal, founder of India’s Parivartan, understands this, which is why his
campaign for change begins with the small things.
• As a tax officer with the Indian Revenue Service, Arvind Kejriwal became
aware of the many powers that tax officials held over private citizens and
how easily these powers could be abused.
• In 2000, he founded Parivartan, meaning "change." Parivartan appealed to
the tax commissioner to make the tax department more transparent and less
capricious.
• In April 1957, the Ramon Magsaysay Award was established by the
trustees of the Rockefeller Brothers Fund based in New York City.
• With the concurrence of the Philippine government, the prize was created
to commemorate late president of the Philippines and to perpetuate his
example of integrity in government, courageous service to the people, and
pragmatic idealism within a democratic society.
Never give in! Never give in! Never,
never, never, never - in nothing great
or small, large or petty. Never give in
except to convictions of honor and
good sense.
Winston Churchill
4
TRIBHOVANDAS BHIMJI ZAVERI HIRES GOD
• Gang of Designers (GOD) has bagged the creative duties for Tribhovandas
Bhimji Zaveri (TBZ). The media duties, however, will continue to be
handled by Group M’s Motivator.
• Leo Burnett has earlier handled the creative duties for TBZ. In fact, it was
just a couple of months ago that Leo Burnett was awarded this business.
• Sandip Bomble, executive creative director, GOD, tells agencyfaqs!, “Our
strategy was basically knitted around the concept of the TBZ woman. It was
an untapped thought which helped us win the account.”
• Bomble adds, “In the span of my career, I have worked on brands such as
Nakshatra, DTC, Collection G, Asmi and Sangini. Thus, I had an idea of
what the client would expect from us. Our understanding of the category
was a key factor that the client appreciated.”
• GOD wants to focus on merchandising, apart from advertising, for the
client. Below-the-line activities will also be tried at some stage.
• For the record, GOD recently bagged the creative duties for Iqara
Broadband and the Jasubhai Media promoted AEC Retail Exposition.
• It has also worked with Endemol Productions on the advertising for ‘The
Great Indian Laughter Challenge’.
INDIA’S MIH
• The MIH Group, part of the multinational media group Naspers Ltd, has
announced its entry into the Indian Internet and digital space.
• Sources close to the development confirm that Ashish Kashyap, country
head, domestic operations, Google India, has been roped in as CEO for
MIH’s Internet business in India.
• MIH plans to develop Internet and mobile applications for the Indian online
space. MIH Internet’s first office will be based in Gurgaon, Haryana.
• The group will now hire talent for various functions, such as engineering,
R&D, technology, creative, marketing, sales and support, and will expand
offices across the country over time.
5
PANTALOON RETAIL TO TEAM UP WITH VIDEOCON
• Kishore Biyani's Pantaloon Retail is joining hands with home-grown
consumer durables major Videocon to give Mukesh Ambani a run for his
money in his ambitious retail foray.
• According to well-placed industry sources, Pantaloon will be sourcing the
complete range of consumer durable products from Indian manufacturers
and retail at discount prices under the existing brand names 'Koryo' and
'Sensei'.
• In the future, Videocon will be the biggest vendor for these brands, sources
said.
• Interestingly, retail of consumer durables is one of the biggest models that
Reliance Retail has been looking at.
• Pantaloon is also in talks with a host of other well-known manufacturers for
such consumer durable items, which cannot be manufactured by Videocon.
• When contacted by ET, Mr Biyani said: “Consumer durable retailing has
always been a top priority for us, and is not influenced by any competition.
• As for sourcing, we will be sourcing from multiple vendors.”
• On the other hand, VN Dhoot, managing director, Videocon India, said:
“We are not averse to the idea of contract manufacturing for retail players
and are in talks.
• However, no deal has been signed as yet.” At present, these brands - Koryo
and Sensei - are already present in some consumer durables segments,
following the test launch in May '06.
• Industry sources said that Pantaloon will soon be diversifying these brands
to include every segment of the consumer durables sector, including handgrinders,
TVs, washing machines, refrigerators and also air-conditioners.
• Currently, while the Koryo brand caters to the price-sensitive consumers of
the value market, Sensei is available at a higher end, and this format is
likely to be continued, sources added.
• Sources say that Pantaloon will also be looking at some large and exclusive
formats for sale of consumer durable goods at its outlets.
• Through these formats, apart from sales, the company will also be looking
at end-to-end services, of both for its brands and other products in the
market, sources added.
6
PINK PEPPER IN JAIPUR
• For the lovers of food and places, Jaipur has now something unique to offer
- Pink Pepper, a mobile restaurant that takes you around the 'pink city'
while you enjoy your bites.
• Launched by the Siyaram Group, the restaurant is said to be the first of its
kind in the country.
• "This one of its kind moving restaurant, aptly named Pink Pepper, has been
made on a double decker bus, with a roofless upper deck," Siyaram Group's
managing director Satish Katta told IANS.
• "This restaurant would be well equipped with all modern facilities. Both
domestic as well as foreign tourists would be able to enjoy scrumptious
delicacies of different cuisines aboard Pink Pepper, while cruising around
the city on pre-determined routes," Katta said.
• "On this restaurant we have a total of 36 dinning chairs, 18 on lower deck
and 18 on upper deck. The lower deck is air conditioned, while upper deck
is open air and would function during day. Attractive umbrellas on the
upper deck have been placed to protect customers from the sun," Sneha
Katta, project director of Pink Pepper, informed.
• "All this have been be complimented with the state-of-the-art kitchen,
plasma TV both at upper and lower decks, captivating music and toilet,"
she said.
• "We have designed, three type of tours - breakfast tour of four hours, snacks
tour three times a day with a duration of one hour 30 minutes each and
dinner tour of one hour 30 minutes," Sneha Katta said.
Wherever you see a
successful business, someone
once made a courageous decision.
Peter F. Drucker
7
Chennai lad to Code 4 Bill
Abishek Kumarasubramanian was not interested in computers much till his
high school. He went on to graduate in B.Tech (Electrical Engineering)
from IIT, Chennai. But today, he is the grand winner of the Code4Bill
contest and he will be 'assisting' Bill Gates in shaping the future of
technology!
This 20-year old emerged victorious in the first-of-its-kind contest for
which more than 24,000 students from the country had registered.
However, in the final rounds, he had to compete only with 19 of them. And
now, after winning the contest, Abhishek will undergo one year of
internship with Gates' technical assistant team in Redmond under the direct
supervision of Bill Gates.
India is the first country where students have got this opportunity to work
with Microsoft. Thrilled at the thought of being able to "assist" Gates, this
eldest son of an Indian Bank officer feels that winning the competition has
cast a big responsibility on him of proving himself and his country to the
world. He spared a few moments for Sify Business amidst the celebrations.
• What is code4bill contest?
Code4bill was a contest to identify the best technical minds in India and to
select a winner to work with Bill Gates’ team of technical assistants. It is
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the first of its kind contest that has been conducted by Microsoft giving a
rare opportunity for Indian students.
• What were the tests and interviews that you had to undergo?
There were three rounds of online testing, two rounds of interviews and an
internship at Microsoft as a part of the evaluation. I had to undergo two
months of internship at MS' Bangalore office. My project involved
identifying whether a given snippet of code was present in a target program
or not. Apart from the numerous applications, ranging from virus checking
to software watermarking, the biggest challenge in solving this problem
was that I did not have access to the source code but work only with the
binaries.
• Did you have any specific preparation to win the contest?
There was no specific preparation necessary/possible for this contest. But I
have been doing contests on similar lines before. I have been participating
in such technical and programming contests that are held in academic
institutions for the last couple of years. And this experience proved helpful
in tackling the online testing rounds of Code4Bill contest.
• What will be your work in Microsoft now? And for how long?
I will work with the Bill Gates’ Technical Assistants team for a period of
one year. The details of the starting date of this job are being worked out.
• How did you get suddenly interested in computers?
I was a typical student who wrote all possible medical/engineering
entrances and wanted to be a doctor and ended up at IIT. I had no idea
about which branch to join and joined Electrical Engineering because the IT
field was having a slip then and I thought it was always possible to learn
computer science from outside! But sometime during my course, I got
deeply interested in the subject and started reading all possible computer
science related books. The area of computer algorithm caught my fancy.
The magnitude of the impact of changing one code or developing a new
one, which can be shared with millions of users worldwide, zapped me. I
took a lot of help from my professors and friends and learnt about the
subject.
• What are your future plans?
My ambition in life is to start a research lab in the field of computer science
and work towards making an impact on the progress of our nation and its
people. I want to work on developing algorithms for network and computer
security. Had it not been for the contest, I would have anyway pursued my
M.Sc in Computer Science from UCLA (University of California, LA).
Now, I shall have to delay it by an year.
9
• Blaze heads for Japan
• Titan Tire buys Ohio tire factory
• Google, the world's largest search engine and the Associated Press have
announced a long-term agreement under which Google will pay a certain
fee for the news it takes from the world's oldest news agency.
• Guide dogs may soon be out of a job thanks to a high-tech pair of glasses
and shoes invented by Hong Kong scientists that help blind people navigate
the trickiest of terrain.
• After Ogilvy & Mather India’s (O&M) foray into the Rs 1,500 crore sports
marketing arena in India, Madison Communications is getting ready to
enter this sector very soon.
• The accent seems to be on ‘sports marketing’ in the Rs 14,500 crore Indian
ad industry.”
• Thomas Cook (India) chairman Udayan Bose was in Cairo, Egypt, to
finalise an agreement for Dubai Financial to acquire the Egypt and Lebanon
businesses from Thomas Cook AG.
• Jeffrey D Sachs, Director of the Earth Institute, Columbia University, a
well-known economist feels that India must direct its attention towards
Health Insurance Schemes in order to provide better healthcare facilities for
its citizens.
• Italian garment major Valentino has entered India with a flagship store.
• Y.K. Alagh is new IRMA chairman
• Tata Insurance to promote online motor claim settlement India’s first online
claim settlement facility will benefit over five lakh customers
• Subir Raha shortlisted for top energy award
• Wise and Otherwise: A Salute to Life’, a collection of inspiring tales
penned by Infosys Foundation chairperson Sudha Murthy.
• Companies in the European Union may legally refuse to hire smokers
because EU anti-discrimination laws do not protect them.
• Air Google makes it possible to inspect vacation destinations, conduct
market research, spy, carry out competitive surveillance, hunt for a job,
trade property, study ecologies, jog trails and fish streams.
• ICICI Lombard, Air India partner to offer discount
10
GOLD FOR MANAVJIT SINGH
• Manavjit Singh Sandhu was ranked the world number one trap shooter soon
after his world cup gold medal in Croatia.
• The Amritsar-born shooter was awarded the Praman Patra, Punjab's highest
civilian honour.
• And, a cash prize of Rs 30 lakh from the Chief Minister of the state on
Monday came as a fitting recognition for his achievements over the past 18
months, where he made it to the finals of all the major international meets
and won the gold in the world championships.
• "Of course, it is too much. You're living out of a suitcase. Of course, taking
time off and spending quality time at home is of utmost importance. It's
something that's lacking these days," Sandhu said.
• But he added, that he still got a lot of years of shooting left.
• The next big target, quite literally for Sandhu, will be a gold at the Asian
Games in December. But Indian fans are looking at a gold medal at the
2008 Olympics in Beijing.
TENNIS: FEDERER 40TH TITLE
• Roger Federer won his second Toronto Masters title in three years when he
rallied past Richard Gasquet 2-6, 6-3, 6-2 in Sunday's final.
• Federer, who won the event in 2004 but didn't defend the title last year,
clinched his 40th career title, and 11th in the Masters Series.
• The Swiss star won his 54th straight match and ninth championship in
North America since 2004.
• "Today was very hard, I started badly and he had a big opportunity at the
start of the second set but somehow I got out of it.
• "It was a physical test, a mental test. I just always believe I can turn any
match around and that's what happened today." Gasquet, bidding to
become the first French winner in the tournament's 125-year history,
started well by breaking Federer in the third and fifth games to claim the
first set.
• Federer lost to Gasquet last year in Monte Carlo but has since won five
straight against the Frenchman, including four this year.
11
DISNEY TELLS CHANDAMAMA STORIES
• Walt Disney, the iconic American brand synonymous with kids and fun
across the world, is in talks to buy out Chandamama, the well-established
household magazine that kids and adults love equally.
• The sale is a bid to modernise the magazine that was launched in 1947.
Disney's move, if it succeeds, could see it controlling a publication that is
deeply entrenched in the minds of the traditional Indian middle-class
household.
• It developed content and a message based on Indian culture and ethos.
Before the advent of satellite TV, internet and the spread of Bollywood,
Chandamama was a popular reading material for the entire household.
• Even today, it sells over 200,000 copies in over 12 languages.
• The size of the deal is expected to be under Rs 20 crore, the sources added.
Though the value is not very high, the importance of the deal lies in
Chandamama's unique brand recall and popularity even in the age of
satellite TV and internet.
• Vinod Sethi, former Morgan Stanley MD, and the family of filmmaker B
Nagi Reddy own more than 60% in Chandamama India, the publishing
house of the magazine.
• The remaining stake is owned by some major corporates, including the Tata
and Dabur group. Mr Viswanatha Reddy is the editor, publisher and
managing director of Chandamama India.
• Mr Sethi declined to comment on the issue. However, sources close to the
development said apart from Walt Disney, the promoters are also talking to
a prominent NRI business group that has major plans for the Indian
entertainment industry.
• Mr K Seshasayee, spokesperson for Walt Disney India, denied the
development saying, "It's speculation."
• If successful, the move to sell controlling stake in Chandamama could be
one of the most high-profile developments in Indian media, after the
government allowed 100% FDI in speciality magazines, a category under
which Chandamama is currently slotted.
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• Barely a decade and a half ago, when Ratan N Tata took over as chairman
of Tata Sons, the holding company of the Tata Group, people in the
markets and in management circles dismissed him as a person of no
consequence. When he sold off Tata Oil Mills Company in 1993 people
said he had no stomach for competition. When he exited ACC, India's
leading cement company, people said he was frittering away his heritage.
When he decided to build India's first indigenous car, analysts predicted
ruin.
• Tata is one of Indian industry's most respected business leaders. The shy,
somewhat reticent chairman has taken the group's annual revenues to $21.7
billion, or more than seven times their level when he took over as boss in
1991. He still has eight years to go before he retires at the age of 75.
• Tata has successfully restructured and revitalised a group that was seen as
slow, bureaucratic and unable to deal with the hurly-burly of today's
intensely competitive world. Tata companies have made aggressive strides
in India and abroad, leading the rush for overseas acquisitions by Indian
groups, and ramping up market shares at home.
• Under his leadership, the Tata group has emerged as India's largest business
conglomerate, a modern, unified organisation ready for the challenges of a
young economy and increasingly global marketplace. He has also ensured
that while the group metamorphoses to meet the volatile demands of a
borderless international market, its tradition of business ethics and
commitment to society remain intact, and even become stronger.
• When Tata took office in 1991, he inherited an unwieldy giant with over
250 companies, representing nearly every industry, loosely held together by
the group management. The immediate challenge Tata faced was to
galvanise this amorphous entity to face the challenges of a newly
liberalised economy. It was a feat he executed with such skill, foresight and
success that it has silenced his detractors.
• Tata took over the helm of the group from his uncle, the legendary JRD
Tata, after spending three decades in relatively smaller roles in group
companies. His first stint was with Tata Steel, which he joined in
December 1962, after returning from the United States with a degree in
13
architecture from Cornell University and a brief assignment with the
architectural firm of Jones and Emmons in Los Angeles.
• Tata rose to the chairmanship of the Tata Group, at a pivotal moment in the
country's economic history – the liberalisation of the Indian economy. The
development seemed to be timed in his favour. He took over from JRD
Tata, who, though a pioneer in his time, had left the group unprepared for a
new economy. While the group was still pursuing its manufacturing thrust,
the younger Tata had anticipated the opportunities in the information-based
industries.
• Ratan Tata quietly but firmly began to assert the group's authority on the
individual companies. He strengthened the unified brand image of the
group. A major restructuring effort was undertaken, excess baggage was
dropped and businesses were rationalised and consolidated. The effort
ended with a leaner portfolio of 93 companies, focused on seven identified
industry sectors – engineering, materials, energy, chemicals, services,
consumer products, and information systems and communication.
• Tata has been instrumental in promoting the Tata brand and the 'Made in
India' tag not only in India but across the globe in sectors as diverse as
steel, automobiles, chemicals and hospitality. His mandate for group
companies was clear: shape up, or ship out; be among the top three players
in your business or get out of it.
• Under Tata's stewardship, the group is in a leadership position in
information technology (TCS, CMC), steel (Tata Steel), chemicals (Tata
Chemicals), tea (Tata Tea) and hospitality (Indian Hotels), and the Tata
name is reaching new geographies through an aggressive
'internationalisation' effort. The group now has a presence in 40 countries
and exports to 140.
• What has ensured the success of Tata's plans is his unwavering focus on the
customer. Quality, he insists, must be the hallmark of all Tata products and
services, no matter which segment of society or which country they are
meant for. Good governance, fair business practices and social
responsibility should be the guide for all Tata companies, in all locations
and at all times.
• Recent years have seen the group make rapid strides in its M&A and JV
strategy across the globe. Since 2004 the Tata group has acquired over 30
companies, totalling about $2 billion.
• As he drives the group's expansion plans in other geographies, Ratan Tata
is encouraging Tata companies in India to shift their focus from the urban
to the rural and create products and services that address the needs of the
bottom of the pyramid. The Taj group's recently launched Ginger chain of
economy hotels, Tata Motor's proposed Rs 1-lakh small car, Titan's Sonata
brand of watches, and Tata BP Solar's initiatives in harnessing solar energy
to light up villages, are efforts at creating affordable but quality products
and services for small-town and rural customers.
14
• Should there be a ban on television
advertisements aimed at children?
• Age discrimination is made illegal in the
workplace. Discuss
• Women cannot be allowed to serve in combat
roles in the armed forces. Why?
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