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Book Review: Brushes with History (An Autobiography of Dr. Krishna Kumar Birla)

IILM University

Author of the Book – Dr. Krishna Kumar Birla

Publisher – Penguin Books

Copyright- Shobhana Bhartia, 2012

No. Of Pages – 665

Dr. Krishna Kumar Birla was a noted industrialist of the Birla family. Born in Pilani in Rajasthan on November, 11, 1918, he was the eldest of the three sons of Maha Devi and Ghanshyam Das Birla. He started his business career in the year 1940 and played an important role in shaping and developing India’s sugar industry. He diversified his business interests by venturing into textiles, engineering, shipping and fertilizers. He was a Member of the Rajya Sabha for three terms from 1984 till 2002 and served on several committees of Parliament. He was the chancellor of BITS Pilani from 1983 until his death in 2008. He was the chairman of one of India’s biggest national daily – The Hindustan Times. Birla was the group chairman of the Zuari-Chambal group of companies with a turnover of over Rs.10,000 Crores. He was also the Chairman of Zuari-Chambal-Paradeep, India’s largest fertilizer combine in private sector.

The book is divided into four parts and 40 chapters. Part 1 entitled “My Early Years” consists of twelve chapters and talks about the family roots of Birla family and the family village of Pilani in Rajasthan. The part 1 introduces the readers to the childhood, bringing up and early life of Dr. K. K. Birla. The canny Marwari clan that originated from a small town called Pilani in Rajasthan became the tallest industrial house in this country in the 20th century rivaled just by the Tatas in post-Independence India. The family patriarch and author’s father, G.D. Birla used his wealth to support the Independence movement and became not just a friend to, but a follower of, Mahatma Gandhi. The Birla residence had become a hub and meeting point for those fighting for freedom and especially the Congress Party. Part 1 of the book also talk about how hard working K. K. Birla was as a student and about his early business ventures with his father and Uncle.

Part 2 – “Indira Gandhi: Reminiscences” the part 2 of the book talks about the family ties between the Nehru Gandhi family and the Birlas. This part stresses on the dynamics of the family ties and how it evolved with generations. Unlike his father’s frosty relationship with Nehru, K K Birla was close to Indira Gandhi, Nehru’s daughter. K. K. Birla was also close to Sanjay Gandhi, Indira Gandhi’s younger son who died in a plane crash in 1980. The book talks about Sanjay Gandhi approaching Dr. Birla to become a shareholder in the company and infuse some capital. But K. K. Birla was not convinced with the Maruti small car project initiated by Sanjay Gandhi. He though that for Sanjay Gandhi to realize his dream, it would have to be a large-scale project requiring large investments. He even told Indira Gandhi that her son was leading an unwise project and needed to be restrained.

Part 3 – “My later Life” focuses on the end of political innings of K. K. Birla as a three term Member of the Rajya Sabha. This part also talks about the family’s academic institutions and those set up by Dr. Birla himself. His numerous responsibilities included the Trusteeship of the Birla Education Trust, which runs a number of schools and institutions in the Country offering subsidized education, and Chairmanship of the prestigious Birla Institute of Technology and Science (BITS) at Pilani and Dubai. Dr. Birla had established K.K. Birla Foundation which has instituted annual awards for excellence in Indian literature, scientific research, Indian philosophy etc. and K.K. Birla Academy to undertake research on scientific, cultural and historical subjects. This part also talks about his health related issues and his heart bypass surgery that he underwent in London.

Part 4 – “Vignettes & Correspondence” is a collection of the written correspondence that Dr. Birla had with various people including political and business leaders, the top executives in his company and some of his family members and cousins. Dr. K. K. Birla had a rare distinction of being a multi-faceted personality but above all he was a humble humanist. The beautiful Radhakrishna Temple dedicated to Lord Krishna in Kolkata and the G.D. Birla Sabhagar in Kolkata are the two popular monuments which are amongst his many social contributions bearing testimony to his regard for humanity.

I think the book makes for an interesting read as it is full of vignettes of Birla family’s close ties with historical personalities like Mahatma Gandhi, Rajendra Prasad, B.C Roy, Jayaprakash Narayan & Moraji Desai, among others. This autobiography captures a vibrant era in the nation’s existence, which influenced Dr. Birla’s thoughts & later achievements. The book brings in the readers, a deep sense of respect for him, as it is replete with a towering humility and sense of discipline which Dr. Birla was well known for. This book is rich with impressions, sketches and personalities and there is not a single boastful or smug moment in the whole book spanning around 650 pages. Through this autobiography one vicariously brushes shoulders with India’s greatest leaders. Prestige, power, family, courage, discipline, loyalty – this is what drove K.K. Birla in a life spanning nine decades.

Broom for Booming Economy

IILM Undergraduate Business School, IILM University

“Cleanliness and Order are not matters of instinct, they are matters of education, and like most great things, you must cultivate a taste for them.” Benjamin Disraeli

The above words said by former British Prime Minister are more relevant in today’s context. The quote rightly explains the importance and inter-linkages of education, cleanliness and proper societal order. If growth and development is the goal the above statement is the path. This path is well understood by our current Prime Minister Shri Narendra Modi and he took it as a mission initiated as ‘Swachh Bharat Abhiyaan’.

The Swachh Bharat Mission is one of the most promising public health initiatives launched by the Modi Government.  The flagship programme has adopted the ‘round spectacle frame’ of the Father of the Nation as the logo for the mission and targets towards creating a “Clean India” by the year 2019. If efficaciously implemented via huge public- private partnership, the Swachh Bharat Mission holds prodigious potential for providing robust economic growth. It is indeed commendable to note that Mr. Modi has dared to dream big and had the prophecy to accomplish extraordinary economic growth and prosperity for a huge country like India by usage of something as simple and unpretentious as a ‘broom’. This five year mission is anticipated to usher in a sea change in behavior of people in India and also change the world’s perception of India.  It is indeed commendable to comprehend how the broom can essentially be instrumental in bringing about transformational change in our nation’s economy along with social change. In my opinion the mission is poised to have far- fetched implications in more ways than one.

  • Tourism:

India can be considered a heritage country.  I believe that neatness and safety play a crucial role in drawing tourists in any country. Challenged with the concerns of hygiene and sanitation in the country, particularly at momentous tourist destinations, this mission is of weighty importance for Indian Tourism Industry. According to the report of Water and Sanitation Programme (WPS), ‘Economic Impacts of Inadequate Sanitation in India’, tourism-related economic losses from inadequate sanitation are estimated to be Rs. 12 billion ($266 million). Of these losses, 45 percent (Rs. 5.5 billion, $121 million) are from loss of tourism earnings. Cognizance about a destination is the distinct reason for tourists to cherry-pick a destination. The mission purposes to rebrand ‘Incredible India’ by introducing the concept of ‘Swachh  Bharat , Swachh Samarak.’. Tourists all-inclusive perceive India as a very murky and filthy country where children and adults openly defecate. Swachh Bharat mission will have extended impact on tourism in India. The deleterious perception of the tourists about India will gradually dissuade. We can increase the foot- prints of tourists coming to India in times to come and tourists will definitely carry with them an image of clean India, safe India. This programme is indeed sustenance for the tourism sector in our India and a way to showcase India’s vast, rich and cultural heritage.

  • Innovation and Eco-Entrepreneurship:

Our country is home to a population of over 1.27 billion people and it is expected to be the most populated country in the world by 2025, beating China in the fray. The rapid growth in population and fast track development all over the country is inevitable. However, most of our cities and towns are unable to bear the burden of this huge population and to provide basic amenities such as hygienic surroundings and clean drinking water.  It is essential to effectively manage green waste and recycling of water for drinking purposes has become an absolute necessity for managing the requirements of a large population.  Thus, in the backdrop of insufficiency of natural resources, escalating costs of power, climatic change, and deterioration of our environment we need to find out innovative ways to manage our waste better. This ‘abhiyaan’ of Modi government can play a booster to eco-entrepreneurship. This will prove to be a win-win business opportunity for Eco entrepreneurs and enable us to even outsource our technology to various developing and poor nations of the world which are plagued by epidemics due to water and land pollution. The frugal innovations in the field of cleanliness can contribute immensely in reducing environmental pressure and India will be the pioneer for the same.

  • Waste management

We usually notice garbage and domestic waste that pile up on our streets are often left untreated, and these decay on site and eventually pollute the land and water underneath. The glitches triggered by solid and liquid wastes can be significantly lessened through eco-friendly technologies that will allow appropriate treatment and dispensation of wastes .The benefits of effective treatment of garbage are enormous. Conversion of waste to energy produces clean, reliable energy, thereby shrinking the usage of scare and fast depleting natural resources such as coal and petrol. These energy resources are not only economically beneficial but also help us in reducing and recycling garbage for daily use. This will also reduce the extent of our dependency on oil producing countries, thereby hugely contributing towards cost reduction. I strongly vouch for the development of precise cost effective green technology to recycle and manage every type of waste and it would lead to profitable and sustainable business in the field of waste management.

  • Gainful and meaningful employment for rag pickers:

 

Rag pickers are a fundamental part of waste management systems across our country. Their work involves serious health hazards and they work in very inhuman conditions. It is very taxing and fetches them a measly income and no recognition at all. A significant proportion of rag pickers in our country are women and children, who are exceedingly poor, unskilled, uneducated and are not employable elsewhere.  This manpower can be efficiently and effectively utilized for waste management projects and cleanliness drives in the country. This will not only protect their self -interests but also give them recognition in the formal system. Employment for the poorest of the poor through effective training Programmes can help them to lead a decent living.

  • Powering the Beti Bachao Campaign:

Mission Swachh Bharat aims to construct separate toilets for boys and girls in schools and villages. This is indeed a right step in the right direction. Most girls drop out of school in villages because of lack of toilets for them in schools. This noble initiative will reduce the number of female dropouts in schools and increase female literacy to a great extent. Further, this initiative will protect and safeguard women against sexual crimes as steps towards cleanliness and toilet building will restrict the women to defecate in open. Thus, the ‘beti bachao, beti padhao’ campaign can be directly associated with Swachh Bharat mission. Safe, healthy and educated women can contribute immensely to a nation’s social and economic well-being.

  • Disease Control:

The swachhata mission will aid in reducing land and water pollution to a substantial level. The presence of cleaner areas will reduce the outbreak of diseases like diarrhea, cholera, malaria and dengue, which claim valuable lives each year in our country. For children in particular, the access to toilets and clean environment will lessen the number of diarrheal deaths and anemia due to intestinal parasitism. Thus I see a ray of hope that Indian children will be far healthier and stronger if this program is a success. Healthy children make a nation strong and prosperous. The success of the mission also reduces the burden on fiscal budget as we need to allocate lesser amount to social health care sector and disease control expenditures.

 

  • G.D.P. :

The Swachh Bharat mission can have a visible impact on India’s G.D.P. If the target of Swachh Bharat can be achieved then the government expenditure on health care can decline sharply which in turn can help government to maintain high G.D.P.  Currently as estimated by World Bank illness from lack of hygiene cuts India’s G.D.P. by 6.4 percent (%) and 6.6 percent (%) of G.D.P. contribution is attributed to tourism. Cleanliness causing a hindrance to the tourism industry de facto if a tourist spot is in a filthy condition then the basic hygiene of the place will be affected attracting lesser and lesser tourists day by day. If the defect is removed, it will boost up the G.D.P. rate. Therefore, Swachh Bharat Mission, a vision of Prime Minister Mr. Narendra Modi directly targets India’s growth.

  • Urban Governance:

The honorable Prime Minister Mr. Modi also pitched the idea of urban governance by linking it to ‘Digital India mission’ and ‘Swachh Bharat mission’. The cleanliness drive should emphasize on solid waste management and water waste management through public-private partnership. This can spur the growth of organic farming and can initiate the demand of organic fertilizers. Waste management and demand for organic fertilizer can become a cyclic process thus reducing the environmental pressure. The linkage of ‘Swachh Bharat’ mission and urban governance can trigger the demand from the grassroots for total sanitation of the cities.

Thus, it could be concluded from the above points that “Ek Kadam Swachata Ki Aur” mission can lead to the   fulfillment of the ultimate mission of the nation that is fast track growth with inclusive development. Being the responsible citizens of this nation each one has to do his own bit to achieve this national mission.

 

 

BUDGET 2015 – A Trailer to “ACHHE DIN”

IILM University

The new Modi Government came to power with the motto of “Achhe Din”, which ensured that the government would try and focus on creating a better environment for all concerned. Every year when the budget is to be presented, the Finance minister is faced with a dilemma and more so when it’s a first (full) budget from a new government. He is faced with a choice of whether to go for a populist budget to have a good initial first impression of the government or to take a risk, which he was suggesting to previous finance ministers, while sitting in opposition.

SEE ALSO: Mr. Arun Jaitley’s Fine Balancing Act | Annual Budget 2016-17

The budget this year seems to be bent towards the risk taking and experimentation; even though not many bold steps have been taken yet, as was expected from the government. However the budget did provide an inclination of what is to be expected in the coming years.

Just like the finance minister, as citizens we too are faced with a choice. We may either focus on what’s not being done and complain, or align our thoughts on what all has been undertaken and critically assess the implications. I would rather take the latter option i.e. focus on the steps undertaken and the direction of these steps; and how they may impact an individual, the society and the economy as a whole.

As is known, India’s Economic Growth is pegged at 8% by 2017, as per the World Bank reviews. In my view the budget this year is a pragmatic budget while also being growth oriented. Whenever experts analyze a budget they focus on deficit and its effect on inflation, though there is no empirical evidence of the linkage between the two. Let’s not focus too much on figures and the technical jargons, which only the CA’s and financial analysts might understand, because in last 67 years we have seen that jargons can’t lead to solutions. Let’s focus on actual steps taken.

In my opinion the idea behind the budget this year was to De-bottleneck the economy, and to simplify certain processes. One of the major reforms in budget is focusing on financial inclusion, which of course is in line with the overall governmental policy. Even after 65+ years of independence, a large part of our population operates outside the organized financial sector. Hence steps like linking Adhaar to direct cash      benefit transfer, RuPay cards Jan dhan yojna and increasing mobile banking, all seem to be directed towards the right direction. This time Indians have liked the JAM (Jan Dhan-Adhaar-Mobile)!!!

Mr. FM has perhaps taken cues from the old Rabbit-Tortoise story that slow and steady wins the race, so he has shifted focus of the government from interfering in the economy directly in the form of subsidies and exemptions; to a new role of providing stimuli to the economy in terms of better infrastructure. The National Investment and Infrastructure Fund (NIIF), to be established with an annual flow of Rs. 20,000 Cr. indicate the government’s motive of creating ease of doing business. This seems to be in line with the “Make in India” Campaign. One such example is Plug and Play power projects, so now those private players who are investing can be sure of immediate/early starts of projects and reduced uncertainties. Another example is, The Tax free infrastructure bonds for the projects in the rail, road and irrigation sectors. (SETU) Self-Employment and Talent Utilization to be established as Techno-financial, incubation and facilitation programme to support all aspects of start-up business. Rs. 1000 Cr. is proposed to be set aside as initial amount in NITI in order to facilitate SETU. Though one can’t expect immediate results from these steps, but if properly and honestly implemented they will be very highly fruitful in long term and can prove to be real game changers for India as an economy.

Some of us may not like postponing of GAAR once again, believing it to be reason of huge revenue loss for the government. In my view what we need more at present is not revenue but the trust of the investors and assuring them of at least a predictable tax regime. There is no harm in catching those who evade tax but investors must also be assured that their past files will not be opened arbitrarily.

Another major step to be hailed is enlarging the scope of SARFAESI (The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) and bringing large NBFC’s within the definition of financial institutions. This step is bound to speed up the process of recovery of NPA”s and there by improve the balance sheets of FI’s. Now they can lend to SME’s and mid- sized corporates without the fear of being caught up for years in legal battle for clearing NPA’s. However, at the same time they would have to ensure that they adhere to the Capital Adequacy Norms laid down by the Government from time to time for Financial Institutions. This would in turn ensure that unnecessary risk is avoided and loans are directed towards credit worthy lenders. Creation of MUDRA bank with a corpus of Rs. 20,000 Cr seems to be a step in this direction.

Another big step towards a larger economic and social goal is “Pradhan Mantri Suraksha Bima Yojna”, wherein everybody is to get accidental insurance of Rs. 2, 00,000 at a very nominal cost of just Rs. 1 per month, which was long awaited. In a country like India where a huge chunk of the population is poor, this can be a real game changer for society in long run. “Pradhan Mantri Jeevan Jyoti Bima Yojana” to cover both natural and accidental death risk of Rs. 2 lakh at premium of Rs. 330 per year for the age group of 18-50; as also the introduction of “Sukanya Samriddhi Account Scheme”, all seem to be welcome steps. Contribution to such schemes will be eligible for tax rebates under section 80C. Clearly, this Budget has focused on developing a robust social security system, which had been put on the back seat for long now.

The service tax increase from 12.36% to 14% (may be 16% after Swatch Bharat Cess) is a bit of a dampener, since it raises concerns of inflationary pressures on economy. The only justification being is the intention to rationalize and simplify the indirect tax system, as a prerequisite before the implementation of GST. The government’s commitment toward implementation of GST from 1/4/2016 is again highlighted in the budget. This again gives hope of a simplistic and understandable tax regime in future, which not only will reduce hardship of taxpayers but will also reduce administration and supervisory cost of the government in terms of tax regulation.

Reduction in corporate tax by 5% in next four years is though not a very populist step in the eyes of large population of India. This was required to give Indian corporates a level playing field in competitive market as their counterparts in other countries are paying less tax.

Some noteworthy steps have been taken for the capital market as well, which seem to be intended towards bringing the investor’s confidence back. Major steps like the proposal of Forward market commission to be merged with SEBI thereby giving more power to SEBI, the proposed introduction of India financial code, Public Debt Management Agency (PDMA) to be set up this year; are expected to bring both external and domestic borrowings under one roof. Gold Monetization, which will allow the investors to earn interest or take loan on gold, will also help in mobilizing the dead assets of households, towards the creation of economic capital. All these steps have been taken, keeping in mind the long term horizon and to set a platform for India to gain competitive advantage on international stage.

So in conclusion, it can safely be assumed that the FM has set up a multi cuisine buffet which is looking promising. What remains to be seen is how well it is served and executed, is it delicious enough for the country, and whether it will be able to satisfy the taste buds of not only more than 125 Cr Indians, but also the foreign investors who are seeking India as the fastest growing economy in near future. The planning seems to be good, and the execution needs to be better. It is a game of wait and watch.

IILM Campuses: Learning with an experience

IILM University, Uncategorized

 Welcoming new Batch: P.G. 2015-2017

IILM is among the top notch B-schools of the country. We here follow the philosophy of edutainment. The classroom holds the most essential place in one’s life memories. IILM’s classrooms are equipped with world class infrastructure and visual aids.

We ensure involvement and that the program entails live cases, activities, live projects, simulations etc. Context specific content is created for optimizing learning so that maximum can be extracted in the given time. The teaching pedagogy at IILM is student centered where each and every opinion of the student is considered.

The assessments at IILM are stringent mix of objective and subjective pool. There are components on classroom performance, midterm and end term. This aids in ensuring and scanning any biases and early intervention so that scope for improvement is maximized.

Apart from formal education, IILM much recently organized ART Camp where artists from all over world used canvas as the mode of delivering some of the most sensitive issues. Art is a contempt expression and to reflect through these set of emotions is necessary for one to feel. The sense of belief, sensitization to softer issues in society is a learning indeed. Students in larger number participated and tried to build the association between management, literal writing and canvas paints. Vocational and inter disciplinary learning is a part of IILM course curriculum.

IILM, illuminates, express and encourages students to develop holistically. Wishing and welcoming our new batch 2015-2017.

Here at IILM, we ensure holistic learning experience. Students from all fronts join the programme and are engaged in various activities throughout the year. We at IILM focus on skill enhancement and overall development. The highlights of some of the activities over the past month where students set the mood are as follows:

International student programme:

IILM quarterly organizes international students meet where students from popular internal universities along with the In-campus students had experiential learning sessions on board. The diverse culture and understanding had thought-provoking learning targets for all. The activities and academic session centered on entrepreneurship and rural marketing. Key note speakers, Industry professionals, socio political thinkers were the trainers for the sessions. The participants were oriented to the Indian culture and aspects of management were acquired via involvement in these activities. Students are seen below (in pictures) enjoying the harvest festivals (Lohri/Bihu/Pongal)- Barbeque and bonfire, enjoying Indian music and dance; cookery classes by a popular chef from seven star kitchen if the country, Hindi classes, cultural trips, visits to craft market, N.G.O. visits etc.. Learning from these sessions was later related to developing pitches for a business idea and prepare a presentation on the same.

The campus walk:

The lush green lawns of the campus are full of student engagement activities where the evenings are made entertaining. The residential stay of the students at the campus is made memorable so that an overall learning takes place. IILM ensures “Home away from home” at the residential campus. We have routine yoga, aerobics and movie sessions at the campus. The melodious tune of Osho music at the solar system area creates an aura of positivity which chimes into the students’ personal room.

The food olfaction (Healthy body and Healthy mind):

One cannot sleep well, express well, do well until one has eaten well. We have expert nutritionist on the campus where best combination of foods is served to the students. The cafeteria is one of the attraction features for the students (residential/nonresidential) where the thought development through the stomach takes place. Tuck shop (munch food) and gymnasium is an added attraction for the students.

IILM encompasses student development from every facet. Every day there is a wish fulfillment activity for students.  The behavioral introspection and expansion is the USP of “IILM”.

The highlights of the events conducted in Fall Winter and Spring:

  1. Student- Faculty relationship at IILM: We have a quo “Mentor-Mentee” at IILM. Authority can never ensure responsibility. Hence we believe in mutual learning, by keeping communications open and do an expectation setting. It is ensured that all academia and peer life correspondence is maintained. We have mentee meeting sessions and mentee profiling reports, where all emotional, educational, psychological needs are taken care of.
  2. Placement week: An activity ladder is set up for students at IILM every quarter. Students are exposed to employability skilling workshops to have a command over language, proficiency in self-orientation/introductions and basic conduct. Intervention techniques, stimulating exercises, alumni lectures, industry experts, interview skills etc. are the elemental activities designed for student learning.
  3. Well trained faculty: IILM has Faculty Development Programmes for the teachers as well where the faculty is updated on current trends and specificities. IILM is the member for PRME, where well trained faculty is a minimum requisite. The expert faculty conforms to the international standards where students are also equipped with the global trends and application.
  4. Student Engagement Activities: Engagement and motivation are key happiness ingredients. There is nothing like thriving for happiness. We at IILM believe that “happy minds are creative minds”. Our students learn, in the classroom, on the field, off the classroom and in the campus. There is a need that the institute caters to everyday; “everyday” exemplifies managing work and life.

Being a part of IILM is a wholesome experience of youthfulness, learning and getting globally trained at management skills.

Fact File: IILM has produced more number of CEO’s and Entrepreneurs which contribute to the country. We create values; we teach values and make the learning experience, a complete developmental training.

“I do not yet know of a man who became a leader as a result of having undergone a leadership course”… …..Lee Yuan Kew

IILM Graduate School of Management, IILM Institute for Higher Education, IILM Undergraduate Business School, IILM University

Leaders are iconoclasts; leaders are charismatic;
leaders are willing to the pay the price of conviction – Gandhiji did; leaders are
courageous people; leaders have big heart; leaders have strategic vision – they
can see what is beyond today.
Leadership is not a inherent quality or ingrained, it’s more of a skill which one
develops over a period of time by experience, observing others and learning by
oneself.

Nonetheless, experience has shown that leaders of successful organizations are disinclined to
change things if they are remotely successful. Few individuals or corporations
have managed to change successfully; even fewer have done so repeatedly.

Does this mean leadership courses are ineffective?

It is doubtful if a course can create these qualities. Courses can make, of course,
better managers, but doubt whether they create true leaders.

At the same time, it is the classic “born vs made” issue. At some level perhaps
this comment applies to a very select few of inspirational leaders. Some of these
leaders are a product of their environment, and succeed in them. For the vast
majority it is a skill, self learned by mindful attention to on the job experiences,
job challenges, and all of the external environment. Other than that, we know
that some help from friends, bosses, mentors, and Coaches can go a long way in making a leader to go from good to great.

Brick and Mortar Store is Dead; Long Live Brick and Mortar Store

IILM Graduate School of Management, IILM Institute for Higher Education, IILM Undergraduate Business School, IILM University

A few weeks ago I was looking for a CD of nursery rhymes for my three year old granddaughter. Since I live in south Delhi, I thought of a leading consumer electronic store in South Extension – I have known its owner for the past 40 odd years. However, I was taken aback by its barren look as soon as I made an entry. This visit was after a lapse of over a year. Once famous for its merchandise of leading consumer electronic brands, excellent demonstration and display, choicest of music albums and accessories, now the store wore a stark, deserted look… with hardly any footfall and activity that one got to see during weekends in a popular shop. What had changed suddenly? Upon enquiry, I was told that it was due to the advent of e-commerce that this age old business model had transformed completely. The convenience of on-line purchase rendered the fate of this brick and mortar store of consumer electronics goods vulnerable.
Today customers go to Croma or other similar stores, choose the model and their price and later order online at Flipkart and other e-commerce sites. The product gets delivered at the doorsteps, and on top of it, it comes with at a hefty discount. Music albums are downloaded online, said the owner. The e-commerce giants are targeting the comfort and convenience of the buyers in the marketplace and digging a deep hole in the pockets of the brick and mortar retailers.

The only choice now for the brick and mortar stores is to take their products to customers via online portals and remain relevant to the market place in order to survive. But it results in thin operating margins. A small back office is enough to maintain the level of such operations. Therefore, the stores like this brick and mortar consumer electronics items which have existed since long, have to meet high overhead expenses and bear the burden of maintaining loyal employees who have served them for 40 years or more. Several of these stores are looking for other ways to get out of their core businesses and investing in other areas of business where online retail is unable to make any impact. These could be the niche areas such as designer clothing, expensive jewellery and watches outlets or even food joints. In the event of all such brick and mortar stores divert their attention, how would a customer ever get to physically see, touch, have a feel and view performances of items before buying, especially when the product is not a commodity? Will it be like having a shower with a shower cap on? Or what happens when a customer who wishes to replace an old refrigerator? Does he first sell the old one on OLX and then order a new one on Fliipkart? Perhaps that is the way today.

The concept of e-commerce or retail commerce is a new business model. It creates customers for the future, keeping in mind the sale and profit of distant future- and their reason to exist is the valuation enhancement model for the business. They are driving the retail commerce to an unimaginable level and serving a wide array of manufacturers as well as offline distributors across a host of categories. Foreign investors are looking more for the profit of exposure in the market place than immediate financial gain as they see a huge potential in the e-commerce industry. Surely a time will come when the e-commerce industry will transcend from the introduction to growth stage when a major equity stake will be backed by venture capital firms. Its measure of performance is GMV (Gross Merchandise Volume) – a term used in online retailing to indicate total sales dollar value for merchandise sold in a particular market place over a certain time frame. Over the past one year Wall Street hedge funds and big internet investors have pumped in billions of dollars into India’s consumer internet story. Flipkart and Snapdeal raised about $3 bn. Indian consumers are being subsidized by investors.

They could end up spending close to a billion dollar (Rs.6,000 crore) on offering discounted pricing. The success of e-commerce will continue uninhibited as long as investors chip in money. Consider this: a one page advertisement of popular online portals in the mainstream newspaper that one gets to see today almost at regular intervals costs between Rs.60 lakh to Rs.1 crore. Add to that a sum of $1mn (Rs.6.2 crore) salary with stock options of $3- $6 millon paid to the top software engineers of these portals which are amongst the highest paid to any non board executives. Few Indian companies pay their division heads so much. Only the pay packets of CEOs of other IT industries are comparable to this salary. Even the most famous Amazon.com that maximised the internet’s ability to provide a superior selection of products as compared to those of traditional retail stores had lost hundreds of million dollars in the beginning. Their first profit was registered 10 years after start of operation in 1995 with operating margins averaging 3% to 4%. So the question remains, will the e-commerce story be a sustainable model?

The best strategy for the brick and mortar retailers to sustain their market share is to break away from their established business models, fight back through strategic alliances and try to survive for a longer period of time. When you do not know your competitor, it is difficult to perform and win the race. In this transition phase it is better to reinvent the value proposition for customers by offering a charter of exceptional customer service. They will need to innovate. Take the example of the Kirana stores. One can order groceries from the comforts of one’s home online. Yet these stores continue to thrive. It is because of their ability to provide customized and personalized services with unmatched flexibility.

If the brick and mortar retailers are early adopters then they cannot be ignored by the e-commerce players in the market place. Conventional stores are not easily replaceable. They can re-emerge in some other form. In the US, top 20 retailers who also sell on-line have developed omni-channel capabilities. Walmart survives despite Amazon. 24 hours news channels have not moved out the newspaper. T20 and Test cricket have co-existed, so will perhaps the brick n mortar and e-commerce. Only time will tell.

Holi Celebrations at IILM Gurgaon

Alumni, IILM Undergraduate Business School, IILM University, Uncategorized, , , , ,

Holi Celebrations at IILM Gurgaon

The festival of color always rings with the spirit of joy at IILM. Utsav – The Cultural Club at IILM Gurgaon brought students, faculties and staff members to dance and enjoy the Festival of Holi. The festival was celebrated in full fervor right before the students went off for their break.

The lawns were sprayed with the vibrant colors that the students and staff members greeted each other with. Gujiya, Cutlets and Thandai added flavor to the celebration as it proved to be the perfect end to the day.

It was interesting to see the International students and faculty enjoying the festival in full spirit as they blended with the Indian culture.

The celebration ensured that students from across the Post Graduate Program got a chance to network and enjoy with the students from the Under Graduate Programs.

The day was truly special for all at IILM Gurgaon, which left memories to be treasured for a lifetime!

Foreign students celebrating Holi at IILM Gurgaon

Students from the Semester exchange program celebrating Holi at IILM Gurgaon

Sports Fun at IILM Gurgaon

Alumni, IILM Undergraduate Business School, IILM University, Uncategorized,

Sports Fun at IILM Gurgaon

“To keep the body in good health is a duty… otherwise we shall not be able to keep our mind strong and clear” Buddha

Student Engagement has always added a different flavor to campus life at IILM Gurgaon. There are innumerable opportunities to develop current interests or to try out novel ones, during the stay at IILM Gurgaon. But a game of Volleyball or Cricket has always been  considered as the most preferred activity by the students in IILM Gurgaon, which eases the stress of the entire day. Keeping this in mind, Wednesday, 11th March 2015 was dedicated towards conducting Sports activities at the campus.

Amidst the buzz of classes and assignments, students across the Undergraduate and Post-graduate programs, were excited to participate in the recently held Volleyball, Basketball and Cricket matches.

While the students from the Undergraduate program won the Cricket Match, the game of Volleyball and Basketball got the scores equal between the two teams.

Students and faculty members watched with excitement and cheered the teams they supported.

The games continued till the evening and left the campus buzzing with a contagious zeal.

Placement Week at IILM

IILM Graduate School of Management, IILM Institute for Higher Education, IILM University, ,

Whenever the human capital of an organization thrives, the organization will prosper, and vice versa. With this belief, a student’s personal potential and workplace potential is intervened, placement week was organized for PGDM 1st year students from Feb 9 -13, 2015 to optimize opportunities and circumstances for summer intern-ship and understanding job market well.

Placement week was a great endeavour to bridge in the gap between demand of companies and students’ expectations.

Industry people from Vodafone, Wingreens, Singer India, Mccain Foods, Silver Arrow, Nova beans (3D Printing), UAS international , IIFL, Deloitte, Garmin Navigational Tools were invited to interact with students. Campus to corporate, how to prepare for an interview, importance of preparing LinkedIn profile in a professional manner in corporate world, understanding corporate culture for professional effectiveness, importance of team building among budding managers,how to develop soft skills, orientation about current job market and various job profiles offered by organizations were the topics appreciated by the students. Some of the companies offered summer intern-ship during the placement week. Face to face interaction with industry people added value and knowledge on understanding job market among students.

Last but not the least, TED videos on motivation, improving body language and enhancing interview skills were also appreciated by the students.

10-Significant-points-your-startup-cannot-ignore

10 Significant points your startup cannot ignore

IILM Graduate School of Management, IILM Institute for Higher Education, IILM Undergraduate Business School, IILM University

Starting your own business and being your own boss can be amazingly satisfying, but it’s s not that simple as it sounds. There are number of fundamental issues that one needs to take care before going ahead with a start up. Here are some important factors you need to consider before jumping into a new business:

► Bright Idea – One of the essentials for start ups is to have an idea.Now, it is worth noting that one needs to also focus on the newness of the idea. Evaluate whether you have a brilliant & original idea, which would be beneficial to society and solves a problem. In order to ensure that your idea is innovative, research your idea thoroughly and see if other people are already using the same concept/idea to make money. If it is already in use by people, do not lose hope. Simply, try to find a different or new approach to the idea.Innovative ideas are key to success.For instance, company called ZIPDEAL ranked number 8th in 2014 in the list of top innovative companies in the world wherein Google stood at number 1.Now, ZIPDEAL used a brilliant idea of making business from missed call and awarded number 8th position “For turning a consumer cheat into an asset”

► Blue print – Once you are done with your innovative idea, the next step is to give it a concluding shape in the form of “Business Plan” . As a business plan helps you to understand business objectives, identify interdependencies, set your priorities , ease the process of tracking results and also it helps you to be proactive and not reactive to business. Thus , a business plan helps you to become a better entrepreneur.

► Legal structure of business – Think about “Which legal structure makes most sense”. There are pros and cons of almost all the forms of business entities be it is company, partnership or sole proprietorship. While deciding about the type of business entity consider the factors such as

• Legal liability involved
• Tax implications
• Flexibility
• Cost of administration etc

► Team – Team stands for more than one person. You should try to start the business with at-least two members .Also, start up businesses should review their team and analyse whether the team is competent enough to bring the different domains expertise like Technology, Human resources, Marketing, Production, Finance etc. Further, a business may be great as a team but try to review whether the team will be able to execute the venture. So, concentrate on the Execution capability of the team.

► Identify Target Market – The more you understand your customer, higher are the chances for the success of the business. Therefore, you need to identify your customer/target market .Identify

• Whether the market wants what you are offering(Market viability)
• Understand the competitors marketing strategy
• Do market research and study your target customer
• Understand market competition .Focus on gap between demand and supply

► Creating Buzz – For a start up company, creating a buzz in the market through a costly promotion campaign may not be easy. Use more creative ways to get the attention in the market at zero or minimum cost. “For example ,UNICEF used Guerrilla marketing campaign which created huge buzz in the street and actually returned great results. A vending machine was set up on the streets advertising dirty water. Instead of different varieties of soda, it was actually different varieties of diseases found in dirty water. Stunning! It is even more interesting that people would actually put in a $1 (which ultimately was donated to the cause) to see what came out” (Source- http://www.creativeguerrillamarketing.com).So,if you use some creativity ,it is possible to launch an effective and low cost promotional campaign. Some of the options can be

• WOM – Word of mouth publicity through family, friends and relatives
• Linkedin – Make a Linkedin profile and join appropriate groups
• Directory – Get your business registered in a business directory most likely online like indiamart, Justdial,Ask me etc
• “.com”– Create a website and display attractive graphics and pictures on the same
• Blogs – Add blog to your website to post pretty images of your products or other engaging materials

► Financing – Fund raising is vital for a new business”.If fund raising is done in perfect way it can lead to lucrative partnership with Angel investors & venture capitalist and if not done perfectly it can be fatal for new enterprise. There are a number of ways in which a start up business can raise funds, some of the important ones are

• Use Family and friends– Family and friends can be used as a source of financing. But make sure that there is proper lending agreement between you and the family/friends .A number of small businesses use this method of financing so don’t underestimate this.
• Crowd funding– There are various crowd funding sites where you can float your business idea and arrange finance for your idea. In case of crowd funding, the project is funded by a large number of public normally via internet.The crowdfunding model consists of mainly three participants: the project creator who proposes the idea , individuals who support the idea and a moderating organization (the “platform”) that brings the parties together to launch the idea .Some of the best crowd funding websites for small businesses include Kickstarter, Indiegogo, and Fundline.
• Bank Financing– People use bank finance as the most common way to raise fund for their business. Further, in India there are various schemes for getting bank finance for start ups
• Venture capital– Affluent Investors wish to invest their capital in businesses with long term growth prospects. Such a capital is termed as venture capital which can be a good source of finance for start ups.There are number of venture capitalist firms in India like Reliance Venture,

► Flexibility – Another important factor that needs to be considered by a start up is flexibility. This covers flexibility in terms of business idea or business goals, which some businesspersons find harder to achieve. It is important that you should be ready to alter your personal start-up dream if it doesn’t match reality.Many a times venture capitalist can give you suggestions for improvising your idea or goal. The successful ventures are normally the ones that can take their initial idea and alter it once, twice or thrice into a better version.At times ,business ideas fail as it lacks flexibility.

► Technology – Now a days, technology has an important role to play in the success of a business. Review your business plan to find out which technology will enable you to save time, save money, stay in control, make more sales and deliver a better service to your customers.Big business brand like L&T,Coca Cola, Pepsi etc spend a lot on technology/softwares.

► Compliance with state and central laws – One should ensure compliance with various legal and tax matters in order to lead a successful start up. Some of the compliances may relate to

• Compliance with companies act
• Tax Identification number
• PAN number
• VAT or service tax registration number
• Patent laws etc