Pune Business School Presentation 2014

APRIL 2014, Rs 35
EDITOR
AMIT BRAHMABHATT
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Volume IX, No 10
Issue date April 1-30, 2014
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CONTENTS
Viewpoint ..........6
The Crimean crisis
News Round-Up ...........8
A brief on news, tie-ups,
appointments and awards
GlobalWrap-Up ..........14
A quick round-up of news and
current affairs across the world
StraightTalk ..........16
"There is little credibility in the
government's
targets":
GitaGopinath,
Economics
professor at
Harvard University
Corporate Report ..........18
Winning designs: With smart
strategies and
effective check
on costs,
Mumbai-based
KewalKiran
Clothing is
stitching a success story.
Technology ..........20
Net gains: As buzz around internet
of things gets
louder,
businesses are
discovering
new ways to
gather and use
information and design new
products and services.
Mutual Funds ..........22
Doublebenefits:TheSEBI'snew
retirement plan
offers hope for
individuals in
the autumn of
their lives and
seeks to
deepen the mutual fund market.
Management Mantra..........24
Nurturetalent:
Deeksha Suri
Murti,
Executive
Director,
TheLalitSuri
Hospitality Group
Readers' Lounge ..........46
Catch up with new book launches
- The Politics Of The Pharmaceutical
Industry And Access To Medicines
- Hatching Twitter
- Short Stories From The Stock Market
Events Calendar ..........48
An update on national and
international exhibitions
Star Talk ..........50
Forecast by Bejan Daruwalla
Knowledge Zone ..........52
- Manoj Vaish, MD & CEO, MCX
- El Nino
- Spiritual Corner: Managing Anger
Hot Seat ..........54
Taranviir Kaur, Country Head -
India,ImperialServcorp
YOUR GATEWAY TO INDIA INC.
www.indiabusinessjournalonline.com
4 APRIL 2014 INDIA BUSINESS JOURNAL
30
DEFYING DOWNTURN
As B-schools sweat it out to beat
the slowdown heat, IBJ focuses
on how institutes are weathering
the storm.
COVER STORY
IBJ AWARDS
REWARDING
ENTREPRENEURSHIP
The recently concluded IBJ
Business Excellence Awards 2013
shines the spotlight on Tamil
Nadu's successful entrepreneurs.
26

The Crimean crisis has unfolded at a blinding pace. In a matter of days,
Russia annexed the Black Sea peninsula, which until recently belonged to
Ukraine. The world watched speechlessly as Crimea became a part of Russia
with neither a shot fired nor a drop of blood shed.
On the cold morning of February 27, Russian soldiers set foot on Crimea
and occupied its vital installations. In a referendum a few days later, Crimeans
overwhelmingly voted for a union with Russia. The merger was formalised
after Russian President Vladimir Putin signed the annexation treaty with Crimean
leaders a day later.
The annexation accord seemed to correct a historic wrong committed about
six decades ago. In 1954, Nikita Khrushchev, the former prime minister of the
USSR, had transferred Crimea from Russia to neighbouring Ukraine, then a
part of the communist USSR. Interestingly, Russia's takeover of Crimea is more
than correcting that historic past. It is a tactical move by President Putin to
warn Ukraine, its immediate western neighbour, and the West (EU and USA)
not to meddle in its neighbourhood.
The Crimean annexation is the culmination of months of friction within
Ukraine over moving closer to the EU. Last November, Viktor Yanukovych,
the former pro-Russia president of Ukraine, abandoned an EU deal in favour of
stronger ties with Russia. Soon, clashes broke out in the country between
supporters of Mr Yanukovych (the Russian-speaking people in east Ukraine)
and his opponents (the Ukrainian-speaking people in the west looking to ally
with the EU). Protests turned ugly and violent and rocked the country for
nearly three months, resulting in Mr Yanukovych's flight from Ukraine and a
new pro-West government in Kiev.
Post-Crimea takeover, Russia may appear as an aggressor out to expand
and change the boundaries of eastern Europe. However, the West cannot be
absolved in the matter. It has been provoking Russia for years now by spread-
ing its influence across the former Soviet States and its east European
neighbours. The last straw was the EU's move to draw Ukraine closer to the
West through a political association agreement.
Caught unawares, the US and the EU have reacted by freezing assets and
imposing visa bans on some of Mr Putin's closest political and business allies.
The EU is in talks with the friendly government in Ukraine to unveil an eco-
nomic package for the cash-strapped country. Despite their tall talk, America
and Europe have no stomach to impose sanctions that would really hurt Rus-
sia as the curbs would ultimately impact the West too.
The US may still go ahead with deeper sanctions as its trade with Russia is
a minuscule 1 per cent. But Europe can hardly afford stiffer restrictions. The
EU does 10 times as much trade with Russia as the US and is the biggest
customer for Russian oil and gas. Besides, the bloc's 28 members also include
countries with widely varying relationships with Moscow.
Russia's aggressive moves have raised fears of re-assertion of its hege-
monic power in east Europe. But those fears are unfounded. Crimea has been
closer to Russia and more Russian in nature, with the peninsula housing
Russia's Black Sea fleet. On the other hand, annexing larger Ukraine, with a
huge stockpile of nuclear weapons, is certainly not a child's play. Mr Putin's
recent action is akin to paying the West back in its own coin. However, this is
hardly the right time for both Russia and the West to revert to Cold War
games of the past even as the world reels under economic slowdown. Instead,
the negotiating table would be a better place for the two to sort out
their misgivings.
Stop Cold War charades
Mr Putin's recent action is
akin to paying the West
back in its own coin.
However, this is hardly the
right time for both Russia
and the West to revert to
Cold War games of the past
even as the world reels
under economic slowdown.
Instead, the negotiating
table would be a better
place for the two to sort out
their misgivings.
VIEWPOINT
President Putin: Playing
one-upmanship with the West

SEBI bars FTIL from owning stock exchanges The Securi-
ties and Exchange Board of India (SEBI) has passed an order
against Financial Technologies (FTIL), declaring it as not fit and
proper to hold any shares directly or indirectly in any stock
exchange or clearing corporation. The market regulator's ruling
follows the order of the FMC, which had declared FTIL as not
fit and proper to hold more than 2 per cent of the equity share
capital in the Multi Commodity Exchange of India (MCX). The
FMC's ruling was the result of the Rs 5,600-crore NSEL scam,
the spot exchange promoted by Jignesh Shah-owned FTIL. FTIL
will have to dispose its holding in the National Stock Exchange,
Delhi Stock Exchange, Vadodara Stock Exchange and MCX-SX
Clearing Corporation within 90 days.
NEWS ROUND-UP
Commodityboursesto
remain shut on Saturdays
The Forward Markets
Commission (FMC) has
extended trade timings in a
few internationally-linked
agricultural commodities up
to 11.30 pm. The commodity
market regulator has also
directed exchanges to
discontinue trading in
agriculture commodities on
Saturdays. The commodities
put on extended trade timing
from April 1 include soya oil,
soya meal, crude palm oil,
refined palmolein, cotton,
kapas (raw cotton) and sugar,
among others. Currently,
commodity futures market
trades between 10 am and 5
pm on weekdays and 10 am
and 2 pm on Saturdays. Last
September, exchanges
discontinued trading in non-
agricultural commodities on
Saturdays on the FMC's
direction.
Karnataka woos firms
to Aerospace Park The
Karnataka government has
said that a number of aviation
companies have evinced
interest in setting up and
expanding their manufactur-
ing capacity at the Aerospace
Park located near Bangalore.
Karnataka was the first State
MISCELLANEOUS
in the country to announce
an aviation policy last year.
The 1,000-acre park is
already a host to some 50-
plus companies and has
potential to locate many
more. The Aerospace Park,
which has a 252-acre special
economic zone, provides the
right infrastructure for
manufacturing and other
support services. The State
government is developing
four more similar parks of
about 1000 acres each.
EPFOcannowbecome
memberofbourse
Employees Provident Fund
Organisation (EPFO), the
retirement fund body, can
now enlist as a member of
any recognised stock
exchange. The development
follows a notification issued
recently by the Finance
Ministry's Department of
Economic Affairs, amending
the Securities Contracts
(Regulation) (Amendment)
Rule, 2010, to enable EPFO
to become a stock market
Fertiliser Secretary
Shaktikanta Das, an IAS
officer of the 1980 batch
belonging to the Tamil
Nadu cadre, will hold the
additional charge as mines
secretary for three months
with effect from March 1.
K S Popli has taken over
as the chairman and
managing director of Indian
Renewable Energy
Development Agency.
R K Tewari, a 1976-batch
Indian Revenue Service
officer, has taken over the
reins as chairman of the
Central Board of Direct
Taxes.
Amitabh Kant, the former
CEO and MD of the Delhi
Mumbai Industrial Corridor
APPOINTMENTS

Verbatim...
INDIA BUSINESS JOURNAL APRIL 2014 9
MISCELLANEOUS
member. The notification
paves the way for invest-
ment of the EPFO's over
Rs 5,00,000-crore corpus in
equity markets in future. The
move is line with the Finance
Ministry's long-standing
proposal that the huge
retirement corpus be invested
in the stock market to get
higher returns.
Reforms can lift 58 cr
peopleabovepovertyline
India can bring 58 crore
people above the poverty
line, a measure of income
deprivation, by 2022 if it
implements inclusive
reforms, notes McKinsey
Global Institute (MGI). The
business and economic
research arm of consultancy
major McKinsey & Com-
pany has also noted that
India's human development
indicators show that
deprivation extends well
beyond 22 per cent of
Indians who live below the
official poverty line.
Inclusive reforms can
stimulate investment, job
creation and farm production
as well as dramatically
improve the delivery of basic
services, MGI notes in a
recent report.
Soon, track green nod for
projects online The Central
government is planning to
put in place by July a
digitised platform to allow
investors to apply for
environmental clearances and
track their progress online.
The Project Monitoring
Group (PMG), constituted
by the Prime Minister's
Office for facilitating
clearances of large infrastruc-
ture projects, is leading the
digitisation drive that will
allow investors to track in
real time the movement of
their applications and
documents. Digitisation of
clearance processes will
ensure fast tracking of
approvals in a transparent
and accountable manner. It
will also facilitate various
stakeholders at the ground
level to resolve many issues
speedily.
Indiacanquadruple
Africa revenue: McKinsey
India can look to quadruple
its revenues from Africa to
$160 billion by 2025 by
increasing its presence in
sectors such as IT services,
agriculture, infrastructure,
pharmaceutical and consumer
goods, according to a recent
McKinsey report. The report
adds that India can aspire to
capture almost 7 per cent of
the IT services market, 5 per
cent of the FMCG segment,
10 per cent of the power
sector and 2 to 5 per cent of
the agricultural and allied
services in Africa. The report
notes that Indian industry
needs to continually engage
with governments and
businesses in the continent
proactively.
"The mining legacy
in India is poor.
Modern companies
can generate
reserves on global
standards through
innovation and
modernisation."
Tom AlbaneseTom AlbaneseTom AlbaneseTom AlbaneseTom Albanese
CEO, VEDANTA RESOURCES
"I wouldn't be
surprised if
Bitcoins are not
around in 10 or 20
years. They are
very speculative
like the Dutch tulip
mania of 1637."
Warren BuffettWarren BuffettWarren BuffettWarren BuffettWarren Buffett
BILLIONAIRE INVESTOR
"We are not
interested in only
skilling and making
people job-seek-
ers. Instead, our
incubation model
makes them
job-givers."
H P KumarH P KumarH P KumarH P KumarH P Kumar
CMD, NSIC
“People in India
don't know when
to exit. That is why
most mentors in
India become
tormentors.”
Jairam RameshJairam RameshJairam RameshJairam RameshJairam Ramesh
RURAL DEVPT MINISTER
"Developed
countries are
making huge
efforts to cherry-
pick items and see
if they can create a
new post-Bali
Doha agenda."
Rajeev KherRajeev KherRajeev KherRajeev KherRajeev Kher
COMMERCE SECRETARY
TIE-UPS
Development Corporation,
has taken over as secretary
of the Department of
Industrial Policy and
Promotion.
MCX Stock Exchange
(MCX-SX) has appointed
Thomas Mathew, the
former chairman of LIC, as
chairman of the stock
exchange. Ashima Goyal, a
professor at the Indira
Gandhi Institute of
Development Research, has
been appointed as vice-
chairperson of MCX-SX.
The Institute of Char-
tered Accountants of
India has signed an MoU
with the Ministry of HRD
to use the ministry's
upcoming DTH platform
for beaming educational
content to CA students.

CORPORATE
AMW Motors eyes new
overseas markets Com-
mercial vehicle-maker AMW
Motors is exploring newer
markets of South-East Asia
and East Africa as a part of
strengthening its global
foothold. The company
currently exports vehicles to
SAARC (South Asian
Association for Regional
Cooperation) nations, like
Nepal, Bhutan, Sri Lanka,
Myanmar and Bangladesh,
and have started exploring
markets in South-East Asia,
specifically Indonesia. AMW
has also undertaken product
promotion campaigns in
Tanzania and has received its
first orders from Kenya and
other markets in East Africa.
The Mumbai-based company
currently retails tippers,
heavy-duty trucks, long-haul
tractors and special trucks
across various tonnages.
NarayanaHealthbuys
Jubilant's 2 hospitals
Jubilant First Trust
Healthcare (JFTH), a wholly
owned subsidiary of Jubilant
Life Sciences, has sold its
hospital business to
Narayana Health. JFTH
operates two hospitals in
West Bengal - Kalpataru in
Barasat and Rabindranath
Thakur in Berhampore. The
business has been transferred
on a going concern basis as a
slump sale, which will enable
Jubilant Life Sciences to
focus on its core businesses
in pharmaceutical and life
sciences. The acquisition,
whose value has not been
disclosed, will also enable
Narayana Health to expand
its reach in the eastern part
of the country.
McLeod Russel enters
green tea business
McLeod Russel India, the
world's largest black tea
producer, is making an entry
into green tea through
NEWS ROUND-UP
TAQA to buy Jaypee's plants for Rs 10,000 cr A consor-
tium led by TAQA, an international energy and water company
from Abu Dhabi, has agreed to acquire two hydropower plants
from Jaiprakash Power Ventures, a subsidiary of infrastructure
conglomerate Jaypee Group. The acquisition, involving the two
plants with a total capacity of 1,391 mw in Himachal Pradesh, is
expected to close this year. The value of the deal is pegged at
around Rs 10,000 crore. The deal will facilitate Jaiprakash Power
Ventures to pare its debt, estimated at about Rs 20,000 crore, by
at least Rs 15,000 crore in the current financial year.
acquisition of a tea process-
ing factory in Vietnam. The
BM Khaitan Group com-
pany recently informed the
stock exchanges that Phu Ben
Tea Company, a step-down
subsidiary of McLeod Russel
in Vietnam, had signed an
agreement to buy a green tea
processing factory in
Vietnam for Rs 5 crore. The
factory has an annual pro-
duction capacity of 6 lakh kg.
Daimler to roll out buses
fromChennaiplant
Daimler India Commercial
Vehicles will start manufac-
turing buses from its facility
near Chennai by the second
quarter of 2015. The
company recently laid the
foundation stone for the
Rs 425-crore factory,
adjacent to its truck-
manufacturing plant in
Oragadam, an industrial
suburb of Chennai. Daimler
India, a subsidiary of Daimler
of Germany, is consolidating
its entire truck and bus
manufacturing operations in
the country with this plant.
The factory with a capacity
of about 1,500 buses a year
will make Mercedes-Benz
rear-engine luxury buses and
Bharat Benz front engine
buses for the volume market.
Ranbaxy recalls 64,000
bottles of generic Lipitor
Ranbaxy Laboratories has
recalled more than 64,000
bottles of its generic version
of Lipitor, a cholesterol-
lowering drug, in the United
States of America. The
Gurgaon, Haryana-based
drug-maker recalled tablets of
atorvastatin calcium after a
US pharmacist found a 20-mg
tablet in a sealed bottle
marked for 10-mg tablets.
Ranbaxy confirmed the recall
of select batches of the drug,
but said that it had not
received any product
complaints. The recall is the
latest in a series of problems
to hit Ranbaxy, which has
been barred from exporting
drugs into the US made at its
Indian plants.
GSK Pharmaceuticals'
open offer oversoldThe
UK-based GlaxoSmithKline
(GSK) Group's open offer to
increase its stake in
GlaxoSmithKline Pharmaceu-
ticals, its Indian subsidiary,
ended on a strong note
recently with the offer
getting oversubscribed. The
oversubscription will help
the parent company increase
its holding to 75 per cent
from the existing 50.67 per
cent. The offer saw tendering
of over 2.3 crore shares by
public shareholders as against
an offer for 2.06 crore shares.
The key to the offer's
success was the attractive
price of Rs 3,100 a share,
offering a good exit option
for existing investors.
BASF opens global R&D
centreinNaviMumbai
BASF Chemicals India, a
France-based Alstom has
appointed Rathin Basu as
president of Alstom India
and South Asia.
Parag Satpute has taken
over as the country manager
of Sandvik Asia, the Indian
subsidiary of the Swedish
engineering products
company.
Srinivasan Dwarakanath
has assumed charge as the
chief executive officer of
Airbus India.
Sanjay Aggarwal has been
appointed as managing
director of Finland-based
Fortum's Indian subsidiary.
Tata Communications
has entered into a partner-
ship with SafeNet to offer
cloud-based multi-factor
authentication as a managed
service globally.
APPOINTMENTS
TIE-UPS

CORPORATE
wholly owned subsidiary of
Germany-based BASF,
recently opened a global
research and development
centre at its plant in Navi
Mumbai with an investment
of about Rs 17 crore. The
new research centre will help
the company work with a
wide range of scientific talent
in India and take it closer to
the goal of innovating from
Asia-Pacific for Asia-Pacific
and the world. By 2020,
BASF Chemicals is planning
to do 50 per cent of its
research in Europe and split
the rest between America
and Asia.
Tilaknagar buys IFB
Agro's liquor business
Tilaknagar Industries, a
manufacturer of Mansion
House brandy, has acquired
the Indian-made foreign
liquor (IMFL) business of
Flipkart hits $1-bn sales before schedule Increasing internet
penetration and youngsters shopping online has helped home-
grown e-commerce company Flipkart hit annualised sales of $1
billion (over Rs 6,100 crore) a year ahead of its target. The
company was aiming to reach the billion-dollar mark for gross
merchandise value by 2015. Flipkart had started as an online
bookstore and now sells products across categories like fashion
and electronics. It is also making an entry into areas like white
goods and furniture. The Bangalore-based company, which has
over 10,000 employees, spun out PayZippy, a payment solu-
tion company, into a separate entity last year.
Kolkata-based IFB Agro for
an undisclosed amount. Keen
to consolidate its position in
the country's 30-crore case
IMFL market, Tilaknagar
will add all of IFB Agro's
IMFL brands, including
Volga vodka and Blue Lagoon
gin, to its portfolio. Accord-
ing to the terms of the
agreement, the trademarks of
all IMFL brands of IFB Agro
will be transferred to
Tilaknagar.
US bans imports from Sun
Pharma's plant Sun
Pharmaceutical Industries has
received an import alert from
the US Food and Drug
Administration (USFDA) on
its cephalosporin facility
located in Karkhadi, Gujarat.
While an import alert
virtually bans all products
from the plant, the company
has said that the contribution
from this plant to its
consolidated revenues is
"negligible". The alert was
issued by the USFDA as a
follow-up to the last
inspection of the facility,
during which some non-
compliance of current Good
Manufacturing Practice
regulations was identified.
The development is the latest
in a string of USFDA-
initiated action against India-
based drug companies.
Mercedes rolls out first
made-in-IndiaS-500
Mercedes-Benz India has
rolled out the first, locally-
built S-500 from its Chakan
plant near Pune a little earlier
than originally planned. The
petrol car that has a V8
engine is priced at Rs 1.36
crore (ex-showroom,
Mumbai) against Rs 1.57
crore for the completely built
unit (CBU) version. The
package includes a 21-
module, multi-lingual
chauffeur-training programme
for drivers. The locally built
S-500 is a five-seater, while
the CBU one launched in
early January is a four-seater.
It has 35 to 40 per cent local
content, including the body
work, engines, axles and
transmission.
Polaris Financial hives off
product business Polaris
Financial Technology has
announced a demerger of its
product business into an
independent entity. The new
company will be known as
Intellect Design Arena
(Intellect) and comprise four
businesses - global universal
banking, risk and treasury
management, global transac-
tion banking and insurance.
Chennai-based Polaris
Financial will continue to run
the software services
business. The product
business is offered to clients
on a licence fee model.
Polaris Holdings, whose
name has been changed to
Polaris Banyan Holding, will
continue to be the promoter
of the both companies.
Bharti Airtel has signed an
agreement with UAE-based
Etisalat to set up a multi-
service regional network
infrastructure node, facilitat-
ing the Indian company to
provide advanced data and
wholesale services to its
customers in West Asia
and Africa.
Tata Consultancy Services
has partnered with
Microsoft Business
Solutions to develop online
and on-premise versions of
Microsoft Dynamics'
customer relationship
management.
Tata Communications has
signed a collaboration pact
with Turkey's telecom
operator Turkcell
Superonline to set up a
multi-protocol label switch-
ing node in Istanbul.
Aircel has tied up with
online marketplace
Snapdeal.com to offer a free
data package to customers
buying data-enabled phones
through the portal.
Tech Mahindra has set up
a global development centre
in partnership with Alstom
Transport to focus on
engineering solutions for
rail transport and rolling
stock.
Low-cost carrier GoAir has
signed an MoU with
Honeywell and Safran to
deploy their solutions and
save on fuel consumption
per flight.
Mukesh Ambani-promoted
Reliance Jio has inked a
tower-sharing agreement
with Viom Networks.
Risk management solutions
provider AXA Assistance
and iJET International
have joined hands to
provide security and
medical response solutions
to enterprises in India.

PUBLICSECTORNEWS ROUND-UP
IOC picks 10% in
Canadian gas project
Indian Oil Corporation (IOC)
has signed a deal with
Petronas Carigali Canada, a
part of Malaysia's Petronas,
to buy a 10 per cent stake in
its natural gas assets and a
linked liquefied natural gas
(LNG) project in Canada's
North East British Columbia
for about Rs 5,500 crore. The
deal, through which IOC has
forayed into North America,
will provide it an opportu-
nity to secure upstream
participation in the highly
prospective gas reserves in
Montney, Canada, along with
securing long-term gas
supply of 1.2 mtpa for 20
years through the Pacific
NorthWest LNG export
facility for India's growing
requirements.
Mahila Bank to open 55
more branches Bharatiya
Mahila Bank plans to set up
55 more branches in 2014-15
across smaller cities and
unbanked areas. This follows
the country's first all-woman
bank's first round of
expansion, comprising 25
branches across States by the
end of 2013-14. The women's
bank accepts deposits from
everyone, but lends predomi-
nantly to women. Keeping
working woman in mind and
to help them continue in their
jobs, the bank has designed
special loan product to set
up day-care centres, beauty
parlours and catering units,
apart from normal banking
products.
SBI plans first selloff of Rs 5,000-cr NPAs State Bank of
India (SBI), is planning to offload around Rs 5,000 crore of its
Rs 67,799 crore non-performing assets (NPAs) by the end of
2013-14 to asset reconstruction companies. The country's larg-
est lender, which had reported 5.73 per cent of its assets as bad
loans in the December 2013 quarter, is for the first time in its
over two centuries of history, selling off a part of its NPAs to
clean up its balance sheet. The sell-off plan comes ahead of the
tighter provisioning norms kicking in from April, which the cen-
tral bank had announced last May. Under the new norms, the
central bank has more than doubled the provisioning for restruc-
tured loans to 5 from 2 per cent.
SAIL's sinter unit
commissioned in Bhilai
State-run Steel Authority of
India (SAIL) recently
commissioned a Rs 730-crore
sinter facility at its Bhilai
Steel Plant as a part of
Rs 17,265-crore
modernisation plan of the
flagship mill. The
operationalisation of the unit
to produce 3.708 mt sinter
per annum will enhance the
plant's production levels to
7.5 mtpa of hot metal from
the current 5 mtpa. The new
unit is a part of the total
outlay of Rs 72,000 crore for
expansion of SAIL's hot
metal capacity from 14.23
mtpa to 23.46 mtpa. The
new facilities coming up at
the Bhilai plant are set to
increase production capacity
and also improve product
quality.
SBP takes retail route to
grow business State Bank
of Patiala (SBP) will focus its
efforts on becoming a retail
player in the banking
industry. The public sector
bank is planning to pursue a
retail-focused strategy even
while consolidating on the
corporate lending front,
where slippages have risen
and led to higher stressed
assets. The bank plans to add
at least 100 new branches to
its network of 1,180
branches in the next six
months to enhance its retail
focus. SBP is also eyeing 15
per cent growth in business
during the new financial year,
led mainly by lending to
agriculture and MSME
segments.
New India eyes Rs 16,500-
cr premium in FY14 New
India Assurance Company, a
leading public sector general
insurance company, is
targeting a gross premium of
Rs 16,500 crore for 2014-15.
The company, which has
targeted to close 2013-14
with a total premium of
Rs 14,500 crore, will increase
focus on the retail segment to
contribute to its future
NTPC's consultancy
wing will provide
consultancy services to
Trincomalee Power
Company for setting up a
2x250 mw coal-based
power project in
Trincomalee, Sri Lanka.
TIE-UPS
growth. The insurer has
opened 1,500 micro-offices
in rural areas and is expand-
ing further to increase its
reach in rural markets. It has
started sending out vans with
computers connected to the
company's core server to
sell its different policies
in villages.
Skill agency trains 13.5
lakh in 3 years The
National Skill Development
Corporation (NSDC) has
provided skill training to
13,49,742 people in its first
three years of operations.
NSDC has also created a
capacity to train 7.5 crore
people over the next ten
years. Some 122 ventures
that the corporation has
approved till date are
operating in 358 districts
through 1,481 fixed and
1,101 mobile centres across
the country, according to an
NSDC release. The corpora-
tion has approved 29 Sector
Skill Councils, which have
standardised 501 job roles in
different sectors till date, to
ensure that all candidates are
trained according to industry-
defined standards.
CPSE exchange fund nets
Rs 4,000 cr The Central
Public Sector Enterprises
(CPSE) Exchange-Traded
Fund (ETF) offer, which
closed last month, has
managed to raise Rs 4,000
crore. The CPSE ETF basket
consists of shares of 10
PSUs and provides investors
an opportunity to become
part-owners of ONGC,
GAIL, CIL, IOC, OIL, PFC,
REC, CCI, EIL and BEL. The
funds collected by the ETF
from the initial offer will be
given to the government,
which, in turn, will deposit
shares of equal value from
the 10 CPSEs. The fund is
managed by Goldman
Sachs and will be listed on
April 11.

FINANCE
Rakesh Sharma, a former
SEBI official, has taken
over as managing director
and chief executive of
Karur-headquartered
Lakshmi Vilas Bank.
Rakesh Sethi, the former
executive director of Punjab
National Bank, has been
appointed as chairman and
managing director of
Allahabad Bank.
Vighnesh Shahane has
assumed office as chief
executive officer and whole-
time director of IDBI
Date for exchanging pre-
2005 notes extended The
RBI has extended the date for
exchanging banknotes issued
prior to 2005 to January 1,
2015. In January, the central
bank had advised that after
March 31, 2014, it would
completely withdraw from
circulation all banknotes
issued prior to 2005. From
April 1, 2014, the public was
required to approach banks
for exchanging these notes.
Non-customers were also
asked to furnish proof of
identity and residence for
exchanging notes with banks
after July 1, 2014. Banknotes
issued before 2005 do not
have the year of printing on
the reverse side of the
currency notes.
HDFC,KotakBank
largest wealth creators
HDFC Bank and Kotak
Mahindra Bank have emerged
the largest wealth creators
among private sector banks.
Six new private sector banks
feature among the top-10
banks in market
capitalisation (m-cap),
according to a Motilal Oswal
Securities' report. The m-cap
of HDFC Bank at Rs 1.58
lakh crore is equivalent to the
with the RoCs without being
registered with the RBI.
After the Saradha scam, the
government and financial
sector regulators have been
trying to plug legal loopholes
and bring illegal money-
collecting entities under a
regulatory framework.
Women-run businesses
face financing deficit
Women have a harder time
raising funds for their
business than men, according
to a report by the Interna-
tional Finance Corporation
(IFC). The gap in financing
women-owned enterprises
has been pegged at a
whopping Rs 6.37 lakh crore
or 73 per cent of the total
demand of around Rs 8.68-
lakh crore, including both
debt and equity, notes World
Bank subsidiary IFC. The
report adds that there is
empirical evidence that
women tend to be better
borrowers and customers,
providing value in terms of
better credit quality and
comprehensive banking
relationships.
Capital First gets Rs 178-
crore funding Non-banking
finance company Capital
First has raised Rs 178 crore
from Cloverdell Investment,
an affiliate of US-based
private equity firm Warburg
Pincus, and HDFC Standard
Life Insurance Company.
Capital First will allot 83.6
lakh shares to Cloverdell
Investment for Rs 128 crore
and 32.5 lakh shares to
HDFC Standard Life for
Rs 50 crore. The preferential
issue will increase Warburg
Pincus' holding in the
company to 72 per cent,
while HDFC Life will get
4 per cent stake. The
company, which lends
mostly to SMEs, expects to
grow at 30 per cent in the
next few years.
Five private banks allowed to import gold The RBI has al-
lowed five domestic private banks - HDFC Bank, Axis Bank,
Kotak Mahindra Bank, IndusInd Bank and Yes Bank - to import
gold. The central bank's measure is a significant step towards
easing of tough curbs on the yellow metal imposed last year to
cut the country's current account deficit. Last July, the govern-
ment had enforced the 80-20 rule, making it mandatory to export
a fifth of all gold imports. Under the rule, only six State-run
banks and three State-run trading agencies were allowed to
import gold.
APPOINTMENTS
m-cap of all State-owned
banks, excluding SBI, put
together. Over the last two
decades, the RBI has issued
12 new bank licences (10 in
1993 and two in 2003). Of
these, seven have survived
intense competition and
volatile economic growth.
SBI to sell shares to staff,
raise Rs 1,200 cr SBI, is
planning to roll out an
employee share purchase
scheme during 2014-15. The
country's largest lender,
which has 2.28 lakh employ-
ees on its payroll, expects to
raise between Rs 800 crore
and Rs 1,200 crore from the
scheme. The size of the issue
will depend on the price at
which the shares will be
offered. All employees of the
bank, including its officers
and clerks, will be eligible for
application under the
scheme. The shares would be
offered at a discounted rate,
noted an SBI spokesperson.
RBI keeps tab on cos'
non-banking biz The RBI
is running a check on a large
number of companies
registered with the Registrars
of Companies (RoCs) to see
if they have directly or
indirectly indulged in
activities of non-banking
finance companies (NBFCs).
Last year, the central bank
had asked a large pool of
companies to file their
balance sheets and activity-
related documents. Various
NBFCs could be registered
TIE-UPS
Federal Life Insurance.
Federal Bank has
partnered with Bangalore
Metro Rail Corporation
to launch a debit-cum-
transit card, called Flash
Debit Cum Transit Card,
allowing card-holders 15 to
20 per cent discount on
metro fares.
Corporation Bank has
signed a deal with AMW
Motors for financing
commercial vehicles
manufactured by the
company.

GLOBAL WRAP-UP
Nestle investors to decide executive pay
Vevey, Switzerland-based Nestle, the world's largest food
company, recently announced changes to its corporate by-
laws to abide by the new Swiss limits on compensation.
Accordingly, the Nestle investors will have a binding vote
on board pay and on the maximum pay for top executives.
The changes follow a referendum last year in which Swiss
voters approved some of the world's toughest limits on
executive pay. Those who pay or accept excessive remu-
neration face possibility of fines or jail terms.
Top-10 car-makers
sitting on $221 bn
A new study shows that the
top-10 global auto-makers
amassed more than $221
billion in cash by the end of
2013 to invest in new
products, strategic alliances
and other growth strategies.
Global consultancy Ernst &
Young adds that effectively
managing that cash is a key
concern among the 100-top
industry executives it has
surveyed. The consultancy
notes that companies are
stockpiling cash so that they
don't have to count on banks,
which have been reluctant to
offer loans.
Zurich Insurance to
cut 800 jobs
The Zurich Insurance Group
will cut about 800 jobs
globally to save around $250
million per year by the end
of 2015. The layoffs are a
part of a drive by the insurer
to reduce costs and improve
profitability. The company
is overhauling its business by
investing in high-margin units
and selling underperforming
lines as it works to hone
profitability after lowering a
key target last December.
The insurer has added that
the job cuts, which are
equivalent to 1.4 per cent of
its total headcount, will
remove management layers
between the group and its
business units.
Panasonic's China
staff get pollution pay
Japanese electronics giant
Panasonic will give its
employees sent to China a
wage premium to account for
the country's hazardous air
pollution. The move, a
possible first for an interna-
tional company, is a part of a
wider deal reached in Japan's
annual labour talks recently
that saw major companies,
including Panasonic and
Toyota, agreeing to boost
DBS, Societe Generale in $220-mn deal
Singapore's DBS Bank has agreed to buy the Asian private
banking business of French lender Societe Generale in a deal
worth $220 million. DBS has said that the deal will acceler-
ate its ambition of becoming a leading wealth manager in
Asia. Under the agreement, DBS will buy Societe General's
Asian private banking operations in Singapore and Hong
Kong and parts of its trust business. The transaction will
also provide significant revenue synergies as Societe Generale
Private Banking Asia's clients will have access to DBS' uni-
versal banking platform.
China moves to open up banking sector
For the first time, China will be setting up five private
banks on a trial basis. This is a path-breaking development
in the Asian nation as its banking sector grapples with ris-
ing pressure from a newly booming online finance industry.
The China Banking Regulatory Commission has revealed
that the first five private banks will be set up in Tianjin,
Shanghai and the provinces of Zhejiang and Guangdong as a
pilot project. The banks will be subject to the same regula-
tion and supervision as existing State-run banks, but will be
focused more on small and medium enterprises.
workers' salaries for the first
time in years. The so-called
hardship pay is not unusual
for employees of foreign
companies sent to work to
China.
Shimpo first woman
to head Japan bank
Nomura Holdings, Japan's
biggest brokerage, has chosen
a woman to head its banking
arm. Chie Shimpo, 48, will
become president of Nomura
Trust and Banking, making
her the first Japanese woman
to head a bank in the
country's male-dominated
financial sector. None of the
nation's three biggest banks -
Mitsubishi UFJ, Sumitomo
Mitsui and Mizuho Financial
- have top women female
executives. Japan's Prime
Minister Shinzo Abe has
been calling for more women
to join the labour force and
for companies to bring
women employees into the
boardrooms.
Renault, Nissan team
up to beat rivals
France's Renault and its
Japanese alliance partner
Nissan recently unveiled
their boldest steps yet to
combine key operations and
pursue economies of scale to
rival auto giants like
Volkswagen. Renault and
43.4 per cent-owned affiliate
Nissan are rolling out new
models on a jointly devel-
oped mass-market vehicle
architecture. This January,
both the companies raised
their savings goal to at least

New York pips London as finance hub
New York has replaced London as the world's leading fi-
nancial centre for the first time after the City (London's
iconic financial district) was rocked by a series of scandals
and questions over the UK's place in the European Union.
New York holds the top spot in the latest Global Financial
Centres Index with a two-point lead, according to Michael
Mainelli, the chairman of Z/Yen Group, the company that
compiles the index. Competition is heating up, with Hong
Kong and Singapore, the two leading Asian centres, nar-
rowing the gap between themselves and the top two cities.
Air Canada trims legroom for profit
Air Canada is betting that less legroom for passengers trans-
lates into higher profit. Canada's largest carrier has done the
math and figures that adding at least 22 seats on jets of its
Rouge unit turns money-losing routes to destinations such
as the Caribbean profitable. Air Canada's main carrier has
also begun flying five high-density Boeing 777 jets with
more than 100 additional seats than standard models.
"Densed-up" aircraft are a key part of a plan by the carrier
to cut expenses for each seat even as customers lament the
lack of legroom.
Global debt exceeds $100 trillion
The Bank for International Settlements' (BIS) latest quar-
terly report has shown that the amount of debt held glo-
bally has soared to $100 trillion since the start of the finan-
cial crisis. The ballooning of debt happened as governments
borrowed more to tide over recession and companies took
advantage of record low interest rates, notes Basel, Swit-
zerland-based BIS, which is also called the central bank of
central banks. Financial sector deleveraging in the aftermath
of the financial crisis has been a primary reason for the rise
in global debt, the BIS report points out.
$6 billion by 2016. The
partners have named new
executive vice-presidents to
run converged manufacturing,
research and development,
purchasing and human
resource functions across the
alliance.
Vodafone to buy Ono
for $10 billion
The Vodafone Group has
agreed to buy Spain's largest
cable operator Ono for $10
billion. The transaction is a
part of the British telecom
group to rebuild its European
operations with a broadband
offering. Vodafone has added
that the deal will enable it to
offer a combination of mobile
and fixed-line telephony,
pay-TV and broadband in
one of its largest European
markets, hit hard by fierce
competition and a lengthy
recession. The Ono deal is
Vodafone's third purchase of
a European fixed broadband
asset in two years, allowing
it to offer an increasing range
of services.
Fed sticks to script,
bond buys at $55 bn
The Federal Open Market
Committee (FOMC) of the
US Federal Reserve (US Fed)
recently announced a third
$10-billion reduction to
quantitative easing, reducing
its monthly bond purchases
to $55 billion. In her first
removing references to a 6.5
per cent unemployment
threshold. Last year, the US
Fed had purchased $85
billion worth of bonds each
month of as a part of its
efforts to stimulate the post-
recession economy.
Unilever buys China's
water purifier
Unilever has bought a
majority stake in Chinese
water purification company
Qinyuan in its biggest
investment in the country in
a decade. The Rotterdam-
based Dutch food and
cosmetics company has,
however, declined to put an
amount on the deal or
disclose the size of its stake.
The deal will more than
double the size of Unilever's
water purification business
and bring together comple-
mentary technology from
Pureit and Qinyuan. Ye
Jianrong, the founder of
Qinyuan will continue as the
company's chief executive
officer. The Chinese water
purification market has been
growing by over 20 per cent
in the last three years.
JPMorgan to sell
commodities biz
JPMorgan Chase & Com-
pany has agreed to sell its
physical commodities
business to Mercuria for
$3.5 billion. The transaction
will catapult the Swiss
trading house into the top
tier of commodities traders.
The all-cash transaction for
one of the most powerful oil
and metal desks on Wall
Street is expected to close in
the third quarter of this year.
In documents circulated to
potential buyers last year,
JPMorgan had valued its
physical commodity
business at $3.3 billion.
JPMorgan had paid nearly
$2 billion to buy the largest
part of the business from
RBS in 2010.
FOMC meeting as head of
the US Fed Janet Yellen
made good on her promise of
continuity. The committee
also reaffirmed its commit-
ment to low interest rates by

BIJAY KUMAR SINGH
T
he Indian economic growth is
set to be one of its lowest in
2013-14. As the nation heads
for general election, all eyes are on
the new government to recharge the
flagging economy. In a thought-pro-
voking interview, Gita Gopinath, pro-
fessor of economics at Harvard Uni-
versity, speaks on a wide range of is-
sues, including fiscal deficit, inflation,
growth and the agenda before the new
finance minister.
Will the government be able to
meet the ambitious fiscal deficit, rev-
enuedeficitandGDPgrowthtargets?
In the last few years there has been
a disconnect between targets set by
the government either for fiscal defi-
cit, inflation or growth and what has
later played out. So, there is little cred-
ibility in these targets. Moreover, with
this being the election year, it is not
surprising that hard decisions have
been moved to the future.
Whatarethetop-threereformsbe-
fore the next finance minister?
First, revive investment. This will
require reducing uncertainty about tax
and regulatory practices. It will require
transparent and timely processes to
clear projects. There are one too many
stalled projects. Revive infrastructure
investment and facilitate construction
of the Delhi-Mumbai corridor. Second,
revive manufacturing. If there are to
be sufficient jobs for the growing
labour force, India needs to boost
manufacturing. Finally, serious effort
has to be made to contain the size of
the government and keep fiscal defi-
cit in check.
Doyouthinkthatbalancebetween
price stability and growth has been
distorted?
It is true that in a growing economy,
as India transitions from low to middle
income status and as incomes and
wages rise, there will be pressure on
prices to rise. So, we should expect to
see some gradual price increase over
time but nowhere near the levels of
inflation observed in India. Impor-
tantly, wage increases that arise from
productivity increases do not nega-
tively affect growth. The fact that In-
dia has had high inflation alongside
slowing growth is a sign that some of
the growth prior to the slowdown was
more a demand-driven overheating of
the economy rather than productiv-
ity-driven wage increases and hence
higher prices.
How does the world perceive the
current Indian political economy?
As Narendra Modi is
unapologetically pro-growth, interna-
tional investors perceive that a Modi
government will get the necessary re-
forms done. However, there remains
considerable uncertainty about post-
election stability, especially with the
prospect of a third front forming the
government.
IMF chief Christine Lagarde has
asked emerging market economies,
like India, to put in place sound fis-
cal and monetary policies to deal
with the impact of US tapering.Your
comments…
Yes, ultimately an emerging market,
like India, will have to rely on the
soundness of its domestic fundamen-
tals to shield itself from the vagaries
of international finance. The US Fed
has its own mandate, which is to fo-
cus on US growth and inflation, and
it is unlikely to worry about the
spillover effect on emerging markets.
The US Fed is withdrawing stimulus
quite gradually, so, right now, it can-
not be blamed for doing things too
fast. Now, a multilateral organization,
like the IMF, can provide some
insurance, but we don't see that
happening.
TheIMFhassofarbeenunableto
move ahead with the quota reforms
thatithadpromisedtoimplementby
January 2014…
Yes, unfortunately, there is little
movement here. It is disappointing
that the US has stalled both on its
financial commitment to the IMF and
on the quota issue.
"There is little credibility in
government's targets"
GITA GOPINATH, Professor of Economics, Harvard University
STRAIGHT TALK

Winning designs
With smart strategies and effective check on costs,
Mumbai-based Kewal Kiran Clothing is stitching a
success story.
Kewal Kiran headquarters in Mumbai
AMIT BRAHMABHATT
K
ewalchand Jain swears by pa-
tience and perseverance. The
two virtues have been guid-
ing Kewal Kiran Clothing (KKCL)
through thick and thin. "They are at
the core of our company," stresses
the chairman and managing director
of the Mumbai-based casual-wear
manufacturer.
Kewal Kiran is one of the largest
homegrown branded apparel-makers
that have withstood tough times.
"The fashion industry is often sub-
ject to intermittent periods of volatil-
ity and uncertainty.You need patience
to tide over the setbacks. Besides,
you need perseverance to continue
investing in the business even when
the going is tough," adds Mr Jain.
KKCL has been registering good
growth in these challenging times
even as many of its peers are in the
red. "It is not just the problem of eco-
nomic slowdown. Most of the com-
panies that are suffering today are
over-leveraged. But we are a zero-
debt company," notes Mr Jain, a
brilliant strategist and hands-
on manager.
It is this conservative approach
that has kept the over Rs 300-crore
company ticking. In the past three
decades, Mr Jain, along with his three
brothers, his son and his nephew, has
focused on the company's core
brands and invested in boosting its
distribution network and spurring
innovation.
Smart plans
Kewal Kiran is today an integrated
fashion house that designs, manufac-
tures and markets a wide range of
branded apparel for men and women.
The company's Killer (flagship jeans
brand), Lawman Pg3 (jeans and ca-
sual-wear), Easies (semi-formal range
of apparel) Integriti (both casual- and
formal-wear) and Addictions (a wide
range of accessories) have
become household brands across
the country.
However, way back in 1981, it be-
gan operation as a small job-working
unit making menswear for reputed
brands. Soon, young Kewalchand
joined the family business and spear-
headed the company's foray into the
branded apparel segment. In 1989, the
company launched Killer jeans, which
still commands over 50 per cent of its
CORPORATE REPORT
Kewalchand Jain: A brilliant
strategist and hands-on manager

The franchise model has facilitated Kewal Kiran to reach out to a large
number of customers at a lower cost.
total sales. It was a turning point for
KKCL as Killer jeans hit the shelves.
Global jeans brands were yet to de-
but in the country. The homegrown
Killer brand, which became a sensa-
tion among youngsters, got sufficient
time to carve a niche for itself.
Over the years, the apparel-maker
has expanded its portfolio, entered
new segments and launched four
morebrands.KKCL'steamofin-house
designers has kept abreast with glo-
bal trends and launched fashionable
products. Innovation has played a
vital role in enabling the company to
have an edge over its peers. Besides,
many of its innovative products are
eco-friendly, like its KillerWater Saver
Jeans, which consumes 80 per cent
less water in manufacturing the gar-
ment compared with water consumed
for other brands.
The company's four modern manu-
facturing facilities - two in Mumbai
(Maharashtra), one in Vapi (Gujarat)
and another one in Daman (Union
Territory) - have been churning out
over 30 lakh pieces of apparel annu-
ally. With clients across Asia and the
Commonwealth of Independent
States, the company's export revenue
accounts for about 6 per cent of its
total sales.
Kewal Kiran has bet on a number
of winning strategies, such as just-
in-time procurement and quick-to-
market processes, to keep a tight con-
trol on costs and maximise its sales.
"Inventory management is a crucial
challenge in the fashion business,"
adds Mr Jain. Besides, the company
has established a Business Progres-
sive Fund, for which it sets aside
Rs 10 crore from its profits every year.
The fund is instrumental in address-
ing adverse business conditions dur-
ing periods of sluggishness and for
also providing enhanced support for
superior, long-term growth.
The franchise model is another
successful strategy mastered by the
company. The model has facilitated
the apparel-maker to reach out to a
large number of customers at a lower
cost. It owns only 13 of the total 307
stores, most of which are run by fran-
chisees. A mix of K-Lounge - show-
rooms stocking all Kewal Kiran brands
under a single roof - K-Lounge For
Her - exclusive showroom for women
- exclusive brand outlets and other
retail outlets has ensured that the
company's products are available
across the country.
Bright prospects
High inflation, elevated interest rates
and economic uncertainty have damp-
ened discretionary expenditure and
impacted most industries. However,
Kewal Kiran has been able to tide over
the crisis and post decent profits,
thanks to its smart strategies and ef-
fective check on costs.
Meanwhile, long-term prospects
for the domestic apparel market look
bright. A huge population, rising in-
come levels and a rise in the aspira-
tion levels of people are tilting the
scale in favour of branded products.
Moreover, a spurt in organised retail
with malls spreading to smaller cities
and towns makes a strong case in
favour of branded players.
A large number of global brands
are already operating in the country.
Besides, easing of foreign direct in-
vestment norms in retail has encour-
aged many more brands to line up in
the country. More organised players
in the largely unorganised domestic
apparel market are set to bring in more
competition. Interestingly, Kewal
Kiran has an upper hand, given its
affordable pricing and large presence
in tier-II and tier-III cities and towns.
"The industry is growing at annual
rate of 15 per cent, and we are eyeing
about 25 per cent growth this year.
Besides, in the long term, we want to
be among the top-five players in the
country," stresses Mr Jain. With smart
plans and an enabling environment,
Kewal Kiran could soon be within the
striking distance of its target.
A Fact File
Origin
1981
Business
Casual-wear manufacturer
Facilities
Four (Mumbai, Vapi & Daman)
Annual capacity
30 lakh pieces
Employees
1,200+
Retail outlets
307
Brands
Killer, Lawman Pg3, Easies,
Integriti and Addictions
FY13 turnover
Rs 315 crore
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Net gains
As buzz around internet of things gets louder,
businesses are discovering new ways to gather and use
information and design new products and services.
RISHI RANJAN KALA
T
he internet of things (IoT) is
an idea whose time has come.
With falling technology costs,
developments in fields like mobile and
cloud as well as support from gov-
ernments have all contributed to
dawning of an IoT's quiet revolution.
According to research firm Gartner, in
2011, over 15 billion things on theWeb
with more than 50 billion intermittent
connections will grow by 2020 to over
30 billion connected things with
more than 200 billion intermittent
connections.
Kevin Ashton coined the term
IoT in 1999 when working at Proc-
tor & Gamble.At that time, the idea
of everyday objects with embedded
sensors or chips that communicate
with each other had been around
for over a decade, going by terms
such as ubiquitous computing and
pervasive computing. What was
new was the idea that everyday
objects, such as a refrigerator, a car
or a pallet, could connect to the
internet, enabling autonomous
communication with each other and
the environment.
This stage is further set to
revolutionise with an ever-aware digi-
tal consumer insisting on better
products, personalisation and
customisation, greater choice, more
flexibility and faster delivery. Besides,
enterprises are grappling with intense
competition in a tough economic en-
vironment to fill this tall order.
Organisations are increasingly achiev-
ing success in this quest with intelli-
gent manufacturing, which is enabled
by information and communication
technology (ICT), and that is proving
to be a global game-changer.
Data explosion
According to a global survey con-
ducted by the Economist Intelligence
Unit (EIU), over three quarters of com-
panies are either actively exploring or
using the IoT. The vast majority of
business leaders believe that it will
have a meaningful impact on how their
companies conduct business. Yet,
there is some divergence about the
wider effect it will have.
The EIU notes that fitting sensors
and tags to products (retail) will gen-
erate even more data than are cur-
rently being created and captured.
Companies feel confident in their abil-
ity to handle this explosion of infor-
mation, but prior experience of stor-
ing and analysing large amounts of
big data may lead them to underesti-
mate the additional talent and skills
needed to spot new uses and revenue
streams emerging from it. "Data secu-
rity and privacy are also likely to grow
in significance as more consumers
engage with IoT-based products. Be-
yond storing, securing and analysing
these data, companies should also
consider how they manage the com-
mercial sharing of the data as the IoT
becomes a platform for trading infor-
mation," it adds.
A number of developments have
contributed to business adoption of
the IoT. One important factor is the
falling cost of the underlying technol-
ogy. In other words, the sensors and
actuators fitted to things to connect
them to the internet and their envi-
ronment, such as radio-frequency
identification (RFID) and micro-
electro-mechanical systems (MEMS).
According to telecommunication
services provider Verizon, consumers
have demonstrated their demand for
smartphones precisely because de-
vices have been built with sensors to
capture information from the outside
world. Smartphone processors are
capable of personalising that infor-
mation and using programs to share
information with members of a so-
cial network. Consumers now ex-
pect equivalent capabilities from
the many products they use in
their home.
Their early acceptance of con-
nected TVs and networked appli-
ances, for example, illustrates this
emerging demand and establishes
the household as the venue of
choice for some of the best prac-
tices in consumer machine-to-ma-
chine (M2M). Today, consumers
expect that networked devices will
save them time, simplify their lives,
bring them closer to friends and fam-
ilyandmaketheirlivesricherandmore
enjoyable. Their understanding of
M2M's promise will motivate busi-
nesses to respond with products that
will better serve consumers' needs for
connectivity and fulfil these impor-
tant personal and social needs.
M2M is fuelling innovation in the
enterprise because businesses are
realising that smart machines and
smart applications can take informa-
tion from a system or the environment
Consumers expect networked devices
saving them time and simplifying
their lives.
TECHNOLOGY

Further revolution on the
cards with consumers
insisting on better products
Organisations achieving
success with intelligent
manufacturing enabled
by ICT
Over three quarters of
companies actively exploring
or using IoT worldwide
Data storage, analysis,
security and privacy also
likely to grow in significance
Falling cost of underlying
technology fuelling adoption
of IoT
Bright On IoT Horizon
to create new revenue streams, con-
trol costs and improve products and
services. In fact, the opportunities to
use M2M to bolster performance of a
business are more attractive and jus-
tifiable than ever before.
M2M communication usually takes
place without user interaction, al-
though certain applications will re-
quire some level of human involve-
ment. Even though fixed-line networks
used in early M2M implementations
will still play a strong role, communi-
cation will occur on wireless networks
because wireless communication is
such an integral part of everyday life,
even in hard-to-reach locations.
M2M is already drastically chang-
ing consumer interaction with utilities,
healthcare, local government services
and retail. M2M is enabling busi-
nesses to provide consumers with
products and services that deliver
personal, context-aware experiences,
an advancement that will have a pro-
found impact on how organisations
do business and relate to their
customers.
Paradigm shift
As the IoT becomes a reality, busi-
nesses will discover new ways to use
M2M to gather and use information,
seamlessly and behind the scenes.
This intelligence will lead to new prod-
ucts and services that promise real
improvements in matters of funda-
mental concern. In turn, M2M inno-
vation will drive new revenues and
help control costs for businesses.
By embracing information and in-
sight that M2M communication can
provide, organisations in all indus-
tries will find ways to participate in
and benefit from this technology re-
naissance. As they do so, they will
extend its benefits to their partners,
customers and communities.
IT services major Infosys feels that
the impression that ICT integration is
a time- and cost-intensive exercise is
proving transformational through flex-
ible production and made-to-order
products, value addition enabled by
intelligent supply chain management
and end-to-end management of prod-
uct design and lifecycle. "The new
intelligent manufacturing paradigm is
revealing some interesting trends that
we expect will gain momentum as we
move ahead in 2014. Some of these
are the emergence of the plug-and-
play factory, enterprise mobility solu-
tions, the industrial internet, 3D print-
ing, greater impact of social media and
new business models," the EIU adds.
With factories fast evolving into
increasingly complex, expensive and
distributed operations, enabling tech-
nologies such as the flexible factory
and predictive asset analytics are
helping enterprises address not
merely the competition but also
sustainability-related issues. Predic-
tive asset analytics takes the manu-
facturing game to the next level from
real-time information and intelligence
on the state of machines. Enabled by
the explosion of big data, these so-
phisticated technology solutions
catch signs of machine wear or break-
down early, thereby giving manufac-
turers a head start in making repairs
before any real damage is done. The
benefits include greater productivity,
less downtime and reduced costs of
equipment and spares.
Finally, along with the digital con-
sumer, it is the mobile workforce that
has emerged as a key change driver.
With emergence of more manufactur-
ing-specific applications and con-
sumer devices, like tablets and
smartphones, making their presence
felt on the shop floor, manufacturers
are investing in enterprise mobility
solutions. This trend has been steadily
gaining ground and can only grow
further as traditional organisations
understand the importance of mobil-
ity to business growth.

Double benefits
The SEBI's new retirement plan offers hope for
individuals in the autumn of their lives and seeks to
deepen the mutual fund market.
MUTUAL FUNDS
SHILPI PANDEY
T
he Securities and Exchange
Board of India (SEBI) has
mooted a proposal for a new
mutual fund-linked retirement plan.
The new plan, on the lines of the
hugely-popular 401(k) pension plans
in the US, is expected to generate more
than Rs 18,000 crore of annual inflows
into capital markets.
The 401(k) plans are very popular
in the US and act as additional retire-
ment savings for citizens beyond pen-
sion plans provided by the govern-
ment and their employers.Along with
tax benefits, these plans are also
known to provide good returns to
their investors. Total investments in
these plans are estimated to be a stag-
gering amount of about $2.5 trillion
(over Rs 150,00,000 crore).
Akintothese401(k)plans,theSEBI
wants the government to provide tax
incentives for the proposed retirement
schemes as well. The market regula-
tor expects them to generate annual
inflows of at least Rs 18,000 crore and
become a major tool for channelling
household savings into capital
markets.
Newplan
According to the SEBI proposal, the
government can provide tax breaks on
investment up to Rs 50,000 in the re-
tirement plans or alternatively en-
hance the limit of tax exemption under
Section 80C of the Income Tax Act,
1961, to Rs 2,00,000 to help such in-
vestments become eligible for tax
benefits. Currently, the Section 80C
provides tax breaks on investments
totalling Rs 1,00,000 in various prod-
ucts, including certain mutual funds,
insurance plans and provident fund.
Giving details about the new
scheme, the SEBI notes that people
between 18 and 55 years of age will
be eligible to join the scheme, which
may have a minimum lock-in period of
five years. For these schemes, the
market regulator has sought an EEE
category tax benefit, which will pro-
vide them tax exemption at the time of
investment, accrued income as well
as during the withdrawal stage.
According to the SEBI's proposal,
these schemes can be allowed for two
kinds of investments - contributions
made directly by salaried employees
or self-employed individuals; and
contributions made by employer on
behalf of employees along with a con-
tribution by the individual. The SEBI
has also proposed that the retirement
plan can follow an age-linked invest-
ment model that will automatically
lower exposure to equities as inves-
tors grow older to minimise risks.
Investors can withdraw up to 100
per cent of balance after attaining 60
years of age. Before attaining 60 years,
investors can withdraw contributions
that have completed the minimum
lock-in period or more, subject to cer-
tain conditions, like applicability of
exit load. Full withdrawal can be al-
lowed in case of exigency, such as
death of an investor, permanent dis-
ability or terminal illness without ap-
plicability of any exit load.
Vital lifeline
Mutual funds collect money from in-
vestors and buy stocks, including ini-
tial public offers (IPOs of the primary
market) and bonds. These funds at-
tract only a small portion (2.5 per cent)
of household savings in India, unlike
the US where this ratio is nearly 44
per cent. In the US, mutual funds ac-
count for over $6 trillion (over
Rs 370,00,000 crore) or about 28 per
cent of the nearly $22-trillion
pension market.
From a policy perspective, a big
worry is the relatively small size of the
Indian mutual fund industry itself af-
ter over four decades of existence. The
industry has also had limited success
with scaling up its retail presence.
Unfortunately, most of the mutual
fund schemes are propped up by in-
stitutional support with companies
pouring in and taking out funds to
benefit them. Most often, retail inves-

Similar to popular 401(k) pension plans in the US
Open to people between ages of 18 and 55 years
May have a minimum lock-in period of five years
EEE category tax benefit sought for the scheme
Likely to garner over Rs 18,000 crore of annual inflows into
capital markets
Government asked to provide tax incentives for proposed schemes
Huge potential for channelling household savings into
capital markets
Peek Into New Retirement Plan
tors are left high and dry.
India does not have a system for
routing long-term retirement savings
of individuals via corporate plans into
mutual funds. Nor does it have a well-
developed network of third-party dis-
tributors, who sell a range of finan-
cial products and advice investors on
their choices. In this backdrop, reach-
ing out to thousands of first-time re-
tail investors on their own has not
been a viable proposition for new
fund houses.
The SEBI points out that its pro-
posed scheme, similar to 401(k) plans
of the US, can be found in many other
jurisdictions internationally whereby
tax-related and other incentives pro-
vided by the government have led to
a significant increase in share of long-
term retail money in mutual funds.
On a conservative side, the capital
market regulator estimates that even
if 10 per cent of about 3.6 crore indi-
vidual taxpayers participate in the
proposed schemes with a contribu-
tion of Rs 50,000 per year, it will lead
to an annual inflow of Rs 18,000 crore
of long-term money into capital mar-
kets through mutual funds. This long-
term product will play a very signifi-
cant role in mobilising household sav-
ings into the capital markets and will
bring greater depth in the markets.
"Such a depth, brought by domes-
tic institutions would also help in
curbing the unwanted volatility in the
capital markets and reducing exces-
sive reliance on foreign institutional
investors. Allowing mutual funds to
launch such retirement schemes
would help investors gain from the
expertise of a large talent pool of as-
set managers who are already manag-
ing existing schemes of mutual funds
efficiently with support of research
and analyst teams," the SEBI has
noted in its proposal.
According to the SEBI, there is a
huge scope for growth in the country's
retirement benefits market as only
around 12 per cent of the existing
workforce is covered by the Pension
Fund Regulatory and Development
Authority. On the other hand, a large
workforce in the unorganised sector
has no retirement benefits.
Currently, the mutual fund indus-
try has two retirement plans that have
tax exemptions. These plans are
floated by UTI and Franklin
Templeton. This gives mutual funds
an opportunity to play a meaningful
role during the accumulation phase
of retirement planning in addition to
the existing retirement benefit plans,
such as the National Pension System
(NPS), Employees' Provident Fund
(EPF) and Public Provident Fund
(PPF). Notably, a majority of subscrip-
tion in the NPS is from government
employees. Hence, the proposed re-
tirement plan may be seen as target-
ing the audience who are not sub-
scribers to the NPS and give them an
option to save for the long term with
tax benefits.
Nearly 45 fund houses in India to-
gether manage assets worth over
Rs 9,00,000 crore, but fund
mobilisation has been a tough task
for them in the past few years. With a
long-term policy, the SEBI has sought
to make mutual funds much more ap-
pealing as a long-term investment
product by proposing tax and other
benefits to boost the sector.
The proposed retirement plan will
provide much-needed benefits to the
large, unorganised workforce, which
currently finds itself out of the secu-
rity net. Besides, it will offer the
struggling mutual fund industry a
vital lifeline.

SHARMILA CHAND
D
eeksha Suri Murti firmly be-
lieves that there is no substi-
tute for hard work. The
youngest daughter of the late Lalit
Suri, the founder chairman, and
Jyotsna Suri, the chairperson and
managing director of The Lalit Suri
Hospitality Group, has seen her
mother toiling and rebuilding the ho-
tel chain after her father's sudden de-
mise in 2006. Hard work has naturally
been internalised in Ms Suri Murti as
the surefire route to success.
Taking charge as executive direc-
MANAGEMENT MANTRA
tions together for a consistent cus-
tomer experience.
A commerce graduate, with a
master's degree in management from
the prestigious London School of
Economics, Ms Suri Murti worked
with the Hay Group as a business
consultant for over two years, before
joining her hotel chain. Ms Suri Murti,
a travel enthusiast and fitness freak,
provides insights into her manage-
ment style in an engaging interview.
Yourmanagement mantras
1) Focus on the details
2) Nurture talent
3) Provide opportunities and
recognise initiative
4) Success of the company is a
collective effort, and the company
takes precedence over any
individual.
A game that helps you in work
I run six days a week. Running keeps
me focused and allows me to clear
my head.
Turning point in your career
Transition of my mother into the role
of the CMD was difficult, given the
great personal loss that accompanied
that event. However, it created great
clarity in the broader role that my sib-
lings and I would have to play in the
continued growth of the company.
Secret of your success
There's no secret. It's just that there
is no substitute for hard work, and
you are only as good as the team you
work with.
Yourphilosophyofwork
Just focus on your goal. Focus and
dedication help you overcome all the
obstacles regardless of how insur-
mountable they may seem.
Apersonyouadmire
I think all the family members have
qualities that I admire; my brother for
his creativity and fearlessness, my
sister for her dedication and sense of
calm and, most importantly, my
mother for her strong values and clear
direction.
Nurture talent
tor of the hospitality group in 2006,
young Deeksha, then 27, learnt the
ropes quite quickly. Since then, she
has brought a fresh perspective to the
group's core management ideals, be it
in the realms of human resource, in-
formation technology, sales and busi-
ness process improvement.
A year after joining the family busi-
ness, she conceptualised The Lalit
Suri Management Academy to pro-
vide an indispensable talent pool for
the company. Besides, Project
Lakshya, another of her initiatives
launched last year, aims at augment-
ing both front- and back-end func-
DEEKSHA SURI MURTI
Executive Director, The Lalit Suri Hospitality Group

REWARDING
ENTREPRENEURSHIP
The recently concluded IBJ Business Excellence Awards 2013 shines the
spotlight on Tamil Nadu's successful entrepreneurs.
IBJ BUREAU
I
t was a perfect celebration of the spirit of entrepreneur-
ship. India Business Journal's recently concluded IBJ
Business Excellence Awards 2013 brought the cream
of Tamil Nadu's entrepreneurs to the fore. Chennai's Hyatt
Regency, the venue of IBJ's maiden awards ceremony, wore
a festive look on the evening of March 9.
The focus of the glittering awards ceremony was the
nine awardees, representing various segments of indus-
try. They were manufacturers, such as Sony Fireworks,
Sun Fireworks Industries and Sripathi Paper and Boards.
They also represented a wide range of service sectors,
like United India Insurance Company, Indian Overseas
Bank, online commodity trader Great Ventures, entertain-
ment infrastructure provider Abirami Mega Mall, educa-
tion provider Cornerstone School of International Studies
and building plan automation solutions provider Vinzas
Solutions India.And above all, they are entrepreneurs who
have proven their mettle through prudent management,
high performance and innovative initiatives.
Tamil Nadu Governor K Rosaiah graced the event as
chief guest and presented the awards. Delivering his ad-
dress after giving away the awards, Mr Rosaiah noted
how Tamil Nadu's stress on the right ecosystem was able
to nurture a large number of successful entrepreneurs. He
added how the State's excellent infrastructure and proac-
tive, industry-friendly policies of the government had
transformed Tamil Nadu into the country's robust
manufacturing hub.
REWARDING
ENTREPRENEURSHIP
IBJ AWARDS
MAKING A POINT: Tamil Nadu Governor K Rosaiah
delivering the chief guest address

SPARKLING START: Tamil Nadu Governor K Rosaiah and IBJ Editor Amit
Brahmabhatt lighting the traditional lamp
ONE FOR THE RECORD: IBJ Award winners take centre stage with Tamil Nadu Governor K Rosaiah (centre),
G Jacinth, Amit Brahmabhatt, S P Jain and Kumaravel R J (seated L to R)
AUGUST GATHERING: Who’s who of Tamil Nadu’s
business circle at the awards ceremony
S P Jain, the managing director of
Mumbai-based Pride Hotel and chair-
man of the IBJ Awards Jury Commit-
tee, pointed out how the IBJ Awards
were different from rest of awards. He
explained how IBJ Awards broke
through the clutter, picked up hidden
talent across regions and provided
them a platform for seamless transi-
tion to the national level.
Speaking on the occasion, Amit
Brahmbhatt, the editor of India Busi-
ness Journal, recalled the robust de-
velopments that the monthly business
magazine witnessed since its entry
into the State last year. Kumaravel
R J, IBJ's Chennai bureau chief, wel-
comed the gathering, while G Jacinth,
the project director, delivered the vote
of thanks. J Mangayarkarasi, a mem-
ber of the awards committee, andTeam
IBJ gave final touches to the event.
As the sun set and lights came on in
the glittering hall, the awardees were
radiating entrepreneurial energy.

TOP BRAND: Most Promising BraMost Promising BraMost Promising BraMost Promising BraMost Promising Bra
Chief Executive Officer of Great VGreat VGreat VGreat VGreat Veeeee
SUPER-HIT FORMULA: Business Excellence in EntertainmentBusiness Excellence in EntertainmentBusiness Excellence in EntertainmentBusiness Excellence in EntertainmentBusiness Excellence in Entertainment -
Abirami Ramanathan, Managing Director of Abirami Mega MallAbirami Mega MallAbirami Mega MallAbirami Mega MallAbirami Mega Mall
GLOBAL INSTITUTE: Business ExBusiness ExBusiness ExBusiness ExBusiness Ex
Christopher, MD of Cornerstone SCornerstone SCornerstone SCornerstone SCornerstone S
LEADING THE WAY: Business Leader of the YBusiness Leader of the YBusiness Leader of the YBusiness Leader of the YBusiness Leader of the Yearearearearear - P GanesanP GanesanP GanesanP GanesanP Ganesan,
Managing Partner of Sony Fireworks
SMALL'S BEAUTIFUL: SME BusinSME BusinSME BusinSME BusinSME Busin
Director (Marketing) of Sripathi PaSripathi PaSripathi PaSripathi PaSripathi Pa
WINNING STRATEGIES: Sustainable Business AwardSustainable Business AwardSustainable Business AwardSustainable Business AwardSustainable Business Award - Asha Nair,
Director and GM of United India Insurance CompanyUnited India Insurance CompanyUnited India Insurance CompanyUnited India Insurance CompanyUnited India Insurance Company
IBJ AWARDS

andandandandand - Mr V Hariharan,
enturesenturesenturesenturesentures
xcellence in Educationxcellence in Educationxcellence in Educationxcellence in Educationxcellence in Education - J John
School of International StudiesSchool of International StudiesSchool of International StudiesSchool of International StudiesSchool of International Studies
PROMPT SOLUTIONS: Business Excellence in InnovationBusiness Excellence in InnovationBusiness Excellence in InnovationBusiness Excellence in InnovationBusiness Excellence in Innovation - R Siva,
President of Vinzas Solutions IndiaVinzas Solutions IndiaVinzas Solutions IndiaVinzas Solutions IndiaVinzas Solutions India
ness of the Yness of the Yness of the Yness of the Yness of the Yearearearearear - A Ragupathy,
aper and Boardsaper and Boardsaper and Boardsaper and Boardsaper and Boards
NURTURING EMPLOYEES: Employer of the YEmployer of the YEmployer of the YEmployer of the YEmployer of the Yearearearearear - A Ramesh,
Managing Partner of Sun Fireworks IndustriesSun Fireworks IndustriesSun Fireworks IndustriesSun Fireworks IndustriesSun Fireworks Industries
CUSTOMER IS KING: Customer Focus AwardCustomer Focus AwardCustomer Focus AwardCustomer Focus AwardCustomer Focus Award - M Narendra,
Chairman and Managing Director of Indian Overseas BankIndian Overseas BankIndian Overseas BankIndian Overseas BankIndian Overseas Bank

DOWNTURN
COVER STORY
As B-schools sweat it out to beat the slowdown
heat, IBJ focuses on how institutes are
weathering the storm. CMAT candidate registrations
up by over 28%
Management institutes
reinventing themselves
Unique bunching up
of conventional and new
subjects
Innovative tie-ups with foreign
institutes
B-schools grooming students
into entrepreneurs
E-commerce, retail, NGOs and
PSUs vying for MBA
graduates
Slowdown weeding out
non-serious players
Battling Slowdown
IBJ RESEARCH BUREAU
A
prolonged economic
slow-down has cast its
long, dark shadow on
business schools (B-
schools). Hard times
are taking the shine off glamour sur-
rounding management courses. As
corporate balance sheets shrink, its
effect is showing on recruitments
across B-school campuses.
A recent ASSOCHAM (The Asso-
ciated Chambers of Commerce and
Industry of India) paper reveals the
extent of damage of the slowdown on
management colleges. The paper adds
that barring about 20 top B-schools
in the country - including 13 Indian
Institutes of Management (IIMs) -
most of the management institutes
have witnessed about 40 to 50 per
cent drop in campus hiring last year.
Besides, salary packages on offer are
also being curtailed by 35 to 40 per
cent, notes one of the country's pre-
mier trade bodies.
"Recruitments at campuses have
gone down drastically. As a result, a
large number of B-schools are not able
DEFYINGDEFYING
DOWNTURNDOWNTURN

India accounts for about 4,000 of among over 15,500 management institutes
across the globe.
to attract students," notes
ASSOCHAM Secretary-General D S
Rawat. Last year, 1,94,000 students
appeared for the Common Admission
Test (CAT) compared with 2,14,000
candidates during the previous year,
resulting in a 10 per cent drop stu-
dents taking the test.
However, the CAT - the common
test for admission to 13 IIMs and many
other non-IIM B-schools held once a
year - numbers may not be present-
ing the whole picture. A look at last
September's Common Management
Admission Test (CMAT) figures pro-
vides some relief. The CMAT - the
national-level admission test con-
ducted twice a year for selection to
all management colleges approved by
the All India Council for Technical
Education (AICTE) - witnessed a
good 28 per cent jump in number of
aspirants taking the test from 60,000
in September 2012 to 83,662 in Sep-
tember 2013. The low CATfigures are
more than compensated by the robust
CMAT numbers, reassuring that the
management course still holds sway,
even in these troubled times.
Quality a casualty
Despite some rosy admission num-
bers, B-schools are now feeling the
pinch of the downturn. At the height
of economic boom between 2005 and
2008, many entities entered the higher
education segment and opened a
chain of colleges. Management
schools were naturally in the forefront
of such an aggressive expansion,
given their direct link with the
economy.
Number of B-schools across the
country has tripled from about 1,000
in 2006-07 to around 4,000 in 2012-13.
Management college seats too have
more than tripled from 95,000 to
3,60,000 during the same period. But
the harsh realities of the downturn
have begun taking their toll on these
B-schools as job opportunities for
management graduates have not
grown in the same proportion as the
number of management institutes.
PHOTOCOURTESY:SANJANADESIGN
B-SCHOOL SURVEY 2014

COVER STORY
50% drop in campus hiring
last year
Salary packages on offer
curtailed by 40%
Drop in 10% among CAT
candidate registrations
190 B-schools shut down,
another 165 struggling to run
Only 10% B-school graduates
getting jobs immediately after
studies
Feeling The Heat
"Recruitments at campuses have
gone down drastically. As a result,
a large number of B-schools are
not able to attract students."
D S RAWAT
Secretary-General, ASSOCHAM
Many B-schools have unique alliances with their overseas counterparts to
offer better, alternative options to students.
Quality of education has become
the first casualty of this meaningless
mushrooming of management
schools. Even today, there is a crying
need for qualified business managers
and leaders in the country. But unfor-
tunately, most of the graduates
churned out by numerous B-schools
do not meet basic requirements of the
industry. "The entire focus of many
B-schools sadly remains on place-
ments and high salaries and not em-
ployability of their students," notes a
management professor on condition
of anonymity.
The ASSOCHAM paper further
adds: "Only 10 per cent of graduates
from Indian business schools, ex-
cluding those from the top-20
schools, get a job straight after com-
pleting the course, compared with 54
per cent in 2008. The biggest reason
for the gap is the rapid mushroom-
ing of tier-II and -III management
education institutes that have unfor-
tunately not been matched by com-
mensurate uplift in the quality of
management education."
Another problem with manage-
ment schools in the country is re-
lated to the regulatory structure. Ex-
perts opine that technical education
regulator AICTE seems to be more
inclined towards physical infrastruc-
ture, like the college building, li-
brary, and laboratory. However, it ap-
pears to be cursory in its approach to
academic infrastructure, be it curricu-
lum, faculty and so on. No wonder,
the quality of education at many B-
schools is found wanting. "Education
can be of no use if it does not have
quality. There should be a profes-
sional body to regulate B-school edu-
cation in the country," opines IIM-
Ahmedabad Director Ashish Nanda.
Beating the slump
It would be unfair to paint all
B-schools with the same brush. Bar-
ring a few black sheep, many manage-
ment colleges have been grooming
tomorrow's business leaders in right
earnest. As the economic slowdown
refuses to abate, management insti-
tutes are experimenting and reinvent-
ing themselves to attract and retain
talented faculty and students.
Students today are smart and very
focused. They no longer rely only on
the age or legacy of an institution.
Rather, they pick institutes that of-
fer them something new and provide
international exposure. Many
B-schools have transformed them-
selves into vibrant centres of learn-
ing and innovation.
Many institutes have started new
courses that combine conventional
subjects with radically new ones.
Bunching up music, sports science,
humanities and European studies with
the regular management subjects has
caught fancy of students, who are al-
ways on the lookout for something
unusual yet useful.
Foreign tie-ups are another attrac-
tion for MBA aspirants. Many
B-schools have unique alliances with
their overseas counterparts to offer
better, alternative options to students.
Such alliances enable students to
pursue a part of their studies in India
and the remaining in foreign cam-
puses. Besides, there are many insti-
tutes that offer curricula and degrees
of foreign schools at competitive
prices in India itself. These arrange-
ments are a hit with students as they

Newer sectors, like e-commerce and retail, are bringing cheer and decent job offers to management graduates.
"Education can be of no use if it
does not have quality. There
should be a professional body to
regulate B-school education in the
country."
ASHISH NANDA
Director, IIM-Ahmedabad
enable them exposure to global man-
agement theory and practice.
Interestingly, the downturn has
triggered a spirit of entrepreneurship
among management students. With a
fewer prospects in the job market,
management graduates are looking
forward to don the entrepreneurial
cap. Besides, the slump has led to an
increase in enrolment in executive
programmes of various management
institutes, providing managers an op-
portunity to sharpen their skills.
Some B-schools have been assist-
ing their students to fulfil their en-
trepreneurial aspirations. They let
students float business ideas and as-
sist them in their execution. They
also allow students to start their own
business on the campus by providing
space and other supporting infra-
structure at subsidised rates.
Brighter side
The economic downturn may have
put management schools in a tough
spot. But experts point out that there
is a silver lining amid the dark clouds
of slowdown. Students and profes-
sionals usually see the downturn as
an opportunity to hone their skills. It
would not be surprising if many pro-
fessionals have been enrolling in
B-schools to catch up with new man-
agement trends.
The current challenging times
seem to have a sobering effect on
many flashy things associated with
B-schools. First of all, stratospheric
pay packages, which had become a
norm in the boom time, are now few
and far between. Moreover, finance
and telecom, the two sectors that
dominated every campus hiring exer-
cise until a few years ago, are now on
the back foot.
Newer sectors, like e-commerce
and retail, are bringing cheer and de-
cent job offers to management gradu-
ates. Besides, the fast-moving con-
sumer goods sector, start-up compa-
nies, public sector undertakings and
even non-government organisations
are entering B-school campuses with
promising offers.
It has been a little over 50 years
since formal management education
took roots in the country with IIM-
Calcutta and IIM-Ahmedabad open-
ing their portals in 1961. A spurt in
management schools picked up mo-
mentum with opening up of the
economy in 1991. The growth has
been manifold in the past few years
with India accounting for about 4,000
B-schools among over 15,500 man-
agement institutes across the globe.
However, the current slowdown
seems to have halted the B-school
juggernaut in its tracks. According to
industry reports more than 190
B-schools have shut down in the past
two years, while another 165 are strug-
gling for their survival. Many experts
agree that at least 1,000 management
institutes in the country will close
down in the next few years as the
arena gets tougher.
These are trying times for manage-
ment institutes. Lower placements and
thinner pay packages could prove to
be a dampener for many aspiring man-
agement graduates. But the slow-
down is the best time to test the mettle.
It is also the time for a shakeout, with
the non-serious players getting
weeded out.As B-schools sweat it out
to beat the slowdown heat, IBJ
focuses on how institutes are
weathering the storm.

T
he IBJ B-School Survey 2014 is a perception-based
survey carried out independently to get an idea
about the country's well-known business manage-
ment schools. The ranking is based on the survey of per-
ception of candidates aspiring for management education
and perception of representatives of the corporate and
academic worlds.
The survey focuses on all the relevant parameters, such
as infrastructure facilities (accommodation, recreational
activities and IT infrastructure), pedagogy (curriculum and
student evaluation mechanism), admission procedure, cam-
pus placements (including salaries), industry interface (in-
dustrial visits and corporate visitors conducting seminars
and classes), intellectual capital (quality of faculty and
students), entrepreneurship, global exposure, research and
writing and so on. Each of these primary parameters also
has multiple sub-parameters.
A geographical spread across the four zones has been
maintained to ensure that each B-school is exposed to an
equal number of respondents. The institutes have also
been divided equally across the four zones to have a proper
zonal representation.
IBJ BIBJ BIBJ BIBJ BIBJ B-----SCHOOL SURVEY 2014SCHOOL SURVEY 2014SCHOOL SURVEY 2014SCHOOL SURVEY 2014SCHOOL SURVEY 2014
While the IIMs continue to rule the roost, it cannot be
denied that other management institutes have made re-
markable progress and inched up the ranking list. Apart
from the all-India ranking, the regional ranking throws up
interesting details. B-schools in the northern, southern
and western parts of the country display a similar trend of
growth. However, the eastern part lags a little with a fewer
ranks in the region. The reason for this small representa-
tion from the east is the lack of private management col-
leges in the region.
The survey has taken into consideration that a percep-
tion-based study would be effective only for those insti-
tutes that are perceived to be of a high rank by a large
number of people. Readers may ideally presume that all B-
schools were not a part of this perception survey. This is
because in the perception study, a list of 100 management
colleges was included. However, the respondents were
free to include any management college in the country in
their responses. A list of 50 B-schools based on the re-
spondents' perception is being displayed on the
following pages.
COVER STORY B-SCHOOL SURVEY 2014
PHOTO COURTESY: SANJANA DESIGN

TOP 50 B-SCHOOLS
Indian Institute of Management-Ahmadabad Ahmedabad
Indian Institute of Management-Bangalore Bangalore
Indian Institute of Management-Calcutta Kolkata
Xavier Labour Relations Institute Jamshedpur
Indian Institute of Management-Kozhikode Kozhikode
Jamnalal Bajaj Institute of Management Studies Mumbai
Indian Institute of Management-Lucknow Lucknow
Indian Institute of Management-Indore Indore
S P Jain Institute of Management & Research Mumbai
Indian Institute of Foreign Trade New Delhi
Management Development Institute Gurgaon
Institute of Management Technology Ghaziabad
Narsee Monjee Institute of Management Studies Mumbai
Symbiosis Institute of Management Pune
National Institute of Industrial Engineering (NITIE) Mumbai
Sydenham Institute of Mgmt Studies, Research and Entrepreneurship Edu. Mumbai
Xavier Institute of Management Bhubaneswar
Shanti Business School Ahmedabad
International School of Business & Media (ISB&M) Pune
K J Somaiya Institute of Mgmt. Studies & Research Mumbai
Rourkela Institute of Management Studies Rourkela
Lovely Professional University Phagwara
Gems Business School Bangalore
International Institute of Management Studies (IIMS) Pune
Lala Lajpat Rai Institute of Management Mumbai
Central Institute of Business Management Research & Devpt (CIBMRD) Nagpur
Warangal Institute of Management Warangal
ICBM School of Business Excellence Hyderabad
Vael's Institute of Business Administration Chennai
AICAR Business School Karjat
Sri Sai Ram Institute of Management Studies Chennai
Sri Sharada Institute of Indian Management Research Delhi
Durgapur Institute of Management & Science Durgapur
Pillai's Institute of Management New Panvel
Sardar Vallabhbhai Patel Institute of Textile Management Coimbatore
Tolani Institute of Management Studies Adipur
MKM Institute of Management Jaipur
Doddappa Appa Institute of MBA Gulbarga
Velammal Institute of Technology Thiruvallur
Adiyamaan College of Engineering Hosur
BVDU Institute of Management Kolhapur
Quantum School of Business Roorkee
DBAR, Shri Sant Gajanan Maharaj College Shegaon
Pailan College of Management & Technology Kolkata
Department of Management Studies, JJCET Trichy
RC Institute of Business Management Bangalore
Kiet Faculty of Management Studies Ghaziabad
Mar Athanasios College of Advanced Studies Kottayam
Om Kothari Institute of Management & Research Kota
Saintgits Institute of Management Kottayam
INSTITUTE PLACE RANK
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COVER STORY

TOP15INSOUTHTOP15INNORTH
Indian School of Business Hyderabad
Indian Institute of Management-Bangalore Bangalore
Indian Institute of Management-Kozhikode Kozhikode
PSG Institute of Management Coimbatore
Great Lakes Institute of Management Chennai
Christ University Institute of Management Bangalore
Loyola Institute of Business Administration Chennai
Institute of Public Enterprise (Osmania University ) Hyderabad
Gems Business School Bangalore
School of Communication and Management Studies (SCMS) Kochi
Indus Business Academy Bangalore
Acharya Institute of Technology Bangalore
ICBM School of Business Excellence Hyderabad
National Institute of Technology - Dept of Management Studies Tiruchirappalli
Sri Sai Ram Institute of Management Studies Chennai
Indian Institute of Management-Calcutta Kolkata
Xavier Labour Relations Institute Jamshedpur
Xavier Institute of Management Bhubaneswar
Vinod Gupta School of Management, IIT-Kharagpur Kharagpur
Army Institute of Management Kolkata
Regional College of Management (autonomous) Bhubaneswar
Rourkela Institute of Management Studies Rourkela
Xavier Institute of Social Service (XISS) Ranchi
Disha Institute of Management & Technology Raipur
TOP9INEASTTOP15INWEST
Indian Institute of Management-Ahmedabad Ahmedabad
Jamnalal Bajaj Institute of Management Studies Mumbai
SP Jain Institute of Management & Research Mumbai
Narsee Monjee Institute of Management Studies Mumbai
Symbiosis Institute of Management Studies Pune
National Institute of Industrial Engineering (NIITE) Mumbai
Sydenham Institute of Management Studies & Research Mumbai
Shanti Business School Ahmedabad
International School of Business & Media (ISB&M) Pune
Lala Lajpat Rai Institute of Management Mumbai
Padmashree Dr. DY Patil Institute of Management Studies Pune
International Institute of Management Studies (IIMS) Pune
Central Institute of Business Mgmt Research & Devpt (CIBMRD) Nagpur
Suryadatta Group of Institutes Pune
Vaikunth Mehta National Institute of Cooperative Management Pune
Indian Institute of Management Lucknow
Indian Institute of Foreign Trade Delhi
Faculty of Management Studies (University of Delhi) Delhi
Department of Management Studies, Indian Institute of Technology Delhi
International Management Institute (IMI) Delhi
Lovely Professional University Phagwara, Punjab
Faculty of Management Studies, BHU Varanasi
Jagan Institute of Management Studies Delhi
Asia-Pacific Institute of Management Delhi
Indian Institute of Rural Management Jaipur
Indian Institute of Finance (IIF) Delhi
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Indian Institute of Management-Lucknow Lucknow
Indian Institute of Foreign Trade Delhi
Faculty of Management Studies (University of Delhi) Delhi
Department of Management Studies, IIT-Delhi Delhi
International Management Institute (IMI) Delhi
Lovely Professional University Phagwara
Faculty of Management Studies, BHU Varanasi
Jagan Institute of Management Studies Delhi
Asia-Pacific Institute of Management Delhi
Indian Institute of Rural Management Jaipur
Indian Institute of Finance (IIF) Delhi
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