Saturday, August 18, 2007

EvolOve

A wax candle made to sublimity,
Who arcs in heat, but tries to remain firm,
Lends light bearing the hot vapor.
A beautiful vista with god’s finest milieu,
Breezy, cool, soothing embracing everywhere,
Selfless to all, patience intertwined.

She holds and speaks to you,
And you feel someone like never before.
I am blessed and surely am,
For envy of others tells me again that.

No equations for answers, No give and take,
No more certain values just because the world likes to fake.
Because truth and happiness are internal,
Need not plan life to achieve bliss .
World is a fight, I tell her,
But life is not a battle, she says,
Karma makes one who he/she is,
Values between us sometimes hardly meet.

I see I learn things everyday,
I find myself daily in the introspection that envelopes,
From the ocean that is mélange of the gods best one can offer,
I swim deeper each day to cut illusion all over.
No walls for far and wide,
She is a philosopher’s stone, a place I love to hide,
Child within, so wet,
Excess water will make her drain.

Life is a web ,you fall and learn,
Staying firm is the rule of the game.
There is a long path I need to tread,
Roadblocks I need to pass.
But cannot do all this without my critic, best friend
My source of strength, a candle lighting my way,
Sky is the limit, I am sure,
I need to be with her, that’s my life’s cure.


Monday, August 13, 2007

The writing on the WAL


Retail is going on a fast forward mode. Like telecom, energy retail sector is the next big thing. The current scenario is building up numbers or a quicker turnaround especially by players who have the scale and capability even if it means learning from your own mistakes. The most recent Reliance Ahmedabad store is an addition to the Indian retail milestones. The biggest in the country which will carry more than 95,000 products and is one of 500 planned by 2010. These further increase the fear amongst small retailers who had recently shown a lot of distaste against the entry of Wal-Mart into India through the JV with Bharti. The fears revolve around from the fact that in other countries where these big retailers have entered they have totally destabilized local retailers.

Another relevant fear is that the modern retailers might adopt predatory pricing with the sole aim of gaining into ever increasing organized retail with a emphasis on volume than value. This is actually a real fear, because one can see that because of stores like Big Apple, Spinach, 6-10 the rehri waala’s value add would be reduced to the convenience factor that they might be able to provide. In the neighborhood where I stay stores such as 6-10 have completely sucked out the air out of the local vendors. The F&V are not only fresh but they are really cheaper then the local guys. People might question that the stores have crowded aisles and might have a mix of both fresh and damaged crop .Though it’s a fact but the current king of Retail Kishore Biyani has some other opinions. An entrepreneur who is known to be driven more by guts then excel sheets and numbers, his recent modification of a Mumbai store proves this point wrong. Kishore Biyani has adapted India’s culture of order-in-disorder to transform his company Pantaloon Retail (India) Ltd. into the largest retailer in the country.Biyani’s shopping malls are crowded and Indians love them. Unlike Americans, Indians prefer crowded places where they can hear and smell each other. Kishore Biyani, recently spent $50,000 to improve his Mumbai store. The wide aisles and neatly-stocked shelves modeled after Western supermarkets just weren't doing the trick. Now thanks to Biyani's remodeling, the store is messier, noisier and cramped—a more familiar environment for customers accustomed to fighting their way through chaotic street markets. Narrow, winding aisles were added to create traffic jams and force people to stop and look at the products. Wheat, rice, and lentils are sold in large buckets so that consumers can feel and smell them to ensure their quality. Biyani even discourages his staff from straightening up after shoppers, believing that his customers are less likely to check out a product if it is in neat stacks. He even throws imperfect produce into the mix. For the average Indian, dusty and dirty produce means fresh from the farm, he says...[H]aving damaged as well as good quality produce in the same box gives customers a chance to choose and think they are getting a better deal. Haggling is still not allowed.

Reliance's new three-storey hypermarket and future similar roll-outs is the next step in this league.The most striking feature in the new outlet is the Rs.195 denim jeans something akin to Wal-Mart’s highly successful $10 jeans. Other unique offerings of RelianceMart which falls in line with the above ‘Chaos theory’ include tailoring, shoe repair, watch repair, a photo shop, gift services, laundry services, fresh bakery, ice-cream train for kids, ready-made batter, loose tea and pickles.There are apprehensions that prices of the RelianceMart chain would undercut rivals by as much as 60%. In this case of scenario others players will have to add a lot of value on price and quality to compete. The Bharti-Walmart stores on the other hand are not open to retail shoppers but will serve small shops, fruit and vegetable sellers, restaurants and other businesses.

But the problems that ail this sector manifold:

1. The biggest problem facing Indian retailers and consumers is a dysfunctional supply chain. Because the market is highly fragmented--about 96% of the retail marketplace consists of small shopkeepers--economies of scale are elusive and both producers and retailers depend on long chains of middlemen to bring goods to market.

2. Agricultural produce typically travels from farmer to trader to commission agent to wholesaler to retailer, and each step imposes new costs. The cost escalation is huge. By one count, the amount an India consumer pays for food is five times the amount the farmer actually receives. In the U.S., the ratio is closer to twice. Waste is also a problem--about 60% of the value of India's agricultural output is lost between farm and market, as processing delays and "wear and tear" on delicate produce takes their toll on quality.

3. Indian has also yet to match America's feat of creating a single internal market for consumer and agricultural goods. Each state imposes its own inspection requirements, duties and regulations on shipments that cross its borders, even en route to another state. In the U.S., a trucker can haul a load 1,000 miles in about 20 hours. The equivalent journey in India takes four to five days.
4. The existing Indian laws, which forbid multi-brand retailers from entering the country, are downplaying the potential of these players to build a huge business that can meet a tremendous need in the country.
5. Also another problem is the shortage of both real estate at affordable prices which would affect the expansion plans of retail chains as well as availability of skilled manpower.
6. There is going to be a huge demand for 3PL players at the backend. With the growing sizes of operation there is a need for new small players and they will gain prominence and fit into the bigger jigsaw. This brings one to the problem that there is a huge space for consulting in the retail space because of problems in managing the supply chain.

Ambani has said he wants to create a "virtuous circle of prosperity by bringing farmers, small shopkeepers and consumers into a win-win partnership.” Reliance says its goal is to overhaul in one swoop retailing and farming, linking them through a "state of the art" distribution system with proper cold storage and transport that will give consumers fresher food at lower prices and farmers bigger incomes. It has set an annual sales target of US$25-billion by 2011 and has said it aims to give an "international shopping experience" to consumers more used to shopping at dilapidated corner stores or at in open air markets. Organized retail has the potential to trigger socio-economic transformation on an unprecedented scale in our country and will bring about enormous spin-off benefits to the Indian economy and its various constituents. This is against critics who say that chains such as Reliance Retail and other large retail outfits will drive smaller retailers out of business. As has been said by Mukesh Ambani repeatedly the pie is big enough for all the players. The pie which is roughly equal to $370 Billion is actually a big.

It has not yet taken off and there are so many innovations which are coming . Some of these have been mentioned below:

1. Reliance is in a process to launch 700 Reliance Town Centre (RTC) in cities having population below 3 lakh. Each RTC would have a health centre, vocational training, multiplexes, retail outlets and an auto centre.

2. Kishore Biyani has recently opened up a new format store for apparels which gets all the left overs from all its other format stores and sells the collection at a throwaway price.

3. In the next few years, Reliance Retail will also introduce 1600 rural business hubs (RBH) in rural areas, which could give tough time to ITC’s Choupal Sagar, Godrej Aadhar and DCM Shriram’s Hariyali Kisan Bazaar.

4. ITC is coming up with branded Rehris with in-built storage which is going to take modern retailing to your doorstep.

I am sure there are going to be many more innovations and a burgeoning need for skilled manpower in retail. But on the other hand the experience for foreign companies on the subcontinent has been less than pleasant: Retail giants Tesco and Carrefour have been deterred from entering the market and have pulled out of negotiations to launch joint ventures; others like Germany's Metro have been plagued by uncertainty and troublesome government regulations. Though Wal-Mart is one of the best, if not the best supply chain management companies in the world. Their recent move into India as a wholesales supplier and consultant underscores this strength. Another strength it plays to is their experience and expertise in buying direct from manufacturers in the U.S. and elsewhere. This will be a similar role they would play in the Indian market, which includes somewhere in the 12 million small mom and pop type stores spread across the country.

Even with Wal-Mart it is going to be a steep learning curve, as Biyani's remodeling strategy suggests. Cracking India's retail market is going to require something different than the usual smiley faces and "always low prices. Also Wal-Mart does not have its performance in Asian countries to back is performance in the US. Even after having set up bases abroad only 16 % of its revenue is Non-US.Seiyu Ltd Japanese based subsidiary of Wal-Mart recently reported losses for 2007 which would give it six straight years in a row without a penny of profit. Questions immediately come to mind: Will Wal-Mart India face similar future .After all, it exited Germany and South Korea in 2006 after many bad financial performances in those countries. It cut its losses there and escaped from the doldrums of loss .But unlike Japan, India will not pump in money equivalent to what was put in there which was roughly more than $1 billion into Seiyu for 393 stores in Japan as foreign players are very apprehensive about changing regulations.Wal-Mart has found good headway recently in China with the Trust-Mart partnership and in India with partner Bharti, but they have yet to show their mettle in both the places. What holds in the future for the country and the retail players is yet to be seen but is something which is definitely going to be one fast paced ride ...I

Saturday, August 11, 2007

Bum Bumm Bhole


The Delhi roads have been painted orange with Kanwarias sweeping across the Delhi roads. As the ritual to offer holy water in Shiva temples starts across northern India from Saturday, the chaos on city roads which has been going on for the last so many days should hopefully end.

The recent destruction brought about hundreds of Kanwarias makes one believe that India is actually a country of fools who would do anything in the name of religion. Best is even that government machinery is a helpless spectator in this. Though I am not against anyone’s religious sentiments I beg to differ that the gods appreciate senseless waste of public money and time on this entire event then other constructive use of the same. In retrospect I think that many villages, civic amenities and value could have been created by constructive use of innumerable Kanwarias physical effort, which is spent in treading the path from the holy Ganges to the Shiva temples.

You see these people in their own frenzy completely forgetful of rules and general code of existence. Its their power in numbers and religion which makes them run amok across cities, roads etc. I was amused to see yesterday a traffic cop helping 3 helmet less guys on a motorcycle to stand up after they had skipped the red light and banged into a car. As it is, the administration in each part of the city are given orders to avoid any untoward incident even if it means pacifying the most unreasonable demands of hordes of Kanwarias in their region. The movement of Kanwarias keeps the administration and police officers on tenterhooks. With a history of generating violence, at times without any provocation have rendered the entire yatra a bad name.

While the Kanwarias had their leisurely walk to their destinations, the traffic along the Haridwar-Delhi highway came to a standstill. Heavy vehicles were stopped to p1y and major diversions were implemented on this route from August 4. The movement of light vehicles was also stopped from August 7 on the Ghaziabad-Meerut Road. Motorists as well as commuters had a difficult time, as there were traffic diversions and roadblocks everywhere in the city .To prevent students from inconvenience, the district administration announced holidays in schools and educational institutions. What a waste of time and money.

According to a conservative estimate, more than 10 lakh Kanwarias passed through Ghaziabad on their way to Haryana, Rajasthan and Uttar Pradesh. The number of people originating from Haridwar was estimated at a staggering 50 lakhs. Imagine 50 lakh people using this time for betterment of roadblocks at grass root level could have been able to invest 50Lakh * 8 Hours * 5 working days = 20 crore man hours. And this with the same amount of affection and help provided by the local machinery and other local associations, which provide for the stay, food, first aid etc at various nook and corner of towns. I know then Indians are Indians and certain things in the name of religion do not make sense to these devout followers. But my argument is not to say that this people are doing any wrong, as faith is ones discretion but be conscious to agree to the existence of other demons in their respective milieu and be ready with alternatives to solve them. Because without any generalizations it’s a fact that most of the people who make a part of this orange revolution are from lower SEC’s many of whom just do this for the freebies and the kicks of being a part of the gang euphoria. This further bolsters the logic of poor becoming poorer even .So it is plain necessary for these Kanwarias to realize the fact that constructive solution exists to problems existing in their surroundings (regions/strata); solutions whose root lie in these countless Kanwarias who think they would gain amelioration and prosperity by mere chanting or other rituals. But it’s a vicious cycle as Politics is fuel to fire, which in India runs on sentiments then practicality. But I guess these thoughts and viewpoints are of very few and would not resonate with even my elders. But things would be different in the future. Atleast I hope they would…I

Saada Sadar!!

As I would call it ,if someone needs to suddenlly get exposed to a visual flip flop Sadar Bazaar is one of the several places which can be visited.It is the largest wholesale market of general merchandise items in Delhi and probably in India.Though there are other Sadar Bazaars mainly in northern Indian towns, Delhi Bazaar is what people are generally aware of. It has many elements which are full of contradictions.It is located near Khari Baoli.Similar to other bazaars in Delhi it is a sea of makind belonging to different strata of society.Its bussling with commercial activity and has the livelihood of close to 2 lakh people attached to it. To count a few you have Wholesalers, Semi-WS, small & big retailers, traders, stockists, labourers manufacturers etc.

I over 2 days had the oppurtunity which in real sense was an information exposure to especially the Stainless steel and plastic WS market.Though my understanding of these 2 categories is far more clear now but to keep aside academic discusions I would not like to pen those findings down here..

There are hardly any 2 lane roads and in most areas and just space to allow 2 bicyclists to pass each other. The district administration it seems is least bothered about encroachments made by shopkeepers of Sadar Bazaar causing considerable hindrance to the smooth flow of traffic. And you would be amazed to see big cars like the latest Audi coupe in the backyard of a manufacturing unit. How it might have entered the vicinity is anybodies guess. Which brings me to the point that it is a place of many contradictions .In a place that appears to be neglected by authorities and people trading; there exist some of the richest traders of the capital.

Interspersed with primarily Muslim population the mélange of elements, which this place throws at you, makes you question as to how is the infrastructure and other things are operational. The various items which are traded here are not only household goods but also other items like Resin, toys, bags, Jute, imitation jewellery, stationery etc. The market can be termed as chaotic but to experience Delhi in its totality.

Though it is also a wholesale market but one can purchase any item in small quantity, which makes the existence of retailer/WS as a common entity. To go back to the history of this place it is important to know that earlier, Sadar Bazaar was a small market mainly catering to the needs of the people of the nearby area but gradually it became one of the known markets of capital for cheap and quality products required in any household.

The history of Sadar Bazaar dates back to the British rule. About 1857, the market used to be on the road where the courts were situated. The English rulers decided to shift the bazaar and gave separate land to the shopkeepers with sufficient financial compensation for constructing the new shops. And thus, the present Sadar Bazaar came into existence about 1860. To a question how it was named Sadar Bazaar, this market, which was considered the main bazaar, was one of the only markets at that time and that was why it was called Sadar Bazaar.

But as it is now, underground and double-storied construction is rampant and maximum use of the limited space is being made. I just hope that it does not lead to any mishap or causality in case of natural disaster as the entire area is cramped up and definitely needs some oxygen in terms of better infrastructure, utilities and regulations. I still feel that in its existing state too it’s a reflection of the Delhi’s history as well as the current overburdened fast paced commercial existence. I think that there is still a lot to explore in these busy lanes of Sadar and if I go again may be I would try and explore the food on offer first which I could not do this time….I

Tuesday, August 7, 2007

Home Truths-Personal experience

Economic Times Coverage -5th August

http://economictimes.indiatimes.com/ET_Features/The_Sunday_ET/Property/Home_truths/articleshow/msid-2256225,curpg-1.cms


After retirement, Sushil Khanna wanted to buy a house of his own. He and his wife, Veena Khanna, decided to book an Oriental Villa Home in Sushant Lok-III in Gurgaon and paid a sum of Rs 15 lakh from 1996 to 1998. The Khannas were promised possession of the house in 1999.

But they were disappointed when construction of the ground floor did not start even in 1999. In order to fight this delay, Mrs. Khanna filed a case in September 1999 against Ansal Properties & Industries and Ansal Buildwell in the State Commission. Eight years later in 2007, the National Consumer Court has ordered Ansal’s to either pay compensation or to hand over possession of the flat.

This is just one example. Each day, a number of cases are filed in the consumer court against erring real estate developers. The initial promises made are not duly delivered and it is the consumers who stand at a loss. But there are few things that need to be kept in mind. “

A prospective buyer should check into the developer’s credibility, past projects and performance and delivery record. He should also ensure that the project is funded by a known bank and has all the correct approvals. A buyer is entitled to ask for a copy of the project’s drawings, duly stamped by the municipal authorities. A project that has not met certain minimum standards of completion will not be issued a Completion Certificate by the local authorities,” says Anuj Puri, chairman and country head, Jones Lang LaSalle (JLL) Meghraj.

Justice J D Kapoor, president, State Consumer Dispute Redressal Commission, agrees that real estate-related disputes are a regular phenomenon at the forum. “Cases abound where constructions have been faulty, excessively delayed or buyers have not been given possession of the said property. In such a situation, most of the times the end-user heads to the consumer court for redressal,” reveals Kapoor.

But there are consumers who also come out with some innovative strategies. In a recent video posted on a video-sharing website, a disgruntled consumer expressed his angst at real estate major Unitech’s UniWorld City in Gurgaon. The township project, which went by the tagline

‘The best in the world for you,’ had boasted of world-class luxury apartments and modern amenities for the buyers. However, the video showed a picture that stands in complete contrast to the promises made by the developer. Cracked and shabbily-finished walls, an unsafe playground area for children, an empty swimming pool and jacuzzi are all reflective of shoddy construction. On his part, Sanjay Chandra, MD, Unitech, says that the complaints have been taken care of. “All the issues have been taken care of now by our team. There may have been some faults in the project but not entirely. The agitation levels of some individuals are higher than that of others and hence they express it in this manner.”

However, developers argue that it is unfair to make a big deal out of minor faults in construction. “We normally bend backwards to keep our consumers happy. We also have a consumer grievance cell wherein the complaints are heard and corrective steps are taken if we see some fairness in them,” says Kunal Bannerji, president, marketing of Ansal API, which also has default cases related to unauthorised land practices pending in the consumer court.

In Bangalore, one of the cases filed with the Consumer Forum includes Bangalore-based BEML Welfare Association. Attracted by the housing scheme floated by the BEML Welfare Association, three buyers decided to purchase property in a layout developed by BEML Welfare Association called ‘BEML Bheemarao Nagar.’ The site cost of Rs 67,200 was paid by the buyers, but none of them were allotted sites in 1999. They then approached the Consumer Redressal Forum. The Consumer Forum after its srutinisations directed BEML in June 2007 to refund the complainants’ money along with an interest.

Clearly, more vigil and awareness about small details are needed from buyers to nip the problems in the bud. Avinash Prabhu, MD of the Bangalore-based Skyline Construction & Housing feels that “the buyer should ensure that the title of the property is okay and the builder has obtained necessary approvals. Also, the quality of materials being used for the construction should be as promised. If the consumer is unhappy, we attend to the complaints and sort out these areas even after the defect liability period is completed so that the customer is satisfied with the end product.” While cities such as Delhi, Mumbai and Bangalore even see known names in property disputes, Kolkata has a different tale to tell. Here it is mostly the local, small real estate developers which are seen not living up to their promises made while selling apartments in buildings or complexes. Says Pradip Kumar Chopra, director, P S Group, “Consumers can’t ask for quality stuff while purchasing vegetables from an unorganized market at a discounted price. Vegetables and fruits bought from Spencer’s or even Food Bazaar is quality at a price which is marginally higher than the unorganised market. The same logic holds true for property transactions in the real estate sector as well.” The bottomline thus is to keep your ears to the ground. Verifying the developer’s track record and getting the necessary paperwork in place will always keep you in good stead even if things end up going wrong

Wednesday, August 1, 2007

Made In China

As the world wakes up to the rising strengths of the Chinese and Indian economies, a pressing need has arisen to further bolster the relationships among the youth of the two countries and promote a better understanding of the two cultures and societies

To foster stronger ties among the youth of the two countries and promote a better understanding of the two cultures and societies, a mutual decision was taken by the Chinese President and Indian Prime Minister to send 500 students as part of the exchange program over the next five years. The first 100-member delegation from India who visited China comprised students in the age group of 13-35 and from fields as varied as sports, Chinese language students, social workers, Panchayati Raj workers, students of performing arts, PhD students, engineers from IIT's and youth with special abilities.

Since the time I have visited the beautiful country of China many people have asked me about my trip, I thought I would share some thoughts on the same. As a part of the India-China youth conference 2006, it was indeed a pleasure and honor to be in the august company of some of the countries very best. Well, I arrived back home on September 17th from China. What an experience it was!

The entire 100 member delegation was a mix of young students, artists and grass root level leaders. From our end it was truly a right mix of age, occupation and interests. Truly an energetic combination to take on the oriental ways. On the Chinese side the stage was set with 4 cities Shanghai, Beijing, Guantzauo and Xian on the anvil. The 10 days were planned in way which would require days of planning and conceptulisation. Be it the Indian or the Chinese governement, the motivation towards a real friendships between the Dragon and the Elephant were true and benign.

As each day folded it had enstore new experiences, exposure towards diversity and objects which were just discussed or observed on paper. The entire vista of a country which is truly big in size, potential and complexities became evident as each day brought more pieces to complete a memorable jigsaw.

As I look back I have fond memories of the trip, the officials, the participants and many more things which are now engrained as a part of an indelible experience .I wish all the future delegations that they also get an opportunity to experience which in one word I can describe as 'Memorable'. I also hope that the two big neighboring giants achieve what they had in mind when the entire novel concept of the Indo-China Youth conference was conceived. I also hope that I get a chance in the future to experience the splendor of a country which the world knows as CHINA