Ethics and Governance Indian company are going global, from the simple mindset of “let’s export” to establishing marketing, manufacturing and distribution network abroad. To sustain in the internation market Indian companies should follow ethics and governance a very complex subject. It is necessary because the obligation of a company to its shareholders, suppliers, consumers and government. In US, irresponsible behavior of few senior executives of leading company has led to the Sarbanes-Oxley Act where CEO is accountable for any manipulation. For Indian companies global customer will demand to see the proof of ethics and governance system at work. So quality management system and capability maturity model(CMM) became minimal requirement for establishing credibility, ethics and governance. Good ethics and governance are not just moral or compliance issues. In the long term they are essential behavioral traits for the organization that strengthen the brand equity and help ensu...
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GST – Goods and Service Tax With the successful implementation of VAT in all states except Tamilnadu and Uttar Pradesh, Indian finance Minster P. Chidambaram announcing implementation of GST by 1 st April 2010 . So why is GST? The tax system in India is very complicated levied at both central and state level. The central government levies tax by three ways: CENVAT at manufacturing level Financial Act for services Central Sales Tax intra-state sale of goods States levy tax on sale of goods independently under their own law. Some uniformity has come with the implementation of VAT. GST will replace the multiple level taxes with a single tax which would operate at various stages of the supply chain. It operates on a negative list that is, all goods and services are subjected to GST unless specifically exempted. Advantage of GST system: It ensures wider tax base Single tax system through out the country Avoid the CST paid on inter-st...
India is 3 rd largest investor in UK India is 3 rd largest investor into the UK going by number of investment decisions for the financial year 2005-06. The following is the stastics: US – 446 Projects – created 14,431 new jobs Japan – 84 Projects – created 2,054 new jobs India – 76 Projects – created 1,449 new jobs The Indian companies have invested $2 billion in 2005-06. Of this 76 project 22 of them were form south India , 39 from western region, 10 from Delhi and 5 from Kolkata. The reason for higher investment in UK is its status as the ideal gateway to the European marker of 500 million consumers. On the otherhand the FDI flow from the UK into Indian in 2005 accounted for 950 crore compared to 660 crore in 2004. UK is the 4 th largest invester in India after Mauritius , US and Singapore .
Nathula Pass The India-China bilateral trade is expected to exceed $20 billion in 2006, the reopening of Nathula Pass on July 6, 2006 linking Sikkim with Tibet and neighbouring areas of China marks a new chapter.This route was used to trade silk between two countries was halted following the Indo-China war in 1962 and after 44 years it has opened again. This will become the third trade point between the two counties the other two being Gunji in Uttranchal Namgaya Shipkila in Himachal Pradesh The agreement to open the pass was signed when former Prime Minister Mr. Atal Bihari Vajpayee visited china in 2003. A total of 29 items can be exported and 15 items can be imported.
One Billion Middle-class consumers Ina recent survey by 2020 china and Indian will be a billion middle class consumers. According the survey the term middle-class is termed with an annual income of more than $5,000. According to the survey China would have 650 million “middle-class” people and India 350 million. In 2004 the number was 79 million and 12 million respectively. Growth of China : In 1990 china’s share in global GDP growth on purchasing power basis was 10%. But in 1995 it grew to 23% and in 2004 it was 33%. And the work force constructed between 2000 and 2005 is 30 million; by 2006-2010 this workforce is estimated to double to 60 million an increase in 30 million which is the entire population of Canada ! Indian Story: Indian is yet to make inroads into manufacturing. At the moment India's impact in the global arena is one of service exports and it is going from very, very basic to increasingly complex and sophisticated areas — from mere call centres, t...
Convergence of Media – the Buzz word Peep into any industry, convergence of media is the buzzword. Apart from focusing on creating content for their core media, which is television, most TV companies are looking for a presence in other media such as mobile or Internet. For instance NDTV and Aaj Tak are already present in this arena. Recent companies in this arena are: sunsilkgangofgirls.com launched by HLL to promote the Sunsilk brand. TV18 have a 360-degree approach where we will be engaging with our viewers and users using all available platforms such as Net, voice, SMS, WAP. Princess range of toys after showcasing them on TV, movies, books and also on the walls through Nerolac Paints. The idea is to create multiple opportunities for kids and families to experience their favourite characters and stories. Even there is a big money in this sector. For example Indian Idol got more than 55 million votes via SMS between November 2004 ...
Quick Service Restaurants (QSR) In India , about Rs 35,000 crore is spent annually on eating out. About Rs 2,500 crore is spent at quick service restaurants. The organized fast-food business in the country is estimated at over Rs 2,000 crore, and is growing at 40 per cent. Also, there are about 100 million potential fast food customers. A retail survey shows that 85 per cent of the consumers in the top 12 cities of the country eat out at least once a month, of which 36 per cent spend between Rs 200 and Rs 500 on one occasion. So it comes as no surprise that many players - both domestic as well as international - want to grab a slice of the rapidly growing QSR pie. The following are the players: Indigo Hospitality Pvt Ltd Chopsticks Express and Kwality Express (joint venture) Fast Trax Food Pvt Ltd, Hind Group Dixy Chicken will open its first outlet in Chennai this month and has 100 stores planned across the country Gloria Jean's plans to open ...
Inclusive branding Inclusive branding is about building brand propositions that embrace one and all and make the brand accessible to an inclusive mass of people. For example let’s take the brand portioning of toothpaste: In the beginning, one spoke of a toothpaste that brushes your teeth well and clean Then it went on to say that it whitens the best. And then one added colours to the toothpaste. There came red stripes and then blue and then all three red, white and blue in one toothpaste. When consumers got tired of this, in came the gels of different colours. The colours kept changing. When consumers got tired of this, in came the gels of different colours. The colours kept changing. Even this is done to death. Toothpaste that can make you fall in love? A toothpaste that can get you a new job? And then one taps into the final frontier. This frontier is what I call `inclusive branding. Branding is essentially an exclusive pr...
Indian retailers cope with foreign players India is a nation of shop-keepers — 12.2 million shop keepers to take care of the needs of over a billion people. The ratio of shop to human being is better than the ratio of doctor to human being in this country. The Indian retail industry is divided into three segments: a nano-percentage of stores that are large-format supermarkets larger medium-sized grocer and retailer small shopkeepers who help this country run its business The small shopkeeper will largely remain unaffected by the aggregation of business with retailers from overseas entering the Indian market. These nifty operators are widely dispersed in terms of geography and cater to an important need of the masses. Organized retail as attempted in developed economies cannot aspire to cater to this role played by the micro-outfits of the day with efficiency. These tiny outfits will therefore not only survive, but thrive as well. The ones who will be really hit are the medium-sized st...
Indian Agriculture The number of deaths reported in the last 10 years has exceeded 30000 and almost all state have been effected at one time or another. So, Prime Minister Dr. Manmohan Singh has announced a relief plan of 3750 crore for resuscitates the enervated lives of tens of thousands of farmers in six district of Vidarbha region of Maharashtra . The cotton econonly is rather doing well the last three season with rising production 250 lakh bales, higher yields over 400kg a hectare and better price. Indeed India has begun to export cotton in a big way 35 lakh bales in 2005-06.
Arcelor-Mittal The merger of Arcelor-Mittal had created $72 million Company, which at 120 million tones capacity would be three times the size of its immediate competitor. This merger will boost the steel industry which is traditionally fragmented. Very other the bargaining strength of the steel industry with regards to its suppliers and its customer had been eroded because of such fragmentation. But many feel the culture problem will be an hurdle given the precedent of mega mergers like Daimler-Chrysler. Both Mittal and Arcelor already exhibited operatin in their respective location - Arcelor in Europe and Mittal in North America / Eastern Europe geographies.
Agricultures Land Usage and growth rate The biggest road block for Indian agricultures is its dependence on monsoon and low level of irrigation facilities. Only 60% of the land under cultivation is irrigated. For example: Wheat – 22 ml.ha (88% of the total allocated for wheat) Rice – 22.5 ml.ha (52%) Sugarcane – 4.3 ml.hr (92%) Cotton – 2.5 ml.hr (33%) Annual Average agriculture growth rate: 8 th five year plan – 4.5% (1992-1997) 9 th five year plan – 2.2% (1997-2002) 10 th five year plan – 1.5% (for first three years)