bridge2india

India: The Elephant in the Room

2008-12-08T10:58:00.003+05:30

When businessman Jamshetji Tata was refused entry to a hotel due to his Indian ethnicity during the days of the British Raj, he retaliated by building his own hotel. Aiming to create an iconic structure surpassing other hotels of the time in elegance, Tata declared that entry would be open in his establishment, the Taj Mahal Palace Hotel.

Now one of Mumbai’s iconic landmarks, the Taj stands in regal splendour at the mouth of Mumbai’s harbour. With over 470 rooms, the Taj’s glory is evident in the marble flooring, extravagant chandeliers and water fountains that decorate its rooms along with the impeccable service delivered in its several bars and restaurants. Mumbai residents proudly adore the sumptuous hotel and its addition of beautiful to the city.

My English grandparents lived in India during the 1930’s through to the 1950’s; and my Indian-born father clearly remembers weekly visits to the Taj for Sunday Afternoon Teas as a small boy. I have made the Taj my second home in this city, getting to know staff, using it both personally and professionally – including to ward off the occasional bout of homesickness. Watching it burn from my apartment in Colaba, directly at the epicenter of the terrorist attacks of the past week, was heartbreaking.

What impact the recent events will have on foreign entities and their investment within the subcontinent? Although some of our New Zealand and Australian expat community were directly caught up in the bloody events, it is with relief that I can report that none have lost their lives. Although the targets were extensively used by all of the various communities living and working within Mumbai, it is sadly by and large Indian colleagues, friends and associates who paid the ultimate price. Everyone seems to know someone directly affected.

To date there have been a few cancelled visits by new entrant companies in light of the terror. I am heartened to see that existing and new business plans slightly further down the track than those who are just putting their big toes in the market are still continuing with their plans.

According to Indian industry experts, the Indian economy should bounce back from both the financial crisis fallout and the recent terror attacks sooner than anticipated. Unlike the US or European economies, India has several things already in its favour. The impact of the global financial crisis is forecast to remain fairly limited due to the strong demand for consumption within the economy, the demographic advantage and the strength of the Indian financial system.

Principle areas of investment continue to remain within the infrastructure sector; an area which was sorely overlooked from Independence in 1947 until the early 1990’s, leaving India in concentrated catch up mode to ensure it can seriously compete with the major players in the global economy. Core requirements being the creation of modern highways; and significant investment sought in railways, airports, bridges and port facilities. FDI is approved to 100% in this sector.

Other areas of increasing activity include financial services, real estate, education, healthcare, manufacturing, hospitality, tourism and entertainment; along with a range of sectors that are directly attributed to by the dramatic growth of India’s middle class. For the first time in India’s history large numbers of people have disposable income. With over 50% of the 1.2 billion population under the age of 25 years, these core requirements will dramatically increase as India assumes its greater role in the global economy. In addition, inflation appears to be leveling out with a decline over the past few weeks.

Politics here are an interesting beast, with elections going on in some states currently, and the new government due to be named in the first few months of 2009. It is expected to be another coalition government. The country’s growth, despite a recent drop in GDP, is still estimated to remain within a healthy 7-8% with continued steady growth predicted in both incoming and outgoing investment. FDI flow has been $6.5 billion for the first five months of the current financial year, against $2.7 billion for the same period in the previous year.

It is hard to say how the recent events of the past few days will affect the outcome of the elections. As I write this, it is exactly a week from when the terrorist siege of Mumbai began, heads are rolling and there is a lot of shuffling within government. The people of India are clearly expressing their views on what is required in the form of Gandhi-inspired peaceful marches and rallies, primarily orchestrated by youth. It is interesting to note there appears to be a major change in reaction to the past few days horrific events when compared with the aftermath of previous terrorist activity within this country. There has, for the first time, been no consequential civil unrest between opposing sectors of society within the city itself to date. All sides of society appear to be in agreement that infrastructure for the police, military and security personnel, including more accountability, are top of the agenda.

The New Zealand government continues to develop closer ties with India through ongoing talks seeking a Free Trade Agreement between the two countries, with India being in the top three countries currently being targeted by New Zealand. Government representatives here in India are actively supporting New Zealand companies, along with a pool of expatriated professionals, including New Zealand citizens based here in India specifically to assist in foreign company requirements from on the ground. This means that there are other options available to entities looking to enter this market, without having to have an actual physical presence, avoiding potentially high cost and downtime relocating their own employees, thus minimizing risk.

As a foreign company looking to this market, you would most certainly be wise to carefully evaluate your plans at this point. Despite a slight lull due to both the financial crisis and the recent terrorist activity in the country’s commercial capital, the feeling is that business will carry on as normal with no major change expected in the medium to long term for both inbound and outbound investment in India.

And on a closing note, having lived in Mumbai for the past two years, I can assure companies and individuals that I have never once felt hostility towards myself or any other foreigner. On the contrary, from business leaders to industry heads right down to the man on the street, foreign presence, investment and assistance within this country is welcomed with enthusiasm and interest.

India is still the elephant in the room.

PepsiCo Commitment to India

2008-09-24T14:48:00.005+05:30

Amidst the scrambling abroad in response to the Lehman crisis; PepsiCo quietly announce their commitment to a further 500m USD investment in the Indian market over the next three years; which is forecast to triple PepsiCo's existing business here within India over the next five years.

Entering the Indian market in 1988-89, PepsiCo India is currently ranked the fourth largest consumer company in the country. Originally entering via a joint venture with a Punjabi government-owned organisation and another local company, it was initially bound to rename its brand as Lehar Pepsi until the government relaxation of the rules which allowed foreign brands into the country in 1991. PepsiCo consequently bought out their partners, and continued to grow its market share at an impressive rate.

Hampered in recent years by ongoing scandals concerning the quantity of pesticides within their products within India, both the Coca-Cola Company and PepsiCo joined hands in 2005 (with 95% hold on the soft drink market in India between them) to fight the allegations of toxicity within their products that are manufactured here.

Social responsibility for a company of this size, doing business in a developing country such as India is indeed large and should not be overlooked. One would assume that a chunk of the investment that PepsiCo is pouring into India would go to ensuring water quality in its manufacturing plants, and an investment into pesticide residue reduction or the development of alternatives to pesticides to ensure that the quality and standards of its product are as high a standard here, as they have to be in other countries.

The main problem appears to be the unregulated use of pesticides in India, and the ground water which the bottling plants use in the manufacture of its products. Seepage is hard to determine, and difficult to control, however with the current pesticide residue's found in both Pepsi and Coke products being highly carcinogenic and way above acceptable quantities in any other country - it would seem to me that PepsiCo (& The Coca-Cola Company) had a major responsibility to conduct and act on responsible solutions to solve the problem. In other words, their responsibility here goes far deeper than just their stakeholders pockets.

Perhaps working WITH the government to establish regulation of pesticide use and food quality control could be a start??

India ranks among the top ten markets overall in dollar terms for PepsiCo; and being among the top 5 markets in terms of consumer purchasing power. PepsiCo Chairman and CEO Ms Indra Nooyi states that the Indian market is a very substantial one whose prospects PepsiCo were bullish about.

I look forward to seeing the effects of PepsiCo's $500m USD investment into India, and their contribution to the countries growth in a transparent and accountable way.

The Ambani's, Mars and Mothers

2008-09-09T14:12:00.006+05:30

Above is a picture of the the Ambani's in happier times. Founder of Reliance, Mr Dhirubhai Ambani is seated, from left to right standing behind him is Mukesh Ambani, Bill Clinton and Anil Ambani.

You cannot be conducting business in India for long, without hearing stories about, and references to, the fabulous Ambani family. Listed in 5th and 6th place respectively in the Forbes Rich List, the Ambani’s are incredibly wealthy, flamboyant, politically active and are constant media fodder in terms of their in-house rivalries. The story of this family is the stuff that great cinematic tales are made of. I can only assume that no movie has been made to date, as this story just isn’t over yet...!

This story starts with Dhirajlal Hirachand Ambani , known as Dhirubhai, son of a modest school teacher, born in 1933, and a school drop out - at a time when most of India’s large domestic privately held companies were run by men born of wealth. Building a USD 15 billion empire, this unlikely candidate was to become India’s most remarkable businessman. Ever.

After a stint working in Yemen, Mr Dhirubhai Ambani returned to India in 1962 and founded Reliance with Rs 15,000 (USD 350), initially formed as a textile trading company. Aggressively growing the company, he displayed his acute business acumen taking the company public on the Bombay Stock Exchange in 1977, when Mr Ambani managed to convince millions of middle-class Indians to buy stock (in Reliance) for the first time.

Ambani was famously quoted as saying that he was deaf to the word ‘no’ at a time when corporate India was struggling under over zealous and ill thought out government bureaucracy during the 1980’s, nicknamed the License Raj, which severely restrained the production capacity of private sector companies within India at the time.

As a result of Ambani’s strong leadership, Reliance grew exponentially, as did its stockholders wealth. By 2002, original investors in Reliance had earned 43% per year compounded annual rate of return, and Reliance became the first Indian private-sector company to enter the Fortune 500.

That same year, Mr Dhirubhai Ambani died without leaving a will.

Enter his two sons. Mr Dhirubhai Ambani’s eldest son, Mukesh was promptly elected company chairman, but rumours of discontent between he and his brother Anil began circulating. Viewed as a direct challenge to Mukesh, Anil promptly allied himself with a northern Indian political party, earning himself a seat in India’s upper house of parliament. Reports of the Reliance heir apparent discord abounded and were finally confirmed with a press statement by Mukesh Ambani.

This public admission of rivalry and dispute between the two brothers put 3 million Reliance stockholders on edge, which in turn made the company’s customers, vendors, employees and even government officials nervous. The two rival camps leaked stories about the other to media, who lapped up the story. Concerned banker friends, cabinet ministers, family members and board members all visited the Ambani’s to resolve the differences, to no avail. Months went by with on-going media frenzy through daily headlines from each of the contentious camps. Most people assumed that Reliance’s best days were over.

In March 2005 there was a breakthrough of sorts – in unique Indian fashion. An esteemed astrologer made a prediction in the largest circulating English-language newspaper of India that both brothers would become successful and that Reliance would do better in future times to come. He blamed the planet Mars for their troubles, and stated that Mukesh and Anil Ambani would resolve their differences by spring.

As if on cue, three months later, Kokilabhen Ambani (Dhirubhai’s widow and mother of the two boys) publically declared an amicable split of the Reliance fortune between Mukesh and Anil. It has to be noted that Kokilabhen had consulted religious astrologers well into the night before the announcement. The day of the announcement, the Sensex (India’s version of the Dow Jones Industrial Average) soured to a record high as Indians showed their support in a celebration of the power of motherhood and astrology to resolve disputes.

To western eyes that are unfamiliar with the depth of religious and family involvement in all levels of life in India, this would be hard to comprehend. To do business in India, it is paramount to accept (if not completely understand) that decisions are often based on auspicious dates and that you may be only dealing with one person on the surface, but their decisions will involve (most likely senior) family members.

This won’t affect you reaching your goals, but it may go some way to explaining why negotiations can be drawn out longer than you are used to in the west, and why you may feel that you have achieved nothing in your initial meetings as business was not discussed to the depth that you would have liked. Business in India is about relationships. You need to work on your relationship with your local business partner and as with all relationships; there will be a honeymoon period as your partner gets to know you. Once that relationship is formed, if you have put in the effort, time and patience – you may be surprised at the depth of passion and commitment that your Indian partner will consequently put into the relationship to ensure success and value to all concerned.

The Ambani story continues. Both Mukesh (Reliance Industries) and Anil (Reliance Anil Dhirubhai Ambani Group) have grown their respective businesses despite the seemingly on-going and vocal friction between both parties. Only two weeks ago, in a dispute at the High Court in Mumbai between the brothers, the judge ordered both parties to go and talk with their mother. On reading this, I immediately SMSed a friend to giggle about how cute it sounded that these men who both sit within the top six of the worlds global rich list, and who are responsible for millions of investors, employees and enormous business interests respectively were ordered to seek their mothers wise council!

Being a mother, I like that judgment enormously!
Expect the unexpected in India, but don’t let that put you off.

What the Indo-US Nuk Deal Means

2008-09-08T12:04:00.009+05:30

Left is a picture of Indian Prime Minister Dr. Manmohan Singh, in a rare show of emotion, upon reaching Indian parliament this morning!

My fingers have been itching to discuss this subject!

With all members of the NSG (Nuclear Suppliers Group) approving the United States proposal to lift a global ban on nuclear trade with India in the wee hours of Saturday 6th of September, the doors appear magically open at long last for the very valuable Indo-US atomic energy supply deal to go ahead.

Watching this delicate situation move through its incubation period has been fascinating with almost daily international and political dramas for both interested parties unfolding as it moves through the various stages on its way to becoming the reality which it now appears that it will become.

India needs atomic energy. Its current nuclear reactors are running at almost half their capacity; the government has a mandate to supply power throughout all of India by 2012 (via a mixture of coal, hydro, wind, solar and nuclear production); the country needs to be able to produce reliable, easily accessible, robust generation, transmission and supply to bring it to world standards; and for future proofing as the country continues to grow.

This Indo-US deal now awaits US Congress approval, which is anticipated to come through shortly as the due signing date on this landmark deal, at the time of my writing this, is the end of September 2008. Having this Indo-US nuclear deal in front of the US Congress is the last potential red herring left in the mix in terms of WHEN it will get passed. In the twilight days of his presidency, the Indo-US deal will be a great coup and legacy for Bush - which the US Congress may or may not wish to give him. The general feeling is that it will go through unhindered.

The exact figures of what the success of this deal means for India have shifted a bit too much in the press over the past few weeks to be conclusively sure of what region the final figures will end up be. It is reported that business opportunity resulting from India's entry into the nuclear club will be in the region of 1.20 trillion rupees over the next fifteen years. This would be through the development and construction of 18-20 new nuclear reactor sites at a cost of 5,000 to 6,000 crores (50-60 billion rupees) each.

Consequently there is significant global interest from the big players in seeing this deal go ahead. Not only does the US look towards substantial gains for their assistance in negotiations with the IAEA (International Atomic Energy Agency), but this also opens the door for joint research, development, design, construction, operation, maintenance, reactor experiments and decommissioning - as well as supply between the US and India. Significant contracts will be up for grabs during the building phase with the most promising contenders (outside of US parties) vying for a piece of the pie being France and Russia, followed by the UK.

In addition to the above reported figures, the off-spin of contractual and ongoing work once these atomic energy sites are constructed and running will be extremely attractive. All in all, this is indeed a large scale infrastructure build with significant (and powerful) global interest in it.

A noteable (and contentious) part of the agreement is that it will not hinder or interfere with India's nuclear programme for military purposes. It must be noted, of course, that India is geographically challenged and within firing range of various temperamental nuclear enabled neighbours. This makes it totally unreasonable to expect India to be in a position to put aside its national security; however India has clearly stated that its intention is to use this atomic technology and supply specifically for its intended use, and they are in no doubt that the deal will end abruptly at any time that India choses to misuse its newly aquired atomic energy abilities.

The success of this Indo-US nuclear deal going ahead as planned is a very positive step for the Indian nation at large. There are over a billion people in this country whose lives and abilities to provide for their families are going to be greatly enhanced by their ability to access reliable, stable and safe energy.

Tick Tock for the Royal Bengal Tiger...

2008-09-05T12:36:00.011+05:30

Tiger, Tiger! (by Rudyard Kipling)
What of the hunting, hunter bold?

Brother, the watch was long and cold.

What of the quarry ye went to kill?

Brother, he crops in the jungle still.

Where is the power that made your pride?

Brother, it ebbs from my flank and side.

Where is the haste that ye hurry by?

Brother, I go to my lair to die!

Sadly...Kipling's poem was prophetic.

Growing up with stories of life in India during the time of the British Raj, one of my father's many colourful recollections is of his time at boarding school as a nipper in a hill station deep within India, where an old man was employed to wander back and forth around the deep verandah's of the boarding schools sleeping quarters at night with the sole task of saving the children from becoming tiger tucker. Dad remembers being woken up to reasonably frequent scuffles outside the windows as Tiger Man would bravely fight off the tigers with nothing more than his long stick.

Fast forward 65 odd years, and the plight of the Royal Bengal Tiger is indeed a sorry tale.

Like so many animals on the planet, the Bengal Tiger have been forced into ever decreasing areas as their natural habitat steadily reduces. Between the years 1860 to 1960 a recorded 20,000 tigers were shot as sport. The number of unrecorded tiger deaths from hunting parties (both legal and illegal) and the fur trade during the same period must increase those statistics dramatically. The national tiger census in 1972 recorded a mere 1800 tigers existing in the wilds of India - and after some intervention and the provision of wildlife parks, the number of tigers living in the wild within India grew to around 4000 in 1984. Today the figures are reported to be as low as 1300 or 1400.

It is not uncommon to read stories in the newspapers here of man-eating tigers plucking off the odd villager or two. Of course, and unfortunately, there is only one way to find out if a tiger is a man-eater or not...and lets get real, they are all man-eaters if opportunity and a hungry tiger belly coincide. Villagers in India have lived with the threat of tigers since time immemorial; but with some desperate and hungry tigers out there (and indeed many desperate and hungry villagers with little support) the more common the story of a starving or diseased tiger crossing into human areas to eat some usefully fenced off livestock or village folk - to which the aforementioned desperate and hungry villagers respond to with understandable rage and consequential revenge.

See this http://broadband.indiatimes.com/showvideo/3447209.cms

I like to see a wild animal acting like a wild animal - therefore the above video link appeals to me, despite its attack on the boats, which are the only form of transport into the area where this video was shot! The video above was filmed in the Sundarban National Wildlife Park, which is a most impressive wildlife park within India. The Sundarbans cover 140,000 hectares of pristine forestation in the Ganges Delta. It spans across both India and Bangladesh, with the majority of the area being made up of wetlands and mangrove forest. The largest population of wild Royal Bengal Tiger's are located within this park.

The name Sundarbans means 'beautiful jungle' and the area has been under systematic management since the 1860's, with the forest now being a National Park, a Tiger Reserve, an UNESCO World Heritage Site and a Biosphere Reserve.

Management and the footsoldiers on the grounds within the park face an enormous task in protecting the park due to its location falling over two international borders; the location of many villages and tribal people living within the park on both sides of the borders; limited funds; and with constant threat of poachers who can get a small fortune for tiger parts to sell in countries such as China for use in medications, virility potions and whatnot. These various organisations (including government) have a very hard task indeed to maintain the balance for the many endangered species, flora and fauna which still exist in this delicate ecosystem, including the Royal Bengal Tiger.

The tiger has always been greatly respected within India, with it being represented extensively in religious symbolism and government emblems, as well as by the Indian nation at large in many forms. Coming from a country where we have a cute fat beloved flightless brown bird as our national icon, I cannot help being slightly jealous of India having the wonderful regal mysterious, strong and powerful tiger as its symbol!

In India's quest to become a veritable tiger on the world stage, I sincerely hope the powers that be (in conjunction with the international contributors) are able to increase their efforts to save the remaining tigers before it is too late.

The clock ticks loudly for the Royal Bengal Tiger...

R.I.P. Shri Thomas Bata ji

2008-09-04T16:48:00.009+05:30

Bata, the shoe people, their shops and their marketing (whose brands include Hush Puppies, Dr. Scholls, North Star, Power, Marie Claire and Bubblegummers) are so prolific in India that on my first trip to the country four years ago I wondered if it was an Indian origin company. Having maintained a presence in India for over seven decades, it is no surprise that Indian folk consider Bata an Indian enterprise, and I understand that the people of Pakistan feel the same way.

Eighth generation cobbler of Czechoslovakia, Mr Tomas Bata, set up the Bata Shoe Company in the Czech town of Zlin in 1894, and was pioneering the first fabric shoes into production by 1897. In true entrepreneurial fashion Bata proceeded to construct schools, houses, stores and hospitals near his factories to support his growing staff by 1917; and had introduced the “Bata System” of organising operations into autonomous workshops with employee profit sharing by 1923. The Bata School of Work was founded to provide education and practical training to future Bata managers in that same period.

In 1932 Tomas Bata dies tragically in a plane crash. The helm of the company is passed over to his then 18 year old son, Thomas Bata, at the time of the impending nazi invasion of Czechoslovakia. As Thomas expanded the company, initially to escape the Nazi's and later the communists, he arrived in an undivided India in the early 1930's. Thomas Bata's life long love affair with the country began then.

The first Bata factory was set up in India in 1931. Bata soon became a household name in the subcontinent with operations in eponymous towns such as Batanagar, Bataganj and Batapur (the latter of which is in the now Pakistan). Lacking an organised footwear industry in the early days, India fast became (and remains to this day) a favoured market for Bata - despite its operations having expanded to a total of 50 countries. When the company went public in 1973, the Indian leg of Bata changed its name to Bata India Limited.

Bata has long been recognised as being a "superbrand" within India. Anmol Dar, Managing Director of Superbrands India worked through over 700 shortlisted consumer brands in India, before selecting the winning "superbrands" as those which had a perceived brand image plus the brands mind share, goodwill, consumer loyalty, trust and emotional bonding. Yes, India is emotionally involved with Bata.

In the 75 years that Bata have been in India, they have captured 35% market share in the organised footwear sector, being 8.5% of the country's total footwear market, through its 1,250 stores. Almost 98% of Bata India's revenue is from the domestic market, selling over 45 million pairs of shoes every year, with an estimated turnover of more than USD 178 million.

Thomas Bata and his wife Sonja maintained a life long passion for India, visiting several times a year from their now home in Canada. The soft spoken entrepreneur was in India earlier this year holding the international board meeting for the Bata organisation in Batanagar, Kolkata. During the same trip the sprightly 93 year old also managed to set up two world-class factories in Bihar.

In Toronto, Canada the couples love of India is apparent in their Bata Shoe Museum. Shoe treasures and memorabilia include gold and silver Indian padukas hundreds of years old in their extensive indian collection. The pair of shoes Mrs Indira Gandhi was wearing when she was assassinated by her bodyguards in Pakistan have also made their way to the museum, as a gift from Rajiv Gandhi.

An interesting story from the Bata Shoe Museum: held in the collection were a pair of bejeweled slippers belonging to a Nizam of Hyderabad, which Sonja Bata had purchased in 1999 from a collector in Hong Kong. Encrusted with diamonds, rubies and emeralds, embroidered with real gold thread, the slippers were valued at USD 160,000. The slippers were stolen from the museum. To Thomas and Sonja Bata, they were priceless being a piece of history from their beloved India. The theft caused a national outrage in Canada and the thief (presumably with tail between his legs) promptly returned the slippers to the museum!

Thomas Bata was honoured in 2007 for his contributions to Indian-Canadian ties. The self effacing Bata who was known to refer to himself as 'just a ninth generation cobbler' was quoted as saying "I am grateful to India as it is the country that has provided me the opportunity to serve its billion people by letting me put shoes on their feet!"

Thomas Bata passed away on September 1st 2008 in Canada at the age of 93.

Rest in Peace Mr Bata.

You have certainly left your footprint on India.

What is this Bollywood business?

2008-08-31T22:46:00.009+05:30

Spending any time in India for a period, you cannot avoid getting to know the local Bollywood celebrities. Through osmosis I now know what they like to eat for breakfast, who is dating who, what their mums think of their careers, who they do and don't like working with (and why), what goes on at their private parties etc and where they are located at any given time.

The media coverage is incredibly extensive, with even the dry old crusty daily newspaper tomes dedicating at least one of their pages each day to these wonderfully sparkly people of Bollywood. There are a multitude of celebrity talk shows and interviews on various television channels; and I even saw one headline news story of a reputable national news channel filming and interviewing one of the special people getting a hair cut - I kid you not (and not as per a Brittany haircut scandal...no, no, no - this was merely a Bollywood dude getting a regular haircut!)

Unlike a Hollywood release; the entire nation of India watches with extreme interest and baited breath as each new movie is spewed out the end of the very fertile machine that is Bollywood. The majority of films stick rigidly to the proven formula...always with a minimum of two or three large dance sequences, and stories based around themes of love. I have noticed an amazing tendency for Bollywood to shoot love scenes in the rain. I am assuming this is by and large due to a very vocal moral society which simply would not condone bawdy sex scenes...instead substituting highly emotive and impassioned rain scenes, suggestively allowing the viewer to fill in the blanks (no pun intended).

They say that fourteen million people in India go to the movies every day. It is a cheap form of entertainment, accessible to the masses in the many cinema houses throughout the country, and are viewed with equal enthusiasm by young and old, rich and poor, metro dwellers and rural folk alike. It is as common to see street kids singing and dancing to a new release theme song, as it is to hear a wizened old taxi driver singing the same tune - which is in turn being downloaded at a minimal cost by the millions who own a mobile phone. Bollywood most definitely has a long arm and a big reach here.

Bollywood movies are released in video and DVD format not only for the local market, but for the extensive and hungry foreign market of NRI's (non-resident Indians) who populate the globe. A generous viral marketing campaign of new movies via bootleg copies are also quite readily available. Bollywood movies reach far into the Middle East, throughout Asia - and even into Pakistan (despite a government ban on Indian movies). Its reach is steadily extending into the "western" countries, making the Bollywood audience large, growing and mobile.

Revenue would be the main difference between Hollywood and Bollywood. For example in the year 2002 Bollywood sold 3.6 billion tickets and had total revenues of 1.3 billion USD. Hollywood films sold 2.6 billion tickets in the same year, generating revenues of 51 billion USD.

Hollywood movies here have limited runs, in only a few theatres, for very short spells. The best place for viewing Hollywood movies are the HBO, Star Movie, Zee, Pix, Hallmark and World Movie sattelite tv channels.

Bollywood is well established, has massive national support, a generous multi-media backing and will continue to grow and spread in its popularity - particularly as they slowly but steadily start to introduce more contemporary themes to their storylines.

And don't forget....as a fairly average looking (not too wrinkly!) foreigner in Bombay, you too may well be approached on the streets by one of Bollywood's plentiful roaming movie touts inviting you be in a Bollywood movie! Your 15 seconds of fame is attainable, most likely in the background of a large scale hindi dance sequence on celuloid - but hey, what a thing to show the grandkids!

Challo, tik hai! (lets go, its all good!)

The Remarkable Story of Infosys

2008-08-31T16:04:00.018+05:30

The first mini computer arrived at Infosys in 1983. It was a Data General 32-bit MV8000.

Backtrack two years, to a group of unlikely looking baby faced software engineers gathered in the lounge of Infosys founder N.R. Narayana Murthy's apartment discussing the possibility of creating a business to write software code. Six months after the initial meeting in Murthy's apartment; Infosys was registered as a private limited company.

1983 was a big year for Infosys. That initial investment in hardware was to service their very first customer! The Murthy's relocated to a family property in Bangalore, followed closely by another co-founder Nilekani and his wife - who moved in with the Murthy family as they had no option of getting their own accommodation.

The early days were extremely lean for the founders of Infosys, (who remained at the coalface of writing the code themselves for many years), remembering those times as being full of struggle, day in and day out. They had no car or phone between them. Murthy recalls that it was not the luxuries of life which kept them focussed, but rather the passion to create something new and innovative that gave them their drive.

After some initial success, Infosys was at a major crossroad after a crisis in 1989 when a joint venture with an american company collapsed, leaving them vunerable. They were faced with losing everything that had gained in their eight years. At this point a couple of the initial co-founders decided to pull out; with the remainder opting to stay for the ride after Murthy's brave statement to them all "if you all want to leave, you can. But I am going to stick with it and make it".

And make it work, they did. It was in this rebirth period that the Infosys company started its new chapter of truely remarkable growth.

In 1998 they began to win large contracts to scan western computer systems for the much feared millennium Y2K bug. Infosys was caught up in the massive growth of India's software sector, being the first Indian company to be listed on the Nasdaq stock exchange in the year 1999. They (along with other Indian software companies) proved their stability by barely skipping a beat when the US dotcom bubble burst in 2001.

Infosys Technologies Limited is now one of India's largest IT companies employing over 94,000 professionals as at June 30, 2008. It has nine development centres in India and over 30 offices worldwide. Its annual revenues for the fiscal year 2007-2008 exceeded US$4 billion with a market capitalization of over US$30 billion.

During the 14-year period from 1993 to 2007, the issue price of an Infosys share increased three thousandfold. This is excluding the dividends that the company has paid out over the same period.

You could say that to work at Infosys is the Indian dream! The remarkable sculptured Infosys Campus in Bangalore boasts daycare facilities, in-house supermarkets, gyms, laundry services and recreational facilities for the families of its employees. It has tens of thousands of women on its payroll. Outside each of its buildings there are bicycles for employees to cycle from one part of the forty acre campus to another.

Infosys was rated "Best Employer in India" by Business Today magazine in 2001. The company won the Global MAKE (Most Admired Knowledge Enterprises) award in 2003, 2004 and 2005, being the only Indian company to win this award. Infosys has been inducted into the Global Hall of Fame for the same.

The unusual and endearing values that have assisted Infosys' global respect as an organisation are:

1. 'We want to create wealth legally and ethically'

2. 'We believe a good night's sleep is worth a billion dollars'

3. 'A small percentage of a growing pie is better than a large part of a shrinking pie'

Infosys truely is a remarkable company.

Happy Independence Day India!

2008-08-21T12:26:00.005+05:30

"At the stroke of the midnight hour, when the world sleeps, India will awake to life and freedom. A moment comes, which comes but rarely in history, when we step out from the old to the new, when an age ends, and when the soul of a nation, long suppressed, finds utterance..... We end today a period of ill fortune, and India discovers herself again."

The above is an extract from a speech given by Pandit Jawaharlal Nehru (Tryst with Destiny speech) on the eve of the 15th of August 1947 - welcoming in India's long awaited for birth as a sovereign nation.

Independence Day is a national holiday and celebration within India. While waiting for a friend who was late meeting me for a coffee that morning, I watched a small group of people gather outside a shop, huge speakers were comically set up by far too many people - then tested loudly and badly with ear splitting noises eminating from them. A man dressed in traditional white indian male garments appeared, made a very short speech in Hindi, then walked into the middle of the gathering, hoisted the Indian flag up a flagpole that was stationed in the middle of the footpath, and then the group of men, women and children all joined in the singing of the India's national anthem. I looked around - and at the sight of the flag and the sound of the national anthem, local people came out onto the streets and stood solemnly staring at the flag, placing their right hands on their hearts - all joining in the singing. It was solemn, it was proud, it was moving. I knew this same scene was being carried out throughout the country that day - all with the same reverence.

The partition of the former British Indian Empire into India and Pakistan resulted in the largest migration of people in the world. There was chaos - yet considering the size and scale of the exercise, it was carried out swiftly and effectively. The price paid by families who were forced to leave their historical family homes and give up all they owned still colours a part of India's fabric today. There are properties here in Mumbai that were abandoned during that period - ownership of which is still in dispute - as I am sure there are all over the country. I believe the same is true in what is now Pakistan.

So democracy took its first steps on that day back in 1947, and India began a new chapter in its history. The start of the government reforms circa the 1980's when the doors in to and out of India started opening - heralded the beginning of this current bold new chapter in India's story.

Comparisons are often made between India and China. I don't know much about China so cannot offer an intelligent argument one way or the other. What I do recognise however, are India's strengths. Its strengths remain firmly tied to its democratic status; its laws & governance having been developed from english law; its enormous population; its location and time zone; the eruption of an educated labour force and media savy consumer class (over 50% of the population are under the age of 26 years old); and significantly, in my opinion - its national pride and belief in its people.

This is an exciting place to be!

Beauracracy in India

2008-08-04T14:49:00.010+05:30

Having experience in the western world where business speed, efficiency and delivery are our Gods, it is indeed hard to fathom that India still retains a system which it inherited from the British sixty years ago, which remains largely unchanged. It is indeed true that it remains a largely paper based system, with many many government or state employees each servicing just their specific task in the process, all relying on each other to move your paperwork through their system, thereby causing some major time delays as each person checks off their very specific part of the process before forwarding your document to the next person in the cycle.

I personally found it excrutiatingly difficult to relate back to my home office when I first arrived in India why we were waiting days, weeks and sometimes months for core business set up processes to be completed. If you are sending your faithful company representatives here to act on your behalf, please be gentle and understanding as the beauracracy can be simply tear-inducing, and it certainly adds an additional level of stress to your people who are already coping with a dramatically different society!

The problem with implementing the change is not lack of inspiration or desire, it is more that India is an enormous country, divided into many different states, cultures and languages - making the implementation of change here a truely mammoth and unenviable process.

Implementation of faster and less draconian processes will also result in putting a great many of those employed out of a job. In India, a government job is considered a "job for life". So there is social change and responsibility that comes into play here as well. The decision makers sit on the fence between great pressure to continue opening up to competition and to improve services at every level, as well as managing this change in a vocal, politically aware and long established sector.

It is with anticipation that I read in the media that some areas of current government and state service sectors are to be opened to private contractors. Exact areas where such opening up will be is currently being determined through an extensive exercise identifying areas where the existing monopoly of functions can be tempered with competition.

The government does outsource some services, however this new initiative is fundamentally different as it invites private parties for the first time to contract the provision of services back to the government. Opening up to competition, and therefore improving service.

The introduction and provision of online services and submissions is growing, so it is not intention that is lacking here, it is merely the difficulty of navigating the complex path of change in a responsible way.

I expect the recurring conversations with foreign companies and individuals doing business here to continue for a while yet, regarding their frustrations at the beauracratic processes and the often long delays in the lifecycle of basic submissions. Change will not happen overnight, however I can assure you that it is happening.

In the meantime: business continues, opportunities remain intoxicating, plentiful and diverse across all sectors - and the current struggles with beauracracy is not reason enough to frighten foreign investors off.

Wine in India

2008-08-02T13:39:00.008+05:30

I am certainly no expert on wine, however I do have an appreciation and a reasonable amount of experience with it. I sorely miss the wonderfully unique flavours of the antipodean wines that I am used to. Buying the same here, I am looking at up to a 500% mark up on what I would pay in New Zealand for the same, with the available international range being very limited and fairly mediocre.

This annoys me no end, and results in my reluctant avoidance of purchasing wine here on the whole, except for the occassional locally produced version which I personally find unsophisticated, yet drinkable.

Wine in India remains a status symbol, with the majority of purchasers being the very wealthy (a glass of locally produced wine costs circa 2 to 3 days average salary), with a distinct lack of general wine knowledge being noteable. The amount of times I have ordered a Sauvignon Blanc and ended up with a Chardonnay - with the waiter insisting that it is a Sauv is just frustrating. All white wines are not the same India!

This situtation is purely due to the newness of the product, as the vast majority of Hindu and Muslim people chose not to drink; with the Brits having left their mark with whisky being the drink of choice for those people who do enjoy a tipple.

Local producers have done astoundingly well for a 'new market' and there is much excitement in the local industry, with international winemakers salivating at the market potential. There have been a fair amount of burnt toes to early entrants from the international labels, with market inception being a slow and costly process to date.

With local producers retaining 80% of the current wine market, the international wine exporters watch and wait in anticipation for the youth of today to mature who have access to international media and trends, who are an enormous emerging sophisticated consumer class, and who are steadily picking up on the desirability of wine - creating a very attractive growing market for the industry.

The existing uneven tax structure, duties and tariffs pose the biggest hurdle for those attempting to bring wines into India. Each state has its own tax structure, with Maharashtra (the state which currently consumes 40% of local and international wine) having taxation rates that are 100 to 200% higher than in other states.

Heartening news which I read in todays newspaper is the Maharashtra state governments newly issued notification that the maximum retail price (MRP) on beer and wines is to be shown on the bottle, including sales tax and VAT. This will stop the common practice of retailers varying the VAT calculation, and the subsequent huge fluctuation in prices from shop to shop. Five star hotel restaurants being the biggest culprits as they price their foreign wines at five to ten times the retail cost, despite being permitted to buy a fair amount of liquor duty-free.

Steps such as these new reforms will ease the way for those looking to enter. There are currently a handful of successful local importers and distributors who seem to be leading the pack in terms of achieving returns to the international labels. I would strongly advise joining with a group of local winemakers, to spread the risk and to partner up with an existing local reputible distributor to enter this market to ensure the best and quickest route for success.

The government will continue steadily making the necessary reforms to support the international players, and indeed the market potential for wine sales in India remains enormously attractive. The metropolitan areas all boast wine appreciation groups, and I look forward to the day when there is a suitable readily available selection to chose from, which is more fairly priced.

Eradicating History

2008-07-23T13:34:00.010+05:30

No visit to Mumbai can possibly be complete without a visit to Crawford Markets in South Bombay. Commissioned in 1869 by Sir Arthur Crawford, the site was thoughtfully designed as the main wholesale market for the city, until 1966 when the wholesale markets were relocated to Navi Mumbai. This beautiful structure then morphed itself into the main markets for the local population - hosting hundreds of stalls and shops selling absolutely anything you could possibly want, at the very best of prices!

On entering the markets, you are totally assaulted by intense smells that fluctuate between extreme fragrance to outright shockingly bad odour (depending on which part of the markets you are in!), a mish-mash of colour and frenetic activity as stall holders and shoppers alike holler above each other, coolies dart around with baskets on their heads filled with shoppers purchases, people tug at your arms to sample their wares, touts abound all vying for your attention. Crawford Markets epitomize that unique dichotomy of Bombay - antiquity in coexistance with the modern. The market itself is pure and brilliant antiquity. A rare and wonderful experience.

The structure itself is a listed Grade 1 historic building. The core structure of the markets is of Norman and Gothic architecture, adorned with freizes and a fountain designed by Lockwood Kipling (father of Rudyard Kipling) - and features an imposing landmark clock tower covered in Victorian carvings.

Part of Mumbai's municipal governments hardest tasks has to be the town planning of this overpopulated city, balancing the retention of the many unique historical buildings while progressing with the development of an infrastructure worthy of its status as the commercial capital of the subcontinent.

Unfortunately, it appears that Crawford Markets days are numbered. The townplanners have designated the markets for redevelopment. Various plans have been submitted for the remodelling, originally with a new design commissioned to retain the feel and history of the existing architecture - however over time, this redevelopment appears to now be in the form of a mall.

A mall. With parking.

One of the first things that struck me about South Bombay when I first came here was the incredible architecture and parks. The city that was developed by early british administrators from an organic settlement to a world class city with good infrastructure and public institutions built with the responsibility and forethought to create landmark buildings. You can see and feel the importance that the British Raj placed on this city by its grandness and beauty, which was once the main entrance to India. Mumbaikars are proud of, and recognise, the beauty that this early architecture lends to the city.

There are associations and organisations doing their best to remind and influence the powers that be to retain the great historical buildings of Mumbai. And I, like the radicals no doubt, totally understand the pressing need to urbanise and improve the infrastructure.

But a mall?

I sincerely hope that the current administration find the balance between retention of Mumbai's glorious past, and the growth of its brilliant and shiny future in a historically sensitive manner.

Monsoon Funeral

2008-07-21T16:02:00.001+05:30

Here in the state of Maharashtra we are a third of the way through the monsoon season.

This time last year, I vividly recall the seemingly never ending rains lashing Mumbai; walking through unavoidable rivers that flowed freely through the city, umbrellas that proved utterly useless as they would be blown inside out, shoes and damp clothes rotting from being constantly soaked and having only the humid air to dry out in.

Indeed the demise of my favourite pair of boots was directly due to last years monsoon - when I mistakenly thought that wearing them would be tantamount to wearing chic and styley gumboots! How wrong I was. They totally fell to pieces. The monsoon is sadly not a time for fashion statements.

This year the rain comes...it produces a tiny tinkle, as if it is suffering from a prostate problem...and then it is gone again. The clouds are there, it appears to be thinking of producing something substantial, yet so far it has failed to produce close to the annual rainfall that is required.

Half of this state has received less than 50% of average annual rainfall expected by late July - which in turn has a devestating effect on the lake levels for the power companies, the availability of water, and has a harsh impact upon the agricultural and farming sectors.

The monsoon season is peak sowing time for the 1.28 billion hectares of farmlands that are spread across the state with the drought resulting in only 48 percent of crops having so far been sown. Add this to the increase in transportation cost due to the price of crude and it makes for a dire situation for famers, the majority of whom are poor people who rely completely on the rains for the production of the coming years harvest.

Drought is of course not a new occurance in India, with the most recent debilitating drought in the state of Maharashtra being in 1972-1974. The region has a historical tendancy to suffer severe drought once every 8 or 9 years.

The state government has responded in various ways, firstly by declaring areas drought-hit and in their efforts to provide drinking water to the millions of poor residents within the affected districts. Power companies have started load-shedding with the state only being able to provide 8,500 MW of power against a demand of 12,000 MW. The state government has approached the union government for 1,000 Crore (Rupees 10 billion/233 million USD) in relief funding. I suspect that rather large figure will not be forthcoming, however I do hope to see some innovative and forward thinking solutions put in place.

This year I wait for the rains to reduce the humidity. I have not been personally affected by the drought yet although other suburbs in Mumbai have been affected by power outages. There is still time for the monsoon to put in a better effort than it has to date to alleviate the potential fallout of a drought.

And me? I am doing a rain dance.

Ayurveda

2008-07-18T11:19:00.000+05:30

Ayurveda is the traditional Indian method of healthcare, and is the longest unbroken medical tradition in use in the world today. It is a system based on the wellness of the entire being, and aims to bring the individual into harmony with nature - thereby eliminating disease and disharmony within the body.

Susruta, renowned as the father of plastic surgery, wrote his samhita, the most authentic early text on the practice of ayurvedic surgery around the sixth century BC. His texts discuss in minute detail how to perform prosthetic surgery to replace limbs, cosmetic surgery procedures for the nose and other parts of the body, cesarean operations, setting of compound fractures, and even brain surgery.

Historical records date early ayurvedic principles as being practised as far back as 3000 BC with evidence showing its spread across early civilisation, making it the parent of most modern medical systems in the world today.

Egyptians had long known and incorporated ayurvedic principles via their early sea-trade with India. Greeks and Romans adopted it after Alexander's invasion in the 4th century BC; and the spread of Buddhism introduced ayurvedic knowledge and principles to the east where it greatly influenced the Tibetan and Chinese systems of medicine. With translation of the medical texts into Arabic, Islamic physicians began practicing ayurveda as early as 800 AD. Paracelsus, considered to be the father of the modern western medicine practised ayurvedic principles and incorporated it heavily into his work in the 16th century.

During British rule, practice of ayurvedic medicine and principles were effectively banned within India - and therefore practitioners were forced underground. Post independance (1947) there was a resurgence in aryuveda, which saw government supported learning institutions erected and recognition by the medical council, bringing it back as a mainstream method of healthcare within India.

Today registered ayurvedic practitioners undergo rigourous training over a 5 & 1/2 year period, including one year of internship at a registered Ayurvedic Medical School, after which they graduate with a Bachelor of Ayurvedic Medicine & Surgery (B.A.M.S.). Further postgrad or masters training takes the form of a three year internship available through select institutions giving the practitioner an education on a par with the western MD/MS degree in modern medicine.

Popularity of ayurveda lies in its subtle yet scientific and successful approach to heal a person in totality. A new industry of ayurvedic health spa and medical centres has blossomed in the past few years to support the emergence and steady growth of medical tourism to India; where foreigners flock seeking alternatives western medicine.

KPO's...the buzz word...

2008-07-16T13:26:00.001+05:30

Ahh...a subject dear to my heart!

Dooms-dayers and naysayers continue to question India's future as the backoffice processing hub of the world. With other cost effective emerging markets biting on the back of India's heels, India needs to watch its back and continue its investment in this industry if it is to reach the anticipated highs forecast. For the past few years this industry has maintained a growth pattern of nearly 50% annually.

The BPO and KPO sectors are indeed close cousins; with the KPO's bouncing off the success of the BPO's. BPO's (Backoffice Processing Organisation's) require relatively unskilled labour - whereas the KPO (Knowledge-based Processing Organisation) requires educated people with specialised skills, adept at problem solving and analysis.

KPO's appear to be where the action is as they continue to gain momentum here. India manages to outclass the competition globally in the production of these services due to its offer of substantial cost saving, operational efficiencies due to a mature market already well versed in the BPO experience, and mostly for the highly talented professional labour pool which is readily available and willing to take up positions within the industry.

Knowledge-based processes that have already found a significant foothold here are research and development; business and technical analysis; animation and design; business and market research; medical services; writing and content development; legal services; intellectual property research; data analytics; network management; and of course, software development.

On the ground, there is certainly no shortage of proven, capable and well run organisations vying against each other to find their place in the market. Competition is alive and well!

Some of the global giants who are readily using and exploring India to process its functions include General Electric, IBM, GlaxoSmithKline, Cisco, Nokia; along with various banking institutions such as National Australia Bank (NAB) and Australia New Zealand bank (ANZ).

Speculation does however, continue to abound in this important sector, with some forecasters predicting a future global model where India acts as and provides the "centralised hub" for processing, with various other back-office function being processed across other parts of Asia.

As long as India continues its reforms and maintains its vital governmental support for the sector (such as the existing tax incentives), support of foreign direct investment (FDI) and support in education, then there is no foreseeable reason why it will not continue to grow at its existing phenomenal rate as a preferred safe and reliable location for these services.

Microfinancing in India

2008-07-12T13:49:00.000+05:30

India has a long history of social banking. The first breakthrough of the new generation of microfinancing institutions emerged after a change in governmental policy which allowed informal self-help groups (SHG's) of 15-20 members (mainly women) to transact with commercial banks.

Enthusiasm grew with almost missionary zeal among politicians and bankers once they saw the success in repayments and the social impact of the scheme. India is now home to 1.4 million such groups with over 20 million members. Policy and reforms have been extended resulting in the emergence of many MFI's (Microfinancing Institutions) who use various approved methodologies to deliver their service.

Global growth in the formal microfinance sector has increased from 4 billion USD in 2001, to 25 billion USD in 2006, with the Indian sector expected to grow by 20% in the next five years.

Beneficiaries of microfinancing are those lacking collateral and with no verifiable credit history to gain access to traditional credit - mainly the rural poor. So what is the success rate within India for the people that this method of financial assistance was set up to aid?

Minimal in terms of what it could be. The brightest success story lies with the members of the original SHG's. Members borrow from the group to fund a variety of needs, ranging from household emergencies to school fees. As the SHG's prove capable of managing their funds, they then borrow from a local bank to invest in small business or farm activities. Banks typically lend up to four rupees for every rupee in the group fund, charging 11-12% annual interest. This model is the largest and most successful microfinancing program in the world, with similar programs based on the Indian model now evolving in Africa and Southeast Asia. This is but a drop in the ocean in terms of the potential.

Challenges remain within the industry with a mere 5% of India's estimated 350 million people living below the poverty line having access to microfinance. Logistics, poor infrastructure and regional diversity stand out as the most obvious handicap; but other challenges include the need for further reforms to provide an appropriate legal structure for the growth of microfinance organisations. These reforms would provide transparency and accountability, and would further enhance credibility. Another major challenge within the industry is the attraction and retention of professional and committed human resource.

There remains a lot of policy focus on what activities are and are not allowed, and as yet there appears to be not enough operational freedom for banks, financial institutions and organisations for them to design and deliver sustainable progammes.

Microfinance has not as yet moved centre stage for the Indian financial segment. With a more enabling environment and the continued surge in economic growth within India, the delivery of financial services to the poor promises to be an exciting sector to watch.

Tata Nano Launch Scheduled for Oct 2008

2008-07-08T10:43:00.001+05:30

Nano translated into Gujarati, the native language of the Tata family founders (The Tata Group), literally means "small". Although small in size this new vehicle which has been specifically designed for the Indian domestic car market is anything but small in terms of market expectation.

After many production hurdles and whispered over-runs, the innovative and much awaited eco-friendly city vehicle touted as "the peoples car" is now scheduled for release in t0 the domestic Indian market in October 2008. Already causing a stir in the car market, anticipation for the Nano release is high. People appear to be putting off buying a new automobile, prefering to wait until the release of the Nano, mostly due to its very competitive pricing of 1 Lakh/1,00,000 Rs ($2,300 USD) for the brand new basic model. The nearest competitor being the Mahruti 800 (a rebadged Suzuki Alto) which currently sells for 2.5 Lakh/2,50,000 Rs ($5,750 USD).

Environmental issues have been addressed through the Nano's low carbon footprint; having lower emission levels than most two-wheelers currently being manufactured in the country today.

Pre-release marketing of the Nano is underway, with Ratan Tata, Chairman of Tata Sons, purported to be initially offering the Nano only to those who do not currently have cars. The Nano is perceived to be the natural replacement for many of the highly noxious two-stoke vehicles of India's roads. Tata is, in addition, working on the development of using compressed air as vehicle fuel in partnership with a french company.

Global interest in the Nano has been healthy. On January 10th 2008, the day that Tata unveiled the vehicle, the Tata Motors website saw almost 7.9 million hits!

The Tata Group has always been one to watch, and it will be interesting to see if the clever and cute Nano lives up to the hype and the peoples expectations.

Vodafones Mighty Rebranding

2008-07-07T14:32:00.001+05:30

In a taxi on my way to the office this morning, my eye was drawn to a man holding a brilliant red Vodafone branded umbrella, stark against all the other uniformly standard black umbrella's of Mumbai. The man was innocently standing on Marine Drive, in monsoon rains, looking out to sea - presumably unaware of his effective contribution to Vodafone's remarkable and very visable marketing success in India.

In September 2007, 35 million customers and 400,000 Hutch outlets were affected by a swift and affective rebranding exercise by Vodafone Essar; who in February of 2007 had aquired a 67% stake in Hutchison Essar's Indian operator Hutch.

No sooner than the rebranding had been announced in September 2007, my local Hutch shop in unison with all the other many outlets in the neighbourhood were having new shop fronts installed with the Vodafone logo loudly and boldly over everything which had once been Hutch. The speed of this exercise was impressive. The many Hutch outlets in my neighbourhood were transformed within two weeks of the rebranding announcement.

A clever marketing campaign was actively and visably underway, with what seemed like every third billboard advertising Vodafone, and every corner shop and phone wallah in Mumbai proudly hanging up new Vodafone marketing collateral in their windows and shopfronts advertising their supply of Vodafone products.

Hutch is but a vague memory. Indian people are well known for their swift adoption to mobile phone technology and are prolific mobile phone users. It is a sight that is noticeable when you are in India. People from all walks of life and status appear to own at least one mobile phone - and they are not shy to use them! Music downloads are a huge hit in this market, with people often seen listening to music with ear phones on, or sharing music with their friends directly from their mobile phones while they meet for coffee, etc.

In addition to this highly impressive campaign, are the Vodafone television advertisements, which I first noticed around January or February of 2008. These adverts are mini movies telling a story, with a warm and fuzzy feeling to them. They stand out from other advertisers by using a unique flavour of music and colour, yet they manage to retain the target audience through the storyline. They are charming, with a message tantamount to "we are here to stand by you through thick and thin, you can rely on us". Yes yes, I can hear the cynics sniggering already, but scoff not! India's heartstrings have been pulled.

I do not use this brand, as I have a mobile provider that I am happy with and have had no reason to change. I have, however, noticed everyone from local business associates, to friends, to the peon promote Vodafone as being a reliable and trusted brand. All this in ten months since rebranding? I am seriously impressed!

Introduction...

2008-07-06T13:38:00.002+05:30

Welcome to my blog! Within these pages I will share my personal thoughts and observations about doing business in India, along with general information about the current climate, politics, events and other related commentary.

With the 2008 elections looming, I am becoming more politically aware - which is a good thing! Dr Manmohan Singh, of the Congress Party, is the current Prime Minister of India. When he took over as Finance Minister in 1991, India's economy was a mess. The country had an unsustainable fiscal deficit of almost 8.5% of GDP. Introducing major reforms, liberalization of the state-directed economy, loosening the red-tape on foreign investment and creating a corporate-friendly environment - India has posted 10.4% GDP growth in the last quarter under his leadership.

The dark horse in the upcoming elections is the Congress Party's "new boy" Mr Rahul Gandhi. As heir apparent to the illustrious Nehru-Gandhi dynasty; the somewhat shy Mr Gandhi appears to be winning the hearts of the nations overwhelming youth population at an astounding rate.

Rahul is son of Sonia Gandhi and the slain Rajiv Gandhi; grandson to Indira Gandhi (who was assassinated by her own bodyguards in 1984); and great-grandson to the charasmatic Jawaharlal Nehru, who played a pivotal role in India's independance, and was named India's first prime minister in 1947 - a post he retained until his death in 1964. Note that this Gandhi family is not related to Mahatma Gandhi.

Rahul Gandhi, at a mere 33 years of age and with movie-star looks better suited to Bollywood, is winning media attention and adulation. A current story circulates widely from his comments that he is "looking for an open-minded girl"! Poor Rahul! The pressure on him must be intense! I can imagine the matrimonial web sites closing down due to overloading after such a comment!

Rahul, I wish you luck and wisdom in your search for a suitable bride, but I look forward with great interest to following your progress in politics.