Year of ‘power’less IPOs...

The list of power companies rushing to raise money through the initial public offering (IPO) route to fund and fuel their growth is only getting longer. The year 2009 witnessed a spate of IPOs from power companies including NHPC, IndiaBulls Power, Adani Power and JSW Energy. However post the Reliance Power fiasco, investor interest (primarily that of the retail investor) is waning and the post listing returns of power companies have been below par. For the uninitiated, the stocks of Adani Power, NHPC and IndiaBulls Power, which came out with IPOs in the last four months (the three IPOs were subscribed 15-24 times, mainly due to strong demand from qualified institutions) are 3-27% below their respective IPO prices. A research report from SMC Capital states that of the Rs.184.07 billion collected through IPOs, retail investors subscribed only 1.86 times on an average as compared to 11.42 times by QIBs (Qualified Institutional Buyers) and 8.49 times by HNIs (High Net worth Investors). Amidst all these and a positive response to the recently concluded JSW energy IPO (from institutional and high net worth investors), Jindal Power has announced plans to come out with a Rs.100 billion IPO in January 2010. Saurabh Mukherjee, Equity Head, Noble India, says, “Retail participation in IPOs has been very low this year due to the disappointing post- IPO performance, especially of power and infrastructure issues.” Can Jindal Power break the jinx? Can companies like Sterlite, GMR and Lanco (likely to tap the primary market soon for their power IPOs) restore the confidence of the retail investors?

Gyanendra Kashyap

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM enters into media education
IIPM makes record 10,000 placements in five years
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM: An intriguing story of growth and envy

IIPM Related Links
IIPM ISBE Programmes
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter
Management guru Arindam Chaudhuri’s latest blockbuster book, Discover The Diamond In You
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Events at IIPM
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

Killing history for the future

“Buland bharat ki buland tasveer - Hamara Bajaj!” The campaign from the Bajaj stable had become synonymous with the Indian middle class of the 1980s and early 1990s. So the decision of Rajiv Bajaj to stop production of scooters is bound to invoke feelings of nostalgia. Indians will fondly remember even the not so good ol’ days when they had to wait for months; and in some cases, years, to get hold of their Bajaj scooters; unless they had contacts or... well... spare dollars to give for booking. And then the inevitable happened – motorbikes came to India and because of liberalisation, middle class Indian saw a rise in income. The company saw its sales fall down to a few hundreds in 90’s. For years, Rajiv Bajaj tried to sustain his scooter business, but it was expected that the end of scooters was coming. But that’s not the logic that Rajiv Bajaj has been giving. Speaking on the occasion of the launch of the Pulsar 135 LS, Rajiv Bajaj said that the company wanted to become a “motorcycle specialist” and would not be able to make scooters anymore. “The scooters did not sell as per our expectations... now our focus is on motorcycles,’’ he said. However, bridging the gap with Hero Honda won’t be easy. While Honda makes 7 million units per year, Bajaj makes only 2 million. Besides, the shift from the entry level to the premium segment in motorcycles has not worked out according to Rajiv’s expectations. Therefore, one really wonders whether allowing scooters to die a natural death will be of much help, especially given the recent rise in the fortunes of India’s scooter segment. Check this: the segment that had been dipping by 10% only three years ago is now growing at almost 15% per annum. Guess Mr. Bajaj needs a reality check on more ways to grow “Hamara Bajaj.”

Niharika Patra

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com

IIPM: An intriguing story of growth and envy
IIPM Related Links
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter
Management guru Arindam Chaudhuri’s latest blockbuster book, Discover The Diamond In You

Detail of all IIPM branches
IIPM, GURGAON
B-schools expect higher rate of campus placements this year
Exclusive In chat with Society Magazine - Prof. Arindam Chaudhuri

A 3-D ‘Avatar’

“I’m king of the world!” These are the famous words by Leonardo di Caprio’s character Jack Dawson in the blockbuster epic Titanic. They were repeated by Director James Cameron on receiving the Oscar for the same. Now, after 12 years, the king is back with a new ‘Avatar’. And if the futurist director’s mesmerizing vision of creating the mother of all sci-fi 3-D movies comes through, it won’t just be a defining moment for world cinema but for cinema in India as well. 3 dimensional films, till date, have languished in the sidelines and have catered to a niche legion of sci-fi fans owing to lack of quality storylines. So, despite the number of 3-D screens in India being ramped upto 50 from 17 a few months ago just for Avatar, until and unless a regular stream of similar movies is produced having the kind of content to woo mass audiences, Avatar might end up a lone star on the distant horizon.

Anchal Gupta

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM enters into media education
IIPM makes record 10,000 placements in five years
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM Related Links

Detail of all IIPM branches
IIPM - Admission Procedure
IIPM, GURGAON
IIPM 3-year full-time Integrated (MBA BBA) Programme
IIPM 2-year full time Programme (leading to the award of the MBA degree from IMI)

THIS VALLEY’S CHANGING

Name one company from the Valley you might know of. Better, name the largest. And that’s why the name of Khyber Group – the largest business group in Kashmir – came as a wonderfully pleasant surprise. Haroon Reshi writes...

Umar Tramboo – the name was as new to us as was his group’s, Khyber, which runs Khyber Kareem Silk (P) Ltd. and Khyber Industries Pvt. Ltd. Compared to all companies in the valley – domestic, multinationals – Khyber is now the most diversified, spread out industrialised group of the Valley, operating quite dexterously in seven diversified sectors, including agro, cement, healthcare and textiles etc. Although Umar Tramboo inherited a family business, he’s definitive that he didn’t earn it on a platter. For one, Umar had to be extremely well educated to be even allowed back – he earned his Bachelor’s of Commerce through the prestigious Bond University, Australia with a double major in ‘management’ and ‘family business and entrepreneurship’. He further on completed his MBA from the same university.

The group’s story begins in 1955 with the establishment of its first roller flour mill and oil extraction unit in the valley. The flour mill was initially established in Sopore under the name of United Oil & Flour Mills. On the way, the group’s name changed to Khyber (“We named it after the Khyber Pass, a mountain pass that links Pakistan and Afghanistan,” says Umar), and today, growing beyond past years, the group’s fame comes not only from flour (it has a most modern flour mill in Srinagar) but also milk processing (a tech-heavy plant at Pulwama) and cement (with another post-modern fully computerised plant in the valley), which is the structural strength of the group. Umar accepts, “Yes, our cement business has been in operation for more than 23 years now, producing high quality clinker and cement at our plant situated at Khonmoh, Srinagar. Our plant was the first cement manufacturing plant in the valley. We started with 100 tonnes per day. Today we produce more than 1,000 tonnes per day.”

Khyber’s biggest opposition in this business did not come from an external competitor, but came from within the state itself. “People in the valley had a notion that [quality] cement can only be manufactured outside the state. To break into the mind of the people over here was the toughest thing,” says Umar. With a Rs.59 crore group turnover, Khyber is the largest private sector cement manufacturer in J&K and has more than 50% of market share, competing tooth and nail in J&K with the likes of Ambuja Cement, JK Cement, Shree Cement, Kamdhenu Cement, ACC etc (“Health competition gives us the strength to grow,” says Umar).

Most importantly, the group has been intuitive enough to start the first cardiac centre in the Valley which is a great social support for providing contemporary health facilities to the state’s citizens. Bringing his youthful zest into the group’s operations, Umar is also betting on a 100 room 5-star hotel at Gulmarg, a bio-culture business, essential oil extraction and LPG blending-cum-bottling.

Umar seems quite definite when he tells us, “My vision is to reach more than Rs.100 crores in turnover very soon.” For a man who believes that militancy cannot hamper growth and that “your destination is the key to entrepreneurship,” Umar presents the new face of J&K. A state where entrepreneurship could once never bloom, now sees groups like Khyber presenting hope and the wonderful promise of dignified employment and existence to thousands of the Valley’s youth. If not for capitalism’s sake, at least for the sake of development, Godspeed to Khyber.

Haroon Reshi

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM enters into media education
IIPM makes record 10,000 placements in five years
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here

Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM Related Links
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter

Detail of all IIPM branches
IIPM - Admission Procedure
IIPM, GURGAON
IIPM 3-year full-time Integrated (MBA BBA) Programme
IIPM 2-year full time Programme (leading to the award of the MBA degree from IMI)

We are more local than hbo and Star Movies

While they count on providing viewers with a local feeling, Sony Pix believes that selective, innovative & effective marketing can fetch it the number one spot among English movie channels in India, finds Pallavi Srivastava

They debuted in India in 2006 as the third channel in the English movie category, at first counting on movies from the Sony Pictures and MGM library, but slowly incorporating other popular releases as well. Their inherent movie bank combined with local content like ‘Chicks on Flicks’ (where Indian movie critics review Hollywood movies) has however ensured that the channel sustain its strong viewership over the last few years. The channel’s average channel share for the last month was 13.4% (Source TAM, Week 41, 2009 - Week 45, 2009). But as far as competing with the top two players Star Movies and HBO goes, Sony Pix is still way behind in the race. Sunder Aaron, Business Head of Sony Pix, is however confident of the channel’s future growth and believes that over the next two years Pix will conquer the number one crown among the English Movie channels in India. In a candid talk with 4Ps B&M, Aaron reveals how exactly he plans to do it.

4Ps B&M: Keeping in mind the fact that Star Movies and HBO are old and strong players in the category, how do you ensure that you stand out?

SA: We are more local than HBO and Star movies. These channels are programmed and run out of Hong Kong and Singapore, while our channel is run out of India. That is why we have the freedom to create some original local programming especially for India. For instance we have a show called ‘Chicks on Flicks’ where Indian movie critics review Hollywood movies. This gives a distinctive value to our channel. Look at HBO and it can be an HBO anywhere in the world. But we add a local flavour to our channel. That’s our USP.

4Ps B&M: Where do you wish to take the channel two years down the line?

SA: We would like to see ourselves as the numero uno in the category with around 30-35% of channel share. Currently it’s averaging at about 20%. However, for the last few weeks we are at around 25%. We are quite aggressive about going and interacting with our viewers, doing ground events and so on. As a result of such initiatives we are up there with HBO now. On any given week we are beating HBO in some or other region of the country. I think we are doing very well as far as the channel’s plan goes and in the next two years we will become more competitive.

4Ps B&M: With the entry of many new channels, now the English movie channel space in India has become a lot more competitive and the intensity of the same is rising with every passing day. Do you think it has changed the dynamics for you?

SA: No, I don’t think so. We know what our plan is. From the very beginning we have aimed to overtake HBO and Star Movies and it’s still the same. As we know what we want, I am not affected by WB, which is more like HBO. However, as a cinema lover I am happy that channels like Lumeire and World Movies have surfaced, which bring world cinema to the audience. But I really wonder where these channels will get money from? Yet, I have to admire them for being a sub niche going after absolutely restricted audience. Also as far as channel share is considered for this category, they aren’t significant at all. We are not into such games, for sure.

4Ps B&M: What is your marketing budget for the current fiscal year?

SA: Well, I would say several million dollars. Given the global recession, you have to be a lot smarter in spending the dollars these days. As such because of recession there have been cost cuts across the globe, across industries. At present we are very particularly careful and selective while spending our money on promotions and other such marketing activities. But then, we have made sure that the money that we do spend is effective and that reflects in our growing channel share. However, we are still on with events like Hollywood Pix your brain. It’s a Hollywood trivia related ground event happening every year. In this our team travels around mini metros to popular hangouts such as malls, multiplexes, colleges and corporate parks, where the channel invites people to try out their Hollywood trivia knowledge.

4Ps B&M: How important are ground events in your marketing strategy?

SA: Ground events are very important for us to get connected with the audience. It comprises about 20% of our overall marketing budget. After all, at the end of the day its all about spending the marketing dollars smartly.

4Ps B&M: How has the channel grown in last one year in terms of revenue?

SA: We have seen continued growth. Initially, we were expecting some effects of the slowdown as we didn’t know how the slowdown will affect us. But, fortunately, we have stayed on the course. Despite slowdown in media there is growth in our category and that is the most encouraging part.

4Ps B&M: From here what is going to be the biggest challenge for Sony Pix?

SA: Well, I would say to get new advertisers in the English movie channel category will be the biggest challenge for all the players. Getting growth in terms of audience in smaller markets will be another challenge too.

4Ps B&M: So, how do you plan to attract new advertisers to Sony Pix?

SA: Through original shows and big movies like we showcased ‘Slumdog Millionaire’. This brought ING, which was not an advertiser with us before, on board. ING became the presenting sponsor for the movie. We now plan to focus on combination of interesting programming, good movies and innovative marketing to lure advertisers.

Pallavi Srivastava

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM enters into media education
IIPM makes record 10,000 placements in five years
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here

Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM: An intriguing story of growth and envy
Prof Arindam Chaudhuri of IIPM on MF HUSAIN‎
IIPM Related Links

Events at IIPM
Detail of all IIPM branches
IIPM - Admission Procedure
IIPM, GURGAON
IIPM 3-year full-time Integrated (MBA BBA) Programme
IIPM 2-year full time Programme (leading to the award of the MBA degree from IMI)

It’s my concept!

With concept stores, organised retail players are taking brand wars in the segment to the next level. Will their endeavors bear fruit? Analyses Savreen Gadhoke

For Raj and Anita, who had just bought their dream house, doing the interiors was an uphill task. “We could not decide what we wanted, and that’s because we didn’t know what we really wanted for our most precious purchase,” confesses Anita, until a friend suggested that the couple must visit Asian Paints ‘Colour’ concept store.

Having gone through everything under the sun, the couple decided to walk into the store as well and that seemed to be the end of their problems. Unique to its kind, the store claims to offer an inimitable experience to those who seek right colour combination integrated with inspiring home décor. Full of interactive as well as educative features, the store also displays various room styles (contemporary, modern, traditional, et al). While colour consultants answer visitors’ queries, Asian Paints Home Solutions assist visitors in executing their plans. The entire experience was so overwhelming for Raj and Anita that once out, they were crystal clear on how they should do the interiors of their house.

Harold Geneen, an American businessman, once said, “The business world has two coins – cash and experience. Give the experience first, the cash will come later.” Following this mantra, a lot of companies are (in the name of experiential marketing) giving coveted experience to their customers by way of Concept Stores. Different from traditional company outlets, these stores claim to give customers an experience of the company’s product or service offerings by allowing them to touch and feel the product before taking the final purchase decision. And interestingly, these stores do not sell! They are only committed to give a life-like experience to the customer.

So be it Hindware, which through its Concept Store Hindware Lacasa, showcases the entire range of Hindware brands including sanitary ware, kitchen appliances and wellness products; mobile handset retailer UniverCell’s concept store UniverCell Live, which allows customers to touch-and-feel the products; Canon’s Image Lounge, which displays Canon’s entire range of digital cameras for both personal as well as professional use – all are playing upon the sole mantra of giving a unique experience to the customers.

Says Ramesh Barath, Vice President, UniverCell, “The idea behind a Concept store is to give customers live, hands-on experience while buying a mobile. It allows them to touch, feel, experience a real live wire mobile and enjoy its many features. It enables customers to get a feel of the mobile.” Not only do the concept stores give a first-hand experience of the product to the customer; they are also an extension of the brand building exercise of the company. For instance, Hindware, whose products are already available at various dealers and distributor shops as well as company-owned retail outlets called EVOK, also has its concept stores – Hindware Lacasa (launched in Kochi first and then in Mumbai) – only to give its customers a feel of its niche products and to take the brand more closer to its customers. “For various product categories, which are sold through dealers and distributors, showcasing products in a concept store is a very good opportunity for companies to make their brands register in the minds of the consumers, especially when dealers push more than one brand to the customer,” explains Neeta Walia, Director, Brand Talk.


The phenomenon of concept stores as an effective experiential marketing tool is not only viable for B2C, but also for B2B customers, case in point being Canon BIS (Business Imaging Solutions) Lounge. While Canon Image Lounge caters to the B2C model; Canon BIS Lounge is committed to the enterprise segment, which is a very strong business vertical for Canon. The first of its kind in India, Canon BIS Lounge accommodates huge laser printers, digital printers and photocopy machines for big companies besides showcasing copiers, fax machines and printers for SOHOs as well. “We also organise demos, training sessions, visits, et al, for our B2B customers so that they can gain experience of our products. Since most of the enterprise products are high-involvement products, it is imperative that the customer is sure of his purchase,” says Pooja Gogia, Asst. Manager, Direct Marketing, Canon BIS Division. The most expensive machine accommodated in Canon BIS Lounge located in Gurgaon costs a whopping Rs.80 lakhs and therefore the whole idea of experiencing such expensive products before purchasing them has made Canon a strategic partner of its enterprise customers.

Well, moving on to the other side of the coin (read cash), while providing experience to the customer is surely an effective experiential marketing tool, it is of no good if the experience is unable to translate itself into sales. However, as companies divulge, concept stores have scored well in sales terms as well. While Barath of UniverCell reveals that the concept stores have been successful with 80% conversion rate of footfalls into sales; Canon Image Lounge is able to generate sales of 8% out of the total footfalls in the store, which varies from 300-400 footfalls during weekdays and around 1,000 during weekends. Canon BIS Lounge too has been successful in retaining enterprise customers since the store was launched two years back. “Almost 70% of the people who come to our concept stores finally end up buying the product,” avers Puneet Datta, Sr. Marketing Manager, Canon BIS Division.

So, if the effectiveness of any marketing gimmick were to be evaluated purely on the basis of monies that it brings back into company coffers, concept stores surely scores high.

Savreen Gadhoke

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM enters into media education
IIPM makes record 10,000 placements in five years
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here

Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM: An intriguing story of growth and envy
Prof Arindam Chaudhuri of IIPM on MF HUSAIN‎
IIPM Related Links

Detail of all IIPM branches
IIPM - Admission Procedure
IIPM, GURGAON
IIPM 3-year full-time Integrated (MBA BBA) Programme
IIPM 2-year full time Programme (leading to the award of the MBA degree from IMI)

Doodle and Google!!

You must have seen a Google Doodle (creative Google logos) on Google homepage on some special days like historic or seasonal events, and other local occasions. In order to woo school going kids this children’s day, Google India organised its first ever doodling competition called Doodle4Google. The contest was for students from 1st-10th and they had to imagine their own version of the Google logo, inspired by the theme “My India”. The kid who won the contest was Puru Pratap Singh. His Doodle appeared on Google Homepage on 14th November, apart from other incentives he got for winning the contest. Smart way to occupy mind space with future Google users, what say?

Pallavi Srivastava

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM enters into media education
IIPM makes record 10,000 placements in five years
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com

IIPM: An intriguing story of growth and envy
Prof Arindam Chaudhuri of IIPM on MF HUSAIN‎
IIPM Related Links
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter
Detail of all IIPM branches
IIPM - Admission Procedure
IIPM, GURGAON