Wednesday, May 30, 2007

Ste(e)ling the No.2 crown

With so much happening in the Steel sector, the Government is very optimistic about the sector and is hoping that India will take on the tag of the world’s second largest steel producer as soon as 2016, with its production capacity increasing three-folds to 120 Million Tonne (MT). In the National Steel Policy, the Government had projected that India would churn out 65 million tonne steel by 2010-11, however, the figure has now been pegged at 80 MT. Currently, India stands at the seventh position, producing 44 MT of alloy while China continues to lead followed by Japan and US.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Friday, May 25, 2007

INFRASTRUCTURE... SIGH...

Jeh Wadia, MD, GoAir bemoans, though with positive tinges, to 4Ps B&M, “We cannot expect infrastructure to be put up overnight but the pace of progress at Delhi and Mumbai and the planned upgradation in over 30 more airports is very encouraging.” The government, no doubt, has to support phenomenally in hiving up in- vestments in airports development and modernisation. But beyond that, airlines need a clear focus on growing the total market pie rather than increasing hold over already established hubs. Sectoral players have to understand that despite there being vigorous growth in the sector, they are losing height... and fast! And while on one hand the players (especially the LCCs) are foolishly blaming escalation in operating costs and fuel prices as being the major culprits for their sad state, the reality is that till the time airlines ‘right-size’ their operations and fleet sizes (instead of inanely expanding), airline corporations being closed down overnight is a red-alert reality. All ego work, and no fair play, makes Jack a dull – and dead – boy. Airlinershave to realise that there is good news and there is bad news. If they risibly continue doing what they are at the moment, there will be no news one day... Ouch!

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Tuesday, May 22, 2007

AN AVIATION BOOM? OR CRASH, BOOM, BANG?!

“I have good news and I have bad news; what would you like to have first?” goes the classic Clint Eastwood line when he enters a Wild West bar, before he goes on to shoot almost everybody with his rifle (which is the bad news) and his revolver (the good news). Indian aviation doesn’t seem far behind this example. For starters, the Indian aviation sector thundered up at a sensational 27.9% during 2006 (Jan-Dec). If that sounded stunning, digest this – passenger volumes in Indian airways grew by an annual figure of an incredible 45% during just the first six months of FY 06-07? And that when international passenger traffic clocked a growth of just 15% during the same period!

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Monday, May 21, 2007

BRAND : Fiat Palio

AGENCY : Orchard
BASELINE : The Fiat of the new generation

DESCRIPTION: A cool dude is zipping down the road in a red hot Fiat Palio. A superfast train is running on the railway tracks alongside. The dude steps up the gas to keep pace with the train, even as he sings ‘Mere sapno ki raani kab ayegi tu’ a la Rajesh Khanna in Aradhana. Oh–and there’s this babe inside the train, who can ‘see’, but can’t hear him sing. So, the dude calls her on the phone, and sings to her.

4Ps TAKE: Fiat is now ostensibly looking greedily at tapping the youth segment and is positioning itself as a zesty, new age brand, instead of drawing on its ‘lineage’. Although the USP remains their trusted name in India, the clinching benefits now on offer are ‘hip’-ness and speed. With many contenders in its segment, the brand has decided to change its communication. Does it work? Yes and no. The Aradhana number is well-used, but the train looks morphed! And how did the dude get the girl’s cell number, we wonder...

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Source : IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Wednesday, May 16, 2007

Aviva India

And why not. Bert Paterson came on board Aviva India with a solid two decade long experience in the insurance biz. He’s been actively involved in the actuarial, planning and strategy areas of Aviva since 1986. Also his last tenure as CEO, Aviva Turkey (since October 2002) contributed extensively to his understanding of the Indian insurance market. “In India, insurance penetration stands at 2.5% and in Turkey it was merely 1.2%. Turkish people were oblivious of insurance security systems for long but now are more aware as ‘safety for future’ is catching on. Launching similar initiatives in India seems like a deja-vu,” says Bert, adding that the gift of patience he developed in Turkey, is working wonders in India. “Like in Turkey, there are lots of ‘tomorrows’ in India too,” he winks.

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Source : IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative


Monday, May 14, 2007

LE TAHA’A PRIVATE ISLAND AND SPA

It’ll awaken your senses and pamper your soul, Le Taha’a Private Island and Spa! Member of the Relais et Châteaux, this tropical lounge of luxury lives up to its motto of 5Cs: Courtesy, Charm, Character, Calm and Cuisine!
THE VIEW: Situated atop the coral reef of Motu Tautau and in front of the languid lagoon of the Taha’a Island, this peerless paradise of pleasure provides a consummate view of the beauteous Bora Bora Island.
ARCHI TYPE: Coupled with a few beach villas, the 48 over-water suites with their large sundecks are a spectacle in their own right. If merely looking at the architectural marvel can be as marvellous, one can well imagine how living in this paradisiacal abode would be!
BON APPÉTIT: With the best of Polynesian cuisine on offer, Le Taha’a boasts of three exquisite restaurants–a pool-side eatery, a cook-shack in the woods and the third, the opulent Ohiri, for fine dining.
AROUND THE CORNER: Sites for water sports are aplenty. There’s even an exclusive diving centre at the resort. Spa centres, like the Manea Spa (ranked at number 3, according to the Robb Report magazine) adds to the experience.
FROM UNDER THE CARPET: Accommodation can be a bit of a problem if you’re banking on them for a huge party.
IN ESSENCE: Will surpass the most magical moments of your life!

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Thursday, May 10, 2007

Diplomats- in-chief

Who are the most effective foreign-policy US presidents of the past century?
When asked to name the top-three American Presidents with the best records of advancing US foreign policy, international relations scholars overwhelmingly agree: A resounding 72% of the total respondents place Franklin D. Roosevelt among the top foreign-policy presidents of the past century. Notably, FDR received high marks from liberals (77%), moderates (66%), and conservatives (55%) alike. Two other Democrats and two Republicans round out the top five. Apparently, the disgrace of the Watergate scandal does not diminish Richard Nixon’s foreign policy achievements, including establishing relations with China and negotiating major arms control treaties with the former Soviet Union.

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Source : IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Monday, May 07, 2007

How about a second hand car... A Bentley?

The Indian roads are all set to dazzle as Bentley drives down its latest and exclusive beauties including the sensational Booklands (next year), GT Convertible (next month) and the Azure. In last three and half years of its Indian operations, Bentley sold 70 units, all priced upwards Rs.10 million, however to maintain its exclusivity, the car maker has allocated only 25 cars for the Indian market this year (last year it sold 28 cars ) . Also, looking at the burgeoning Indian consumer base, Bentley is keen on the pre-owned car segment that is re-sell cars used by Indian consumers. All for exclusivity!

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Thursday, May 03, 2007

Gucci dons a sporty look

Gucci- the flagship bon ton brand of French retailer PPR has grappled 27% stake in Germany based sporting goods company- Puma. The deal had been finalised at $7.1 billion and Puma has embraced the deal. Recently, Puma has been paying heed to the vogue segment and as a part of this strategy, it recently announced to segregate Puma into three different division- sports, sports-lifestyle and fashion. For the third segment, it has tied up with Japanese designer Evisu. The association with Gucci is touted as Puma’s move to become a haute couture brand.

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Wednesday, May 02, 2007

Glaxo faces a rude shock

GlaxoSmithKline and its research partner Adolor have abandoned the trials for their experimental drug, Entereg used for treating bowel spasms. One of the ingredients of Entereg is linked with heart attack risks and other serious cardiovascular problems. In some cases, problems like cancer and fractures were also reported. The results of the year long clinical trials on some 800 odd patients have forced the pharma majors to stop further trials. The markets reacted to this news sharply; as a result stocks of Adolor plunged more than 60%. Analysts believe that pharmaceutical companies find it difficult to maintain a balance between a safe and effective drug.

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