IDFC

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Investee: IDFC

Investor: KNB

Investment Value: $180 mn

FIIs and QIPs are gung-ho about infrastructure development in India. IDFC has been a key player in attracting investment from foreign players. In 2005, when infrastructure development gained momentum, IDFC was responsible for financing nearly 25% of the projects. For KNB, this deal meant having a share of the pie that this sector can offer. Just after a year, KNB’s investment of $180 million has swelled to $440 million. This deal may pave way for other Malaysian firms wishing to invest in India. It can also work the other way round, when IDFC and its investors contemplate investing in Malaysia.

On November 13, 2007, Khazanah Nasional Berhad (KNB), an investment arm of the Malaysian government, picked up a 9.95% stake in Infrastructure Development Finance Company (IDFC) for $180 million. The aforesaid investment was made through a wholly-owned subsidiary of KNB, Sipadan Investments (Mauritius) Ltd. KNB acquired 10.1 crore shares of IDFC from UBS. With this block-deal, KNB became the second largest stakeholder of IDFC, after the Indian government which holds nearly 23% in the company. According to KSB, “It is a strategic investment, as the Indian realty sector is projected to experience one of the highest growth rates in the booming Indian economy.” The primary focus of IDFC in the coming times would be on energy and transportation. IDFC currently has major investment in 22 different infrastructure related firms. The company also manages two funds, viz. IDFC Development Fund and IDFC private equity fund. As of now, the company has investments totalling $8 billion in various projects. Yet again, the PE players are getting into high-growth and potentially lucrative areas.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!

Kaustav Das

IIPM, GURGAON

In the midst of nowhere...

Hi, I am Kaustav Das, presently the Head, Marketing (South), Travel Division, Saffron Media Pvt. Ltd. I am 39 years old and my annual pay package is Rs.7 lakhs.

“My aim at the moment is to reach a salary of Rs.10-12 lakhs per annum. For the same, I am reaching out to overshoot my targets at work by 100%.” Kaustav started investing 3-4 years ago, mostly in mutual funds. The ones that he presently has are Fidelity India Special Situations-G, Franklin India Taxshield-G, SBI Magnum Global-G, SBI Magnum Taxgain-G & Templeton India Equity Income-G. “I also bought a Kisan Vikas Patra worth Rs.40,000 just a month back and have even invested Rs.1,00,000 each in two businesses. I’m getting about 30% returns on these,” he adds. Now, Kaustav is planning to invest Rs.1,50,000 over the next 2-3 months in mutual funds. He has a flat in Bengalooru (he is paying Rs.6,000 as EMI). “Though I bought a Kisan Vikas Patra, I don’t quite like it. The time bound period of seven years is too long! I don’t like government securities and bonds,” he says. Kaustav is middle aged now and wants to make more money to treat himself to the best that life can offer!

Though in his late 30s, Mr. Das has aggressive plans for his future, with enough money to live it up in style! He needs an aggressive investment portfolio. After consulting Vineet Khurana and Mayur P. Shah, executives in Wealth Management Product of Anand Rathi, 4Ps B&M lists out the following investment options for him.

Medical insurance from a general insurance Co. worth Rs.2 lakhs, for Mr. and Mrs.Das (premium for which would be approx Rs.10,000 p.a.); term life insurance cover worth Rs.1.4 crores (as per the current income) from any life insurer for Mr. Das. This can also be taken in parts. Annual premium for a life cover of Rs.1.4 crores would be about Rs.36,000 p.a.. For taxation planning under section 80C, one should invest a minimum of Rs.1,00,000 in a financial year in the instruments listed U/s 80C. The amount should be invested in ELSS. If Kasutav is risk averse i.e. doesn’t want to invest in equity then he could go for PPF investment option.

If we assume that currently Mr. Das is having an annual expenditure of about Rs.3 lakhs, and if he wants to maintain this lifestyle post retirement too, then he needs to invest Rs.1,21,290 each year in Equity MF (assuming returns of 15% p.a.) up till retirement (with inflation at 5% p.a. & life expectancy of 80 years). This will create a corpus of Rs.67.58 lakhs on retirement. Anil Mascarenhas, Editor, India Infoline, recommends a combination of equity diversified mutual funds for Mr. Das. For an annual investment of Rs.1,50,000, he may perhaps invest Rs. 50,000 each in DSP Equity and Reliance Power; and Rs.75,000 in Reliance Vision.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Global innovator...

When IIPM comes to education, never compromise

...and that’s what you can call Infozech!

Ponder over the veracity of the statement – ‘In the IT sector, the generation next is comprehensively representing India on the global map.’ “What’s so new about it?” You might wonder, right? Certainly so... but a lesser known fact perhaps is that this sector is also recognised for having given to the world a host of young Indian entrepreneurs whose contribution is far beyond being the ordinary. And in this backdrop of the intellectual class, surfaces an alumnus of the prestigious Indian Institute of Technology, New Delhi, Ankur Lal. He started his corporate journey with software development, a pretty focussed and strong start actually. But the quest to do something new, forced him to move beyond just being a software development tank.

“I had worked with CitiGroup for more than a decade, but wanted to do something of my own – something that was innovative! But at the same time if you can’t make money, then what’s the point of innovation,” reminisces Lal. Cut to the late 1990s, a period when the telecom sector was a toddler and brimming with the potential of high double-digit growth. Remembering the decade gone by and explaining his strategy behind the move, Ankur adds, “I knew from the start that the telecom market was growing and there was scope to do something new. Given my experience of having worked with software providing convergent billing process, I wanted to get into it, given the fact that then, no organised player was in it....”

Having seen the light at the end of the tunnel, he set up Infozech Software Ltd. in 1999 and just like any other small start-up, faced capital hurdles and lack of high-quality personnel to join his team in the initial stages... To overcome the first bottleneck, he started eying venture capitalists. “But it was not easy as we were a new company, so nobody wanted to take the risk by investing in our business. Finally some VCs responded from Dubai,” elaborates Ankur who is now spearheading the company as its CEO.

After injecting fresh capital, Infozech started roping in industry experts and today the company has over 60 qualified engineers on its rolls. It also started spreading its wings across continents, including the US and Europe. Today, with an annual growth rate of 50%, the company boasts of a massive Rs.50 crores in annual turnover during 2006-07. Ankur, to his credit, has also bagged the Young Entrepreneur Award from NASSCOM and Deloitte Fast 500 Award.

However, with intense competition increasing from several organised and unorganised players, will he able to sustain the terrific growth rate? Ask him that and pat comes the reply, “We have tied up with big names like Motorola, IBM, HP & Sun and if we can satisfy our clients through our innovation. No body can snatch them.” Currently, this confident CEO is also chalking out plans to ensure his presence in the GSM mobile business. And with a tall target of growing at a CAGR of 100% till 2010, there’s no denying that it’s indeed the best of innovation unlimited for India ahead!

Edit bureau: Angshuman Paul

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!

‘I’n ‘T’otal ‘C’ontrol...

Why Study Abroad When IIPM Gives You 3 global Advantages!

ITC’s launches are a serious threat to HUL!

ITC is at its best again! After storming the market with the launch of its branded snack food Bingo, ITC Ltd, in September 2007 launched its premium range of shower gels & shampoos, Fiama Di Wills. Interestingly October 2007 saw the company launching Superia, an exclusive range of soaps. Call that a flurry of attacks on HUL, but it actually has got ITC on the front foot.

As per ACNielsen, HUL’s best-selling brand Clinic Plus continues to lead the shampoo segment (which is growing annually by 14%) with a 31.3% market share. With HUL’s share in the shampoo market registered an increase from 46.9% in the first quarter of 2007 to touch 47.5% in the second quarter of 2007, it was indeed time for ITC to apply brakes to HUL’s acceleration. With R&D efforts spanning four long years for the product, ITC has surely ensured that its aggressive marketing (which is visible) is coupled with high-quality offering as Dibyajyoti Bora, Marketing Analyst, CII opines, “ITC Ltd positions its products at a different level altogether; it eats into the market with its heavy promotion and marketing. This added to great quality means a lethal combination.” ITC shrewdly has positioned Fiama Di Wills as a premium brand while Superia has been placed in the value-for-money category. This makes for a range of prices when faced with the challenge from HUL. It becomes more interesting as ITC has kept the pricing of Superia, close to 50% lower than HUL’s shampoos and closer to low price brands like Chik, Rejoice and Nyle. Clear advantage indeed as Bora adds, “A new brand always has the advantage of setting its own price, but for an existing brand to match that level of pricing becomes tough.”

Where the war looks tied in the distribution front, product differentiation and differential pricing is now being used as the new weapon by ITC. HUL, are you listening?

Savreen Gadhoke

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career

...and another G for GMR

When IIPM comes to education, never compromise

Cementing nations buildings – the GMR way

When one talks about infrastructure, its gets difficult to forget the other infrastructure giant making waves around the nation – GMR Group. Airports, energy, roads and urban infrastructure, you name it and we’ll show you how this titan has left its paw marks on the segment. GMR is today evidently on the forefront when it comes to public-private partnerships with its stakeholdings in every infrastructural undertaking in the country. And its financials too reflects success with its Q2 2007 net profits rising by a teeth-jarring 1,109.6% over the previous quarter to touch Rs.8.93 crores. To this Mr. G. M. Rao, Group Chairman, added, “Our numbers are growing as per expectations. The present results reflect only a small aspect of the true operating potential of our assets. As more of our businesses are operationalised to optimum capacity, we are confident of posting substantial growth in performance, thereby resulting in continued value accrual for all our stakeholders.”

GMR has made noticeable advances into the airport segment too; what with it bagging of the brownfield task to transform the Indira Gandhi International Airport, New Delhi and also the much awaited greenfield project, the Shamshabad airport, Hyderabad. While the Indira Gandhi International Airport has undoubtedly been in the news for all the wrong reasons for quite some time, all that changes with GMR-led Delhi International Airport Ltd. in the picture. Revamping the scene is not the only thing that’s on their mind, GMR is making sure that the airport doesn’t fall short of its technical or hospitable capabilities earmarked with digital telephony, and new rapid exit taxiways, new business processes with IBM in the picture. And by the looks of things, the difference became all the more noticeable after Delhi International Airport Limited (DIAL) became recipient of the prized ISO 9001:2000 quality certificate.


Another significant achievement for GMR was is its infrastructure consortium was winning the tender for Sabiha Gokcen International Airport (SGA) at Istanbul. Surely, this player has its eyes on the international markets too as Rao asserts, “We continue to consolidate our position as an innovative infrastructure player, moving in rapidly to identify domestic as well as international investment opportunities.” This year even marked several significant moves like the tie-up with Apollo Hospital in the Shamshabad airport and the 1,000 MW power project in Chhatisgarh. CSR activities of the group too found a place on its calendar, with its environmental initiative (‘Methane Recovery and Power Generation’ programme) and its social arm GMR Varalakshmi Foundation contributing towards community work. So, what makes GMR so admirable? As a knee-jerk response, Vijay Vancheshwar, Group Head & VP (Communications) opines, “It is GMR’s focus on excellence, willingness to learn and adaption of global best practices backed with solid ground-level preparations which makes the day worthwhile for it.” With its actions speaking louder than words in the year gone by, GMR is undoubtedly well on its way to fulfill its vision.

Edit bureau: Aveena Lopes

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!

Anchor - The light of your life.

When IIPM comes to education, never compromise

BRAND: Anchor
BASELINE: The light of your life.

4Ps TAKE: First, we kept wondering whether this is a catapult ad, a deodorant ad, a helmet ad, or an umbrella ad but now we know that it’s an ad for Anchor lights. The power idea seems to be dangling in darkness: no light on it whatsoever! Guess the creators of the ad forgot what product is being advertised. Further we wonder, are people buying Anchor just because it comes with freebies? The storyboard is anything but appealing with a funny looking female who asks for jhumkas in the end. Right – so is that a good enough reason (free jhumkas) to buy the brand? Instead of adding value, it takes away the clinching benefit to the brand, by focusing on the freebies. Further, the brand value can only increase through the right positioning – and this is where the ad fails miserably. The communication is tacky, and doesn’t grab the viewer’s attention for a second. So, if Anchor thought it was going to be the light of our lives, sorry, buddy, bad luck! We were all left groping in the darkness!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!

LIC is untouched; but the number 3 among private insurers, HDFC Standard Life faces a unique predicament!

IIPM - Admission Procedure

It all began with the Malhotra Committee in 1993, whose radical recommendations, allowed private companies with a minimum paid up capital of Rs.1 billion to enter the largely untapped Indian insurance sector. As a result, the sector, which for long had been basking in the monopoly of state-owned Life Insurance Corporation of India (LIC) – which still commands about 70% market share – awakened to a deregulated environment in the year 2000. Multinats began pouring in, partnering local private players to tap India’s latent insurance potential, spawning, among others, private insurance giants like ICICI Prudential, Bajaj Allianz, ING Vysya, Tata AIG, HDFC Standard Life, and more.

The rules of the game changed overnight. Cut-throat competition, ledto a virtual marketing blood-bath, allowing a few off springs of insurance liberalisation to take the clear lead, while others lagged behind due to some miscalculation or the other, in the nascent market. Among others, the plight of HDFC Standard Life was particularly agonising.


For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
IIPM, GURGAON
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!