Do well by doing good
I am delighted to participate in the 23rd Annual Day Celebration of Geojit BNP Paribas Financial Services
I would like to talk on the topic “Social Responsibility of Institutions”. Let me first talk about the current ambience in India in a global environment of economic turbulence.
Current Ambience
Indian economy was growing at an average of 9% per annum till the last year. Now this year, Indian economy has got affected due to global economic turbulence, nevertheless it will grow at 6.5% in 2009 as expected by the Reserve Bank of India. I was asking myself, what type of innovation is needed to enrich the Indian economy and other world economies in the present circumstances. I had discussions, on this subject,with many experts. It came to light that the Indian economy will be less affected due to the world financial crisis. This is due to (i) The liberalization process in India has its checks and balances consistent with the unique social requirements of the country. (ii) The Indian banking system has always been conservative which has prevented the crisis (iii) The Indian psyche is generally savings oriented and living within means is part of the mind set. These three causes have r educed the effect of global turbulence in the Indian economy. However, there is reduction in export and reduction in outsourcing. The drop in annual growth rate of GDP is around 2.5%. In fact, as we approach 2010, the Indian economy is once again showing strong signals. CII recently has reported that the industrial production has risen considerably with increase in business confidence, along with the return of stabilized financial markets and capital inflows, all indicative of upside prospects. The industry grew 9.1% in September 2009. Sectors like automobile, cement and financial services are all posting significant recoveries since the second quarter of 2009.
This is the time innovation has to be encouraged in our thinking to rejuvenate in particular agricultural and rural sector through value addition, the small and medium scale industries and enterprises for making higher levels of contribution to the GDP. I foresee possibilities of creating new markets through rural potential and employment, giving rise to interesting possibilities of Public-Private-citizen partnerships and international partnerships. Right type of financial institution will become an accelerator of economic development.
India’s performance in IT sector, Pharma, small scale industries and the infrastructure has brought a new dimension to the Indian economy. With its credible legal framework in place, robust banking system, dynamic financial system, its skilled manpower and dynamic 540 million youth force India has become an attractive proposition for the world order.
At the domestic level, India is focusing on bringing sustainable development through rural and urban infrastructure, quality education, healthcare, environmental up-gradation, bringing vibrancy in the public institutions for better and enhanced delivery of essential public services on time, reforming the financial system for better global integration and a proactive regulatory system. It is critical to the success of India becoming a Global player. Six decades of democratic vibrancy in providing leadership to the nation gives confidence to manage the socio-economic turbulences and providing the leadership to the one billion people in a democratic, multicultural, multi-linguistic and multi-religious environment.
Saturday, January 30, 2010
Dr.Abdul Kalam on the knowledge society in 21st century
At the 23rd Annual Day Celebration of Geojit BNP Paribas Financial Services
Dear friends, let me first discuss about the knowledge society in 21st century.
The world in the 21st century will be a knowledge based society with multiple opportunities. I was reading a book, “Empires of the Mind” by Denis Waitley. This book gives, what type of the new world which we are facing now? What was yesterday and what is today. I have modified certain points of the author to suit our conditions. I have also added a third line which relates to action of university.
It specially says that “what worked yesterday, won’t work today”.
Yesterday – natural resources defined power
Today - knowledge is power
Corporate will nurture and invest in ideas
2. Yesterday - Hierarchy was the model
Today- synergy is the mandate
Corporate will be enabler of intersection of multiple faculties towards mission goals
3. Yesterday – leaders commanded and controlled
Today – leaders empower and coach
Potential Business Leaders will be empowered through exposure to the needs of sustainable development
4. Yesterday - shareholders came first
Today – customers come first
Corporate should inculcate sensitivity to “customer” needs
5. Yesterday - employees took order
Today – teams make decision
Corporate will promote team spirit and empower them to make decisions
6. Yesterday - seniority signified status
Today – creativity drive status
Corporate will evolve as the breeding environment for creativity in business models
7. Yesterday – production determined availability
Today – Competitiveness is the key
Corporate will constantly evolve methods of continuous improvements through value added services and product revisions
8. Yesterday - value was extra
Today – value is everything
Objective Value Addition to be introduced as a key success parameter for performance evaluation of each employee
9. Yesterday – everyone was a competitor
Today – everyone is a customer
Corporate will be aware and work towards fulfilling its social responsibility to the customers, people and the nation
10. Yesterday - profits were earned through expediency
Today – Work with integrity and succeed with integrity.
Corporate will work and succeed with integrity and propagate the philosophy in all its employees
Friends, the knowledge society of the 21st century will mobilize India towards a developed country in another ten years. Now, let me give my visualization of India during the year 2020.
Distinctive profile of the nation
1. A Nation where the rural and urban divide has reduced to a thin line.
2. A Nation where there is an equitable distribution and adequate access to energy and quality water.
3. A Nation where agriculture, industry and service sector work together in symphony.
4. A Nation where education with value system is not denied to any meritorious candidates because of societal or economic discrimination.
5. A Nation which is the best destination for the most talented scholars, scientists, and investors.
6. A Nation where the best of health care is available to all.
7. A Nation where the governance is responsive, transparent.
8. A Nation where poverty has been totally eradicated, illiteracy removed and none in the society feels alienated.
9. A Nation that is prosperous, healthy, secure, devoid of terrorism, peaceful and happy and continues with a sustainable growth path.
A Nation that is one of the best places to live in and is proud of its leadership.
Friends, for realizing this distinctive profile of India by 2020 in the next ten years, the rising Indian Corporate Sector has a tremendous role to play. The corporate sector backed by its innovative thinking, creative employees and financial assets can take up each of these pillar of development as a mission towards fulfilling their Corporate Social Responsibility and evolve and execute financially sustainable and inclusive models towards achieving the goals.
Dear friends, let me first discuss about the knowledge society in 21st century.
The world in the 21st century will be a knowledge based society with multiple opportunities. I was reading a book, “Empires of the Mind” by Denis Waitley. This book gives, what type of the new world which we are facing now? What was yesterday and what is today. I have modified certain points of the author to suit our conditions. I have also added a third line which relates to action of university.
It specially says that “what worked yesterday, won’t work today”.
Yesterday – natural resources defined power
Today - knowledge is power
Corporate will nurture and invest in ideas
2. Yesterday - Hierarchy was the model
Today- synergy is the mandate
Corporate will be enabler of intersection of multiple faculties towards mission goals
3. Yesterday – leaders commanded and controlled
Today – leaders empower and coach
Potential Business Leaders will be empowered through exposure to the needs of sustainable development
4. Yesterday - shareholders came first
Today – customers come first
Corporate should inculcate sensitivity to “customer” needs
5. Yesterday - employees took order
Today – teams make decision
Corporate will promote team spirit and empower them to make decisions
6. Yesterday - seniority signified status
Today – creativity drive status
Corporate will evolve as the breeding environment for creativity in business models
7. Yesterday – production determined availability
Today – Competitiveness is the key
Corporate will constantly evolve methods of continuous improvements through value added services and product revisions
8. Yesterday - value was extra
Today – value is everything
Objective Value Addition to be introduced as a key success parameter for performance evaluation of each employee
9. Yesterday – everyone was a competitor
Today – everyone is a customer
Corporate will be aware and work towards fulfilling its social responsibility to the customers, people and the nation
10. Yesterday - profits were earned through expediency
Today – Work with integrity and succeed with integrity.
Corporate will work and succeed with integrity and propagate the philosophy in all its employees
Friends, the knowledge society of the 21st century will mobilize India towards a developed country in another ten years. Now, let me give my visualization of India during the year 2020.
Distinctive profile of the nation
1. A Nation where the rural and urban divide has reduced to a thin line.
2. A Nation where there is an equitable distribution and adequate access to energy and quality water.
3. A Nation where agriculture, industry and service sector work together in symphony.
4. A Nation where education with value system is not denied to any meritorious candidates because of societal or economic discrimination.
5. A Nation which is the best destination for the most talented scholars, scientists, and investors.
6. A Nation where the best of health care is available to all.
7. A Nation where the governance is responsive, transparent.
8. A Nation where poverty has been totally eradicated, illiteracy removed and none in the society feels alienated.
9. A Nation that is prosperous, healthy, secure, devoid of terrorism, peaceful and happy and continues with a sustainable growth path.
A Nation that is one of the best places to live in and is proud of its leadership.
Friends, for realizing this distinctive profile of India by 2020 in the next ten years, the rising Indian Corporate Sector has a tremendous role to play. The corporate sector backed by its innovative thinking, creative employees and financial assets can take up each of these pillar of development as a mission towards fulfilling their Corporate Social Responsibility and evolve and execute financially sustainable and inclusive models towards achieving the goals.
Honda recalls over 8000 units of City in India
New Delhi, Jan 30: A day after the Japanese auto giant Honda announced a global recall of 6.46 lakh units of City and Jazz models, Honda Siel Cars India (HSCI) decided to recall over 8,000 units of sedan City in the country.
Buzz up!Honda's decision to recall that cars was based on the reports of defective power window switches.
HSCI on Saturday, Jan 30 announced that it would "call back 8,532 units of second generation City, manufactured in 2007, for a preventive part replacement of power window switch."
All the cars that are being recalled were manufactured in the year 2007.
Since Honda Jazz belongs to later generation models than the one which has been recalled in other markets of the world, the hatchback will not be affected by the recall in India, HSCI said.
The third generation City, which is currently being sold in India, is also not affected, the company added.
The company said that the preventive part replacement would be done free of cost.
The company will be directly communicating with the owners of the cars, which are covered under this part replacement.
Buzz up!Honda's decision to recall that cars was based on the reports of defective power window switches.
HSCI on Saturday, Jan 30 announced that it would "call back 8,532 units of second generation City, manufactured in 2007, for a preventive part replacement of power window switch."
All the cars that are being recalled were manufactured in the year 2007.
Since Honda Jazz belongs to later generation models than the one which has been recalled in other markets of the world, the hatchback will not be affected by the recall in India, HSCI said.
The third generation City, which is currently being sold in India, is also not affected, the company added.
The company said that the preventive part replacement would be done free of cost.
The company will be directly communicating with the owners of the cars, which are covered under this part replacement.
India Inc disappointed at CRR hike
NEW Delhi: Unhappy over the RBI's more than expected 75 basis point hike in CRR to squeeze money supply, India Inc on Friday cautioned that economic growth will be hit if accommodative monetary stance is reversed hastily.
"...The tipping point has not yet arrived for tightening of the monetary policy and if one proceeds in that direction hastily, economic growth is bound to take a hit. This, in turn, will effect employment generation that is critical at this juncture," FI CCI President, Mr Harsh Pati Singhania said.
He said the RBI's move signals a further tightening of the monetary policy regime. A FICCI statement said that SMEs are still borrowing at around 13 per cent, exports have contracted by nearly 20 per cent during October 2008 and October 2009 and imports are down by 21 per cent during the same period.
"Therefore...it is still premature to signal a tightening of the monetary policy and has cautioned that if this is complemented with fiscal tightening, the results would be disastrous," it said.
The Reserve Bank of India has increased CRR- the bank deposits kept with the RBI-- 75 basis points. However, short term lending and borrowing rates between RBI and banks were kept unchanged. - PTI
"...The tipping point has not yet arrived for tightening of the monetary policy and if one proceeds in that direction hastily, economic growth is bound to take a hit. This, in turn, will effect employment generation that is critical at this juncture," FI CCI President, Mr Harsh Pati Singhania said.
He said the RBI's move signals a further tightening of the monetary policy regime. A FICCI statement said that SMEs are still borrowing at around 13 per cent, exports have contracted by nearly 20 per cent during October 2008 and October 2009 and imports are down by 21 per cent during the same period.
"Therefore...it is still premature to signal a tightening of the monetary policy and has cautioned that if this is complemented with fiscal tightening, the results would be disastrous," it said.
The Reserve Bank of India has increased CRR- the bank deposits kept with the RBI-- 75 basis points. However, short term lending and borrowing rates between RBI and banks were kept unchanged. - PTI
Tata Motors drives in Rs 400-cr profit
30 Jan 2010, ET Bureau
MUMBAI: Tata motors, the nation’s largest truck-maker, turned in a profit for the December quarter boosted by soaring vehicle sales and lower excise duty but it warned of rising pressure on margins because of the soaring cost of steel and other inputs.
Net profit for the fiscal third quarter for its Indian operations was Rs 400 crore, compared with a loss of Rs 263 crore in the year earlier quarter, the company said in a statement. It does not include the operations of UK subsidiary Jaguar Land Rover.
“High input costs are expected to put pressure on margins in the coming months, “ said chief financial officer C Ramakrishnan.
Indian automobile companies, including Tata Motors, saw a surge in sales during the last quarter as lower taxes and the central bank’s record low interest rates lured customers. But with the economy recovering, inputs price also rising, shaving off margins.
Operating margin during the December quarter was 12.8%. Gross sales, including excise duty, jumped 83% to Rs 9,577.5 crore from Rs 5,246.3 crore a year earlier. However, excise duty payments rose less at a much slower pace, 22%, to Rs 647.7 crore.
“Introduction of new products and strong continued growth in the existing portfolio, along with government stimulus, a benign liquidity environment and overall economic recovery, have driven domestic demand revival during the current year,” Tata Motors said in a statement.
Vehicle sales in the quarter, including exports, rose 68% to 165,413 units. Sales of its mainstay trucks in the domestic market advanced 88.8% to 93,520 units. Cars and utility vehicle sales, including Fiat and Jaguar and Land Rover vehicles distributed in India, grew 46% to 61,593 units. The company sold 10,034 units of the world’s cheapest car, the Nano.
With the Reserve Bank of India (RBI) keeping interest rates at record lows, and the company’s plans to launch new models in the coming months, sales may climb further.
“Sales of vehicles are picking up again in India and we see recovery in all segments in the coming months,” said Ravi Kant, vice-chairman of the company.
MUMBAI: Tata motors, the nation’s largest truck-maker, turned in a profit for the December quarter boosted by soaring vehicle sales and lower excise duty but it warned of rising pressure on margins because of the soaring cost of steel and other inputs.
Net profit for the fiscal third quarter for its Indian operations was Rs 400 crore, compared with a loss of Rs 263 crore in the year earlier quarter, the company said in a statement. It does not include the operations of UK subsidiary Jaguar Land Rover.
“High input costs are expected to put pressure on margins in the coming months, “ said chief financial officer C Ramakrishnan.
Indian automobile companies, including Tata Motors, saw a surge in sales during the last quarter as lower taxes and the central bank’s record low interest rates lured customers. But with the economy recovering, inputs price also rising, shaving off margins.
Operating margin during the December quarter was 12.8%. Gross sales, including excise duty, jumped 83% to Rs 9,577.5 crore from Rs 5,246.3 crore a year earlier. However, excise duty payments rose less at a much slower pace, 22%, to Rs 647.7 crore.
“Introduction of new products and strong continued growth in the existing portfolio, along with government stimulus, a benign liquidity environment and overall economic recovery, have driven domestic demand revival during the current year,” Tata Motors said in a statement.
Vehicle sales in the quarter, including exports, rose 68% to 165,413 units. Sales of its mainstay trucks in the domestic market advanced 88.8% to 93,520 units. Cars and utility vehicle sales, including Fiat and Jaguar and Land Rover vehicles distributed in India, grew 46% to 61,593 units. The company sold 10,034 units of the world’s cheapest car, the Nano.
With the Reserve Bank of India (RBI) keeping interest rates at record lows, and the company’s plans to launch new models in the coming months, sales may climb further.
“Sales of vehicles are picking up again in India and we see recovery in all segments in the coming months,” said Ravi Kant, vice-chairman of the company.
India cbank holds rates, lifts CRR by 75 bps
HIGHLIGHTS -Fri Jan 29, 2010
RBI DEPUTY GOVERNOR SUBIR GOKARN SPEAKING TO REPORTERS:
"As far as rate hike goes there is also a signalling angle.
It might have indicated a greater degree of confidence in the
recovery." "Whereas we have been saying recovery is in place ... it is
still uneven. That is really what in our calculations was the
strongest argument against hike of rates." "Possibility of a mid-cycle action always exists, we have
never shut it but it is a matter of circumstances and there
must be a strong justification for acting out of schedule and
typically it is a crisis situation. Between now and April if
there is anything that warrants such an action, only then, but
not in the absence of such a provocation. "It is important to recognize that mid-cycle policy action
is only in response to an unforeseen situation and if it is
foreseen, then it would be a part of our schedule."
FINANCE SECRETARY ASHOK CHAWLA:
"In our assessment, the Reserve Bank has taken a very
balanced view of the situation and rightly acknowledged that
managing the recovery is as important as managing the crisis
was." "The CRR hike of 75 basis points is in our view
appropriate and adequate because it would only impact the
excess liquidity which is in the system." "Beyond that RBI has not taken any other steps on the
policy rates at this stage, which is a clear indication that
they intend to proceed in a very calibrated manner in handling
the recovery process." "So overall, the scenario as it seems is that the growth
process is certainly well on track. It has been handled in our
view appropriately, adequately by the Reserve Bank. This should
be a good signal for trade, industry." "The fact that they have not done it today clearly
indicates that they do not see the need for doing it in
foreseeable future," Chawla said when asked the whether he saw
a rate rise as imminent.
CHIEF ECONOMIC ADVISER KAUSHIK BASU:
"Inflation, which was completely sector-specific food,
there is small stirring of that in other sectors taking place.
To that extent, RBI has reacted correctly." "Inflation is not going to go out of control, but the small
step taken by the RBI is in the right direction to keep the
whole economy's demand more or less under wraps, and also the
expectation this is going to mop up little bit of excess
liquidity from the market."
RBI DEPUTY GOVERNOR SUBIR GOKARN SPEAKING TO REPORTERS:
"As far as rate hike goes there is also a signalling angle.
It might have indicated a greater degree of confidence in the
recovery." "Whereas we have been saying recovery is in place ... it is
still uneven. That is really what in our calculations was the
strongest argument against hike of rates." "Possibility of a mid-cycle action always exists, we have
never shut it but it is a matter of circumstances and there
must be a strong justification for acting out of schedule and
typically it is a crisis situation. Between now and April if
there is anything that warrants such an action, only then, but
not in the absence of such a provocation. "It is important to recognize that mid-cycle policy action
is only in response to an unforeseen situation and if it is
foreseen, then it would be a part of our schedule."
FINANCE SECRETARY ASHOK CHAWLA:
"In our assessment, the Reserve Bank has taken a very
balanced view of the situation and rightly acknowledged that
managing the recovery is as important as managing the crisis
was." "The CRR hike of 75 basis points is in our view
appropriate and adequate because it would only impact the
excess liquidity which is in the system." "Beyond that RBI has not taken any other steps on the
policy rates at this stage, which is a clear indication that
they intend to proceed in a very calibrated manner in handling
the recovery process." "So overall, the scenario as it seems is that the growth
process is certainly well on track. It has been handled in our
view appropriately, adequately by the Reserve Bank. This should
be a good signal for trade, industry." "The fact that they have not done it today clearly
indicates that they do not see the need for doing it in
foreseeable future," Chawla said when asked the whether he saw
a rate rise as imminent.
CHIEF ECONOMIC ADVISER KAUSHIK BASU:
"Inflation, which was completely sector-specific food,
there is small stirring of that in other sectors taking place.
To that extent, RBI has reacted correctly." "Inflation is not going to go out of control, but the small
step taken by the RBI is in the right direction to keep the
whole economy's demand more or less under wraps, and also the
expectation this is going to mop up little bit of excess
liquidity from the market."
Tuesday, January 26, 2010
Sensex falls by 188 points on weak global cues
Mumbai, Jan 27 (PTI) The Bombay Stock Exchange benchmark Sensex today fell by 188.51 points, or 1.10 per cent, in opening trade on selling by foreign funds driven by weak trends in the overseas bourses.
The 30-share index, which had lost over 860 points in the past five sessions, fell by 188.51 points to 16,591.95 points. Banking, technology and metal sector stocks were under pressure, dragging the Sensex down.
The wide-based National Stock Exchange index Nifty dipped below 5,000-point level losing 63.15 points, or 1.26 per cent, to 4,944.75 points.
Brokers said sentiments on the domestic market remained bearish in line with subdued global markets on reports that China may impose further measures to squeeze liquidity.
Besides, tomorrow's monthly expiry in the derivatives segment also cast its shadow on the sentiments as participants were seen off-loading their positions, they added.
Among major losers, Reliance Industries down by 0.08 per cent to Rs 1,040.
The 30-share index, which had lost over 860 points in the past five sessions, fell by 188.51 points to 16,591.95 points. Banking, technology and metal sector stocks were under pressure, dragging the Sensex down.
The wide-based National Stock Exchange index Nifty dipped below 5,000-point level losing 63.15 points, or 1.26 per cent, to 4,944.75 points.
Brokers said sentiments on the domestic market remained bearish in line with subdued global markets on reports that China may impose further measures to squeeze liquidity.
Besides, tomorrow's monthly expiry in the derivatives segment also cast its shadow on the sentiments as participants were seen off-loading their positions, they added.
Among major losers, Reliance Industries down by 0.08 per cent to Rs 1,040.
Subscribe to:
Posts (Atom)