Tata- The finest entrepreneur India has produced!!

Being a finance enthusiast and now that I am pursuing my Masters in Business Administration, reading about the corporate world is but natural.  Reading pink papers gave me more thrill than going through sports other than cricket since a very young age.  Even though I consider the Ambanis as my favourite, one of the captains of India Inc who I consider in high regards is Ratan Tata who completes 76 today.  Its been 1 year since he demitted office from Bombay House but he is heard more than his successor.  Some reports even suggest that he has been working even harder on his personal interests now that he no longer has to run the array of companies under the Tata fold.

Born on the same day as Dhirubhai Ambani, the two people are by far the best to take the country on the global business map.  But their working styles were poles apart.  While Dhirubhai Ambani was an excellent "environment manager", Tata played with utmost honesty even if it meant losing an opportunity.  The opportunity loss was huge when he refused to bribe the Aviation Minister to enter in the late 90s.  But then aviation was in his blood.  He co-piloted a Boeing fighter a couple of years ago and now has piloted not one but two JVs to start an LCC with Air Asia and a full service carrier with Singapore Airlines.  Both are expected to create ripples in the industry with their arrival.  Its sheer conviction that distinguishes him from the rest.

Having studied architecture with structural engineering and later at Harvard he had all the ingredients to make a successful entrepreneur.  The Tata group had sales of roughly $5bn in 1991 when he became chairman and India was just freeing from the shackles of licence raj.  What more would a CMD want? He had loads of cash for expansion and the timing couldn't be right.  But he had to go through an ugly spat with the mighty Russi Mody.  In his fight he showed that though he was silent and not the original choice he would have the last word.  In his quest to unify the loosely bound Tata group and change its image from a construction and truck company to a conglomerate he also lost Ajit Kerkar and Darbari Seth.  But he was not the one to give into others wishes.  He had a vision for the group and he achieved it.  It was his dream to expand into telecom and others.  Immediately after assuming the chairmanship he cut costs, introduced VRS and turned around Telco.  He was an expert at it.

By his own admission he loves cars.  And there have been a number of instances when it has been displayed. The Indica was his creation and so was Nano.  While the former was a success, the second failed.  But even then he did not shy away from accepting the mistake of marketing Nano wrongly.  He always thought for the greater good of the people which led to creation of products like Nano and the Swach purifier.  It is this selfless thinking that makes him such an admirable person the world over.  His decisions are more from gut and less from business sense.  He takes decisions and then makes them right as he puts it.

It was his ambition to grow the Tata group and for that he did not rely on organic growth alone.  He took some bold decisions for inorganic growth.  The Tetley, JLR, Corus acquisitions are fine examples while the failed bid to buy Orient Express hotels shows his hunger for growth.  Though criticized for overpaying for his acquisitions, he proved each one wrong. The JLR contributes all the profit for the parent Tata Motors at present.

But more than his business decisions, it is his personality that charms people including me.  He is a very humble man.  And that is one thing that sets him apart.  I still remember the gestures after the Taj attack.  He didn't wait for the government to take action post the rescue operation.  The same can be said about his refusal to ship a single Sumo to Pakistan.  After all the nation comes first for him. No other businessman at his level would do that.  He was driven more by values and less by profits.  A colleague at Reliance who formerly worked with Tata motors often told stories about how he used to visit the factory workshop and interact with all the employees to boost their morale.  Such was his persona.  I have not heard any CMD do that.  Even the otherwise angry Raj Thackeray spared him of speaking Marathi when he launched an attack on businessmen saying they should speak Marathi in Maharashtra.  And his response on being asked about Ratan Tata was " Please don't drag Ratan Tata into this. He is a global man and above all this". Only Ratan Tata could have charmed Raj Thackeray so much.

He never resorted to manipulations and managing the people in Delhi.  He was given unequal treatment while applying for dual technology in Telecom and even today in spite of being the first applicant has not received GSM spectrum for Delhi.  But that has not deterred him and bribe still remains a big NO.  Such values formed the base of the group he headed for 21 years and which has a history of more than a century.  Very few conglomerates survive for so long without values and a strong tradition like Tata.

At present, he is a part of PM council on  trade and industry and Carnegie Endowment for International peace apart from being the chairman of Tata trusts which is the major stakeholder of Tata Sons, the holding company of Tata companies, and has his own venture, RNT Associates.  He is deeply involved in philanthropy and loves playing golf.  But given the amount of work he has and being most sought after for his experience and his nature to help anyone I assume he might not have the time to play his favourite sport. And so he reigns our hearts. A very happy birthday Sir!!

Vijay Mallya - "King of all times!"

December 18 has many notable birthdays to its credit.  Starting with my mother others include Steven Spielberg, Brad Pitt and our very own King of Good Times, Dr. Vijay Mallya.  He may be called the "Richard Branson" of India or the flamboyant king or "playboy and brash" but he pulls off each appearance with panache.  Be it attending Derbies at the Mahalaxmi Race Course or IPL matches he never fails to make his presence felt.  The entourage of bikini clad sexy women makes males half his age jealous and being the face on the Kingfisher Calendar is a dream for upcoming models.  Its a dream lifestyle for many people today - money, beer, women. What else can a person ask for?

Taking over the reins of the UB group at a very young age (he was 28 when his father died an untimely death) he has steered his group like very few of his age could do.  Starting with consolidating the various companies under the UB group, he expanded his group rapidly to become the number 2 beer maker in the world.  He also has a fertilizer company, Mangalore Chemicals and Fertilizers (only one in Karnataka) and a sports company which owns football teams - Mohun Bagan AC and Kingfisher East Bengal, IPL team Royal Challengers Bangalore and F1 team Force India besides the flagship United Breweries, United Spirits and now grounded Kingfisher Airlines.

All was hunky dory till 2007 when he acquired Air Deccan for two reasons - start flying abroad early (Indian rules stipulate minimum 5 years before flying abroad) and to compete with the LCCs.  Before that or even till late 2012 he was the "King of Good Times".  He has 26 exotic properties across the world, Morocco, Trump Towers in New York, Johannesberg, an island near France, the beach facing Kingfisher Villa in Goa (which coincidentally bear the same initials on the entrance as mine "VM".), the residential Kingfisher Towers in Bangalore and a stud farm as well.  I forgot to mention two world-class yachts where the best parties happen and are a delight for the coveted guest list.  He has on more than one occasion done India proud by getting the Tipu Sultan sword and Gandhi's artefacts from the auctions abroad saving the face for the Indian government in the latter case.  It was a lifestyle envied by most contemporaries.

He expanded his liquor portfolio through the inorganic route by buying iconic brands like Whyte and Mackay and Bouvet Ladubay and had 22 other brands selling more than a million cases.  One of the reasons why Vijay Mallya lived such a lifestyle can be attributed to the fact that he was the brand ambassador of the group, of Kingfisher.  "Vijay Mallya was Kingfisher and Kingfisher was Vijay Mallya."  With strict rules on advertising for liquor he decided to use aviation to promote the brand after water, parties etc.  But this is by far the worst move he has made (it looks so at present but life is full of surprises).  

It was his ambition to be the "King of skies" and made an effort to buy out Air Sahara. But he did not succeed as the controversial aviation 'raja' Naresh Goyal snapped it.  This event made his CFO and long time friend Ravi Nendugadi heave a sigh of relief as he had always opposed going into aviation. It was justified given that aviation had losses with just 1-2% margins in good times while the liquor business had anything upwards of 20% margins.  Any CFO would do that.  But VM had other plans and he always had his way.  He started full service carrier Kingfisher in 2005 and offered gourmet food, TV, gorgeous air hostesses and plush seats so that it could live up to its image.  Facing competition and rising costs compelled him to buyout Air Deccan when it was up for sale in 2007. He believed there are no low cost carriers but low fare carriers but somehow lost the way when he renamed Air Deccan as Kingfisher Red which created confusion among fliers. And from here the troubles started with aviation guzzling all the cash from the liquor business and more.  

At present he has sold United Spirits to Diageo with only 11% to his name most of which is pledged, his majority stake in Mangalore Chemicals has reduced to make him third largest shareholder and faces a threat of a takeover from Deepak Fertilizers, he has had to sell half his stake in F1 Force India to Sahara group, cut down on expenditure in football teams, reports of problems at RCB IPL team and a few days ago Heineken has become the largest shareholder in United Breweries, maker of Kingfisher beer.  The once tough negotiator is finding it tough to strike a deal with banks who are selling the collateral, Airport authorities and operators slapping notices for dues and IT department not far behind, so much so that the Kingfisher house and villa are being seized by creditors and Mallya is silent with occasional statements of starting his airline again.  Employees are not paid and the blame for the airline goes on everyone from parts manufacturers to engine makers and many have filed winding-up petitions in the HC which the court has admitted.  Surely one cannot have a birthday worse than this.

But then we are talking about Vijay Mallya.  He celebrates his losses as much as his wins.  He is known to speak straight to the extent of urging IIM Ahmedabad students that ban on liquor in Gujarat should be lifted. He was criticized but hey, he means business and he was promoting it.  If such problems were to bog him down Kingfisher would have never existed or grown so much.  It was his style that has made Kingfisher what it is today.  He is the only Rajya Sabha MP to wear diamond studs and flaunt it.  Later wore designer khadi jackets.  He had the support of all political parties when he filed nominations and he is vocal about policy changes which shows his clout.  A famous article says that a 20-odd boy from USA mortgaged his Ferrari for $1500 for 15 days and later returning to claim it after paying the principal and interest.  On being asked by the banker for the reason he said no parking space was safer than the bank for so less which took all by surprise.  He was Vijay Mallya.  Don't know how true it is but only Vijay Mallya could have done this.  He trounced Anil Ambani (the famous finance whiz kid of Dhirubhai who together with brother Mukesh are known to be expert environment managers) who had equal interest in buying Air Deccan.  

Such times are not new for him and if I am not wrong a party would be ready for his guests tonight and the New Year in Goa.  And he might be working on reviving his pet project, Kingfisher Airlines, which he micromanaged.  One famous saying from Vijay Mallya himself is " I am a businessman and my business is up for sale if I get the right price".  Time that he let go Kingfisher Airlines to save his liquor business.  He was King of Good Times prior to 2012 and now is the King of Bad Times.  Surely God had a glass of beer or whisky while writing his destiny and so I rightly call him "King of All Times". Happy birthday Vijay Mallya. Hiccup!!

Mahatma's India developing - Really?

Today being the birthday of the man, Mahatma Gandhi, who people claim to be responsible (undermining contribution of various others like Bose, Sardar Patel and even Shastri who shares his birthday with the Mahatma) for today's Independent India, lets try to see where India of his dreams is at present.  Is it really growing as suggested by the sugar-coated figures or is it in utter shit!!  Does India really make use of its resources ( both natural and human intellect) or is it only used to fill the coffers of some people at the mercy of common taxpayers?

Never known to be good in academics, these mind boggling growth estimates and high deficits make little sense to me. Not because I doubt its authenticity - I have no case to doubt it but because for the world India maybe growing and will be among the top-3 by the end of next decade but for an ordinary Indian (or as Naseeruddin Shah puts it, the stupid common man ) its nothing more than tears.  The Aam Aadmi - I hope Arvind Kejriwal likes this - is suffering and crying (read high onion prices) and the rulers of India, the very same people elected by the people for their well-being, are laughing their way to the Swiss Banks.  When someone like Ashok Khemka talks against the "National Daamad" he is transferred or when Ms. Durga rightfully orders demolition of an illegal wall, the mafias boast of a "41-minute suspension act" and the reason by the much hyped CM is that it would have caused communal disharmony.  So much for minority politics eh?  The government is so skeptical of such mafias that it mooted an ordinance for safeguarding tainted politicians against criminal cases in the backdrop of an averse Supreme Court order.  It took an immature prince to go against it and order temporary withdrawal and for the first time he receives some pat.

While I would not be commenting much about the pre-2000, the past decade and half have been painful if not worse.  And a single party cannot be blamed.  Each and every party is responsible for the mess and the condition that has led to us being ranked only 2nd to Russia in major nations in terms of corruption.  The BJP led government tweaked rules for a big corporate house only to provide mobile licenses from fixed line licenses.  Rumors doing the rounds were that the then telecom minister received millions of shares at just ₹ 1. Is that democracy or capitalism?  Since then the number of scams have been more than the number of clothes girls purchase ( no offence please, it is your birthright to buy clothes in abundance).  From the 2G scam to the Coal scam, from the brazen loot from Air India ( one of the better airlines by personal experience) by a certain Gujju minister to the CWG scam the figures have been astounding.  It would take double or maybe triple checks even for a CA who deals with numbers day in and day out before writing the actual figures in rupees.  Even the defence forces and the ISRO are not spared by people at the helm.  And the last two are considered to be of utmost importance for any country.

So in spite of having natural resources in abundance we are suffering.  Oh! talking of natural resources, the illegal iron ore mining in various states to benefit a few companies also should be counted.  Corruption is high and so is security of the stupid people and women in particular.  Rapes are a common thing now and the police seem to have no clue to stop it.  So the blame shifts to the dressing habits of women and as Kalki Koechlin puts it " Its the women's fault" after all.  A country like India where the police force knows about each and every small happening and at their will solve cases within hours cannot ensure the security of it people - hard to believe right?  All this because our beloved politicians want control of each and everything, from natural resources to cash to the police force.

To add to the woes, no single party has a majority at the Centre to form policies.  One or the other coalition partners will threaten to withdraw support if their demands are not met.  And the ego each of these partners carry is phenomenal.  The cow belt region parties don't see eye to eye yet support the same coalition at the centre.  In such a case how can they come to a consensus on an issue.  And those that no longer matter like Lalu Prasad or P.V.  Narsimha Rao are later chased by past cases and ensured that they don't rise in politics to threaten the ruling government.  And yes, the CBI is used effectively for this purpose.  Wasn't CBI involved to ensure safety in the country?  Well, the CBI might now say that it stays true to its name - Central Bureau of Investigation - it investigates for the central government in any case, just the purpose being different.

And before I forget, politicians have ensured India never rises in sports.  A country having the second largest population rejoices on winning a single Gold in the Olympics - Sad.  Or be it the case of BCCI ( Board of Corrupt and Careless Indians or Intellectuals if you like) which is the richest board and has politicians and corporate bigwigs to loot the money.  By the way it is a not-for-profit organisation and does not pay taxes or come under the ambit of the RTI.

Finally before I close, going back to the second resource I talked about in the opening paragraph - Human intellect.  While NRIs and Indian origin people are at the helm of some prestigious organisations across the globe very few actually come back to India.  Even those few are not welcome by our rulers (read Arcelor Mittal).  And each year thousands of students go abroad for Masters.  Can't we have institutes of world fame and people from various countries come to our country and not the other way round?  Common sense tells me it would result in huge capital inflows as well.  But are politicians are busy looting people by charging hundreds of thousands for primary education and doing nothing for higher education.  And yes, they are name obsessed too.  So it is very common to find names of politicians with no meaningful contribution to development of country as institute names.

Final nail in the coffin is the reservation system.  It is a sin to be a general category engineering student like me.  And by criticizing reservation, I would like to clear myself before some local policeman comes with an arrest warrant after me ( well even that won't be produced as it would be entirely illegal to arrest me for practising freedom of speech) that reservation of such proportions where the intended beneficiaries still don't benefit is a waste.  The intention was to uplift the backward and downtrodden and change their psyche.  But after 66 years of no result it needs serious rethinking.  And if not I bet one of our aged politicians (they still claim to be young) to be treated by a doctor who has taken years to complete his MBBS but got admission only because of reservation.

All this has taken a toll on the energetic yet restless youth and when they are asked about a country of preference its a country except India.  This should be the final blow to India I suppose.  Effectively these politicians are killing the golden egg giving hen themselves.

Under this scenario we are going to elections in less than a year and the candidates being a Prince not interested in the job and another though worthy but yet to be tested at the national level.  Though Narendra Modi is officially the hate-boy of Indian politics, people forget that Godhra was not the only riot in India.  There have been bigger and nastier riots under other governments as well.  But even Narendra Modi has refrained from spelling out his vision for India which is something I don't like of late about him.  He still remains the "best among the worst" to lead the country and probably the only hope left.

So while the resting Mahatma might be regretting that his country is ruled by his three monkeys rolled into one and ruled by three masters, there is no clear picture about India.  Just hope that India really taps its potential and grows to be in the top-3 countries in the world but at the same time ensures the well being of its "stupid common man".

India's favorite word since independence - "Jugaad"!!

Ah! finally some free time after a hectic fortnight (actually 2 months).. Sipping tea after 4 days of 3 hr sleep ( a rarity in my life) I wish each reader a very very Happy Independence Day.. Jai Hind!!

The day started with reading the transcript of the same boring "Theek Hai" speech by Dr. Manmohan Singh drawing a rosy picture of India for the 10th time in a row but Narendra Modi's impromptu made up for the dullness in the former.  While each year since 2008 the PM makes a speech spelling out hope and boom it has always been the opposite.  Social Networking sites have left no stone unturned to make a mockery of the PM and his false speech even going to the extent of the problems that should be addressed and ways and means to solve them.  

Today I will not speak on the age old topics of corruption, mismanagement by the Government, bowing to coalition pressure and "saas/sasur-damaad sagas"(Read: Sonia G and Robert 'Banana' Vadra and Srini-Meiyappan) taking India back to pre-1991 days ( it has in fact become worse in my opinion) but one word that has become the favorite of all Indians - JUGAAD.  Though it was not heard frequently 15 years ago, the frequency has increased exponentially with each passing day.  Each and every sentence related to work involves the word "Jugaad".  Well for people not well versed with the Hindi term, Jugaad means "getting work done mostly by bypassing the procedure".  Students during exams say "koi jugaad kar lenge" while when you go to a government office you happily tell the concerned person "sir koi to jugaad hoga, sab khush rahenge".  Even corporates have not stopped from using this Jugaad and get all their proposals passed by hook or by crook.  Well in some situations it is absolutely fine to bypass the protocol and get what you want but it is alarming when you find for ways and means to use jugaad for every damn thing.  And the best way to do this is find connections higher in the hierarchy and just bribe him or form such good relations that you have it your way.  Nothing bad to have connections.  It can be looked as a means for networking and as I have learnt in my MBA course, 48% of successful managers rated networking as the highest among other traits of a good manager.  But then to use shortcuts for everything is simply not accepted.  And from this attitude of ours corruption and other problems follow.  Add to this, we take pride in saying that we are the best "Jugaadus" and can do anything. This makes me feel sorry about our future.  

If we don't follow procedures and just use shortcuts it will lead us to nowhere.  And if the final outcome is itself going to be decided on that basis why have rules at all.. For example while coming up with the guidelines for banking licenses RBI came up with a number of guidelines to be adhered to.  But we all know that one group will bag a license in all probabilities by using its power in the government circles.  So all the hard work that other interested groups do will go in vain.  Rather why not declare that one company is sure and there are 'x' number of other companies.  That will bring some transparency.  

It is still not dangerous but in future when our future generations right from the time they are born start practising this it will lead to great problems.  Only the rich will prosper while the poor will die bribing the ever unsatisfied babus, having connections up the hierarchy will be another style statement ( not that it is now) and whatever little honesty is left will either die or migrate abroad and contribute in their already good state. Rules are made so that there is a level playing field and it is in the interest of all parties involved.  It is fun to break them once or twice but making it a habit spells doom for us.  It is better to have complete knowledge of what we do which not only enhances our knowledge but also gives us satisfaction.

This can go on and on but being in MBA I am taught to manage time especially when I have my exams in 5 days.  So lets hope to go on the right path and do less of Jugaad.. Else time is not far when the most famed son-in-law would be proved right about our country -  turning into a "Banana Republic" with no rules but only Jugaad.. Happy Independence Day again.. Vande Mataram!!

The Week That Wasn't- Sunday's main refreshment on TV

When The Week That Wasn't (TWTW as they say) celebrated 300 episodes with Boman Irani as the host I had just started blogging.  I have always loved the show and wanted to express it in the form of a blog.  Well, what I couldn't do last year, I'm doing it now.  As the show completes 350 episodes - Gopal, Kaneez and Kunal might be refuting by now - it has been a hilarious journey so far. Making people laugh is no easy job.  And when tears come out in others because of your humor you deserve a great applause.  That's what the team at TWTW deserves.  Not only is the script good but also the characters assigned to all are played to perfection.

Each week Cyrus "Bharucha", Kaneez "Rani Pasand", Kunal "the Foodie" and Gopal the you-say-and-he-will portray guy and Mohit mimic the past week events greatly.  Their presence itself makes you laugh and once they start acting its a laughter riot.  Even though the disclaimer says that it is all fictitious, they bring out the facts known to people effectively.  For example when the ministers in UPA were asked to declare their assets, Sharad Pawar declared ₹ 12 crore.  To this Cyrus said that Pawar thought it was the amount in his wallet.  There are a numerous other jokes on Pawar like he can buy all of Pakistan, Bangladesh and so on.  But it is not limited to him alone.  Politicians across parties are mocked and exposed through their strikingly similar associates mostly played by Kunal.  This is what makes it even more special.  There is no bias unlike some other channels or shows on the channel itself.  Now coming to each person's role:

Cyrus Broacha:
The man who leads from the front.  Apart from anchoring with panache, he is also the script writer as per the credits ( Guess he must have paid for that :P).  Numerous jokes on his wife, singing as the Afghan guy after Osama was killed, mocking Kris Srikant or the dancer in the bar he plays each role to perfection ( I'm as serious as Cyrus is on the show :P).  Other notable performances are the doctor treating Baba Ramdev or even the guy caught in sting operations.  But the best part is the interview with the people involved themselves where their expressions and sentences are used for questions which make you laugh your guts out.  He is a delight to be watched.

Kunal Vijaykar:
Easily the backbone of the show. He co-writes the script and he can portray any and every role to perfection.  His physique resembles that to all politicians and he just uses it too well.  Be it Mayavati's assistant Kalwati, Jayalalitha's accomplice, the Mumbai Pandu, Jitin Matkari ( my personal favourite ) and oh boy he sings so well.  He also portrays almost all females like Usha Uthuppa, Pratibha Patil's assistant et al.  He knows how to tickle the funny bones of the audience.  Kudos to him!

Gopal:
Gopal is fantastic when it comes to acting.  Be it the singer with Meira Kumar, the politician, the Maoist in the train looting it, the detective called Rahul Gandhi and you name it.  But the best part is where he plays Manmohan Singh.  Perfect portrayal of the learned Sardar.  Another sardar is Cherry Paaji saying "Guru'. My favourite of Gopal.  You cannot miss him and he makes sure that you don't stop laughing.  One of the many performances I remember is where he played Anna Hazare shouting "Uposhan karunga".  It was simply fabulous.

Kaneez:
The only female in the show (well second if we consider Kunal's female avatars) she plays the role assigned quite brilliantly.  I love her as Sonia Gandhi and Meira Kumar where she shouts "Baith Jaiye" in her accent.  She usually plays the reporter or the blonde or even the weather specialist.  But each Friday when the film releases she plays film critic Rani Pasand with elan.  That is my favorite character when it comes to Kaneez.  All in all a great performer and love to watch her acting as the elite class of SoBo not aware of reality.

Mohit:
Though Mohit is not prominent in each show, his act as a subordinate neta or the hawaldar are humourous.
And he is the associate producer.  So thank him for making this show possible even though as Cyrus claims they are not paid or paid in peanuts.

Had it not been for the Sunday morning or the repeat in evening it would have been quite a boring day given that family dramas and films rule most of Sunday on TV.  I have missed a number of roles played by these guys because this space is just not enough to describe them.  But I hope they complete 3500 episodes and even more.  Though Cyrus will become old given he is already in his nineties (still considered to be young in BJP) I will always look forward to watch this show.  It truly describes "The Week That Wasn't".

Silence is GOLDEN in BCCI

It was the 19th over of the Mumbai Indians and the Chennai Super Kings final of the IPL6 when the ball was given to Lasith Malinga.  When he ensured that more than 36 runs were required of the last over, it was time to rejoice for all Mumbai fans like me.  But that was not there.  The recent events that had unearthed about spot fixing leaves a big question mark not only on the tournament but also the BCCI which manages it.

BCCI or Board of Control for Cricket in India is the autonomous body that regulates cricket in India.  It was made autonomous to promote the game of cricket which is a religion and people swear by it and the players who are worshiped as demi-gods.  There are astronomical sums of money in India and this can be proved by the fact that around 80% of the revenue of ICC (International cricket council) is due to BCCI.  No wonder BCCI has supreme clout and time and again it has used it for its ulterior motives.  

The power, glamour and money has increased so much in BCCI that heavyweight politicians and businessmen alike have not been able to stay away from it.  Sharad Pawar, the 'badshah' of Indian politics ousted long time administrator Jagmohan Dalmiya to grab power and still is a force to reckon in BCCI long after retirement.  And all big politicians entered the game and the battles from the Parliament were expected to be fought on this turf as well.  But curiously enough that has never been the case.  They have colluded together and probably shared the cake as well.  Because it is not common that Arun Jaitley of BJP has a closed door meeting with Rajeev Shukla of the Congress and team up against an ace businessman and Chess Federation and BCCI chief Narayanswami Srinivisan who himself has amended the BCCI constitution to continue as President as well as own a team in the cash rich IPL.  Conflict of interest but Srinivisan will still say I am wrong.  One of the main reasons why there is so much interest in being the President of the BCCI is the power as you virtually rule the game.  Even the captain of India, M.S.Dhoni was gagged at the press conference (he happens to be the Vice President of India Cements owned by Srini) about questions related to spot fixing understandably on orders of Srini.  Such is the power that cricketers like Ravi Shastri and Sunil Gavaskar did not speak a word about it while the IPL was on.

The recent controversy of spot fixing in which there has been clear evidence of Srini's son-in-law involved and his team CSK in a difficult situation as it can be suspended under clause 12.3(c).  But all this while the growing chorus not only in BCCI but also in the "Mango People" about Srinivisan resigning has been answered by "I am innocent and will not resign" or stern silence by the man himself.  Pretty obvious for a man who has created one of India's largest cement companies daring so many storms.  It is more of a prestige issue for him which he will not give up so easily.  It is better to be silent and not react is his stand right now.  But this should not be tolerable as it has resulted in the brand IPL taking a hit and the confidence of all in BCCI dwindling. 

IPL was an answer to the Subhash Chandra's ICL which was formed to give a chance to upcoming players. Not only was it crushed by the genius Lalit Modi but he also made sure that the IPL had glitz, glamour and the moolah.  Mukesh Ambani, the flamboyant Vijay Mallya and King Khan owned teams which added to the success of auctions.  But it could not be managed by the people who forced the creator of the league into exile.  Drugs, fixing and bending of rules surfaced and dragged the league into controversy.  So much so that all the matches after Sreesanth was arrested were referred to as fixed matches.  A dropped catch was referred to as clear case of match fixing.

Being a not-for profit organisation promoting cricket it is not liable to pay taxes except for the IPL where the BCCI paid taxes to stall probe before the truth about money came out.  Various PILs about BCCI have been unanswered and it has daringly kept itself out of RTI as well.  But all know about the cash rich BCCI. And instead of being silent over any questions there are a number of things that can be done by the BCCI.  It can promote and fund other sports in India.  The sight of Saina Nehwal doling out the Champion of the match award in the finals was good.  A little step but surely gives limelight to sportspersons who would have otherwise not got due attention.

As for the mess and the unaccountability BCCI must come make itself more transparent and disallow politicians from the governing team.  Honest and scholars of the game and people who have profound knowledge about the game should be allowed.  Ex-cricketers like Rahul Dravid, VVS Laxman and Anil Kumble who are gentlemen of the game must be roped in to achieve the true goal of BCCI.  If politicians continue to squeeze money from BCCI as well and start ruling over the body, cricket will be the first religion to be denounced by the people.  As a cricket fan I have lost faith in the BCCI and the game of cricket.  Hope I am not among the first to denounce the religion and its Gods.

Reliance - My first employer!

It is said that never criticize your employer.  If its your present employer then you shouldn't as it can go against you in the backdrop of office politics and vendetta; if its your ex-employer then never criticize it in front of your new employer as it creates a bad impression about you bitching.  In my case both are not true - for now - so I can vent my frustration now that I have resigned and not joining any corporate in near future.

It all started in August last year when an uncle working with Reliance Industries for the past 20 odd years asked me what for my resume so that he could see if there were vacancies.  I thought it would be a cakewalk as it would be a recommendation and was excited because the company founded by Dhirubhai Ambani has been my all time favorite.  But it was no small deal.  I had to clear 3 interviews - one by a commercial guy who has spent pretty much his entire life in sourcing, one by a technical guy rather a guy who had been in R&D in Philips for a long time and ultimately the Chief Merchandising of Reliancedigital Retail Ltd.  I forgot a 12- minute 50 question test as well.  Though not entirely Reliance ( Digital is part of Retail which is a subsidiary of Reliance Industries), I took the job for two reasons - the eagerness to learn in the largest private sector company and also partly because it was frustrating to sit at home after my first recruiter delayed the joining date indefinitely and I joined as Asst. Manager in the Global Sourcing for the private label brand of Reliancedigital- Reconnect.

The first few days were spent reading the previous order files as part of my training - one thing I feel needs to be changed big time. There should be formal training and not just learn-as-you-work culture. But well I have no say in that.  Most of the documents made very little sense with costing sheets and copies of agreements - General terms and the Non Disclosure.  Thanks to my Gujarati background it was not very difficult to learn them.  Due to unavailability of a PC for some days I spent time reading these documents and some other info here and there.  But that helped me later in my 8 month stint as I had become pretty much comfortable in discussing and finalizing the agreements so much so that my senior manager would ask me to do the job after a couple of agreements and I would just ask him how important it was so that I had a fair idea where the relaxation could be given.

As I had made it clear to my Asst. VP who was our group head that I was interested in IT/Telecom and not accessories I got that to handle.  So the number of products I handled were far too less than my friend Saurabh who too had joined in the accessory department but the work was same if not more as the IT/Telecom was a dynamic sector with rapid changes.  You had to track not only the progress of products you have ordered and make sure they are technically perfect but also on your rivals who could just throw you out of competition with a better product priced below yours.  The initial 3 months were spent under Mr. Pankaj Deshmukh who was my manager and looked after phones.  I was fortunate to work under him as I have learnt tremendously not only working with him but also watching how he worked.  He taught me all the tricks required to survive and grow in the retail sector and much more. Working on Excel without the use of mouse to a great extent from not knowing excel is one of the initial things I learnt from him. I had modeled my working style like him with my folder arrangements in the PC ditto like his.  I shall be thankful to him forever. Another great person I met here was Mr. Ananthan Veeramani who headed the legal department.  Not much interaction with him but whatever little time I spent it was wonderful.  I was smitten by his humility and confidence about his ability to win a case which I overheard when I waited for 30 mins in his cabin.

Then came the reality and my Honeymoon period ( as my AVP describes the first month of any newbie) was over.  In spite of working in the warehouse on one occasion and leaving at the official time of 6 pm, my AVP was unhappy and for a long time kept taunting although jokingly.  Leaving early for freshers was a sin there -  "How can you leave when your boss still works?" was the argument.  So it was usually 7.30 or 8 in the evening before I left.  As suggested earlier I had little work which could be shown in the weekly reviews which landed me up in the bad books of the AVP and till today it was more of a bitter relationship with him.  But mind you, a man of his intelligence and sharpness is difficult to find.  It was great to see him provide views differing to others but made the most sense as was him giving ways to sort out the mess.

After 3 months I was out of phones and into tablets.  And this was with a different manager.  Someone who was very much with the typical working style of the organisation - unorganized and haphazard with focus on getting products on time and not too much on quality ( a typical sourcing guy).  At one point he and I were described as eating, drinking and sleeping tablets- if not digital then medicinal - by a vendor to a Chinese manufacturer.  It was difficult to adjust with him till the last day as he wanted everything immediately and wanted to conclude things before day end no matter what time it was. I somehow managed due to the initial training and kept both him and myself happy.

On numerous occasions I was entrusted the task of getting the SKUs to the stores on priority basis due to many festivals lined up.  This taught me how to have a great relationship with people as most of my work had to be done with friendship rather than authority.  It also exposed the vagaries of the retail sector. In the retail sector you are on your heels 24x7 and are required to solve the issues even from home on leave.  You had to don the cap of any person in desperate times.  I have had the privilege of working in almost all the departments in my short 8 month career from sourcing which was my primary role to new product development and even logistics and quality towards the end which were totally alien.  The knowledge I have gained here is phenomenal.  A job by default for an engineer i.e in the IT sector would not have been able to give me the same knowledge in 2 years as well. The icing on the cake was meeting Mr. Mukesh Ambani who stood just 3 meters away when I had taken a Chinese vendor for the special lunch in the same building where MDA(how Mukesh Dhirubhai Ambani is addressed) has his office.

But now coming to the introductory paragraph of criticizing your employer.  I have just highlighted the learning above.  But the learning came at a price.  It was immense pressure for six days of the week. An hourly delay has earned me the wrath and anger of my seniors.  The pressure was so much that I used to get work related dreams even though I have slept without dreams all my life.  It was more after March when my best friend and colleague Saurabh left as I had no one to share the angst over lunch and in the bus rides from office to home.  I don't know if it was my inexperience or immaturity but the system out there at least in my team was ridiculous.  In fact there was no system.  Everything was done randomly in a very crude way.  No rules are followed to get the products but just timelines to adhere to and this affects later. Also the way the employees are treated was unheard of.  There was no restraint on language in the meetings which made the females lower their heads as also no respect for seniority. As far as I am concerned there was very little appreciation which over time finished my enthusiasm to work. And the reason was I could not play politics and please the superiors.  I made the mistake of calling a spade a spade in front of the boss which caused friction. The last few days I just used to stand and switch myself off to any comments positive or negative and prayed for the final day.  But maybe such mismanaged environment helped me grow and learn.

Finally I am no longer part of Reliance group.  Honestly speaking it was a mixed feeling for me as I went from one department to the other for clearance.  I felt unhappy as one after the other things were cleared and my feet were heavy when I was moving out.  But thinking of the tension and unhappiness it was good to leave with valuable knowledge and lessons for future.  There is a line in Mahabharata when Bhishma tells Arjun that Victory at any cost is cheap.  Similarly for me the knowledge and learning came at a very small price of a not so good working environment.  Time will prove whether I have more such experiences or better ones.

Infosys - My First Recruiter!!!

Some 4 months since I last got involved in one of my new found hobbies of blogging there has been a lot in the news for the company that actually handed me my first offer letter.  The company is Infosys.  It is a different thing that the date of joining or DOJ has had many delays and finally after about a year I might not be called an Infoscian at all when many of my classmates are going to join and we have received a committed joining date.

There have been 3 quarterly results since the time I have received the offer letter and 2 out of 3 have been much below the stock market and analysts' expectations.  The only time when it came out with good results was due to the much needed acquisition of Lodestone and its performance.  The news is worrisome because Infosys was once the poster boy of Indian IT's $90 billion industry but has since been overtaken by Tata Consultancy Services (TCS), another great company.  But what is more disturbing is that smaller companies like HCL and Cognizant are growing at a much faster pace than Infy.  Started by N.R.Narayan Murthy and his colleagues, this company has had the best of talent until recently but is now facing high attrition due to non-hike in payments and no clarity on the future growth.

I had just started analyzing all news in detail and my penchant for the stock markets was growing in my late teens and one company that was on the recommendation list of all brokerage houses was Infosys.  And the inquisitive nature I have - which my friends usually blow out of proportion - I decided to analyze the company by myself.  As I searched it turned out that this company was nothing short of a course on how to become a successful company.  With Narayan Murthy as the Chairman, Nandan Nilekani was then CEO as far as my memory goes, Mohandas was the H.R head, Shibulal who is now the CEO was then head of operations - a role which I consider was the perfect for him.  I dont remember Kris' role then.  But this was a dream team.  Each one was a master in their field.  Nothing could go wrong.  People across industry lines respected this team for their acumen and knowledge and of course humility.  But over the years as per company policy, Narayan Murthy retired and the post was rotated to all the founders - a big disaster if I am asked.  As if this was not enough, Nandan Nilekani moved on to become the Chairman of UIDAI, something expected from a person like him putting the nation before the company he founded.  And that's when the damage slowly started happening.  I truly admire the ethics of the company but from a business point of view ( Gujju blood in me is speaking at this point :P)  it is not prudent to give the CEO's post to the co-founders in spite his strengths lying elsewhere.  Infosys is so tied to ethics and principles that Mohandas Pai, then HR head was sidelined for the post of CEO after Kris' tenure came towards an end and Shibulal the last co-founder was elected to be the CEO.  Though officially everyone has denied it, there have been indirect indications and it makes sense as well.  With Shibulal becoming the CEO, all was not lost - Balakrishna was still the Finance Head.  His competency is unquestionable in finance and he comes from the old school where aggressive acquisitions are a strict no.  But it also ensures that the company will never go bust like Satyam did.  But soon he stepped down to make for younger blood and K.V.Kamath, another of my favourites from the finance/economics background, who was inducted as Executive Chairman, seems not too much involved in the day-to-day affairs of the company at least by the public statements made.

For the past few results now, Infy is growing at a much slower pace of roughly 5%, while its peers have grown by 12-13% and even NASSCOM, the industry body representing IT, has said that growth will be 10% upwards.  Infosys which till date comes out first with the quarterly results - which sets the tone for stock market enthusiasts like me whether to buy or not a particular stock based on predictions how that quarter will be for others after Infy sets the tone - has been giving weak guidance or revising them downwards consistently attributing the same to weak demands and market conditions.  But when its peers can why can't it excel and prove it is the market leader? The reason is simple.  In this economically weak world, Infosys charges a premium for its work whereas its peers work on lower margins to get more orders and increase the business volume.  This has led to very marginal gain in business for Infy.

Too much bashing now.  Let's highlight the good part.  Infosys due to its conservative nature has a cash hoard of ₹ 22000 crore.  No small deal.  Only a few private companies have so much cash reserve and zero debt as far as IT as a sector goes.  This has been because Infy has stayed away from paying more in competitive bidding as in the case of Axon which was ultimately snapped up by HCL for $2.3 billion.  But it has been over-conservative.  With K.V at the helm we can expect the company to use its cash reserves more given that ICICI was built by him by deploying cash even if may involve some risks.  Another strength that the company has is the ability to bounce back.  Way back in 2000s when the dot-com bubble burst Infy was hit but it came back strongly.  On a personal note I predict the turnaround in the next 12-18 months with US economy coming out of the red ( the main business area of Infy) and hopefully more acquisitions by Rajiv Bansal, the current CFO.  

Infsosys' strength lies in executing the orders on time and even its competitors have admitted that Infosys never compromises on quality.  Well such quality delivery within the stipulated time does come at a cost.  As and when companies focus to quality, Infosys will be the first company to be approached.  What else can be done?  The company, in the interim, can work on lesser margins to get more volumes in this turbulent times.  That will be a difficult challenge for the companies playing disruptive pricing game in the market. Infy definitely has the appetite to take part in the game and win because it is debt free and has huge cash while others work on the debt model.  Another welcome change would be to see Shibulal back as COO and the CEO be someone made to be a CEO like Nandan Nilekani was.  On a lighter note, my friends, notably Saurabh Dwivedi, joining the company will take the company to greater heights.  ( he is going to hype me even more after this.) :P

There has been too much bashing of this iconic company but that is what tests the mettle of great companies- how they come out of it and prove to the world why they are the leaders in their domain.  Or as Sachin Tendulkar says that the stones thrown should be converted to milestones.  Although I too am not convinced with the management talk at present, I am sure time is not far when Infosys regains the crown it has lost.