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07 FEB 2013

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Chanda Zaveri, a runaway success Upbeat Starbucks expands in Capital A leader must earn respect : Shahnaz Husain, MD of Shahnaz Husain Gr. of Com.: An Interview When packaging shapes brand image Radio Phase III: Base price & spectrum issues major concerns for industry Soaps will never die. Heres why Jim Hytner to lead IPG Mediabrands G1 Stationery brands write next level of communication Aam Aadmi Party launches online news channel Is Ranchi market getting too cluttered for print players? BBC elevates Preet Dhupar as COO, India operations Zee News Ltd Q3 ad rev strong, no big fall in carriage fee 'We are looking at a break-even in five years' : Subhadarshi Tripathy, Head of ZeeQ : An Interview Colvyn Harris' advice to Rana Barua: "Stay Impatient" : Colvyn Harris, CEO of JWT,: An Interview Indian economy may decelerate further, says IMF report Why do we prefer physical assets over financial assets? For India Inc, going private isn't easy Tata Group gets its first Brand Custodian B-schools get sleepless nights as CMAT finds few takers Ranked among top Global MBAs by Financial Times, London

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Chanda Zaveri, a runaway success Thursday, February 07, 2013 Source: www.hindustantimes.com She ran away from her Kolkata home to the US in 1984 to escape an arranged marriage. She was still a minor, penniless and alone in a new country. Today, Chanda Zaveri (49) is one of the worlds leading molecular biologists, founder-owner of companies like Actiogen and Skin Healix, which have a combined turnover of $150 million (Rs.800 crore) and a dollar multimillionaire in her own right. Along the way, she has also helped develop the B2 Actigen Skin Care programme. But back in the 1980s, it was very different. Her conservative family had decided to get her married when she was still in her teens. But Zaveri, who had graduated with biology from Calcutta University, had her own plans. I dreamt of winning the Nobel Prize. And I knew I could never do it if I had to live a borrowed life as a housewife. So I decided to escape at any cost, Zaveri, who is single, told HT on a visit to Kolkata, where she has bought a house in Salt Lake. She called up David Ross in Boston. She had met Ross when he had visited Kolkata as a tourist. David agreed to send me a sponsor letter. I sold my diamond rings, purchased a British Airways ticket and fled to US, she recalled. Wasn't she scared, trusting a virtually unknown foreigner? Anyone who meets David immediately trusts him, she said. The early years were difficult. She worked as a maid to support herself. Then, a second chance event completely changed her life. "David introduced me to his father-in-law, who adopted me." She went on to complete her masters degree in molecular biology from the University of California and began her research in bio-chemistry at the California Institute of Technology (Caltech) under Nobel laureate Linus Pauling. Zaveri, who likes Indian food like khichri and Bengali gur sandesh, specialises in anti-ageing skincare, wound-care and cancer-care treatments. In 1994, she decided to set up her own business. B2 Actigen, the first product she developed, was a runaway success. Many more bestsellers followed. Today, lots of peptide-based skincare products are available in the market. But I was the first to use peptide in skincare lotions, she said. Despite the success of her business, she has no plans of either listing her companies or cashing out. I do this because of the satisfaction it gives me, she added. Even today, Zaveri focuses mainly on research & development end of the business. Her brother Mohit handles the management. Despite her busy schedule she makes it a point to make time for herself. I love painting, which I do for self satisfaction. My second passion is Argentinean Tango dance and I have almost completed my course, she said.

Upbeat Starbucks expands in Capital Thursday, February 07, 2013 Source: www.hindustantimes.com US-based global coffee chain Starbucks, which is fast expanding its coffee stores in India in partnership with Tata Global Beverages, has said it expects India to be among its top five markets in the long term. The company has been a late entrant in India, opening its first store in October 2012. Its stores are being operated by the joint venture firm Tata Starbucks. Starbucks, the worlds largest coffee chain, refused to divulge specific details, it has chalked out aggressive expansion plans. We see India as one of our key markets and expect the country to be one of our top five markets in the long term, said John Culver, president Starbucks Coffee China and Asia Pacific. Culver, did not spell out long term and only mentioned that there was tremendous opportunity for the company to grow in India. Avani Saglani Davda, chief executive officer of Tata Starbucks, said the company would initially target the top 53 cities of the country for its stores. We will also forge tie-ups with corporations for a possible coffee store or a kiosk in IT parks or corporate hubs, he told HT. Indias organised coffee market, estimated at around R1,500 crore with an annual growth rate of 25%, has hitherto been dominated by Caf Coffee Day, Barista Lavazza and Costa Coffee. The company opened its seventh flagship store within four

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months, at Delhis Connaught Place. More are on the way. Coffee consumption in India has grown by over 80% over the last decade. An estimated 115,000 tonnes of coffee was consumed in 2011.

A leader must earn respect : Shahnaz Husain, Chairperson and MD of Shahnaz Husain Gr. of Com.: An Interview Thursday, February 07, 2013 Source: www.hindustantimes.com Shahnaz Husain, Chairperson and Managing director of the Shahnaz Husain Group of Companies, is a pioneering Indian woman entrepreneur. How do you define a leader? A leader is one who has a vision and then inspires others to believe in it and achieve it with confidence. In fact, a leader inspires others to believe that nothing is impossible. How do you build a following? Innovative ideas go a long way in inspiring others to recognize you as a leader. One should think big and present the big picture and make others believe that it can be achieved. One should be able to make others a part of your dream. The human aspect is also important.to reach out to others, at the human level, especially during tough times. It is important to realize that one cannot achieve anything alone. It is the effort of the team as a whole that counts. Appreciating the efforts of others and commending them is important. What are the three most important traits of a leader? A leader should have a vision and a dream, with a burning desire to realize them. The leader should be a role model. The ability to develop a team and motivate it towards achieving goals is important. Belief in the importance of team work is what the leader should develop in the team. The leader should also have the foresight to envisage the routes to success, as well as the problems that can befall, so that they can be prevented in good time. What was your best decision? Extending my salons and other ventures through a unique franchise system was my best decision. Today, our franchise system is a highly successful business model with tremendous international goodwill. And the worst decision too? My worst decision was to postpone my talk at MIT from last year to this year. I wish I could have changed the course of destiny of the students by teaching them the secret of my personal success formula. I repent having wasted so much time. Since September 2008, the world has fallen into a maelstrom of serial crises. What is the role of a leader in these times? The reason why the world fell into the maelstrom is that some leaders lost sight of ground realities. At such times, introspection is needed, to analyse what has gone wrong and take the steps to improve them. The business world is a dynamic one and one should be aware of developments and changing trends, go in for innovative changes, find new markets and new products. It is during difficult times that the trust of the people in the leader is put to the test. The leaders conviction and good communication help to tide over the crisis. The leader cannot go into a shell, but should have the ability to take everyone along. What type of relationship must a leader share with his team mates? The pursuit of excellence and the ability to work hard are very necessary. So are, drive and focused determination. The team recognizes these qualities and is motivated by them. The leader should have in-depth knowledge of the different aspects of the organization. Also, the ability to delegate responsibility on the basis of trust is also important. A leader has to be dominating and authoritative. Is that true? A leader should command and earn respect. One does not have to be dominating and authoritative to do so. A leader commands respect with vision, focus and the ability to translate ideas into reality. Also, by being the person others look up to during times of crisis.
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What is your style of leadership? I always say that I rule with my heart and not my head, because I am emotional and believe in the human and personal aspect. I believe in being emotionally supportive. To show care and concern at the human level helps to build loyalty. We have employees who have been with us for decades, seeing the organisation grow from its infancy. You are competing with leading global brands like Unilever, P&G and others. How do you lead your sales team when they complain about the growing penetration of such companies? I motivate and build up confidence by emphasising our plus points - that we have a head start on other companies, with a track record of over four decades. We have already established brand loyalty and a global network of ventures and distributors. We also look at the current scenario and how we can improve on it - in terms of establishing more points of purchase, especially in malls and supermarkets, and also how we can remain ahead of the competition with new launches and innovations.

When packaging shapes brand image Thursday, February 07, 2013 Source: www.exchange4media.com For every brand, it is the moment of truth when a consumer holds the product in her hands and decides whether or not it goes in her shopping bag and that decision depends a lot on the kind of communication the product is able to generate with the consumer. A products packaging and designing play a very important role. Being the only tangible touch-points in a marketing mix, designing and packaging are critical in creating a brand experience. Todays consumer needs to be stimulated by the brand packaging and design of a product due to the high level of competition in each market segment. This becomes an important factor in a buying decision for a consumer. They are keen to be informed, inspired, tempted and pampered by surprising and persuasive functions, emotions and sensual impressions, said Shekhar Badve, Founder Director (Strategy and Marketing), Lokusdesign. For a very long time Bisleri was synonymous with mineral water. However, the packaged water industry in India saw a radical change in which premium packaging and an appearance change played a prominent role. Bisleri lost its market share to a number of competitors, which was then revived through a change in its packaging and designing. The brand launched new sizes of packages, which were then normally not available and also created a better presentation by using vertical display on flat sleeved bottles. With the increasing competition, packaging and designing have been critical in the packaged water segment. The Narang Groups Qua water range provides a range of mineral water packaged in lean bottles with defined edges, Kinley packages water in finely curvaceous bottles and Aquafina has well rounded packaging, thus giving each brand a unique identity. When there is very little differentiation between technology or formulations, product design is the only differentiator that can not only satisfy the latent needs, but also delight the users. Product design is not only a marketing activity, it is deeper than that and has to become a part of the brand DNA, said Ashwini Deshpande, Director, Elephant Strategy + Design. Every cut, every stroke and every colour used to design a package should play a specific role in communicating the brands message to the consumers. A wrong combination of either of the elements can result into a failure in communication with the target audience. For instance, Nestles Bar One initially had a red and silver packing. The chocolate received strong competition from Cadburys Five Star and thus suffered from low trials. The major problem was that the consumers were not aware that the product gave the same chewy 'caramel inside' experience as Five Star. A research later decoded that gold as a colour defined the (caramel inside) category and the package colour combination was then shifted from red and silver to red and gold, resulting in an increased market share for Bar One. Commenting on the importance of every element in a design, Preeti Vyas, CEO, Vyas Giannetti Creative said, While creating a package design or logo, one has to understand the consumers for that product, what kind of a product it is and what is its
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business objective? Also, you have to see how the competing products are designed. A package design usually stays for decades; thus, every element in it should be thought through and should be able to strengthen the products brand position. Packaging, logo and designing play a very important role not only in the traditional marketing mix but also in comparatively modern business concepts such as brand stretches. Brand stretches refer to parent brand venturing into new arenas by creating new range of products that might or might not be related to their usual range of products. Packaging, logo and designing play a very important role in brand stretches because the look of the product has to maintain the parent brands identity and at the same time also set the product apart to display its novel features. One of the most successful brand stretches in the recent past was that of Parachute Body Lotion. While the parent company is more into hair care products, it ventured into skin care. The brand created a curvaceous package with subtle colours that indicates its soft skin to touch message and at the same time, the logo had the coconut tree which implied the strengths of the parent product. Packaging, logo and designing have come a long way from their purpose of merely holding the product and stating the name. The trend of these elements is now more towards extending market share of the product, enhancing its shelf-life, provide greater brand experience and eventually produce economic packages. And with the arrival of supermarkets, presence of global brands and increasing exposure that the consumers get, the importance of packaging and designing will only get more critical in the coming years.

Radio Phase III: Base price & spectrum issues major concerns for industry Thursday, February 07, 2013 Source: www.exchange4media.com Phase III auctions have been a controversial affair since the very beginning. The e-auctions were slated in to take place in mid 2012 with the GOPA migration date decided in March 2012. This date was later postponed to June 2012, then December 2012 and is now on June 30, 2013. While the Ministry of Information and Broadcasting claimed that the Phase III auctions will now be materialised on priority basis, there are a number of concerns that haunt the radio players. In an earlier conversation with exchange4media, Prashant Panday, Executive Director and CEO, ENIL said, The radio industry wants electronic tendering (single step bidding) and not electronic ascending auctions (multi-step bidding) because the former will be able to allot frequencies at different prices, thus promoting programming variety, while the latter will allot all frequencies at the same price and hence kill variety. Panday explained that the formula for reserve fee needs to be re-looked at. If the government agrees to electronic tendering, then the reserve fee formula is automatically solved, since reserve fee will be calculated post-bidding. Commenting on concerns regarding Phase III auctions, Harish Bhatia, CEO, My FM said, Apart from the base price rationalisation, the classification of stations under each category is not as per their revenue potential, further making them unviable due to high entry cost, especially in smaller towns. According to a report released by CII-Ernst & Young, government opinion on reserve price methodology model was that the Phase III FM radio policy was approved through a cabinet decision in June 2012. Going back to alter the reserve price seems to be difficult despite the fact that it has led to disproportionate reserve prices in the North and West of the country. If done, it may end up delaying the auction process. A number of other concerns regarding Phase III auctions were seen across the platform including the method of auction, separation between frequencies, license period and lack of clarity on increase in license period which is currently 10 years. In

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fact, like TV, there should be a one-time license for radio as well, offering it a level playing field with other media, added Bhatia. However, the government appointed an Empowered Group of Ministers to find solutions for a number of Phase III related problems. A study done by CII-Ernst & Young suggests that the industry is expected to grow at a CAGR of 18 per cent after the initiation of Phase III. Radios advertising industry is also expected to grow from three to four per cent to five to seven per cent within five years. Accordingly, the FM radio industry is expected to exceed Rs 123 billion within three years of Phase III being rolled out.

Soaps will never die. Heres why Thursday, February 07, 2013 Source: www.exchange4media.com Hindi fiction shows have forever defined a channel. A channel such as Life Ok explores very Indian themes, whereas shows on SAB TV emphasise the importance of togetherness and light hearted comedy. Similarly is the case for other channels such as Star Plus, Zee TV, Colors and Sony Entertainment Television wherein shows define its thought process over a long-term. Hindi GECs churn out soaps regularly but a new trend that we are seeing is the advent of youth GECs. Today, hybridisation of content seems to be the buzzword, with channels such as Channel V focussing on fiction-based shows as a part of its programming lineup. So, what exactly makes the soap ever so popular, even in the face of intense competition from reality-based content? According to broadcasters, Hindi fiction shows are mainstay in the Hindi GEC space because of three key reasons. The first and the foremost is the longevity factor which is associated with the fiction shows. Given the fact that the Indian audience is used to continuous programming viewing format over the season format, fiction shows are perhaps the best bet for channels. More often than not, a particular show becomes a part of the viewing habit of the viewers. Secondly, what make these soaps very attractive to the audience are the characters of the shows. Time and again it has been observed that a particular character starts resonating with the audience and the audience also starts relating to them in a larger than life manner. There have been examples where in the exit and entry of a character has impacted a show in a major way. The third and the most important aspect that spurs the launch of more and more Hindi GEC shows is the return on investments that these shows command in the long time run. With the average life of a show being close to at least two years, RoI which a channel obtains plays an important factor. The production cost is a significant factor which makes soaps a more viable form of programming compared to a reality show. The production cost for a typical Hindi GEC show would be around Rs 7 lakh to Rs 10 lakh per episode, which would be half an hour programming. On the other hand, the production cost of a one-hour episode of reality based show can be anywhere around Rs 40 lakh to Rs 50 lakh (approximate figures), which might even go higher if taken into account the celebrities involed. Hence, sustenance of such shows requires a huge investment. Also, since the reality format based shows consists of finite episodes as opposed to infinite episodes that come with a typical Hindi GEC show, the viewership that is assured week on week in case of a fiction show is something that reality shows cannot compete with in the long run. The year 2012 definitely saw a decrease in tolerance of shows which do not click with the audience, with around 13 shows going off-air. As a result of low tolerance for non-delivering shows, Hindi GECs were seen churning out a slew of new shows as well to replace them. This, as a matter of fact, proves that broadcasters are not ready to give up on their favourite fiction shows that have defined them since ages.

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Jim Hytner to lead IPG Mediabrands G1 Thursday, February 07, 2013 Source: www.exchange4media.com IPG Mediabrands, the media innovation arm of Interpublic Group has announced the addition of a new leadership position at the holding company level for G14, which represents a cluster of its highest value markets: Australia, Benelux, Brazil, China, France, Germany, India, Ireland, Italy, Japan, Mexico, Russia, Spain and the UK. On the heels of another strong year for IPG Mediabrands in the G14 cluster, whose markets are a strong driver of the Groups worldwide growth, this move completes the evolution of the G14 cluster to simplify, accelerate and continue to deliver bespoke product and service offerings and to ensure the most efficient development and deployment of tools, talent and opportunity, shared an official release. Jim Hytner (previously Global CEO, Initiative) will move into the new role of CEO, IPG Mediabrands G14, reporting into Matt Seiler. In this role, he will be tasked with focussing on increasing collaboration and efficiencies across the multiple agencies in the IPG Mediabrands network and will manage all G14-based client relationships across UM, Initiative and BPN including Unilever, AB InBev and BMW. Marc Bresseel, currently President, Initiative G14, will move into the new role of President, Clients and Services, G14 Mediabrands, reporting to Hytner. These moves within the G14 cluster are part of a global transition towards the cluster system by IPG Mediabrands, which has led to several key new appointments internationally. Jacki Kelley (previously Global CEO, UM) will move immediately into the newly created role of CEO, IPG Mediabrands North America and President, Global Clients. Jim Elms, who has been with IPG Mediabrands for the last three years, most recently as Chief Strategy Officer, will become Global CEO, Initiative. Daryl Lee has been appointed Global CEO, UM, rejoining UM after having spent the last few years as global Chief Strategy Officer at McCann Worldgroup. In their new roles, Elms and Lee will focus on product, proposition and process development within the agency networks. Kelley, Elms and Lee will all report into Matt Seiler. Hytner will have ultimate P&L responsibility across all agencies and services across the G14 region. Within the G14 cluster, IPG Mediabrands agency networks, UM, Initiative, BPN, ORION Holdings and its diversified services under MAP, MAGNA, the IPG Media Lab, Shopper Sciences and Ensemble will remain strong players in their own right. Each respective agency will be helmed by a brand leader to ensure its individuality. These moves will see four new positions added to IPG Mediabrands in the G14, a minor adjustment to the 2,527 employees in the G14 under the agencies. The cluster structure has allowed IPG Mediabrands to have a clearer focus in the past and to be more innovative, differentiated and competitive. Expanding its scope to the entire G14 cluster will only expand its benefits: allowing for relevant collaborations and strategic investment while improving client service. Matt Seiler, Global CEO, IPG Mediabrands, said, Jim Hytner has an incredible track record in deploying the best solutions for clients, allowing us to impact focus, planning and follow through to define, sell and produce the best IPG Mediabrands services for our clients globally. With people like Jim and Jacki moving into new key roles, we are empowering our agency brands by creating an easy to buy and sell portfolio of offerings, a new service-based culture and a clear proactive sales plan to deliver growth. Quite simply, we are investing to win in 2013 with new, streamlined IPG Mediabrands capabilities, rock star talent around the globe, best-in-class tools and services, and a continued commitment to lead the industry, added Seiler. Hytner said: G14 is not new. Matt Seiler introduced the cluster system early in 2011 and most markets have been transitioning over smoothly, enjoying strong benefits. These markets have seen the cluster system help break silos down locally and stem a collaborative and more client-centric culture. My role is to complete the work started in 2011 and both accelerate growth and

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make sure our clients get the best of what the network has to offer. Im thrilled that Jim Elms will be leading Initiative globally and couldnt think of a more appropriate, forward thinking leader to continue with that agency.

Stationery brands write next level of communication Thursday, February 07, 2013 Source: www.exchange4media.com Social media has reached a phase where a persons tweet is a great matter of concern for all brands, Facebook posts are clearly analysed by organisations, followed by LinkedIn updates which foster insightful studies. Pinterest, YouTube & Google+ also queue up as some of the most effective social media tools triggering the finest marketing strategy for brands across the globe. In the past few years, technology has changed the way stationery brands approach their target audience. Now, its not just the next door neighbor who hears about it, but the entire world. The basis of this fact is a clear indication of social media influence. Stationery industry is moving ahead with a great pace to stand out from the competition and acquire attention from its consumers. Kids being the primary target followed by corporate and other segment, it turns out to be great challenge for the stationery sector to structure its loom towards them. Innovations, designs, variety and quality in the stationery products are some of the top attributes that instigate the buying behaviour. With social media, marketing has become more like a conversation. People view, review and communicate your brand out to the world across platforms. Blogs, social media platforms, review sites, videos and a lot more are branches to the root of your communication. Marketing your stationery products online has a potential to offer you a variety of benefits. Spreading the word about your stationery business can lead to increased sales, fans and identity across. Social media also allows you to stay in touch with existing customers, which can help you develop long-term relationships with loyal customers. Many stationery brands such as ITC Classmate, Faber Castell, Staedtler, Staples, Post It, Scotch, Pentel, Crane & Co. etc. are implementing social media strategies into branding and marketing effectively. Marketing is measurable; therefore, one can track and re-use the marketing strategies that produce the maximum return on investment for your stationery products business. Social media integration into the stationery sector sounds as a challenging factor but when blended together with appropriate strategy and planning, it exhibits flavourful outcomes. As a stationery sector, one must talk about the strength of social media and using internet as a marketing tool. Have a look at how some of the stationery brands are shining on social media ITC Classmate Classmate has gradually evolved with its successful presence across social media platforms. Its presence on Facebook, Twitter and YouTube has added a silver lining to its cloud of products, services and offerings. Its loved by students and appreciated for its approach. Staples is the world's largest office products company and a trusted source for office solutions. It provides products, services and expertise in the categories of office supplies, technology, furniture, copy and print, and cleaning and breakroom. It has achieved a great recognition on social media. Faber Castell is a leading stationery company which offers range of colouring and writing instruments for schools and offices. It exports to over forty countries and has seven manufacturing units across India producing high quality products, safe for children and environment. Moving on, theres Crane & Co., a stationery brand that has implemented immensely beautiful innovation and design into its products. It is very active on social media and a very inspiring brand of the industry. Crane & Co. is a well known brand in stationery and innovations.

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User experience should be the top priority in order to acquire the best fans to your brand and in turn retain them with the best social approach. The digital connection that is efficiently blending into the world of stationery brands is evident across multiple platforms. This is further creating an amazing digital impact on stationery design and messaging that the manufacturers and retailers do to market and promote the products. A social shift like this is a major driving force for this era, whether its Facebook, Twitter or Pinterest, every platform is playing a great role in connecting the consumers to one another trying to fit their brands into their digitised and communication grid. Now the question evolves what if consumers talk negative about your brand or business? The hidden fact here is that if your marketing has been strong to reach them, they will at some point talk about your business, be it positive or negative. They might have had a poor experience at your store, disliked your product, or maybe their queries would have been unanswered for long. Here, you just need to address the issue, work on it and resolve it! This approach will, in times to come prevent a retailer or manufacturer from losing a customer on account of an off experience. It is extremely essential for a stationery brand to connect with its consumers on all the social or digital outlets. From having a faint idea about a product to a clear understanding of the same makes a lot of difference not only for the consumers but for brands too. Allow your consumers to discover your product offerings, generate interest and in turn experience it. As a stationery brand, work towards building an emotional connection, appealing your consumers minds and implementing innovation in your product. Design is the most important key for stationery companies if they want to tap into and sustain in this tech savvy, art-loving and fast moving consumer block. A great attention is being paid to the Likes, Shares, Tweets, 140 characters, Pins, etc. by stationery brands. Perhaps, their marketing strategies are gradually blending with social media at a remarkably consistent pace. Whatever the fusion, stationery is turning out to be a great sector in this social space and digital culture creating wonders. Traditional techniques of approaching the stationery buyers have changed on a large scale and this fresh revolution is very much appreciated by the masses. In the stationery sector; design, innovation and creativity will always be the major attractions. Depicting the brand offerings in 140 characters have been and will always be a challenge for this sector. With new media changing constantly, what are the challenges that have you encountered in your social media marketing as an entrepreneur or a brand manager? Will your stationery brand no more be stationary and successfully be on a constant move to shape future communications? With so many brands on social media, will it be able to penetrate through the brand clutter? Is your social media strategy strong enough to facilitate a real-time return on investment? The article is a contribution by Windchimes Communications, an integrated social media agency

Aam Aadmi Party launches online news channel Thursday, February 07, 2013 Source: www.exchange4media.com Arvind Kejriwals Aam Aadmi Party is all set to launch its news channel on YouTube. The channel will contain all forms of news concerning citizens of the country. Keeping with the partys agenda, highlighting corruption will be the main priority of the channel. Talking to exchange4media, Aam Aadmi Partys Manish Sisodia, who will be at the helm of the channel, said, Lots of things are happening in the country, however, television news channels are bound by time durations and other elements and hence, are unable to show some content. Therefore, we decided to launch an online news channel, which will deal with the issues of normal citizens of the country. He further clarified, We are not planning on any formal launch or promotion of this channel since the citizens are well aware of the partys name, and demand will bring in the viewers. Sisodia also refuted reports that the Aam Aadmi Party was launching
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the TV news channel and maintained, Its a rumour. We dont have any such plans for now or for later on. The name of the channel has not been decided yet, but it will be something that highlights the relationship with citizens. The online news channel will be led by Sisodia, who had earlier worked with Zee News, and senior journalists Shazia Ilmi and Abhinandan. The news content will be uploaded twice or thrice a week and will be very focused on certain topics.

Is Ranchi market getting too cluttered for print players? Thursday, February 07, 2013 Source: www.exchange4media.com With media players and advertisers looking to tap the growing prowess of the Tier II and Tier III markets, Ranchi has become a preferred destination of brands and media players alike. The thriving town is a gateway to the entire Jharkhand market and marketers are leaving no stone unturned to tap the citys potential. As in the case of several small towns, Ranchi is witnessing a higher standard of living, growth in per capita income and people opening up for investment. Keeping the town updated on the latest news are no less than five major newspapers Dainik Jagran, Hindustan, Dainik Bhaskar, Prabhat Khabar and Ranchi Express. Given the size of the market, the competition is understandably cutthroat, keeping these print players on their toes and making them devise different content and marketing strategies as well as customer connect initiatives on a daily basis to grab the readers attention. This has given rise to the question as to whether the Ranchi market is big enough to accommodate five major print players and whether there is space for new players. Talking to exchange4media, Pradeep Dutt, Editor, Ranchi Express said, There are already players who are fighting everyday for the top spot, I dont think there is any space for a new player in the market. Ranchi is growing, but that doesnt mean the space of reading will also expand. He further said that managing a newspaper is not an easy job, and with people switching to other language papers as well as accessing e-paper editions online, it is difficult for a new player to get a foothold in the market. KK Goyenka, Managing Director, Prabhat Khabar too feels that the number of existing players in the Ranchi market are more than enough and there is no question of new players entering the city. He added, Ranchi city is big, but not that big where lots of print players can perform, because at the end of the day, the customer ends up with same type of content. He emphasised that the target audience is limited and they are getting the same news every day. Readers have a strong bond with their paper. We have already built our brand image and we are now enhancing it through our content and audiences connect activities, Goyenka added. On the other hand, Sanjeev Kotnala, Vice President, Brand Communication and National Head, Dainik Bhaskar Group remarked that there is always window open for a new player. It depends on how they are marketing themselves and what are they offering to their readers, he said. Kotnala cited the example of Dainik Bhaskar and said that when the Hindi daily had entered the Ranchi market, there were other players that were performing well, but despite this, the paper managed to hold its ground and is doing very well. As far as the marketing strategy is concerned, he said, We focus on the demands of our readers. Their necessity is our supply. We have done research work earlier and continue doing so, this helps our brand to connect well with the readers. This view is shared by Mukesh Bhushan, Editor, Dainik Jagran Ranchi, who said, Space needs to be created. Looking at the current scenario, there is no scope and no space for any player, but if a player comes up with some unique marketing strategy and some different connecting activity, it can create a wider readership base. With the changing tastes of readers, today there are households that subscribe two newspapers. This has created a wider reader base and has given hope to print players to further entrench themselves in the market.

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BBC elevates Preet Dhupar as COO, India operations Thursday, February 07, 2013 Source: www.exchange4media.com BBC has promoted Preet Dhupar as Chief Operating Officer for the India operations of BBC Global News. Prior to this, Dhupar was Director of Finance and Operations. In addition to her existing remit, Dhupar will take on the responsibility for determining the BBCs commercial priorities and targets for news across India and for monitoring performance against them in terms of advertising revenues, content distribution and overall audience growth. Commenting on this development, Jim Egan, COO, BBC Global News said, This appointment comes at a crucial time for BBC Global News in India as we build on recent successes and seek to expand on to new and evolving platforms. Preet will bring increased focus to the market, helping to support our ambition of bringing world class international journalism to dynamic and sophisticated Indian audiences. A chartered accountant by qualification, Dhupar joined the BBC in 2000 and was instrumental in setting up its operations in India. As Director of Finance and Operations for BBC Global News and BBC Worldwide in India, she has been responsible for providing operational leadership and management of the BBCs commercial businesses in India and Singapore. While supporting growth opportunities in the market, her core role has been to provide financial, commercial and regulatory expertise to the business. Prior to this, she was part of the BBCs global finance team based in London. Before joining the BBC Dhupar had worked with Becton Dickinson India in a strategy and financial planning role as part of the team that established the companys business in India. She has also worked for Caltex and KPMG in India.

Zee News Ltd Q3 ad rev strong, no big fall in carriage fee Wednesday, 6 February 2013 Source: www.indiantelevision.com A double-digit ad revenue growth has helped Zee News Ltd (ZNL) put up a performance better than the market expectations in the festive quarter but a top executive of the company cautioned that a significant turnaround in spending by advertisers is yet to be visible. The carriage payout to cable networks has only marginally dropped in the digitised markets and subscription growth has been subdued. ZNLs ad revenue rose 14.8 per cent to Rs 595.6 million in the fiscal-third quarter from Rs 518.8 million a year earlier, despite a significant opportunity loss in terms of advertising revenues from the government. "There was a better utilisation of ad inventory during the festival season and we also offered branding and event-based solutions to advertisers. But this is not to say that the ad slowdown has lifted and there is a big turnaround. We will outperform the market which is growing in single digit," ZNL chief executive officer Alok Agrawal told Indiantelevision.com. ZNL's ad revenue growth for the full-fiscal will be in single digit. TV news broadcasters have been fighting the government on ad rates and are not accepting DAVP (Directorate of Audio Visual Publication) advertising. "The standoff continues and NBA (News Broadcasters Association) members are not carrying DAVP ads," said Agrawal. ZNL posted a 14.2 per cent growth in net profit to Rs 185.5 million in the third quarter ended 31 December from Rs 162.5 million a year earlier.Its operating profit (Ebidta) in the third quarter stood at Rs 196.7 million against Rs 189.7 million in the corresponding period of the previous fiscal. The news broadcaster, which has seven channels in its portfolio, reported consolidated revenues of Rs 858.4 million in the third quarter, an increase of 10.1 per cent from Rs 779.7 million a year ago. Subscription revenue stood at Rs 222 million, down 0.3 per cent from the previous quarter, and up 15.2 per cent from the earlier-year period. Operating expenditure jumped 12.2 per cent to Rs 661.7 million due to increase in employee costs and other expenses. Carriage fee has only fallen marginally in the digitised markets. "There has been no significant reduction in carriage fee in the completely digitised markets of Delhi and Mumbai. It has not definitely gone as per the plans of the news broadcasters," said Agrawal.

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'We are looking at a break-even in five years' : Subhadarshi Tripathy, the Business Head of ZeeQ : An Interview Tuesday, 5 February 2013 Source: www.indiantelevision.com The year 2012 saw the entry of Indian media conglomerate Zeel in the kids TV broadcasting with the launch of ZeeQ. The channel with bi-lingual content in English and Hindi has been positioned as India's first edutainment channel. The pay-driven channel priced at Rs 82 has been launched with the intention of filling in the gap in the market. Its USP is the content that it believes will help in developing life skills amongst 4-14 kids at the same time fulfilling their entertainment needs through a mix of animation and live action content. Subhadarshi Tripathy, the Business Head of ZeeQ, is driving Zeel's efforts as it seeks to establish foothold in a genre dominated by foreign networks like Disney, Nickelodeon and Turner. Tripathy is responsible for developing brand strategy, programming and content acquisition strategy. In a conversation with Indiantelevision.com's Javed Farooqui, Tripathy shares his views about the opportunities in the kid's genre, ZeeQ's content strategy and how it plans to drive the pay-TV business in a market where business model is still loaded heavily in favour of ad sales. Q. Why couldn't ZeeQ fully be owned and managed by Zee Entertainment Enterprises Ltd (Zeel)? Who has the management of the channel? The channel is owned by Zeel because it is the home for all the entertainment broadcast business of Zee. The operations of the channel are managed by Zee Learn as this company specifically runs the education business of children. We have an in-house ad sales team while distribution is being managed by Media Pro. So in that sense ZeeQ is a completely different set-up. Q. Since multinational companies dominate the kids broadcasting business, what has been the initial feedback you have got about the channel since its launch? The content strategy has been designed in such a way that we get more and more participative content. We believe that people who participate are eventually going to subscribe to the channel. The content strategy has been designed in such a way that we get more and more participative content. We are already getting good response since the letters that we have received have been very engaging and have gone to the extent of even suggesting us to tweak particular elements of some shows. Teenovation, for example, is a show which has got fantastic response. But since this is a 'free view period' (till March), we wouldn't know how many people would subscribe to us. ZeeQ is a pay channel. We are not chasing TAM ratings because how many people subscribe to the channel will define how many people like it. Q. Has the distribution of the channel been settled on the digital platforms? We are currently available on Dish TV and Videocon d2h. Tata Sky should happen soon. We are also on digital cable TV. We have planned out our distribution strategy. As there are 38 cities that are coming up for digitisation in the second phase (by 31 March according to government mandate), we have selected 20 cities out of them where we run our schools. We see synergy develop between our schools and our television business. So we do this filtering process. We are on about 16 digital headends. Q. What are your immediate priorities for the channel? Our priority is to impress the parents. So the programme mix is designed in such a way that they like the channel because they are the ones who will decide whether or not to subscribe the channel. Once they decide, our task is to continuously keep them engaged so that they don't keep going back to the Japanese animation that is currently being aired. 'The channel is priced at Rs 82 on a la carte and I don't think it will be a deterrent. If you want a safe environment, if you want content that is developed and tested by childhood experts, you will be willing to pay a price' Q. Tell us about your content offering? The core of the channel is that we provide content which is right for children and which does not provide any incidental learning which will spoil the child. There are academicians in the panel who decide what content goes on the channel.

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Q. How do you decide on the content? Content is broadly divided into categories. For the 4-8-year-olds, we have animated content and for those who are in the 4-9 age group, we have live-action content purely based on the research that we did with IMRB and Taalim. The live-action content is something that we produce over here while animated content is something that we have so far acquired globally. The international edutainment content is very engaging while the Indian academic content is very instructional. The content that we take pains to produce is the live action content. After the concept comes in, the panel of academicians and programme team look into it before it goes into production. The animated content also goes through the academicians; the filtering is done on the basis of knowledge, life skills and core values. So if the content does not have knowledge, life skills and core values, it becomes kid's general entertainment stuff which we are interested in. Q. Since you have clear distinction for the content that you will offer to the two age-groups, how do you decide on the scheduling? The scheduling is designed around their school timings and what time they watch what. However India being that vast, school timings are also that different. If you look at preschoolers, there are two times that they tend to watching TV. One is when parents are getting the kids ready and they have to feed them to get them to school; they just plunk the kid in front of the TV and the TV works as a nanny. Second is when the kids come back and have to eat again. These are the times when most channels across the globe use them as prime-time. The 9-14-year-olds are people who are more of weekend viewers; and during weekday's it's mostly post school and early evenings till about 7 pm. Q. Will your content offering undergo change after the freeview period? Not much. Because when the freeview period ends, what I am telling viewers is that they will be getting the same experience and they better pay for it. So I cannot change the mix drastically there. We are, however, going to keep a very close watch on the geographical skew like who all are watching me, subscribing to the channel, and what they are wanting. So our strategy is going to be based on that. Q. But kids at the end of the day also want to be entertained? The fun part is that you have to make it knowledgeable content where they learn something but are also kept engaged. So for a kid, 'Sid the Science Kid' is as engaging as any other animated content. But what goes subtly into it is pure educational or 'life skill' kind of content. They are very smartly made programs where kids actually respond to the questions and do it. Q. Do you think the pay model will work? Firstly, I think parents wouldn't mind paying for a channel that will help in the holistic development of their child and which is not like a coaching class. Secondly, I am not an ad-free channel, so I will have some money coming from there as well. We are an a la carte channel and carriage is not something that will be an issue for us. Q. Will you be selective in picking up ads? We will have ads but the ones which we think are right for the child. The ads will go through a nutritionist if it's in the food category. If it is something else, it will go through a child expert. Ad will form a small component of the total revenues. I would rather need subscriber funded programmes wherein they come in as partners and do brand integration. In a fitness programme, I wouldn't mind if a Nike comes and works with me. The biggest thing I can give brands is touch points in 330 cities through brick and mortar structures - which no other channel can give. Q. Don't you think the pricing of the channel will be a deterrent? The channel is priced at Rs 82 on a la carte and I don't think it will be a deterrent. If you want a safe environment, if you want content that is developed and tested by childhood experts, you will be willing to pay a price. ZeeQ is a premium content provider in this space (edutainment); it will deliver what it promises - and we have been doing it for 17-18 years on-ground (through our schools). Q. How much will the channel invest? We will be investing Rs 1 billion over a period of three to three and a half years. We are looking at a break-even in five years. Q. Digital consumption among kids is increasing. What is the plan there?
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For the online medium, we have a completely different vertical. ZeeQ for us is not a broadcast channel only; it was conceived as a content platform for a holistic development of the child. We have big online plans and are going to come up with an app and games as well. So we are trying complete 360 degree touch points for content which will be on television.

Colvyn Harris' advice to Rana Barua: "Stay Impatient" : Colvyn Harris, South Asia CEO of JWT,: An Interview Thursday, February 07, 2013 Source: www.hindustantimes.com In the light of Rana Barua's appointment as the new COO of Contract Advertising, afaqs! speaks to him and Colvyn Harris, South Asia CEO of JWT, which also owns Contract. Rana Barua, Contract's recently appointed COO, promises to press down hard on the accelerator and inject some speed into the operations at the agency. Though Barua, unlike Contract's previous head Umesh Shrikhande, will report to Colvyn Harris, chief executive officer, JWT South Asia, the two agencies will continue to operate independently, assures the latter. In a quick chat at the agency, afaqs! spoke to the duo about this and more. Q: What made Rana the right choice as Umesh Shrikhande's replacement? Harris: We were looking at newer skills. The JWT group of companies has assets within the company - say for example, Hungama Digital Services, Encompass and Design Sutra -- that should be brought to bear on clients. We're looking at dimensional skills and dimensional capability differences. Rana, who brings an outside perspective, will put the client at the centre and see how the skills and capabilities within the JWT group can be applied. Had we recruited somebody from the agency space, we'd be back to a cookie-cutter approach. There'd be no real solution in that because we'd just end up doing more of the same. Also, while agency people understand consumers, Rana brings the dimension of knowing different consumer markets well. We wanted new skills, new capabilities, deep understanding of different markets and a new drive. He was fit for that role. Q: Contract, the most successful second agency, has historically dissociated itself from JWT to develop its own identity; competing with JWT at the pitch level gave it teeth. With Rana now reporting to you, will the proverbial chasm between the two agencies shrink? Harris: Everyone at Contract is his own independent master and decision maker. And, JWT and Contract will continue to compete. The independence between the two will be maintained completely; that will never change. And it's really about the client -- the client is looking to buy the best solution in the market and the JWT standpoint is different from the Contract standpoint. It's not about us. It's not that we can just transfer knowledge; it doesn't work like that. The destiny of Contract is in the hands of its people. Since Contract and JWT are both part of the WPP Group, there are certain similar ways of approaching businesses and certain ways of behaving - this basic conduct and these guidelines have been imbibed by all of us -- but for the rest of the part, you're on your own and if you can make it bigger than some other agency, then perfect. Q: Rana's move from Law and Kenneth after just six months of joining is deemed premature by many... Barua: I don't see it as a premature move at all. You need to weigh your opportunities and consider the credentials. Had it been any other organisation, I'd have thought about it in a more intense and practical way but I found this opportunity big and my mandate, large. It wasn't a hard decision to make. Q: You spent half a dozen years in radio, first with Radio City and then with Red FM. How will that help in your new role? Barua: The biggest similarity between the agency business and radio is that both are about understanding people. Any media brand, is always about talking to people and understanding them. When you're with a media brand, you visit many markets and work with the local people. That's one learning I bring in. Also, in media, you are the medium and apart from that particular medium you don't look at other media. It's about day-on-day engagement with your listener (for radio) or your viewer (for TV). This will come in handy now. When clients juxtapose a lot of solutions, I'll be able to streamline their thinking and explain how each medium works differently. Since I've worked outside the industry for several years, I'll be able to bring in some insight into how clients approach the business. Q: What changes will you bring to the agency? Barua: While its DNA will remain the same, Contract will have more speed, agility and drive. I promise you speed because that's the world I come from. In radio, you never wait for the next morning; you can go on air in the next five minutes.
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Everything happens overnight. Over the last six years, for me it's been about "Why are we waiting?" So that's probably one thing I'll have to become patient about.

Indian economy may decelerate further, says IMF report Thursday, February 07, 2013 Source: www.livemint.com The IMF headquarters in Washington, D.C. IMF says Indias current economic slowdown is more driven by domestic structural constrains than external factors. The International Monetary Fund (IMF) has warned against growing risks in the Indian economy and said growth may decelerate further because of slowing investments, high inflation and possible populist fiscal expansion. Since recovering rapidly from the global financial crisis, Indias economy has slowed substantially, and its growth rate is expected to decline further in the coming year for a range of domestic reasons, IMF said in its annual health check of the Indian economy under the article IV consultation with the Indian government released on Wednesday. IMF has projected the economy to grow 5.4% in 2012-13. The government will release the advance growth estimate for the year on Thursday. The Indian economy grew at 6.2% in the previous year. IMF said external risks such as protracted slow growth in Europe and likelihood of capital outflow from emerging markets could pose serious challenges for India. Acknowledging the ongoing structural reforms being carried out by the government such as reducing subsidies on fuel and fiscal consolidation, the fund said such changes present both upside and downside opportunities. A faster pace of reform could entail higher growth, while insufficient follow-through would weigh heavily on the outlook, it said. However, IMF said Indias slowdown is more driven by domestic structural constrains than external factors. Global factors have hurt exports and weighed on investment, but Indias growth has slowed by more than the decline in trading partners growth would imply. Capital inflows remain resilient and international financing conditions favourable, suggesting that so far the financial channel has not been prominent in the transmission of external shocks, it said. While the government has begun to rein in expenditure, this years modified fiscal deficit target of 5.3% of GDP is still likely to be breached by 0.3 percentage points. However, IMF said the political risk taken in raising diesel prices indicate the governments commitment to fiscal consolidation. Indian government officials told IMF that by 2016-17, cash transfers are expected to be in place for key subsidies, which will reduce the fuel and fertilizer subsidies. Rating agency Crisil Ltd chief economist D.K. Joshi said both external and domestic economic environment has improved in last six months, which is mildly positive for growth outlook for next fiscal year. However, he maintained that investment will not revive quickly due to rate cuts by the central bank and recovery will remain fragile. Sustainability of growth recovery beyond 2013-14 will depend on recovery in domestic investments, he said.

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IMF also warned against rising corporate debt restructuring by banks, which increased to 5.4% of loans in June 2012 from 3.7% in March 2011. Corporate financial positions have weakened considerably, further dimming the outlook for investment and heightening vulnerabilities. Profitability, which had recovered after the global financial crisis, has weakened mainly due to weaker internal and export demand, bottlenecks, slow permits for infrastructure projects, and rising interest rates, the report said. The report observed that public sector banks are the worst hit with large exposures to infrastructure, especially power, aviation, agriculture, steel, and textiles. It also pointed out that loans to 10 of Indias largest conglomerates account for almost 100% of banks net worth. The fund also warned about the deteriorating asset quality of banks as gross non-performing assets (NPAs) crossing 3% mark in the current fiscal. With growth likely to be weaker for a longer period than after 2008-09 and the loan composition of banks more skewed toward large loans, more restructured advances are likely to slip into NPAs compared to the historical average of 15%, it said. The fund said the government needs to push forward with reforms such as developing the corporate bonds market and gradually lowering government-mandated purchases by banks of government debt to ensure Indias financial system is able to underwrite strong growth. With domestic investment particularly hard-hit, IMF said Indias potential GDP is likely to be lower than previously estimated, down from 7.5-8% to 6.5%. The RBI estimates Indias potential growth at 7%.

Why do we prefer physical assets over financial assets? Thursday, February 07, 2013 Source: www.livemint.com It is believed that immediate past performance is a reason for marked preference of physical assets. Indians seem to be creating a barbell in their portfolio by investing in risky assets such as gold and real estate and safe assets such as bank deposits and insurance. On the other hand, ownership of Indians, excluding promoters, in Indian companies (equities and mutual funds or MFs) has steadily declined over the last two decades. Here are some factors that explain why Indians prefer physical assets over financial assets. Recent outperformance In the last few years, gold and real estate have outperformed equities and MFs. Many believe that immediate past performance is one of the causes for the marked preference for physical assets. At the same time, lower real returns on bank deposits seem to be getting negated by the safety aspect. If returns drive investor preference, then how does one explain consistent selling by Indians in equity markets, including blue-chip stocks that have delivered substantially superior returns than what gold and real estate have returned over the last two decades. The fact that Indians are selling a superior performing asset class and buying an inferior performing asset class shows that returns are not the only driver for investment decisions. Distribution edge The distribution mechanism of banks, insurance companies and jewellers is far superior than that of equities and MFs. Even the number of intermediaries involved in selling real estate, gold and insurance is far higher than those selling equities. On the equity side, though there are several stock broking outfits, many of them facilitate trading rather than investing. Perception of safety While Indians perceive banks and insurance companies as safe due to the implicit guarantee of the government of India, gold and real estate are important because of the social and cultural needs and aspirations. On the other hand, equities and MFs are perceived to be risky. But this risk can be mitigated by investing in equities systematically over the long term. It may be noted here that investment in this manner works for retirement planning. However, equity investment by pension funds has remained on paper. Havens of unaccounted money vs transparent assets
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Often, lack of adequate detection (presumptive buying of under reported real estate) and severe punishment allows savings to be deployed in physical assets to save on taxes. Equities have not caught the fancy of investors even though long-term capital gains are tax-exempt. Infrastructure, which is on a par with global standards, has inadvertently resulted in entry barriers for retail investors. Rapidly changing requirements on know-your-client (KYC) norms, account opening and operating process and anti-money laundering provisions have dissuaded Indians from investing in financial assets. When an average housewife can buy equity shares like gold, we will surely see more allocation to equities than gold. Financial regulators have taken many steps for the protection of investors. Since voluntary compliance is limited and the judicial process is time consuming, regulations have been made for the lowest common denomination. This has put severe constraints on equities and MFs versus real estate and gold in terms of reaching out to investors. The difference in the advertisements and marketing of various asset classes has moulded varied risk perceptions and resulted into higher allocations towards physical assets. Lack of sophistication among Indian investors has allowed higher investment in gold (despite high impact cost of buying in small denomination or jewellery form, quality issue, limited liquidity) and real estate (despite issues related to pricing, delivery, high impact cost of transaction and liquidity). Transparency of equities and MFs is actually deterring Indian investors from investing in financial assets. Leverage opportunities Availability of in-built leverage in real estate, especially during the construction and pre-launch phases and easy and quick loan against gold are making them more attractive. Loan against equity and MFs remain out of bounds for most investors. Compensation for intermediaries Intermediaries of real estate and gold get higher compensation as compared with those selling equities and MFs. Intermediaries have no obligation in terms of examination, regulatory supervision or penalty for breach of fiduciary duty in selling physical assets as compared with financial assets. There is an exodus of intermediaries from selling financial assets to physical assets due to these reasons, which gets reflected in increased allocation towards physical assets. Slow traction in an excellent product like the New Pension System highlights the need for giving the right incentives to build an investor base. Writer is Director, Axis Direct.

For India Inc, going private isn't easy Thursday, February 07, 2013 Source: www.business-standard.com Minority shareholders, led by institutions, have not been enthusiastic about selling their stake, even when a company's shares have been valued by independent valuers. Less than 24 hours after he decided to take Dell private through a $24.4-billion buyout deal, Michael Dell is already facing a tough time, with quite a few shareholders taking a dim view of the price. Companies in India would empathise with Dell as their delisting experience hasnt been easy, either. Take Cadbury India, for example. Its delisting move has been stuck since it was announced in 2003, as minority shareholders demanded a 50 per cent higher price than the Rs 1,340-a-share Cadbury proposed. We think the company did not offer us a good exit price and it was not valued like its peers, such as Nestle, says small investor Sobhana Mehta. Cadbury has company. Shareholders of Essar-owned India Securities had protested against delisting move last year, saying the shares were infrequently traded and, hence, the company was not valued properly while going private. In last five years, 200 firms have delisted their shares from Indian stock exchanges mainly due to a merger or acquisition activity. The race to delist shares began after the Securities and Exchange Board of India (Sebi) came out with a fiat of a minimum 25 per cent public shareholding in listed entities. Companies with more than 75 per cent promoter shareholding had the option:
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Either go private or dilute shareholding to 75 per cent. But companies soon realised minority shareholders, led by institutions, were not enthusiastic about exiting, even when a companys shares were valued by independent valuers. Last year, only 11 companies went private (see table). Many like Carol Infoservices, owned by Wockhardts Khorakiwalas, are still sending out letters to shareholders, offering to buy back their shares. While small investors have in the past taken erring companies to court, domestic institutions have remained passive investors and have seldom voiced their opinion. A top official of LIC, the biggest investor in Indian firms, says LIC takes case-to-case decision on selling shares during delisting or an open offer. LIC and other institutions like GIC and UTI have rarely made their stand clear on these issues.

Shriram Subramanian, MD, InGovern, a corporate governance research firm, says: The exit price determined by reverse book-building process in India takes care of price discovery. This process generally takes care of minority shareholders interests in pricing. To avoid a shareholders versus management fight, Subramaniam advises that the global best practice is that shareholder approval for delisting is based on a majority of minority shareholders voting for it. But the main problem is pricing. Firms that have done right pricing have had it smooth. For example, Alfa Laval offered Rs 4,000 a share, as against the discovered price of Rs 3,000 a share. The delisting offer received an overwhelming response from shareholders.

Tata Group gets its first Brand Custodian Thursday, February 07, 2013 Source: www.thehindu.com In one of his first significant moves as Chairman of the Tata Group, Cyrus Mistry has created a new position of Brand Custodian, and appointed a young executive to the post. Forty-four-year-old Mukund Govind Rajan, Head of Private Equity Advisory at Tata Capital and Managing Partner of the advisory team of the Tata Opportunities Fund, has become the first Brand Custodian Dr. Rajan, a Tata Administrative Service officer of the 1995 batch, will be responsible for managing and sustaining the reputation of the Tata brand and building it, according to a spokesman. In addition, Dr. Rajan will serve as Chief Ethics Officer of the group, and also oversee all the CSR (corporate social responsibility) activities as Chairman of the Tata Council for Community Initiatives apart from acting as the Group Spokesperson. He will report directly to the Group Chairman, Cyrus Mistry. Dr. Rajan has held several senior executive responsibilities across the group. He has served as Managing Director of Tata Teleservices (Maharashtra) Ltd., and as Vice-President at former Chairman, Ratan Tatas Office. Dr. Rajan graduated from with a B.Tech degree from IIT Delhi in 1989. He received a Rhodes Scholarship to study at Oxford University, where he completed a Masters and Doctorate in International Relations.

B-schools get sleepless nights as CMAT finds few takers Thursday, February 07, 2013 Source: Business Standard The All India Council for Technical Education (AICTE) might have seen a rise in the number of students registering for its Common Management Admission Test (CMAT), but B-schools are a worried lot. With around 1,90,000 students registering for CMAT so far and 3,75,000 seats available, B-schools say they may be staring at almost empty classrooms this year, too. B-schools in Maharashtra have written to the Directorate of Technical Education (DTE) seeking permission to admit students from other national tests, including Management Aptitude Test (MAT), Xavier Aptitude Test (XAT) and AIMS Test for
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Management (ATMA), etc. Sixteen states have so far replaced their respective common entrance tests with CMAT for admission to B-schools. "We have requested the DTE to allow us to draw students from other national level tests till CMAT becomes more popular. Maharashtra has around 45,000 management seats and we need students to fill these up," said Apoorva Palkar, director, Sinhgad Institute of Management and Computer Application, Pune. Palkar is also chairperson of ATMA, run by the Association of Indian Management Schools, which has over 600 B-schools as its members. "Actually, it is the students who select the institutes. So, there will always be a mismatch, and seat occupancy at B-schools will be a concern. Talks are on with the DTE and we hope some resolution will come our way soon," said Kavita Laghate, director, Jamnalal Bajaj Institute of Management Studies. AICTE says, registrations for CMAT have jumped nearly three times since last year. CMAT is held twice a year and each student gets two chances to sit for the test. AICTE says students who have exhausted both their chances can use the best score for admissions. "We have seen an increase in registrations this time. However, there could be duplication with some students registering again this year. We have advertised heavily, and despite this if students are unaware of CMAT and if state governments tell us they would want another round of CMAT, we are open to that," said the chief coordinator of CMAT, AICTE. The chief coordinator added that as admissions for MBA goes on till August-September in most of the states, AICTE is open to extending any other opportunity to students. B-schools say their interest at this point is filling up maximum number of seats. If students are not appearing the test, AICTE and states need to spread awareness about the same. "Many students are not aware whether the state test has been replaced with CMAT. AICTE and the state is not doing their bit in spreading the word about CMAT. And, when these seats go vacant, they will blame it on management education not being a hot subject, which is not the case," said Sai Kumar, centre director, TIME, Mumbai. In 2012, over 180 B-schools shut shop in India, while another 160 are expected to down shutters this year, according to a paper by ASSOCHAM. The paper reveals that since 2009, recruitments at campuses have gone down by 40 per cent in 2012, and the biggest reason for it is the mushrooming of Tier-II and Tier-III management education institutes.

Ranked among top Global MBAs by Financial Times, London Thursday, February 07, 2013 Source: www.business-standard.com

The sixth of an eight-part series on the one-year full-time MBA at IIMs looks at the status of the course as a top ranked MBA globally and the No.1 MBA in India. The one-year full time MBA at IIM A, the one-year courses at ISB, Hyderabad and SP Jain School of Global Management, Dubai are the only MBAs from India to have been ranked in the global ranking of MBAs by Financial Times, London - widely regarded as the foremost ranking in the world. In 2011, IIM As one-year full time MBA (PGPX) debuted on the MBA rankings at No.11 in the world. It maintained its ranking in 2012 at No.11 ahead of the flagship two-year MBA of Kellogg, NYU Stern, Yale, Tuck, Cornell and the flagship one-year MBA of Oxford, Cambridge, and ISB. The same ranking establishes IIM As one-year full time MBA (PGPX) as the No.1 MBA in India and the No.2 MBA in Asia. In 2012, ISBs one-year MBA (PGP) was ranked at No. 20 and SP Jain Dubais one-year MBA (GMBA) at No. 91 in the world rankings. While SP Jain School of Global Management, Dubai is listed as a Dubai based school in the rankings, I mention it in the article as its parent organization SP Jain Institute of Management & Research is of Indian origin. Importantly the PGPX at IIM A has been ranked No.1 in the world in career progression by Financial Times ahead of Stanford, Harvard & Wharton. The most recent rankings released by Financial Times in 2013 had IIM As PGPX and ISBs one-year PGP lose some ground and SP Jain, Dubais Global MBA exit the rankings - the PGPX has however maintained its No.1 rank for career progression. Additionally, IIM A retains its ranks as Indias No.1 MBA. Financial Times requires a course to have been running for a minimum of four years and the alumni of the one-year course expect the one-year full time MBA at IIM I, IIM B, IIM C and IIM L to join the rankings once it passes this mark. As shared
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07 FEB 2013

BUSINESS READINGS

SINHGAD INSTITUTE OF BUSINESS MANAGEMENT, MUMBAI

earlier in the series, the two-year PGP at IIM A is ranked in a separate list by Financial Times the Ranking of Masters in Business Management (MIM or MBM). IIM As two-year PGP is the only two-year programme from India to have made the MIM ranking. The MIM is a course in management theory for candidates without work experience and is ranked separately by Financial Times because it considers only post-experience programmes as MBAs. This is in line with the definition of the MBA by global MBA accreditation body Association of MBAs (AMBA). The strict stipulation mandating substantial work-experience of participating students for a course to be considered an MBA reflects in the list of accredited MBA programmes from India. As links to the accreditation page on Association of MBAs website show, the one-year full-time MBA at IIM Lucknow (IPMX), the same course at SP Jain, Mumbai, called PGPM, and the same course at MDI, Gurgaon, called NMP, are accredited as MBAs and the two-year PGP at these places as Masters in Business and Management. These one-year full time MBA and two-year programme at these institutes are currently among the select few courses from India to have received an Accreditation by AMBA in their respective MBA and MIM categories.

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