IMT Ghaziabad Perspective Jan 2011

The Perspective

IMT……....Lead the Future

January 2011

Corporate Communications &

Media Relations Committee

IMT Ghaziabad

The Perspective 2011

January Edition

With every New Year come new challenges, new opportunities and new ideas. It's critical to reassess one's goals, objectives and strategies in order to keep pace with the changing nature of the world in order to remain relevant. IMT and its students are no exception.

It‘s true when we say that “Leadership is not in our curriculum, it’s in our philosophy”. We learn not only from our esteemed faculty but also from the way things work out in IMT.

To address the requirements of today's environment, education, advocacy and standards are continually served by the students of this institute. This premier institute can gladly boast of 17 committees and clubs as a part of its family. The year 2010 saw an enormous number of events being organized by such committees.

Where on one hand the sports committee was trying its best to keep the students fit with its plethora of events, our mess committee also ran in the league in testing the culinary skills of our students with its grandeur “Mess day”.

IMT consistently strives for the best as was seen in the two successful events Marketing World Cup and Start-up fair being organized by Mark-up and E-cell respectively. These two events garnered huge appreciation and pride of the students. Our college fest “Passion” was unmatched in its appeal and performance.

Last but definitely not the least, we are happy to announce that from this year onwards we shall be including the activities of PGDM (Executive) program in all our issues. Their valuable support and experience will be our guiding light.

We hope this year brings you good luck and happiness. We really look forward to your feedback to make this newsletter much more enjoyable and entertaining.

Happy Reading!


January Edition

Contents

Article Page No

Editorial 2

A walk with our faculty 4-7

A world of diversity called PGDM-

Executive @ IMT

8-9

Bridging the Gap…… 10-11

Connexions 12-15

League of Titans 16-17

Pearls of Wisdom 18-19

The Future of Search 20

MFI’s in India 21-23

Chakravyuh XI 24-26

Quiz-O-Mania 27-28

Life @ IMT Ghaziabad 29


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A walk with our Faculty

Dr. Sita Mishra is a strong proponent of andragogy as a prerequisite for

developing educational leadership through efficient academic delivery.

She has more than 15 years of experience in industry as well as

academics. At present, she is working as an Associate Professor in IMT,

Ghaziabad.

Her research interests include consumer behavior, marketing

communication, retail marketing and brand management. She has published more than 40

research papers in international/national journals/book chapters and presented papers in

international/national conferences, besides being on the reviewing board of a few.

Dr. Sita Mishra has conducted a number of Executive and Faculty Development Programs in

the area of retail management. She is currently Chairperson -Executive and part time

programs at IMT.

Excerpts of the interview, her take on PGDM Executive Program

Q 1: How long you have been associated with IMT and how is the experience teaching

in IMT?

I’ve completed four years in IMT. Teaching in IMT is a fantastic learning experience. IMT

focuses not only on teaching but it also emphasizes research, training, and consultancy. It

provides avenues for faculty developments. Faculty members can pursue research and

knowledge co-creation without any interference.

Q 2: What are the subjects you are teaching here?

My area of specialization includes retail management, consumer behavior and brand

management. Apart from this I take core marketing courses for first year students.

Q 3: Which is the thing you like most about IMT?

As a faculty, the best think I like is academic freedom which entails the freedom to engage in

the entire range of activities involved in the production of knowledge, including choosing a

research focus, determining what to teach in the classroom, presenting research findings to


January Edition

colleagues, and publishing research findings. IMT provides full support and committed co-

operation in actualizing these pursuits.

Q 4: What is your take on PGDM (Executive) program of IMT?

PGDM (Executive) program of IMT is a 15 months specialized course for working

professionals which provides diverse learning opportunities in a short span. This program

enables these professionals to augment their careers and growth prospects. This course is

apposite for professionals who feel the need and the significance to continuously reinventing

themselves with the aim of keeping up with the dynamic global economic scenario.

Q 5: What was the motive of IMT starting the executive MBA program?

Keeping in mind the significance of continuing education for working professionals, IMT has

started PGDM (Executive) program, so that these professionals can upgrade their managerial

skills for handling the challenges of real business world in better ways. The course enhances

their analytical and decision making skills so that they can efficiently deal with various

aspects of business and handle roles and responsibilities of senior management effectively.

Q 6: Why only elite ‘B’ schools are offering this course in India?

The level of knowledge and experience that these working professional bring into this

program makes it different from the two years MBA program. In India, only selected few B-

schools identify the requirements of working professionals in better ways and are well

equipped in terms of intellectual capital to handle these professionals. These institute can

design and customized course as per the requirements of these working professionals and

industry.

Q 7: Do you think India should have more institutes running executive MBA program?

Yes, keeping in mind a large no. of working professionals who are interested in upgrading

their managerial skills to handle various challenges in this global scenario.

Q 8: Initially when IMT started this program it was an 18 month course, currently it is

a 12+3 month course. Would you suggest for 12 month program since most of the

institutes follow one year model?


January Edition

To me, additional three months period wherein the students are required to accomplish

industry specific project is an USP of IMT’s PGDM (Executive) program.

Q 9: What is the perception of the corporate world regarding executive MBA program?

In corporate world, this program is highly recognized. Given the value creation of this

program, both the government and the private sectors are sponsoring their candidates for the

same and collaborating with premier management institutes to design the specialized course

for their employees.

Q 10: Being Area Chair of this program what would you recommend to enhance the

visibility of this program?

PGDM (Executive) program is catering to specialized needs of working professionals who

are coming from diverse organization and with rich functional experiences and knowledge of

working of corporate world. The visibility of this program can be increased through different

steps such as increasing the industry interaction face in terms of seminars, invited lectures

from senior executives of organizations, live projects and strengthening the alumni

networking. IMT has taken many of these steps; we need to do them on more frequent basis.

Q 11: How different are the students between Executive MBA and two year MBA?

For two year management students having work experience is optional but for PGDM

(Executive) it is mandatory. These students share their work experience across different

streams and industries in class-room discussion which adds value to their leanings. These

students understand the relevancy and importance of various issues in a better way.

Q 12: What method of pedagogy the institute employs to bring the best in both the

courses?

In IMT, the learning model encompasses a broad ground of concepts with case studies and

real life projects. Apart from this, IMT focuses on Students Exchange programs with reputed

B-schools worldwide to enable student develop cross cultural insight and perspective for the

better understanding of global business.

Q 13: When most of the Executive programs in India offer General MBA, What makes

IMT to offer electives across all verticals so effectively in such a short span?


January Edition

By offering electives across all verticals IMT provides opportunity to specialize in single or

dual areas which helps students to strengthen their prior knowledge or facilitates them to

amend their career.

Q 14: Anything would you like to say about current the batch?

I think a few qualities are common in our PGDM (Executive) students- sincerity, rigor and

discipline. My best wishes for their future …..

By Arunendra Pandey


January Edition

A world of diversity called PGDM-Executive @ IMT

The new mantra to an exhilarating MBA experience at IMT-Ghaziabad is assortment or

diversity. Having completed half the journey of my PGDM-Executive program, I have learnt

to put myself in the right frame of mind: success inspires success. Not only is the outcome of

pursuing Executive MBA thrilling, but the journey itself is elating and life-changing. I aspire

to complete this journey as a wealthy folk; not only in terms of subject matter proficiency,

but also because of the networking with some of the best brains who will become part of my

network for years to come.

The Executive MBA is an exciting journey not only because you are back in the classroom

revisiting business fundamentals and picking up new skills, but also because you are

constantly working on group assignments and case studies with participants from diverse

backgrounds. The PGDM-Executive class of 2011 has people who are from sales, marketers,

engineers, financiers, entrepreneurs, mid-managers, senior executives. The sheer experience

of working with such a diverse set adds many perspectives to what we do and how we do

things.

The core focus is on soft skills, which in point of fact are not so soft. But since, case studies

and presentations are the pedagogy at the PGDM-Executive program at IMT, the person gets

more comfortable in standing in front of the entire class, having an experience range of 5 to

18 years, and giving those creative presentations. Not only do you present but you also raise

your opinions as a group leader. This process increases self-awareness and creates personal

action plans which can be transformational. The one year duration of the program makes time

management of utmost importance for the participants. The courses just come and go and at

times you feel as if getting bombarded with mortar shells. It is the subjective opinion of an

individual that which stream of business excites him to the core and which courses he would

like to opt in turn.

Howsoever difficult the program may be, it has turned out to be a joy ride so far. The

journey that started with a dilemma at the time of applying for this program, whether leaving

employment at a stable point of 5 years in the industry, has been transformed in a decision

that could be life changer.


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I could have given up on my dream and gone back to the security of a successful career in the

Telecom industry. But if I had done that then, I wouldn’t have had the pleasure today of

knowing that I have helped in the fructification of many unique and worthwhile ideas which

might otherwise have died in the many-a-time unequal struggle against the vagaries of the

government and economy. And I certainly wouldn’t have had the pleasure of being invited by

the editor of the prestigious IMT newsletter to pen my experience before you!

It’s also about the pursuit of glee and accomplishment. In short, carry the spirit of IMT with

you - always.

By Ankur Girdhar


January Edition

Bridging the Gap........

It all began with the storm of appraisal process when my Manager said “I don’t see any

outstanding achievement for a promotion this year but I would like to give you more

responsibilities, more growth in terms of work and definitely I hope you will exceed my

expectations as you always have”. As each year of my work life passed by I was expecting

things to happen, but this year I have decided to let this storm become a Tsunami inside me

and change the things the way I wanted it to be. The relief came at big time in PGDM-

Executive, IMT-Ghaziabad where my dreams of being a future leader came live.

A batch of 60 students having 5 to 17 years of experience from diverse backgrounds and

masters in their domains was around me for the next 1 year to seal the world. Already I

started hearing the talks of various sectors, varied companies, and how exactly the process is

executed in retail chain to a core manufacturing unit. Being a software guy, sitting in an AC

cubicle I was excited to hear to those shop floor happenings, auto parts designing and telecom

structure complexities. I said to myself in my Heart, “Dude, you are at the right place”.

Executive MBA curriculum gave me the idea of learning the practical perspective by relating

to my past work and analyzing it. From Group presentations to case study discussions, every

person has his own way of shaping the things meticulously and it’s been a wonderful journey

when compared to what I would have been doing in the same work environment, doing

impassive work.

My passion had no bounds when I started liking Marketing. I never knew that there was

something like Consumer behavior which plays an important role for any company to

strategize its theories. I have decided to do a Marketing majors and dared to compete in

various B-school competitions and to my delight I won an IIM- Lucknow Marketing Event,

where my unconventional and offbeat promotion strategies were rewarded. I realized the

effectiveness of case studies and the discussions we used to do in the class which made my

thought process run an extra mile.

Gone are the days when the Executives were not seen in the Cricket ground, Badminton and

Tennis courts. IMT has a wonderful campus to pursue all the interests which I have never

ventured. This reminded me of my HR once saying in the company “Always balance your

work life with your personal life because you never know one can eat up the other”. To be


January Edition

frank, there was very less scope of balance in corporate life for me but true to heart I have

been following it since the time I have stepped in to IMT.

Having covered half of the journey and destined to phase out the remaining in next 6 months,

IMT Executive Program has been a learning experience so far and I want this to continue in

the future as well, feeling that the learning curve should never end. It has been a privilege

since I was able to strike a balance that is so diverse in its disciplinary focus yet inherently

bound together by issues that are fundamental to bridging the gap between theory and

practice of doing research. I would like to be a next generation Entrepreneur and this gap has

given me immense strength in terms of knowledge to face the world confidently.

By Pranith Raj


January Edition

Connexions

“To be a successful strategist, you got to keep your head in the sky, but feet on the

ground”, was one of the spellbinding quotes delivered by the power speakers at Connexions

2011. The weather was perfect and vibrancy was at the vanguard on the morning of January

22nd, 2011 as the roads led to Kapil Mohan at IMT Ghaziabad. After all, it was the time for

“Connexions”, the annual industrial conclave of PGDM-Executive program of IMT,

Ghaziabad. The theme of the summit was one of the most relevant topics for future managers,

“Turning strategies into results”, on which a panel discussion was hosted. The esteemed

panelists included corporate honchos from different industrial spheres, and the diversity they

represented is reflected below.

Keynote Speaker Mr. Aquil Busrai CEO Aquil Busrai Consulting Former Executive Director Human Resources, IBM Panel 1 Panel 2 Moderator Moderator

Dr. Omkumar Krishnan Mr. Rajat Gera

Associate Professor, IMT Ghaziabad Associate Professor, IMT Ghaziabad

Panelists : Panelists : Mr Aquil Busrai Mr. Chander Sabharwal

CEO Aquil Busrai Consulting Director, Oriental Bank of Commerce

Former Executive Director Human Resources, IBM

MD, Crop Health Products Ltd

Mr. Naveen Luthra Mr. Suresh Tiwari

Vice President - Strategic Alliances Founder and CEO- Corporate Spectrum

GETIT Infoservices

Mr. Amit Roy

Mr. Rohit Sinha CFO NIIT Technologies

Head HR, L&T- Faridabad, Delhi NCR

Smita Sondhi

Head CSM- Symbiotic


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The lamp was lit by the Director, Dr. Bibek Banerjee and the panelists. In his speech, Dr.

Banerjee emphasized on the need to distinguish between the two different mindsets- the one

of planning and the other of execution. He cited the case of a batsman in cricket who has

various strategies in mind while the bowler is running towards him. But it is his execution

that fetches him maximum rewards and brings him to the record books. Thus, preparing

strategies is a core ingredient of the success story, but of utmost importance is to choose the

best alternative to achieve the desired result. Turning strategies into results, is at the top of

minds during discussions at headquarters. Nobody wants to share the jealously guarded

success formula, as optimum strategy has been the differentiator in leapfrogging ahead of

competition. It has never been more difficult than it is in today’s volatile environment. The

executives not only must be agile in responding rapidly to changes and dynamics in the

marketplace, but also must align and adapt their organization to actively produce the desired

results in an uncertain business environment.


January Edition

In the panel discussion, Mr. Busrai reminded everyone of the stark reality that in

organizations, strategy goes hand in hand with seniority. People who have been with

organizations for years and have got higher experience are believed to be good strategists.

Though it is true to an extent but keeping the enthusiastic minds at tactical and operational

levels away from strategic decision making is about marginalizing them. Disconnect between

operational planning and organizational strategy is harmful in the long run. According to him,

strategy is about things which are unseen and unforeseeable. This is the reason that Shell’s

international scenario planning has always been doing well in forecasting. This is a team of

diversity that plans and anticipates what could happen in the coming 20 years. The breakup of

USSR into independent states was predicted in the scenario planning in 1978 and it is

because of this that Shell’s plant at Sakhalin in Russia was re-operated within 3 weeks of

split. The team had strategized and contingency planning was already there in the record

books. Companies fail as they don’t learn from the market signals and thus need to challenge

what is happening at present and adapt accordingly.

The winning formula by Mr.Luthra consisted of aligning yourself with the following three

dimensions; the 3 As.

i.) Action: The torchbearer and the most critical part of the strategy

ii.) Adherence: Time-bound action plan i.e. faithfulness in a process

iii.) Accountability: End to end ownership

Documenting the backup plan is a noteworthy aspect of execution.

A thought provoking point put across by Mr. Sinha was the importance to understand the

“why”ness of the cause i.e. the logic behind your action, and not it’s “what”ness i.e. merely

the operational task in hand. According to him, self trust is the most important aspect of

turning strategies into results, as a confident leader is the one who leads by example and in

process gains support of his peers and subordinates. His mantra was to aspire to be an

Alchemist.

The house was mesmerized by the power talk of Mr. Sabharwal. He stated that the strategy to

be adopted should be the one whose present value of future returns is measurable and

quantifiable. Strategy, according to him, is not a rocket science but a bottom up approach of


January Edition

getting the fundamentals correct. It is about preparing the grass root solutions that help to

map the future. On the same lines, he stressed on the need to introduce anticipatory

management as a subject in business schools. As per him, aligning strategies with

organizational values and percolating it down to the lower levels so that everyone is focused,

is of paramount significance.

In sum, the conclave was an incredible value addition for the participating student managers.

It enticed them to nurture strong beliefs to be carried forward to the corporate arena.

Everyone appreciated the fact that planning coupled with meticulous execution is the way

forward for a falcon to move ahead, unperturbed.

Compiled by Nishant Singh Gahlot


January Edition

League of Titans: Aces High and Shuttle Up

As the year drew to a close, so did the ‘League of Titans’ (LoT), a five-month long sports

competition organized by the Sports Committee,IMT-Ghaziabad. In case you haven’t been

following the competition, LoT is a section-wise sports competition that includes both the

batches.

After the success of football, cricket, table tennis and throw ball matches, LoT saved its best

for the last events. Nail-biting finales, unbelievable intensity, incredible crowd support and a

good run by the minnows characterized the last few events.

Basketball has always been a glamorous sport, and it further cemented its reputation. The

final of the Basketball event, ‘Hoop La’, between favorites B1 and the challengers IB, was

the icing on a truly memorable cake. It started with a display of fireworks, but who would

have thought the real fireworks were yet to be seen? The general perception was that

defending champions B1 would steamroll any team in this tournament with players like

Apoorv and Abhishek in their team. Although the result was expected, any number of

accolades that IB received for their fighting spirit could never be enough. In the tight game,

the score read 33-32 in favour of B1. Apoorv Sharma, stepped up and sunk in two back-to-

back 3-pointers to stretch B1’s lead to an unassailable one.

While the champions were B1, Rahul Anwala from IB was the major reason of his team’s run

to the finals and an almost-win situation. He was rightly judged the ‘Player of the

Tournament’. One of the earlier matches of ‘Hoop La’ saw sections A and G play the match

of the tournament – going into overtime at 25-25. Section G held their nerve , and came out

as winners 27-25.

The Sports Committee simultaneously organized the last two events which were Badminton’s

“Shuttle Up” and Lawn Tennis’s “Aces High”. Badminton has always been the most popular

sport to be played in IMT with the courts rarely empty at any point of time and the standard

of players better than the that of players in other sports. It wasn’t a surprise that it was a real

crowd puller, a tense affair and characterized by closely fought contests. On the other hand,

due to the location of the tennis court and space constraints, “Aces High” came about

relatively quietly though brilliantly.


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One thing was common between the two tournaments. Shuttle Up final saw the best players

in college involved in a head-to-head clash in the final, while Aces High saw an epic final

that summed up a wonderful sports competition in a grand way.

The Shuttle Up final was contested in the dawn by B2 and B3. The most eagerly awaited

match of the tournament saw Nishant coming from one set down to beat Sushant. That set the

tone for the final, and Rahul and Renuka from B2 wrapped up the tournament in the next two

singles.

The final of Aces High saw the first junior section A, to enter the final of this season’s LoT.

They were against hot favourites B1. The key match of the tie was Akash vs Atmdeo.

Although Akash raced to a huge lead and was on the verge of a win, Atmdeo made a

sensational comeback to win it after a nail-biting tie-breaker. The rest of the matches went to

both team alternately in a topsy-turvy final, but the mixed doubles pair of B1 overpowered

their section A counterparts to wrap up a memorable final. Akash Jain was adjudged to be the

Best Emerging Player of The Tournament and his bold approach almost paid off in the final.

With IMT’s trademark sports event, Chakravyuh 2011, around the corner, the LoT was just a

prelude to some great heroics by the sportspersons at IMT Ghaziabad.

The same faces will definitely be in amidst the action come February 11, 2011. This time,

though, they will join hands to fight other b-schools in an attempt to become the pride of

IMT.

By Akarsh Sharma


January Edition

Pearls of Wisdom The Annual Conclave of PGDM Executive, IMT-Ghaziabad

On a windy and foggy morning of January 8th, 2011 the roads led to Kapil Mohan at IMT Ghaziabad. After all, it was the time for “Pearls of Wisdom”, the annual alumni summit of PGDM-Executive program of IMT, Ghaziabad. The theme of the summit was “3 BL (People, Planet and Profit): Strategy in the new era”, on which a panel discussion was hosted.

The esteemed panelists had a diverse representation going back as far as to Mr.

Rajesh Sehgal, from the pioneer batch of the PGDM-Executive program. Mr. Sehgal is COO, Caretel Infotech Ltd. To grace the occasion were Mr. Pronoy Dutt, Lead Resource- People & Organization Development at Costa Coffee (India), and Mr. Ashish Gupta, General Manager at VSK Associates, Delhi. Our Batchmate Mr.Sunil Prabhu, Formerly Group Project Manager, Infosys was also part of the panellists.

The discussion was moderated by Dr. Om Kumar Krishnan, associate professor of Marketing Management at IMT, Ghaziabad. The lamp was lit by the director, Dr. Bibek Banerjee and the panelists. In his speech, Dr. Banerjee cited the noteworthy example of his stint with Coca-Cola. There leaders were not only intellectually and rationally motivated but were also inspired to connect with 3Ps (people, planet, profit) as they connected with finance .According to him, If India and China were to live the way the U.S. lives then perhaps they will require another planet to dispose of their waste of sorrow and unhappiness. According to the dean academics, Dr. R K Chakraborty, people are the human capital and the profit they create is their economic value. It is of utmost importance, that this value is engendered in a standardized, globally accepted manner.

Triple bottom line, is a term widely in use in industrial arena today. It captures an expanded spectrum of values and criteria for measuring organizational (and societal) success: economic, ecological and social. The esteemed panelists came up with varying school of thoughts on this theme. Everyone agreed on the pale fact that exploitation of humans brains has set into the minds of the people. Mr. Rajesh Sehgal quoted the example of Handkerchiefs having given way to paper napkins, but no active units for recycling those used napkins. The short-sighted profit driven approach has been the key factor for majority of the


January Edition

companies where they have done away with the importance of sustaining the planet with growing green initiatives. The stark reality that came out as a result of the discussion was that 44,000 million hectares of green forest land has been destroyed for people’s needs. Here, the thought given by Mahatma Gandhi, “Mother Earth has given sufficient to cover everyone’s needs but not enough to cover even a single person’s greed”, is a best fit.

A thought provoking question raised by one of the participants was whether it is possible for such a huge population to sustain without exploiting the natural resources. One of the panelists answered it beautifully by saying, “Yes, I agree that it is not possible but the human minds have to acknowledge the fact that you should do what you are best at and leave the rest as an opportunity for others, at which they are best at i.e. recycling the waste. This will gradually reduce the use of natural resources as inputs for industrial processes”.

Mr. Ashish started the discussion by stressing that the top most priority of a sustainable business is profit. The need of the hour is to innovate in order to connect the disconnected link between people and planet. The companies should not only focus on the tip of the iceberg i.e. tangible financial benefits but also the huge intangible benefits of green environment. According to him, sustainability is a differentiator at present but a license to

operate for future.

The house was lit on fire when Mr. Anurag compared the human desires with FM radio. According to him, the most widely heard FM nowadays is “WIIFM” – What’s in it for me? It demonstrated that the materialistic tangible benefits overpower the social benefits of adopting sustainable development. Greed, according to him, is that catalyst that drives future growth and also caters to the needs of the future

generations. He strikingly illustrated that it is our parents’ greed to sustain the green environment that has enabled us to live a happy life and now we have to carry the baton forward for our future generations. Mr. Pronoy said “profit is important for any industry to survive but corporate social responsibility is a great opportunity to give back to the society for future business”.

Over all, the event was a great success and hugely appreciated by one and all. The batch is enlightened and enthused by the Pearls of Wisdom shared by eminent panelists. Everyone appreciated that sustainability is a never ending journey on the path of happiness and prosperity.



January Edition

The Future of Search For a long time now, Google has become synonymous with search on the internet. Google has managed to take the market leader position with more than 50% of the market share in all country in which it operates except China where Baidu rules the roost. Google algorithms and search methods have started powering once archrivals Yahoo and Bing. The once considered infallible Giant of Search is now failing in its core mission of keeping search results relevant to the Search Query. This has mostly been blamed on the usage of SEO techniques in vogue and also the usage of Content Farms.

Content farms are companies (or their divisions) that employ large numbers of (often freelance) writers to generate large amounts of textual content. The content created by these content farms has already spelled trouble to media generated by traditional journalism houses and blogs. This threat has also caused mayhem in the Google’s search results by lowering the quality of results significantly.

The Tech start-up Blekko has started emerging as a strong contender to Google on the basis of its new search mechanism and also the ban on content from Content Farms. Blekko also enables its users to generate tags to classify and curate their search results with options to mark irrelevant results as Spam, thereby increasing the relevance of the results. The fact that Blekko has managed to raise $14million through VC funding elicits interest in the start-up. The only obstacle that prevents Blekko from matching Google is the enormous amount of data that Google has access to but this may soon cease to be a major obstacle with the progress that Blekko seems to be making.

Not one to remain silent in the face of competition, Google has fired a warning at Content Farms namely Demand Media and Answers.com to stop spamming the search results. This move is also being augmented by newer search algorithms that specifically targets content farms but may take some time to be implemented. this may lead to loss of market share to Blekko, Yahoo or Bing.

With Yahoo and Bing out of contention as the challenger to Google, the mantle might fall on

Blekko to take up the challenge and might result in Google losing serious market share to

Blekko which is not a situation Google wants to see itself in. In a repeat of the Smartphone

wars of late 2000 with Microsoft losing its market dominance to RIM and Palm from nearly

100% market share to 9% now, Google might see its user base erode due to poor quality

search results to start ups like Blekko which challenge its might in the realm of Internet

Search with 2011 proving a year of reckoning for both companies

By Nikhil G. Pai


January Edition

MFIs in India

The burning topic of today’s time had its roots in the Indian economy since 2004 when the

Saritha Foundation started the microfinance schemes.

Globally a total of 1905 microfinance institutions are present of which 148(the registered

ones) are present in India which accounts to approx. 7% of the total (source: mixmarket.org).

So a handful of 148MFIs caters to a borrowing population of over 25 million. MFIs charges

around 24-30% but after the regulation the maximum rate they can charge is 24%

Now the onus lies in the hands of Government to decide the regulatory bodies. If RBI is

given the responsibility of regulating then keeping a check on their transactions will be a

tough job for them, especially when they have the mammoth task of tackling inflation. If the

responsibility is taken by the State then these MFIs will not have a centralized system.(Rules

will vary with the State) Furthermore, in India we also have a problem of Money lenders,

who have direct contact with the farmers and charge very high interest rate

First of all we need to clarify the basic difference between the two.

Difference between them is

1. The rate of interest which is by far much more in later case. So whether it is to be

regulated by RBI or by state or some external agency is to be decided to provide with

the regulatory authority.

2. The MFIs loans are unsecured whereas the moneylenders usually lend against some

security in the form of land or cattle.

3. Moneylenders use their own funds whereas MFIs leverage borrowed funds.

4. Usually MFIs do not employ goons; it’s the moneylenders who employ them to

recover the amount forcefully.

5. Moneylenders are regulated by State Money Lending and Usurious Loans Laws,

which states that the interest charged cannot exceed the principal amount. Whereas

the rate of interest guidelines in case of MFIs are done by RBI.

.


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Let’s go through the money lent by MFIs- 85 -90% of the MFI costs is returned back to the

bank, then some operational expenses are taken out of the rest of the amount along with a

meager profit. It has to cover the risk associated with the defaulted loans, an army of sleuths

to get back the money from the borrowers and with the 24% binding over the interest rate it is

too difficult for the MFIs to sustain.

The current outstanding balance is over 8000cr. If central bank is thinking of closing down

these MFIs it would add to their CAR (capital adequacy ratio which might rise above the 9%

mark). This will affect the present market condition of the bank. Even with the so called

MFIs stating to have an average return rate of 99%, the govt. and RBI are of the view that

not more than 60% is returned back which is a very less figure compared to the loan amount.

Now coming to the topic of rural India, it’s a highly opportune time to capture this market.

Many companies (like HUL, Airtel etc) are trying to step into this market. Similarly even

Government is of the view that there should be some banks to start operating in these areas..

Recently RBI has come up with a new guideline where it will bear the burden of the

operating cost of any bank’s branch in rural sector for 2 years and the branch will get a tax

waver for 5 years. Along with this we need to take into account the marketing cost,

employees cost (which will obviously be charged higher for the rural sector) etc.

Furthermore, MFIs and moneylenders have already captured the market. So they have the

first mover advantage. To penetrate the rural market, the banks will take at least a decade or

two. A proper strategy has to be adopted to ensure sustainability and success.

Now if the RBI regulates these MFIs in accordance to their need then many purposes will get

solved. Firstly, these MFIs can act as a subsidiary. So giving them the banking rights will

help them to build a stronger base. They will fall under the RBIs guidelines and so in this

way RBI will not have its power cut short and the banking sector can reach the rural India.

Furthermore, already the Banks have given a debt of over 8000cr to the MFIs. On building a

new establishment in the rural sector will ultimately increase the liabilities in their balance

sheet. And not to forget, if the banks fail in their strategy (of building banks in rural) then it

will further shoot up the debt component. Supporting MFIs may not have that risk or at least

the add on risk. Moreover, the way the bank is offering the other banks to land in the rural

sector (in the form of tax evasion) is severely going to affect the liquidity of the system.


January Edition

Through this way, it would be easy for the Government to throw out the illegal moneylenders

and make it an organized sector.

So if given a roadmap along with directions these MFIs can be a blessing in disguise for the

rural sector. Also the burden of the Government to develop the rural sector will get fulfilled.

By Raman Duggal


January Edition

Chakravyuh XI

In 1993, deriving its name from the roots of Indian history

symbolizing the very intention of its inception – competition,

bravery and glory – an event in its infancy made it into the

academic calendar of IMT Ghaziabad.

18 years on, becoming the envy of over 30 participating B-

schools, an attraction to over 50 participating alumni each

year, that infant has grown to undoubtedly take its place as the

Big Daddy of B-School sports events.

IMT Chakravyuh isn’t just any sports event. It is a 72 hours non-stop celebration of a long-

lasting culture at IMT Ghaziabad; an encapsulation of a tradition of unconfined boldness,

indomitable spirit, grand organization and a hunger for competition.

It is a blend of intense round-the-clock competition producing a war-like atmosphere, off-the-

field events testing your sporting intellect, entertaining activities recreating the air of

childhood and DJ nights providing a festive ambiance. It remains the ultimate test of an

athlete’s skill, stamina, passion, strength, agility and the ability to endure pressure and come

out victorious.

The objective of Chakravyuh is simple – ‘Form a team of 25 players that accommodates all

sports in a way to target the overall trophy based on a points system’. While it seems simple

and straight-forward, the amount of strategy that goes into the formation of a team is nothing

short of a managerial ordeal.

For IMTians, mission Chakravyuh usually begins five or six months prior to the big event.

By then, team captains are already running around to recruit players for their teams and

players have multiple offers from different teams to decide upon. First-mover advantage,

formation of cartels, players jumping ships between rivals and the use of marketing concepts

to sell your team; Chakravyuh witnesses all these elements of the ruthless competition of the

business world.


January Edition

Apart from a fixed number of teams from IMT Ghaziabad, the mega event hosts teams from

B-Schools such as IIM Bangalore, IIM-Lucknow, MDI, IIFT, MICA, SPJAIN, FMS, IIT

Kanpur, IIT Delhi and several other top B-schools in India. It also welcomes teams composed

of alumni of IMT Ghaziabad.

While the bells of success of last year’s Chakravyuh are still ringing throughout the Indian B-

School community, this year the Sports Committee of IMT Ghaziabad plans to take the event

one notch higher. The uniqueness of this event will further be enhanced by the introduction of

activities like Paintball and Betting Station. So, while the extravaganza is all about sports and

sportspersons, Chakravyuh 2011 will make sure it serves the people who miss out due to the

cut-throat competition.

“Chakravyuh XI” will also have a huge cash prize for “best marketing” – thus, laying the

foundation for all the teams to express, innovate, improvise and paint this event in their own

style to make it even more special.

In addition to all this, Chakravyuh’s cash-strapped online competitions and promotions had

already started at the turn of the year, on its facebook page:

http://www.facebook.com/Chakravyuh11

It promises to be another significant milestone in the competition’s eighteen-year rich history.

It is a legacy that each and every IMTian is proud of and looks up to. From Feb 11-13, 2011,

IMT Ghaziabad throws down the gauntlet to all competing B-Schools…

You may have run a marathon, but can you run a Chakravyuh?


http://www.facebook.com/Chakravyuh11


January Edition

Chakravyuh Mascots


January Edition

Quiz-O-Mania

1. Which MNC has hived off its stainless steel and specialty steels business into Aperam, a

newly created company?

2. The secret and focused group research wing of which company is now generically called as

the Shrunk Works?

3. On which product would you find the initials of the brothers William Day and Henry

Overtone Jr?

4. Ruben Rausing invented the 'tetrahedron-shaped' cardboard carton for holding liquids in

the year 1952.Identify the company run by Rausing's.

5. In business context what is claimed to the fame of Ahus, a town in Sweden?

6. Republic Day special: Which song is played during the 'Beating the Retreat' ceremony

during the Republic Day?

7. Name the brand which is the first to sponsor a farm in the hugely popular social game

Farmville.

8. England's football and cricketing hero Denis Compton was the first and currently it is

Kevin Pietersen. What?

9. On which FMCG brand's website can one play the game Connect 4 to outplay the

computer?

10. What is common to the brands Ravi, Cultus, Bolan and Mehran?


January Edition

Answers:

1. Arcelor Mittal

2. Lockheed Martin

3. Wills cigarettes

4. Tetrapak

5. Manufacturing base of Absolut Vodka

6. Abide With Me written by Scottish Anglican Henry Francis.

7. McDonald's

8. The Brylcreem Boy

9. Nivea

10. All are Suzuki's vehicles made in Pakistan. Mehran is the equivalent of the Alto.

Compiled by Vineet Sehgal


January Edition

Life @ IMT Ghaziabad

IMT Ghaziabad Perspective Jan 2011

Documents

Transcript of IMT Ghaziabad Perspective Jan 2011