It is not everyday that, the world's greatest in the most popular game of the mind, lets you in on moves that will help you excel in the business world. So be prepared to chew on every word said - each sentence could be a rung to rise in the corporate world. Viswanathan Anand, the just crowned king of chess, gave a master class to ET on how to become the best in the business by using some of his strategies and tactics.
KNOW YOUR GOALS:
Seeking perfection might be a distraction: You have to make your best decisions in two hours. A lot of chess players get too absorbed in the game and try to get to the bottom of it. But, that’s essentially a distraction.
STRIVE FOR OBJECTIVITY:
You may be optimistic or pessimistic, but be realistic. Objectivity is not the face you show to outside world, its a face you show to yourself. If I am cheating myself, it’s not going to work. Still in the heat of the game. it’s difficult to be objective. You tend to get emotional . Being realistic is not easy. It demands constant analytical work. Be merciless with yourself, that is when you grow as a chess player.
DON'T WORRY ABOUT THINGS YOU CAN'T CONTROL:
Tension helps you concentrate well. Being relaxed might be dangerous. Performance goes down with satisfaction. There is no point in worrying about things you can’t control. That’s where physical exercise helps.
KNOW YOUR OPPONENT:
Chess is all about applying game theory. You always think in terms of what your opponent will do, how he will respond to your moves.
ANALYSE AND SHARPEN INTUITION:
Intuition is often used as a substitute for calculation. If you calculate a lot, even if you don’t get till the end, your guess is going to be better.
EXPAND YOUR HORIZONS:
There might be some gems in the garbage you have discarded: If something doesn’t work six out of ten times, we discard it. But computers constantly look for unusual moves - and can beat us on the exceptions.
WHEN YOU LOSE, MOVE ON TO THE NEXT BATTLE:
Handling defeat is usually just impossible. You are totally depressed. Perhaps, its in business life as well. You have to say, ok , this battle is over and move on to the next. Anand became the youngest Indian to win the International master title at the age of 15, in 1984. He went on to win more titles since. The crowning glory came this year in Mexico City, when Anand became the undisputed world chess champion.
Friday, November 16, 2007
India named among world's 10 most gender-biased economies
Indian women's empowerment is still a long way if the World Economic Forum's report, which has put the country among the bottom 10 when it comes to their participation in economic agenda, is any hint.
According to the World Economic Forum's latest Gender Gap Index report released over the weekend, India has been ranked at 114th position after taking into account economic, political, educational and health parities, among a total 128 countries.
In terms of "economic participation and opportunity" alone, India has fared even worse at 122nd position, pushing it into the bottom ten.
In the overall ranking, the country has slipped from 98th rank in 2006 when the index included a total of 115 countries.
This year's Gender Gap Index has been topped by Sweden with a gender equality of 81.5 per cent, followed by Norway, Finland, Iceland and New Zealand.
The countries ranked below India include Bahrain, Cameroon, Burkina Fa's, Iran, Oman, Egypt, Turkey, Morocco, Benin, Saudi Arabia, Nepal, Pakistan, Chad and Yemen with the lowest gender equality of 45.1 per cent.
According to the WEF report, India has an overall 59.4 per cent gender equality, while for economic participation and opportunity it stands at 39.8 per cent.
Compared to its 122nd rank for economic participation, India has fared much better in terms of political empowerment at 21st position. The country has 106 women in Parliament, 118 in ministerial positions and has seen four years with a female head of state in the last 50 years.
India is ranked at fourth position with a 43-per cent gender equality when compared in terms of a women state head.
The economic parity index is based on four parameters - labour force participation, wage equality for similar work, income, legislators, senior officials and managers and professional and technical workers.
In terms of wage equality, India's rank is much better at 59th with a 67 per cent gender equality, while for professional and technical it is 97th (27 per cent equality). It has been ranked below 100th positions for the other three parameters.
WEF said that India has 36 per cent female participation in overall labour force, while for professional and technical workers it is 21 per cent.
In terms of economic participation and opportunity, Mozambique has been named as the top country with best gender equality of 79.7 per cent, followed by Philippines (78.9 per cent), Ghana (78.1 per cent), Tanzania (78 per cent) and Moldova (77.8 per cent).
On economic parameters, the only six companies faring worse than India are Iran (123rd), Bahrain (124th), Oman (125th), Pakistan (126th), Saudi Arabia (127th) and Yemen (128th).
The major countries faring better than India on economic parameters include the US (14th), the UK (32nd), Australia (12), South Africa (85) and France (61st).
Among the BRIC countries, Brazil (62nd), Russia (16th), and China (60th) have all been ranked well above India.
According to the World Economic Forum's latest Gender Gap Index report released over the weekend, India has been ranked at 114th position after taking into account economic, political, educational and health parities, among a total 128 countries.
In terms of "economic participation and opportunity" alone, India has fared even worse at 122nd position, pushing it into the bottom ten.
In the overall ranking, the country has slipped from 98th rank in 2006 when the index included a total of 115 countries.
This year's Gender Gap Index has been topped by Sweden with a gender equality of 81.5 per cent, followed by Norway, Finland, Iceland and New Zealand.
The countries ranked below India include Bahrain, Cameroon, Burkina Fa's, Iran, Oman, Egypt, Turkey, Morocco, Benin, Saudi Arabia, Nepal, Pakistan, Chad and Yemen with the lowest gender equality of 45.1 per cent.
According to the WEF report, India has an overall 59.4 per cent gender equality, while for economic participation and opportunity it stands at 39.8 per cent.
Compared to its 122nd rank for economic participation, India has fared much better in terms of political empowerment at 21st position. The country has 106 women in Parliament, 118 in ministerial positions and has seen four years with a female head of state in the last 50 years.
India is ranked at fourth position with a 43-per cent gender equality when compared in terms of a women state head.
The economic parity index is based on four parameters - labour force participation, wage equality for similar work, income, legislators, senior officials and managers and professional and technical workers.
In terms of wage equality, India's rank is much better at 59th with a 67 per cent gender equality, while for professional and technical it is 97th (27 per cent equality). It has been ranked below 100th positions for the other three parameters.
WEF said that India has 36 per cent female participation in overall labour force, while for professional and technical workers it is 21 per cent.
In terms of economic participation and opportunity, Mozambique has been named as the top country with best gender equality of 79.7 per cent, followed by Philippines (78.9 per cent), Ghana (78.1 per cent), Tanzania (78 per cent) and Moldova (77.8 per cent).
On economic parameters, the only six companies faring worse than India are Iran (123rd), Bahrain (124th), Oman (125th), Pakistan (126th), Saudi Arabia (127th) and Yemen (128th).
The major countries faring better than India on economic parameters include the US (14th), the UK (32nd), Australia (12), South Africa (85) and France (61st).
Among the BRIC countries, Brazil (62nd), Russia (16th), and China (60th) have all been ranked well above India.
Mumbaikars beat Delhiites in new billionaires list
Mumbai has pipped Delhi as a city with the highest number of billionaires in the country. The latest list of richest Indians, compiled by Forbes magazine, has named 23 billionaires from Mumbai. Delhi accounts for only 12 such people. Among top five richest Indians living in India, two are from Mumbai and two from Delhi. But, Mumbaikars enjoy higher ranks than the Delhiites. The billionaires from Mumbai are led by Ambani brothers - Mukesh (2nd rank) and Anil (3rd rank) - with fortunes to the tune of $49 billion and $45 billion respectively. In Delhi, the richest person is Kushal Pal Singh of DLF (4th rank) with fortunes worth $35 billion, followed by Bharti Airtel's Sunil Mittal (6th rank) whose wealth adds up to $12.5 billion. Among other cities, Pune and Bangalore has six billionaires each. Meanwhile, in the list of 'India's 40 Richest', there are 15 billionaires from Mumbai, 10 from Delhi, five from Pune and four from Bangalore. In this list, Ahmedabad and Hyderabad have a billionaire each. There are 14 Indians, with wealth of one billion dollars each, who have not made a cut into the '40 Richest' list, according to the magazine. Eight of them are from Mumbai and two from Delhi. Naresh Goyal of Jet Airways, Nandan Nilekani of Infosys, Kishore Biyani of Pantaloon Retail and Pradeep Jain of Parsvnath Developers are among these people. |
Indians worried about money post-retirement: MetLife survey
Running out of money in the sunset years is a major concern for a majority of Indians, but only a few have taken steps toward retirement planning, says a survey by US-based insurer MetLife.
As many as 79 per cent of respondents of a study carried out by the insurance firm said that having enough resources for taking care of elderly was a major concern, while 71 per cent of them named "running out of retirement money as a major issue."
"Yet only about one out of every three workers (35 per cent) said that they have taken steps to determine retirement needs and only 20 per cent say they have done actual planning for retirement," it said.
The MetLife Study of International Employee Benefits Trends surveyed employers and employees in four countries -- India, Mexico, Australia, and the UK -- that represent mature and emerging economies and differing workplace environments.
In India, the study surveyed 1,039 Indian employees and 523 Indian employers.
In a sharp contrast from the other countries surveyed, one-third (33 per cent) of Indian employees say they never expect to retire, which may account for why so many have done so little retirement planning.
But the scene looks positive for those Indian workers who have planned for retirement with nearly six out of 10 (58 per cent) saying they have either achieved or are on track to achieving their retirement goals, ahead of the US workers where only 21 per cent said they are on track and only 5 per cent accept having achieved retirement goals.
Indian employers have not given much thought to this concern of employees, with most them offering few benefits besides life and health, the international survey said.
"The top benefits objectives of almost all India employers that provide benefits are to control employee health and welfare benefits costs and increase employee productivity," as per the survey.
The survey found that workers are extremely concerned about such financial worries as adequate health insurance (82 per cent) and having enough money to live on (80 per cent).
The international study reveals a disconnect between what benefits Indian employees say they need and want and the benefits Indian employers are prepared to offer now or in the future.
Rapid economic expansion and the growth of multinational companies in India with benefits programmes are increasing competition for the limited pool of highly skilled and better educated workers, MetLife International President William J Toppeta said.
With a variety of world-class companies operating extensively in India, workers are now more aware of how workplace benefits can help meet their health, protection and retirement needs. Companies that develop benefit programmes highly prized by employees will have more leverage in attracting and retaining the best talent in the increasingly competitive marketplace, Toppeta added.
As many as 79 per cent of respondents of a study carried out by the insurance firm said that having enough resources for taking care of elderly was a major concern, while 71 per cent of them named "running out of retirement money as a major issue."
"Yet only about one out of every three workers (35 per cent) said that they have taken steps to determine retirement needs and only 20 per cent say they have done actual planning for retirement," it said.
The MetLife Study of International Employee Benefits Trends surveyed employers and employees in four countries -- India, Mexico, Australia, and the UK -- that represent mature and emerging economies and differing workplace environments.
In India, the study surveyed 1,039 Indian employees and 523 Indian employers.
In a sharp contrast from the other countries surveyed, one-third (33 per cent) of Indian employees say they never expect to retire, which may account for why so many have done so little retirement planning.
But the scene looks positive for those Indian workers who have planned for retirement with nearly six out of 10 (58 per cent) saying they have either achieved or are on track to achieving their retirement goals, ahead of the US workers where only 21 per cent said they are on track and only 5 per cent accept having achieved retirement goals.
Indian employers have not given much thought to this concern of employees, with most them offering few benefits besides life and health, the international survey said.
"The top benefits objectives of almost all India employers that provide benefits are to control employee health and welfare benefits costs and increase employee productivity," as per the survey.
The survey found that workers are extremely concerned about such financial worries as adequate health insurance (82 per cent) and having enough money to live on (80 per cent).
The international study reveals a disconnect between what benefits Indian employees say they need and want and the benefits Indian employers are prepared to offer now or in the future.
Rapid economic expansion and the growth of multinational companies in India with benefits programmes are increasing competition for the limited pool of highly skilled and better educated workers, MetLife International President William J Toppeta said.
With a variety of world-class companies operating extensively in India, workers are now more aware of how workplace benefits can help meet their health, protection and retirement needs. Companies that develop benefit programmes highly prized by employees will have more leverage in attracting and retaining the best talent in the increasingly competitive marketplace, Toppeta added.
Thursday, November 15, 2007
A Lot In A Little
Thirty seven-year-old Anwar, a migrant from Aligarh, has been making his living ironing clothes in the New Seemapur slum in East Delhi for the past 10 years. Last Thursday, the father of three, who earns about Rs 200-300 a week, made his first deposit in a bank account. “I have more responsibilities now because I have children,” he says. “I need to keep my money safe for them. This savings account is a good way to make sure they will be taken care of.”
Anwar is one of the nearly 1,500 urban labourers who have joined a technology-assisted financial inclusion programme started by Basix, which describes itself as a livelihood promotion institution. The project, in collaboration with Axis Bank, provides basic, no-frills banking services to poor migrant workers. Basix and Axis Bank have also started a pilot remittance project to help migrant labourers in East Delhi transfer money quickly to dependents in Muzaffarpur in Bihar.
Anwar is one of the nearly 1,500 urban labourers who have joined a technology-assisted financial inclusion programme started by Basix, which describes itself as a livelihood promotion institution. The project, in collaboration with Axis Bank, provides basic, no-frills banking services to poor migrant workers. Basix and Axis Bank have also started a pilot remittance project to help migrant labourers in East Delhi transfer money quickly to dependents in Muzaffarpur in Bihar.
Hundreds of thousands of people make their way into India’s over-burdened metropolises every day to find a livelihood for themselves and the large families they leave behind in their native villages, which mostly remain outbacks of under-development. A majority of these desperate hopefuls manage to find only subsistence employment that consigns them to living out an urban nightmare. They have no access to services and amenities. These remain reserved only for those fortunate enough to have their existence documented through photo identity papers, ration cards, salary slips, bank statements or home ownership records. If the country’s biggest companies and banks are now reaching out to the acutely impoverished, they are doing so after decades of neglect, and thanks in most part to management gurus such as C.K. Prahalad, who divined a fortune at the bottom of the pyramid.
No Frills PleaseBasix : and Axis Bank are conducting their experiment in financial inclusion in the eastern part of Delhi, home to the capital’s largest slum. The area is populated largely with immigrant workers from remote hamlets in Bihar and Uttar Pradesh. “Most of the people who have enrolled for the pilot project are those who make a living as rag pickers, rickshaw pullers, house maids and auto rickshaw drivers,” says Preeti Sahai, who spearheads Basix’s programmes in Delhi. “These people earn very little and, until now, did not have a way to save.”
The initiative uses the ‘business correspondent model’ that the Reserve Bank of India created a couple of years ago to make banking services reach the lowest strata of society. Indian Grameen Services, a not-for-profit arm of Basix, acts as a business correspondent for Axis Bank, which essentially means it becomes an agent for the bank to source business. Basix helps workers in Delhi open no-frills, zero-balance accounts to begin saving and sending money home.
The initiative uses the ‘business correspondent model’ that the Reserve Bank of India created a couple of years ago to make banking services reach the lowest strata of society. Indian Grameen Services, a not-for-profit arm of Basix, acts as a business correspondent for Axis Bank, which essentially means it becomes an agent for the bank to source business. Basix helps workers in Delhi open no-frills, zero-balance accounts to begin saving and sending money home.
Photographs as well as biometric signatures (fingerprints) are used as primary identification for customers. Basix’s field agents carry a laptop, a fingerprint scanner and a digital camera to record these details. The new client is then issued a smart card that stores the account number, bank balance and biometric information. Usually, the prints of the index finger, ring finger and thumb are collected. But occasionally, even that is difficult. As labourers, they have worn out palms and fingers; some even have cuts that distort the print. “In such extreme cases, say, about two or three out of 1,500, we have actually used their toe-prints,”’ says Sahai.
Basix field staff physically verify addresses and job details of prospective customers. The staff then fill out the account opening forms for the bank. Basix agents keep making rounds of their respective localities so that customers can meet them to transact business. There is also a local branch office. The field agents carry three devices — a mobile phone and a mini receipt printer. These devices have smart-card sensors and a smart-card scanner with a biometric fingerprint reader to authenticate the ownership of a card as the person who wishes to make the transaction.
Easy Does ItThe accounts opened in Delhi can be linked with up to five dependents’ accounts in Muzaffarpur, says Raja Mukherjee, assistant vice-president for retail at Axis Bank, who monitors the pilot at the bank’s end. Mukherjee says the accounts are linked to Axis’ core banking platform through a software programme developed by Mumbai-based technology company A Little World (ALW). Dependents are not required to go to an Axis branch to withdraw money. If an amount is remitted from Delhi, Basix’s field staff reaches the recipient’s home with a fingerprint reader. A text message is then sent to the bank’s server, which authorises the transaction, not unlike the way a credit card transaction is authorised by banks. Once this is done, Basix staff hand over the money to the beneficiary.
This system of transferring money also works out cheaper for senders. Basix charges 2 per cent of the amount sent as transfer fee. Informal couriers, who rarely guarantee safe transmission of money, charge between 5 and 10 per cent. Another popular option, the postal money order, costs 5 per cent of sum sent, besides taking a long time to reach.Axis and Basix hope to ramp up the project to include thousands of people, products and areas. “The prospects of expanding it [the project] are huge,” says Axis’ Mukherjee. “But we have to first check the robustness of the technology.” Sahai says Basix intends to introduce products such as loans and mutual funds soon. “We will graduate to investment plans in 8-9 months,” she says. Basix is already talking to some mutual funds to structure products that will take small investments. She hopes to sell systematic investment plans to these low-income groups soon.
The customers appear ready. Sixty-year-old Gayatri migrated from a village near Aligarh when she was just six. She earns roughly Rs 60 per day selling bread pakodas, not far from where Anwar irons clothes. Her husband passed away four months ago and she is eligible for a widow’s pension. She wants to deposit that money in her new savings account, along with the Rs 10 she saves every day. “If I can save after meeting my needs, that will be good for me,” says Gayatri. “I also feel this is a good way of keeping my money safe for my children when I die.” Even small savings come with big needs.
Historically, investors generally gain post-Diwali
Investors worried over the recent bear attack on the bourses can look forward to a rewarding month ahead as returns have been mostly better post-Diwali compared to the one-month period till the festival of wealth. If this historic trend charted by the market barometer Sensex in the one-month period before and after Diwali holds true this year also, then the market would reclaim yet again its 20,000-point milestone in the next 30 days. According to an analysis of historic patterns recorded by the Sensex since 2000, the 30-share barometer index has posted an average return of 6.85 per cent in the one-month period after Diwali. This is about five times the average return of 1.46 per cent in the one-month period prior to Diwali. If the Sensex manages to grow by this average, it could achieve a level above 20k, from its current level of 18,907.60 points. The index had first crossed 20,000 level on October 29 and scaled a peak of 20,238.16 on October 30. However, a subsequent downslide on the bourses has brought the index over 1,500 points away from its life-time high. Notwithstanding a fall of 151 points in Muhurat trading and a five-day downslide, the Sensex still managed to record a gain of 3.43 per cent in the one-month period till Diwali on November 9, 2007. The post-Diwali one-month period has always given a positive return for Sensex, while it has been negative twice since 2000 in the prior-Diwali period -- in 2005 and 2000. On other five occasions, the Sensex gained between 3.43 per cent and 11.75 per cent in one month prior to Diwali. Besides, the post-Diwali month has recorded a lower return than the pre-Diwali period only once -- in 2003 when Sensex grew by 11.75 per cent in one month before Diwali and by 1.92 per cent after Diwali. |
MF investors pull out Rs 12,500 crore in Oct
Even as market experts debate on where the stock market indices will go on from here, several investors in mutual funds seem to have already taken a smart call. These investors have withdrawn their money from equity schemes as they sensed that the market may not sustain its momentum in the coming months. The pull out, which could be partly driven by the high customary cash demand during the Diwali week, saw the highest-ever monthly redemption in October.
“In a buoyant market like this, there will always be a set of people who feel that they have made a lot of profit in a short time,” says SBI Mutual chief marketing officer RS Srinivasan Jain. “These guys will always book some profits,” he said. However, he added that the redemption amount at his fund house has been modest at best and he sees this number stabilising from hereon.
Data on the Amfi website reveals that during October, investors in equity mutual funds redeemed the highest amount ever in a single month, as they withdrew more than Rs 12,500 crore put together. This trend has been on for some time now as investors redeemed around Rs 7,700 crore and Rs 7,000 crore worth of units in September and July, respectively.
However, a closer look at the numbers shows that some new money has also been flowing into equity schemes. Thanks to eight new fund offerings as well as fresh inflows into existing schemes, more than Rs 12,200 crore was mobilised by funds. As a result, net outflows from funds for October were average at just over Rs 300 crore.
Mr Jain of SBI Mutual says that there is bound to be some duplication of data in the Amfi numbers for redemption of units. For instance, if an investor withdraws money from one fund and shifts it to another equity fund, the amount will figure in redemption as well as fresh flows. Hence, the numbers should be taken with a pinch of salt, he feels.
“In a buoyant market like this, there will always be a set of people who feel that they have made a lot of profit in a short time,” says SBI Mutual chief marketing officer RS Srinivasan Jain. “These guys will always book some profits,” he said. However, he added that the redemption amount at his fund house has been modest at best and he sees this number stabilising from hereon.
Data on the Amfi website reveals that during October, investors in equity mutual funds redeemed the highest amount ever in a single month, as they withdrew more than Rs 12,500 crore put together. This trend has been on for some time now as investors redeemed around Rs 7,700 crore and Rs 7,000 crore worth of units in September and July, respectively.
However, a closer look at the numbers shows that some new money has also been flowing into equity schemes. Thanks to eight new fund offerings as well as fresh inflows into existing schemes, more than Rs 12,200 crore was mobilised by funds. As a result, net outflows from funds for October were average at just over Rs 300 crore.
Mr Jain of SBI Mutual says that there is bound to be some duplication of data in the Amfi numbers for redemption of units. For instance, if an investor withdraws money from one fund and shifts it to another equity fund, the amount will figure in redemption as well as fresh flows. Hence, the numbers should be taken with a pinch of salt, he feels.
Third brokerage IPO to hit mkt soon
The sharp stock market rally, which has nearly doubled investors' wealth to over Rs 62 trillion in past one year despite the recent downslide, is leading to robust business growth for brokerage houses, leading them to tap the market itself to raise funds.
In a span of less than three months, the primary market would see the third IPO by a brokerage firm on Thursday when the public issue of Edelweiss Capital opens for subscription.
This follows successful IPOs by Motilal Oswal Financial in August and Religare Enterprises in October-November.
The two public issues mopped up close to Rs 400 crore together, while Edelweiss alone is planning to raise an estimated Rs 700 crore through its IPO. Both the IPOs generated robust investor demand with Religare issue getting subscribed by over 160 times, while that of Motilal Oswal was subscribed by about 28 times.
The total demand generated by the two IPOs was worth about Rs 30,000 crore, measured in terms of collective value of all the bids submitted in their book-building processes.
The huge demand for these IPOs has been justified by the performance of already-listed brokerage firms on the bourses, said an analyst. Motilal Oswal Financial got listed at Rs 999 on the BSE on September 11 with a premium of 21.09 per cent over its issue price of Rs 825.
Religare Enterprises, a Ranbaxy promoter group company, has fixed the offer price of its initial public offer (IPO) at the higher end of its price-band of Rs 160-185.
The other brokerages already listed on the bourses include Indiabulls Financial Services, Emkay Share and Stocks Brokers Ltd, Almondz Capital & Management Services Ltd, India Infoline, IL&FS Investmart and Geojit Financials.
Mumbai: World's 4th most expensive office mart
In August this year, ABN Amro Bank decided to renew the lease for its 3,100 sq ft office space at Nariman Point's Sakhar Bhavan, but the landlord dropped a bomshell by jacking up the rental to Rs 500 per sq ft. The earlier lease, signed in 2004, was for Rs 180 per sq ft.
At the revised rate, the rent of $150 per sq ft per year was around 90 per cent more than even mid-town Manhattan where the annual rates are around $82 per sq ft. But ABN isn't alone in deciding to pay up top-dollar rentals for new office space in Mumbai.
The Rs 500 per sq ft rate has, in fact, become a benchmark for Grade-A office space - centrally air-conditioned, well-maintained, efficient buildings (space you get in terms of what you pay for) with good tenant mix - in Mumbai's main business districts.
Real estate brokers say landlords at Hoechst House in Nariman Point are demanding similar rentals. A landlord on Maker Chambers VI is close to signing a deal at Rs 500 per sq ft for a higher floor office with unobstructed sea-view.
Now, this rate is for chargeable (super built-up) area in a building where previously most deals were done on carpet area. So, the effective rentals could be Rs 575-650, excluding property taxes and maintenance charges.
The scene is no better in other business districts like Worli, Parel or Bandra-Kurla Complex in midtown Mumbai. New deals for Grade-A buildings are being signed in the Rs-400-500 per sq ft rent bracket.
Last quarter, Dubai-based real estate firm Limitless leased out 6,500 sq ft at the IL&FS Financial Centre, Bandra-Kurla Complex at Rs 430 per sq ft, while Morgan Stanley took 12,500 sq ft in Peninsula Corporate Park, Parel, for Rs 400 per sq ft.
No wonder, Mumbai has emerged as the fourth most expensive office market in the world, next only to the two business districts in London (Westend and City) and one in Tokyo (inner central).
A survey by real estate consultant CB Richard Ellis in May 2007 shows New Delhi isn't far behind at the seventh slot and estimates occupation costs in Connaught Place at $116 per sq ft/annum.
The rates have gone up further since the survey. Real estate brokers say the going rate at the Birla Building on Barakhamba Road in the capital is Rs 600 per sq ft.
Ashutosh Pathare, vice-president, Shapoorji & Pallonji, says there is a mismatch in supply in Nariman Point. There's very little space available but there's strong demand from private equity firms, banks, airlines and consultants.
Agrees Sanjay Dutt, deputy managing director with real estate consultant Cushman & Wakefield India: "Nariman Point has an estimated 7 million sq ft of commercial space, but not even 3 per cent of this is available for lease."
But it's not just about Nariman Point. Commercial rentals across Mumbai have shot up 15-20 per cent as supply has failed to keep pace with the spurt in demand, say real estate observers.
BPO major Firstsource recently renewed its lease at Peninsula Corporate Park, Parel at Rs 225-275 (basic rent, plus other costs like taxes and maintenance), revising it from the Rs 70-80 per sq ft when it moved here in January 2004.
"The spurt is higher in case of renewals," adds a real estate expert. The rentals also depend on the amount of space a company lease out. If the area is huge (30,000 sq ft), the rentals could be lower, and vice-versa.
"The price rise is a temporary phase as there is no space available. But this is not sustainable in the long run," said Anuj Puri, CEO, Jones Lang Lasalle-Meghraj.
The market is likely to remain tight in the next few months till new supplies come in. Mumbai will add 22 million sq ft of Grade-A office space in the next two years.
Jones Lang Lasalle-Meghraj estimates the Grade A office space in Mumbai to double by 2008-09 from the existing 19 million sq ft. These should ease pressure on commercial rentals if the supplies-in-the-pipeline come on time and there's no slip in delivery dates.
Recent deals in commercial space in Mumbai
- Fidelity Investments leases out 1,850 sq ft in Maker Chambers VI, Nariman Point, at Rs 450 per sq ft
- KPMG leases out 30,000 sq ft in Kamala Mills compound in Lower Parel at Rs 275 per sq ft
- House, Prabhadevi, at Rs 350 per sq ft
- Avendus Advisors leases out 12,000 sq ft in IL&FS Centre at Bandra-Kurla Complex at around Rs 300 per sq ft
- ABN Amro renews lease at Rs 500 per sq ft (from 180 per sq ft signed three years back) for 3,100 sq ft at Sakhar Bhavan in Nariman Point
- Morgan Stanley leases out 12,500 sq ft of space in Peninsula Corporate Park at Parel at Rs 400 per sq ft
- Three leases renewed at Dalamal House, Nariman Point, with sea-view, at Rs 430 per sq ft (up from Rs 130 per sq ft 3 years back)
Buying a house? Beware of builders' tricks
Everybody wants a piece of real estate. The sector has been growing at 25-30 per cent a year since 2003, fired primarily by low interest on housing loans and the rising affluence of homebuyers. Those who had bought stocks of real estate companies, whose valuations have gone through the roof, are a happy lot. However, the same cannot necessarily be said of scores of financially and emotionally bleeding homebuyers. The developers play lord and master to middle-income individuals, who often live like monks to fulfil their dream of owning a house. Most sale agreements are heavily loaded in favour of builders in the currently unregulated market.
This disillusionment is reflected in the rise in the number of complaints that has accompanied the growth of the sector. In the first 25 days of August 2007, the Delhi-based National Consumer Helpline, a consumers' body, received 33 housing-related complaints. The Consumer Guidance Society of India (CGSI), Mumbai, says it gets two-three cases a day. In this scenario, what chance do you have of safeguarding your interests as a buyer?
In 1993, the Supreme Court ruled in favour of M.K. Gupta in his case against the Lucknow Development Authority for not delivering his flat on time. This landmark judgment brought housing construction under the purview of the Consumer Protection Act, 1986.
This, however, hasn't done much to change the unscrupulous ways of builders. Owing to the bonhomie between developers, the authorities and the contractors, projects get sanctioned easily but the quality of construction goes unquestioned. Supreme Court advocate C.M. Srikumar says: "Even in cooperative societies, the contractor, the
architect and the office-bearers of the society dupe the public."
Rahul Todi, managing director, Bengal Shrachi Housing Development, says: "Unlike other consumer products, here we sell a concept first. If there is a gap between expectation and reality, then we are not doing our job properly."
What are the most common games that developers play? Here are eight common tricks and ways in which you can guard against them.
I. When do I get my house?
Most agreements do not clearly specify the date of delivery. For instance, one says: "Completion of the building is expected to be delivered by the date mentioned in the covering letter of this allotment. The delivery of the possession is subject to force majeure." What this means is that you cannot hold the developer responsible if he does not stick to the promised delivery date.
There have been cases when the delivery has been delayed by 12 months or more. Typically, the buyer would have paid 95 per cent of the price by the time he reaches the expected delivery date. If he is living in a rented house, delays will drive his calculations awry as he would not have factored in this additional rent (see Double Bite). Mumbai stockbroker Bhupendra M. Pitroda, 58, fought a legal battle against Megha Property Developers for five years. Reason: delayed possession.
Pitroda was promised delivery of the flat he booked in 1998 in Navi Mumbai's Madhuri Cooperative Society Housing Project within 18 months. The builder later said that delivery would take another six months. When Pitroda visited the site six months later, he felt that the delivery would not happen soon. So, he instructed his bank to stop payment of the balance 37.5 per cent of the apartment's cost to Megha Developers.
The developer promptly sold off the flat. An aggrieved Pitroda then moved the State Commission in July 2000. Three years later, the commission asked Megha Developers to refund Pitroda the money he had paid with 15 per cent interest. Pitroda was also awarded a compensation of Rs 15,000 for the mental agony caused and Rs 5,000 for legal costs.
The developer appealed in the National Commission, which upheld the State Commission order but cut the interest to 9 per cent. The developer then moved the Supreme Court. "The Supreme Court judge flung the papers in the face of the builder's lawyer and asked the builder to compensate me immediately. The judgment was over in a minute," says Pitroda. Through the legal battle, Pitroda made 25 appearances in the State Commission, three in the National Commission and one in the Supreme Court.
Many agreements have penalty clauses for delayed delivery, but they are without bite. For example: "If the company fails to complete the construction of the said building/apartment within the period as aforesaid, then the company shall pay to the allottee compensation at the rate of Rs 5 per sq. ft of the super area per month for the period of such delay." What this means is that for a 1,000-sq. ft flat, you would get a compensation of Rs 5,000 per month�a pittance (see Double Bite).
In most cases, buyers put up with the delay quietly rather than 'antagonise' the builder. Most fear retribution, harassment and further delays in delivery. This is not entirely baseless. For one, agreement papers are designed to protect the builder. Two, your intention to fight the builder may look like a joke given your handicap in terms of financial prowess and influence. Three, there is no industry regulator you can turn to for redressal. Suresh Virmani of National Consumer Helpline says: "We generally encourage a dialogue between buyers and sellers to settle disputes. If that fails, the matter is taken to the regulatory body. But we can't even suggest this in real estate because there is no regulatory body."
What to do. Don't just take the builder's word on the progress of construction. Check it out from time to time, as Pitroda did. If you feel a delay is likely, start building up pressure on the developer. The best way to do this is to form a society, says Virmani. Usually, builders have many projects running at the same time and they push the ones where the pressure is higher. "The more the number of buyers, the greater is the pressure," says Bharath Jairaj of Consumer Action Group, Chennai.
II. Where are my papers?
A lot of builders are evasive about giving the completion certificate at the time of handing over the flat. A completion certificate is issued by municipal authorities and establishes that the building complies with the approved plan. A developer would not get the certificate if he deviates from the plan.
You cannot prove ownership over your house if you don't have the certificate as you would not be able to get the house registered. Also, you may not be able to get utility connections. You will have problems selling, mortgaging or reverse mortgaging the house as it will not be in your name. In the worst case, the unapproved parts of your house would be demolished by the municipal authorities. Not a happy state of affairs.
Businessman Mohammed Haroon, 45, got his flat in Tulip Garden, Gurgaon, six years ago, but he has not got the completion certificate yet. The same goes for the other 59-odd flat owners there. Together, they took Sarvapriya Developers, which built Tulip Garden, to the consumer court. "After four years, in mid-August this year, the court directed the builder to hand over the completion certificates within a month, or pay Rs 5,000 each as compensation to all the flat owners," says Haroon. "But we know that none of the two will come our way and are prepared to approach the Delhi High Court in this matter."
What to do. Sale agreements often don't mention the completion certificate. If yours doesn't and you notice it before signing the papers, insist on the inclusion of a clause that you will be given the completion certificate when the flat is handed over to you. Ask the builder for it as soon as he announces that the house is ready for possession. If, like Haroon, you move into the house without it, the court will probably be your last resort.
III. What's the guarantee of quality?
Within a month of moving into his apartment in Mahagun Manor, Noida, Rajiv Raghunath, 41, got trapped inside the house as the door lock failed. In six months, the plaster started peeling off and the fans stopped working. In another few months, water started seeping in as the pipes had corroded. "I felt cheated. This wasn't worth my money," says Raghunath.
As of now, there is no way for a buyer to check the building materials used or the quality of construction. Says advocate Anupam Srivastava, who is with law firm Chambers of Law: "Quality is a subjective matter. Buyers should enter into an agreement on the kind of material that the builder will use."
In October 2005, Pune's Gera Developments started a trend by providing a 5-year warranty on its buildings. The warranty, however, is subject to the conditions that no structural changes be made to the house and that there be no misuse.
What to do. Don't fall for the builder's glib talk. Insist on including the sanctioned plan of the building and the specifications of the raw materials to be used for construction in the purchase agreement. If you are already facing quality problems, you can go to the consumer court. Says Anand Patwardhan, a consumer activist and lawyer: "If you want to approach the consumer court, move it within two years from the day you take possession." Alternatively, flat owners can form a Residents' Welfare Association (RWA) and get the builder to fix the problems, as Raghunath, an RWA member, did.
IV. What is the price really?
Nishit Babyloni, 38, mech-anical engineer in BHEL, Bhopal, had booked bungalow No. 105 with Ansal Housing and Constructions (AHC) in Pradhan Enclave, Bhopal, in 2004. On a visit to the site five months later, he found that his bungalow was not being built. He asked AHC to give him bungalow No. 120 instead, as construction was in full swing on that. AHC formally changed the allotment in February 2005, but sent him a letter eight months later asking for Rs 3.15 lakh more.
Atit Arora, general manager (marketing) and project head, Ansals Pradhan Enclave, Bhopal, says: "The bungalow's specifications were changed. Babyloni was required to deposit the amount if he wanted the new specifications." Babyloni retorts that AHC did not tell him about the additional work and the changes in specifications. "We were not told that we would have to pay 25 per cent more for the new bungalow till 18 October 2005." He is thinking of moving the consumer court. But, it is not unusual for an agreement to say that a builder can ask for additional payments if specifications are changed or there are cost overruns.
There are legal loopholes as well. The Maharashtra Ownership of Flats Act, 1963, protects buyers against malpractices in the sale and transfer of flats. It gives homebuyers the right to inspect the builder's documents such as the specifications that he has obtained from the authorities. The Delhi Apartment Ownership Act, 1986, however, is a different story. Although it was published in the Gazette of India over a decade ago, brought on the statute book by Parliament and given the President's assent, it is yet to be notified.
What to do. The last stop is the consumer court. Says Srikumar, "Many malpractices are offences under the Indian Penal Code, for which the responsible party can be prosecuted." Keep checking with the builder if any changes are being made to the specifications mentioned in the agreement and the allotment letter. Also, try to get it mentioned in the contract that if a sum higher than the original price has to be paid by you, the builder would give you additional time for that. You must also ask for a copy of the sanctions that the builder has taken from the authorities to carry out the alterations.
V. What else do i pay for?
To make your house liveable, you will need electricity, water and sewage connections. You will also need electrical wiring, appliances like fans, lights and a water pump, which are unlikely to be part of the package and generally won't be mentioned in the agreement. These will be additional costs that you will have to bear. You might also have to keep some speed money aside for registration so that it gets done in a decent timeframe. In some cases, the builder may make a verbal promise to get it done for you.
What to do. Builders generally have a take-it-or-leave-it attitude with conscientious buyers while striking a deal. Even so, it pays to be scrupulous and to read the agreement and its fine print. "Get a lawyer, an architect or an evaluator to determine the correctness of the purchase," says Srivastava. Finally, do some quick math and keep aside some funds to get your house up and running.
VI. How big is house?
A typical home purchase agreement states: "The plans, designs, and specifications are tentative and the developer reserves the right to make variations and modifications..." Simply put, in most cases, you won't know the final area of
the house till you get it. The agreement will further state, "In case of change in area, the difference in cost of area shall be adjusted at the time of making final payment."
Shikhar Saxena, partner, Ace Equity Solutions, a leading housing finance franchisee of ICICI Bank, had booked a fully-furnished, air-conditioned service apartment measuring 650 sq. ft (super area) in Cabana Service Apartments in Indirapuram, Ghaziabad, which was being built by Assotech Realty. He got an allotment letter mentioning this area. However, when the builder offered possession, the super area of the flat had increased to 671 sq. ft. "Once the authorities approve of the floor space index, how can the builder change it?" he asks. After holding out for over 18 months, the choice before him now is to either accept all the terms of the builder or seek cancellation of his allotment. Further, he was informed that the maintenance charge, which was to be Rs 1.50 per sq. ft per month, has been increased to Rs 7 per sq. ft per month. The agreement shields the builder. It says "the monthly maintenance charges will be subject to revision from time to time".
Assotech's Elegante project, also in Indi-rapuram, was to have terrace gardens on the seventh and thirteenth floors. "There is only a patch of green; the developer has built units on these floors too," says a buyer. Srikumar says there is nothing one can do unless the size of the garden is specified in the agreement.
What to do. Builders usually follow the same practices through all their projects. So, before buying, check out the builder's earlier projects to see if he plays fair. Start a blog or join one to share your experiences with others, though this doesn't guarantee redressal. You can read about the mistakes and experiences of other people on websites like mouthshut.com.
VII. What's the carpet area?
Most residential units in India are sold on the basis of the super built-up area, which includes open spaces like space for lifts, staircases and parking, among other things. But, what you really get is the carpet area, which literally means the area that you can carpet. This can be 15-35 per cent less than the super built-up area. In 2005, HDFC chairman Deepak Parekh had said the company would provide loans at cheaper rates to developers who sell their flats on the basis of carpet area. But, there has been little headway on this front. Some developers, especially in Bangalore, sell on the basis of carpet area. In Pune, too, the builders' association has decided to increase the carpet area by 25 per cent to arrive at the saleable built-up area charged to the buyer. In both these cases, buyers are aware of the area they will get. Though there is still a long way to go, experts believe that soon properties all over India would be sold on the basis of carpet area.
What to do. Buy property on the basis of carpet area, although the builder will not like the idea. Argue with him that if the super built-up area is mentioned on the basis of the approvals and sanctions, the carpet area can be quantified. Says Srikumar: "There should be a provision for termination of the contract and resumption of the property so that builders don't have an upper hand. However, in the absence of rules, buyers should be vigilant."
VIII. Will I get a well-managed property?
The developer may promise to maintain the building or complex in the initial years. The service, however, may not be satisfactory. Residents of Mahagun Manor in Noida have taken over its maintenance. "The homebuyers cannot even use the Right to Information Act, 2005, to their advantage because it doesn't apply to private builders or even group cooperative housing societies," says Srivastava.
What to do. You are unlikely to get relief through correspondence and phone calls. You can go the e-way to attract the builder's attention. For months, Delhi-based developer Unitech ignored the complaints of the residents of one of their premier offerings, Uniworld City. Then, a resident shot a nine-minute video that captured the visible flaws of the project, and posted it on YouTube.com, a broadcast site. Their grievances were soon attended to. You can use websites like www.consumerhelpline.in and www.cgsiindia.org to seek further guidance.
Though the dice is clearly in favour of the builder, the buyers can still fight back and many of them are doing so. Now, the government urgently needs to put a regulator in place to ensure proper disclosures and protect the buyers.
What we need
Mostly, a home is the biggest investment of one's life. And yet, most people buy it in a hurry. In this hurry, they sign all the papers without even reading it, let alone questioning its clauses. It may all seem illogical later, but it doesn't when it actually should.
The Indian real estate market does not have a regulator. The need of the hour is to take lessons from streamlined markets abroad and introduce comprehensive disclosure norms. For instance, US homebuyers are entitled to receive a number of disclosures during the course of the house purchase. These disclosures give a homebuyer a somewhat transparent and fair picture of what he is getting into. On the other hand, Indian homebuyers sign agreements that are not clear. What's more, they even get surprises in terms of extra costs. Take a look at what a buyer in the US state of California is entitled to know from the builder.
Real Property Disclosure Statement. This document details the condition of the property and potential hazards, or defects that may be associated with it. While the seller is principally responsible for the disclosures presented in this document, the agent is also supposed to inspect the property and disclose any observable defects detected in the process. The document also lays down any special taxes that may affect the property's value.
Financing Disclosures. Various financing disclosures are made during real estate transactions. They give important details about the loan the owner may have taken for the property.
Truth in Lending Statement Disclosure. This has details about the terms and conditions of credit, including the amount financed, the finance charge, and the annual percentage rate.
Real Estate Settlement Procedures. This contains detailed estimates, by the broker and the lender, of settlement and closing costs to be provided within three days after you apply for a loan. It also provides detailed accounting of actual disbursements and closing costs once the loan transaction is completed.
'Check builder's credibility'
Vincent Lottefier, Chief Executive Officer, India
Jones Lang La Salle Meghraj, a real estate consultancy firm
Cause of the malady. Generally, reputed builders deliver on time and as per promised specifications. Small developers, however, default by stretching their projects beyond the promised delivery date. Often, this is caused by funding issues. They may also skimp on construction costs, banking on the buyer's ignorance about quality parameters. Sometimes, they submit incomplete drawings to the municipal authorities. There are also fly-by-night operators, who pocket their clients' initial payment and then disappear altogether. In bigger cities, most developers are established and experienced players with a reputation to protect. Here, the incidence of gross defaulting is less than 10 per cent. This can, however, be as high as15-20 per cent in emerging suburban areas, where there are a lot of small developers. Many developers who respond to sudden property booms in suburban are as have no experience or technical knowledge and often do not have banksbacking them. Most emerging suburbs are also defined by unclear land titles. Navi Mumbai is a case in point.
What buyers should do. A buyer should check the developer's credibility, past projects, performance and delivery record. He should also ensure that the project is funded by a known bank and has all the approvals. A buyer is entitled to ask for a copy of the project's drawings, duly stamped by the municipal authorities.
Legal recourse. Buyers in Maharashtra can take recourse to Section 8 of the Maharashtra Ownership Flats Act, 1963, which makes a developer liable to refund the money obtained from a customer with 9 per cent interest if he is unable to justify non-completion of his project. Most states have similar regulations.
Reputed developers do undertake remedial action if aclient is not satisfied with the final product. This is unlikely in the case of unknown one-time operators. Buyers should keep in mind that a developer is supposed to make improvements, repairs and alterations until a society is formed.
India's workers get biggest pay rise
Indian companies are giving their staff the biggest salary increases in the world, according to a survey that is likely to fuel concerns over wage inflation in one of the fastest growing economies.
Indian employees are estimated to have received an average salary increase of 14 per cent this year. The rate is expected to be maintained with 2008 settlements forecast to average 15 per cent. That compares with an anticipated annual inflation rate of 5.7 per cent this year and 5.4 per cent in 2008.
The survey covered more than 4,000 companies worldwide and was conducted over two months by Towers Perrin, a human resources advisory company.
The survey showed Indian salary rises virtually across the board, from executive to production floor, far outstripping those in China, the other powerhouse of the Asian economy.
Chinese employees are heading for salary increases of 8 per cent this year and 9 per cent in 2008, based on projected annual inflation of 3.6 per cent and 3.5 per cent.
The findings back growing evidence in India that management compensation there is now on a par with and sometimes higher than the global average, excluding the high-profile packages common in the US or UK.
"Typically, you used to get an Indian chief executive for one-third or even one-quarter of the cost of his foreign counterpart," said Dinesh Mirchandani, India president for Boyden, an executive search firm. "Today, it's dollar for dollar."
The rise in Indian salaries comes amid growing concerns about a shortage of qualified staff, partly in information technology, a sector whose growth has made it one of the main engines of the Indian economy.
Microsoft's Indian operation last month warned that a lack of computer science PhDs could threaten India's future as the world's IT services outsourcing hub.
Another Asian country where salaries are rising at double the pace of inflation is Indonesia, the world's fourth-largest country by population.
Executives there can expect salary increases of 11 per cent this year and 12 per cent in 2008, while the inflation rate is seen reaching 6.3 per cent this year and 6 per cent in 2008.
Venezuelan executives are enjoying the highest rise in salaries in nominal terms, slightly above 20 per cent both this year and next, but that is offset by a rate of annual inflation that is anticipated to reach 22.5 per cent next year.
Meanwhile, 64 per cent of employers in the Asia-Pacific region are investing in training as an incentive to retain staff but only 27 per cent invest in salary increases, according to a separate survey published on Wednesday by Mercer, the consultancy.
The survey also found that the most pressing challenge for employers � reported by 92 per cent of the 750 organisations questioned � was attracting and retaining the right talent, especially for activities such as engineering, sales and marketing.
Business books you must read
It has been a good year for business books. Spoilt for choice, readers have had a tough time making up their minds. Should they find out why Nassim Nicholas Taleb is urging everybody to imagine the unimaginable (Black Swan), or delve into Alan Greenspan's take on the world economy (The Age of Turbulence)?
Will a look at how auto manufacturers are gearing up for new cars, new fuels and new technologies (Zoom) be more interesting than venturing deep into the dingy offices of investment bank Lazard Frer�s to find out how multi-million deals were swung, and at what cost (The Last Tycoons)?
Those may be among the best business books of the year, but don't close the list just yet. There's more ahead. Several must-read books are planned for the coming few months, while some have been launched in the weeks just past.
Written by experts in management, business and strategy, these books promise to be inspiring, informative and educational. Some of them may even be fun reads.
The Future of Management
Gary Hamel
Harvard Business School Press
Pages: 288
India release: October 2007
Who wrote it
Gary Hamel is the visiting professor of strategic and international management at the London Business School. He is the author of Leading the Revolution and co-author, with C K Prahalad, of Competing for the Future.
What its about
Legacy beliefs prevent organisations from overcoming new, 21st-century challenges. The way forward is management innovation: new ways of mobilising talent, allocating resources and building strategies. How do you turn your company into a serial innovator and make it fit for the future? Case studies from Google, Whole Foods, IBM and Samsung help Hamel illustrate his new theories. Not all of it is practical, but Hamel's point of view is always interesting.
Redefining Global Strategy
Pankaj Ghemawat
Harvard Business School Press
Pages: 288
India release: October 2007
Who wrote it
Pankaj Ghemawat's website describes him as a "global strategist". On leave from Harvard as professor of business administration, he is currently professor of global strategy at IESE Business School, and is the author of several books on business strategy.
What it's about
Globalisation is a myth and thinking the world is flat is so Middle Ages. At best, the world is "semiglobalised", so cross-border integration does not necessarily mean standardisation. Quite the opposite, suggests Ghemawat. Most economic activity happens locally, so tailor your strategies to suit your markets. Examples from Toyota, Procter & Gamble, Tata Consultancy Services [Get Quote] and IBM add some much-needed colour to this scholarly tome.
The Professional
Kenichi Ohmae
McGraw-Hill
Pages: 208
India release: January 2008
Who wrote it
Known as "Mr Strategy", Kenichi Ohmae is Japan's top management guru, a former senior partner at McKinsey & Co, and the author of more than 140 books, including the bestselling The Mind of the Strategist.
What it's about
The Professional was published in Japanese in 2005 and is appearing in English now for the first time. In it, Ohmae presents his vision for changing the culture of leadership, explaining how "professionals" (that is, managers) need to acquire the expertise, ethics and discipline to grow their business and deliver the highest value to customers, and how that will help them reclaim their social prominence and respectability.
Trump Never Give Up
Donald J Trump
Wiley
Pages: 208
India release: January 2008
Who wrote it
"The Donald" is the New York based real-estate magnate who had it all, lost it all and then got it all � all over again. Donald Trump is listed in the Guinness Book of World Records for the biggest financial turn around in history. He is also the host of popular television reality show The Apprentice.
What it's about
In this follow-up to his 2006 bestseller Trump 101: The Way to Success, Trump shares dramatic stories from the most difficult moments in his career. Like in the earlier book, each story is followed by coaching and commentary from adversity expert Paul Stoltz. With chapters titled "When your wardrobe malfunctions in front of 10,000 people", "How would I look with a shaved head?" and "A billion dollars in the hole", this promises to be an entertaining, engaging read.
The Chindia Tide
Jagdish Sheth
Tata McGraw-Hill
Pages: 225
India release: December 2007
Who wrote it
Marketing guru Jagdish Sheth is professor of marketing at the Goizueta Business School at Emory University. He is the author of more than 200 books and research papers, many of which are considered classics in their field.
What it's about
If the 20th century belonged to the US, Sheth believes the 21st will be China's and India's. "Chindia" will serve as the engine of growth for the global economy and it couldn't have happened at a better time � without these two powerhorses, the world economy would stumble, if not collapse. Like the US then, Chindia now is committed to a "peaceful rise" - which means not just prosperity, but much-needed stability as well. If you're interested in how post-colonial geopolitics plays out, this should be right up your street.
The Rule of Three in India
Jagdish Sheth, Rajendra S Sisodia and Gita Piramal
Tata McGraw-Hill
Pages: 300
India release: February 2008
Who wrote it
Rajendra Sisodia is professor of marketing and founding director of the Center for Marketing Technology at Bentley College, Massachusetts. He has co-authored several books with Jagdish Sheth. Gita Piramal is a consultant, an author and managing editor, The Smart Manager.
What it's about
In 2002, Sheth and Sisodia wrote the original The Rule of Three, postulating that only three players will dominate in any market. The rest will compete by specialising in product or market segment. The authors proved their theory with example after example from the developed world. Now, they're extending it to India, having studied over 200 companies here. How does the rule play out in India? What strategies should Indian companies adopt to ensure they emerge winners?
India's Century
Kamal Nath
Tata McGraw-Hill
Pages: 320
India release: November 2007
Who wrote it
Kamal Nath is the Union Minister of Commerce and Industry.
What it's about
It's being touted as the first book of its kind - "exclusive details and personal knowledge" of India's journey to becoming a global economic giant from a political insider. Anecdotes of Nath's negotiations with major national and international figures should be particularly interesting.
Leaders at All Levels
Ram Charan
Wiley
Pages: 192
India release: December 2007
Who wrote it
Internationally renowned leadership guru Ram Charan is a prolific writer. He co-authored (with Larry Bossidy) the wildly successful Execution and has also written bestsellers like What the CEO Wants You to Know and The Leadership Pipeline. He has taught at Harvard and Kellogg and consults with Fortune 100 giants such as Colgate-Palmolive, DuPont and GE.
What it's about
CEO failure is becoming increasingly common. But the crisis in leadership is as much a symptom as a cause of what is wrong with management today. Companies don't develop their unit managers' leadership potential and, therefore, the succession pipeline is never filled. With unit managers underdeveloped, execution is weak, further exacerbating the problem. Ram Charan advocates considering leadership development a core competency across organisations - a hands-on, integral business function that is implemented at all levels.
India's Global Wealth Club
Geoff Hiscock
Wiley
Pages: 320
India release: November 2007
Who wrote it
Veteran journalist Geoff Hiscock is Asia business editor and Sydney bureau chief for CNN.com International.
What it's about
Hiscock's earlier two books, Asia's Wealth Club and Asia's New Wealth Club covered 100 billionaires in the region. Now, he profiles 100 of India's richest and explains how they did it, listing seven "secrets" behind their success. The life stories are grouped according to sectors - the global top 10, followed by auto, pharma, media, aviation and so on.
We are Like That Only
Rama Bijapurkar
Portfolio Books
Pages: 292
India release: November 2007
Who wrote it
Marketing consultant Rama Bijapurkar is visiting faculty at the Indian Institute of Management, Ahmedabad. She consults with a range of companies on market strategy and consumer behaviour and has worked with McKinsey & Co, Marg and Hindustan Lever [Get Quote].
What it's about
Why the Indian consumer is "like that only", why Consumer India will not change in a hurry, how Indians consume, what they buy, why they buy...Bijapurkar analyses 12 key aspects of Consumer India.
The Global Brain
By Satish Nambisan and Mohanbir Sawhney
Wharton School Publishing
Pages: 304
India release: November 2007
Who wrote it
A former area sales manager with Hindustan Lever, Satish Nambisan is a professor of technology management and strategy at the Lally School of Management, Rensselaer Polytechnic Institute in Troy, New York. Mohanbir Sawhney is the professor of technology and the director of the Center for Research in Technology & Innovation at the Kellogg School of Management, Northwestern University. This is his fourth book.
What it's about
In management speak, "global brain" refers to the network of people who can help enhance an organisation's innovation strategy, even though they lie outside its boundaries - customers, suppliers, researchers, independent inventors and so on. To innovate effectively, companies must harness these new sources of creativity. But there's really no one-size-fits-all strategy to "network-centric innovation". Drawing on the experiences of companies like IBM, Procter & Gamble, DuPont, 3M, Unilever and others, Nambisan and Sawhney show how to identify and create specific capabilities that enhance the innovation process, and include tips on how to overcome the "not invented here" mindset.
Value Merchants
James Anderson, Nirmalya Kumar and James Narus
Harvard Business
School Press
Pages: 240
India release: November 2007
Who wrote it
James Anderson is professor of marketing/ wholesale distribution at the Kellogg School of Management, Northwestern University. Nirmalya Kumar is professor of marketing, director of Centre for Marketing, and co-director of Aditya V Birla India Center at London Business School. James Narus is a professor of marketing at the Babcock Graduate School of Management, Wake Forest University (Charlotte, NC).
What it's about
If the consumer market is tough, the B2B one is particularly cut-throat. Purchasing agents intent on paring their procurement costs have a single-point agenda - price concessions - which makes it especially difficult for suppliers to prove the "value" of their offerings. How can suppliers demonstrate superior value compared to the next best alternative from the customer's viewpoint? With case studies from Tata Steel [Get Quote], Quaker Chemical and Sonoco, Value Merchants appears a serious, academic work.
What the Customer Wants You to Know
Ram Charan
Portfolio Books
Pages: 160
India release: January 2008
Who wrote it
Ram Charan (See Leaders at All Levels)
What it's about
Rethinking sales from the outside in. Don't begin with what you have to sell, advises Ram Charan. Start with your customer's problems - understand what makes her tick. And then become a trusted partner, someone the customer turns to for creative, cost-effective solutions, which you will be able to provide because you know your customer inside out. A utopian ideal perhaps, but nice to read nevertheless.
Billions of Entrepreneurs
Tarun Khanna
Penguin Viking
Pages: 400
India release: February 2008
Who wrote it
Tarun Khanna is professor of strategy at Harvard Business School. He is co-editor of the Journal of Economics and Management Strategy and of the Journal of International Business Studies and serves on the editorial boards of several prestigious strategy and management journals.
What it's about
How do the entrepreneurial forces shaping India and China's development compare? Where do they overlap and complement one another and where do they diverge and compete? And how can Western companies participate in this development?
The Real Price of Everything
Michael Lewis
Sterling Publishing Co. Inc
pages: 1,472
India release: January 2008
Who wrote it
Michael Lewis is the bestselling author of Liar's Poker and Moneyball, which offered a never-before look behind the scenes on Wall Street.
What it's about
Lewis explores six classic economic texts that shaped the present economic system. That includes Adam Smith's The Wealth of Nations, Thomas Malthus's An Essay on the Principle of Population, and John Keynes's General Theory of Employment, Interest and Money. If the choice seems uncomfortably reminiscent of college required reading lists, you'll have Lewis's entertaining commentary to liven things up.
Will a look at how auto manufacturers are gearing up for new cars, new fuels and new technologies (Zoom) be more interesting than venturing deep into the dingy offices of investment bank Lazard Frer�s to find out how multi-million deals were swung, and at what cost (The Last Tycoons)?
Those may be among the best business books of the year, but don't close the list just yet. There's more ahead. Several must-read books are planned for the coming few months, while some have been launched in the weeks just past.
Written by experts in management, business and strategy, these books promise to be inspiring, informative and educational. Some of them may even be fun reads.
The Future of Management
Gary Hamel
Harvard Business School Press
Pages: 288
India release: October 2007
Who wrote it
Gary Hamel is the visiting professor of strategic and international management at the London Business School. He is the author of Leading the Revolution and co-author, with C K Prahalad, of Competing for the Future.
What its about
Legacy beliefs prevent organisations from overcoming new, 21st-century challenges. The way forward is management innovation: new ways of mobilising talent, allocating resources and building strategies. How do you turn your company into a serial innovator and make it fit for the future? Case studies from Google, Whole Foods, IBM and Samsung help Hamel illustrate his new theories. Not all of it is practical, but Hamel's point of view is always interesting.
Redefining Global Strategy
Pankaj Ghemawat
Harvard Business School Press
Pages: 288
India release: October 2007
Who wrote it
Pankaj Ghemawat's website describes him as a "global strategist". On leave from Harvard as professor of business administration, he is currently professor of global strategy at IESE Business School, and is the author of several books on business strategy.
What it's about
Globalisation is a myth and thinking the world is flat is so Middle Ages. At best, the world is "semiglobalised", so cross-border integration does not necessarily mean standardisation. Quite the opposite, suggests Ghemawat. Most economic activity happens locally, so tailor your strategies to suit your markets. Examples from Toyota, Procter & Gamble, Tata Consultancy Services [Get Quote] and IBM add some much-needed colour to this scholarly tome.
The Professional
Kenichi Ohmae
McGraw-Hill
Pages: 208
India release: January 2008
Who wrote it
Known as "Mr Strategy", Kenichi Ohmae is Japan's top management guru, a former senior partner at McKinsey & Co, and the author of more than 140 books, including the bestselling The Mind of the Strategist.
What it's about
The Professional was published in Japanese in 2005 and is appearing in English now for the first time. In it, Ohmae presents his vision for changing the culture of leadership, explaining how "professionals" (that is, managers) need to acquire the expertise, ethics and discipline to grow their business and deliver the highest value to customers, and how that will help them reclaim their social prominence and respectability.
Trump Never Give Up
Donald J Trump
Wiley
Pages: 208
India release: January 2008
Who wrote it
"The Donald" is the New York based real-estate magnate who had it all, lost it all and then got it all � all over again. Donald Trump is listed in the Guinness Book of World Records for the biggest financial turn around in history. He is also the host of popular television reality show The Apprentice.
What it's about
In this follow-up to his 2006 bestseller Trump 101: The Way to Success, Trump shares dramatic stories from the most difficult moments in his career. Like in the earlier book, each story is followed by coaching and commentary from adversity expert Paul Stoltz. With chapters titled "When your wardrobe malfunctions in front of 10,000 people", "How would I look with a shaved head?" and "A billion dollars in the hole", this promises to be an entertaining, engaging read.
The Chindia Tide
Jagdish Sheth
Tata McGraw-Hill
Pages: 225
India release: December 2007
Who wrote it
Marketing guru Jagdish Sheth is professor of marketing at the Goizueta Business School at Emory University. He is the author of more than 200 books and research papers, many of which are considered classics in their field.
What it's about
If the 20th century belonged to the US, Sheth believes the 21st will be China's and India's. "Chindia" will serve as the engine of growth for the global economy and it couldn't have happened at a better time � without these two powerhorses, the world economy would stumble, if not collapse. Like the US then, Chindia now is committed to a "peaceful rise" - which means not just prosperity, but much-needed stability as well. If you're interested in how post-colonial geopolitics plays out, this should be right up your street.
The Rule of Three in India
Jagdish Sheth, Rajendra S Sisodia and Gita Piramal
Tata McGraw-Hill
Pages: 300
India release: February 2008
Who wrote it
Rajendra Sisodia is professor of marketing and founding director of the Center for Marketing Technology at Bentley College, Massachusetts. He has co-authored several books with Jagdish Sheth. Gita Piramal is a consultant, an author and managing editor, The Smart Manager.
What it's about
In 2002, Sheth and Sisodia wrote the original The Rule of Three, postulating that only three players will dominate in any market. The rest will compete by specialising in product or market segment. The authors proved their theory with example after example from the developed world. Now, they're extending it to India, having studied over 200 companies here. How does the rule play out in India? What strategies should Indian companies adopt to ensure they emerge winners?
India's Century
Kamal Nath
Tata McGraw-Hill
Pages: 320
India release: November 2007
Who wrote it
Kamal Nath is the Union Minister of Commerce and Industry.
What it's about
It's being touted as the first book of its kind - "exclusive details and personal knowledge" of India's journey to becoming a global economic giant from a political insider. Anecdotes of Nath's negotiations with major national and international figures should be particularly interesting.
Leaders at All Levels
Ram Charan
Wiley
Pages: 192
India release: December 2007
Who wrote it
Internationally renowned leadership guru Ram Charan is a prolific writer. He co-authored (with Larry Bossidy) the wildly successful Execution and has also written bestsellers like What the CEO Wants You to Know and The Leadership Pipeline. He has taught at Harvard and Kellogg and consults with Fortune 100 giants such as Colgate-Palmolive, DuPont and GE.
What it's about
CEO failure is becoming increasingly common. But the crisis in leadership is as much a symptom as a cause of what is wrong with management today. Companies don't develop their unit managers' leadership potential and, therefore, the succession pipeline is never filled. With unit managers underdeveloped, execution is weak, further exacerbating the problem. Ram Charan advocates considering leadership development a core competency across organisations - a hands-on, integral business function that is implemented at all levels.
India's Global Wealth Club
Geoff Hiscock
Wiley
Pages: 320
India release: November 2007
Who wrote it
Veteran journalist Geoff Hiscock is Asia business editor and Sydney bureau chief for CNN.com International.
What it's about
Hiscock's earlier two books, Asia's Wealth Club and Asia's New Wealth Club covered 100 billionaires in the region. Now, he profiles 100 of India's richest and explains how they did it, listing seven "secrets" behind their success. The life stories are grouped according to sectors - the global top 10, followed by auto, pharma, media, aviation and so on.
We are Like That Only
Rama Bijapurkar
Portfolio Books
Pages: 292
India release: November 2007
Who wrote it
Marketing consultant Rama Bijapurkar is visiting faculty at the Indian Institute of Management, Ahmedabad. She consults with a range of companies on market strategy and consumer behaviour and has worked with McKinsey & Co, Marg and Hindustan Lever [Get Quote].
What it's about
Why the Indian consumer is "like that only", why Consumer India will not change in a hurry, how Indians consume, what they buy, why they buy...Bijapurkar analyses 12 key aspects of Consumer India.
The Global Brain
By Satish Nambisan and Mohanbir Sawhney
Wharton School Publishing
Pages: 304
India release: November 2007
Who wrote it
A former area sales manager with Hindustan Lever, Satish Nambisan is a professor of technology management and strategy at the Lally School of Management, Rensselaer Polytechnic Institute in Troy, New York. Mohanbir Sawhney is the professor of technology and the director of the Center for Research in Technology & Innovation at the Kellogg School of Management, Northwestern University. This is his fourth book.
What it's about
In management speak, "global brain" refers to the network of people who can help enhance an organisation's innovation strategy, even though they lie outside its boundaries - customers, suppliers, researchers, independent inventors and so on. To innovate effectively, companies must harness these new sources of creativity. But there's really no one-size-fits-all strategy to "network-centric innovation". Drawing on the experiences of companies like IBM, Procter & Gamble, DuPont, 3M, Unilever and others, Nambisan and Sawhney show how to identify and create specific capabilities that enhance the innovation process, and include tips on how to overcome the "not invented here" mindset.
Value Merchants
James Anderson, Nirmalya Kumar and James Narus
Harvard Business
School Press
Pages: 240
India release: November 2007
Who wrote it
James Anderson is professor of marketing/ wholesale distribution at the Kellogg School of Management, Northwestern University. Nirmalya Kumar is professor of marketing, director of Centre for Marketing, and co-director of Aditya V Birla India Center at London Business School. James Narus is a professor of marketing at the Babcock Graduate School of Management, Wake Forest University (Charlotte, NC).
What it's about
If the consumer market is tough, the B2B one is particularly cut-throat. Purchasing agents intent on paring their procurement costs have a single-point agenda - price concessions - which makes it especially difficult for suppliers to prove the "value" of their offerings. How can suppliers demonstrate superior value compared to the next best alternative from the customer's viewpoint? With case studies from Tata Steel [Get Quote], Quaker Chemical and Sonoco, Value Merchants appears a serious, academic work.
What the Customer Wants You to Know
Ram Charan
Portfolio Books
Pages: 160
India release: January 2008
Who wrote it
Ram Charan (See Leaders at All Levels)
What it's about
Rethinking sales from the outside in. Don't begin with what you have to sell, advises Ram Charan. Start with your customer's problems - understand what makes her tick. And then become a trusted partner, someone the customer turns to for creative, cost-effective solutions, which you will be able to provide because you know your customer inside out. A utopian ideal perhaps, but nice to read nevertheless.
Billions of Entrepreneurs
Tarun Khanna
Penguin Viking
Pages: 400
India release: February 2008
Who wrote it
Tarun Khanna is professor of strategy at Harvard Business School. He is co-editor of the Journal of Economics and Management Strategy and of the Journal of International Business Studies and serves on the editorial boards of several prestigious strategy and management journals.
What it's about
How do the entrepreneurial forces shaping India and China's development compare? Where do they overlap and complement one another and where do they diverge and compete? And how can Western companies participate in this development?
The Real Price of Everything
Michael Lewis
Sterling Publishing Co. Inc
pages: 1,472
India release: January 2008
Who wrote it
Michael Lewis is the bestselling author of Liar's Poker and Moneyball, which offered a never-before look behind the scenes on Wall Street.
What it's about
Lewis explores six classic economic texts that shaped the present economic system. That includes Adam Smith's The Wealth of Nations, Thomas Malthus's An Essay on the Principle of Population, and John Keynes's General Theory of Employment, Interest and Money. If the choice seems uncomfortably reminiscent of college required reading lists, you'll have Lewis's entertaining commentary to liven things up.
20 ventures you can start with Rs 5 lakh!
In 1995, Sabeer Bhatia started Hotmail with his idea - of a free, Internet-based email service that can be accessed anywhere in the world - and seed capital from pioneering venture fund Draper Fisher Jurvetson. The service was commercially launched on 4 July 1996. The idea found takers, 8.5 million of them by December 1997. That month itself, Microsoft Corporation, the world's largest software company, bought it off him for a whopping $400 million.
That's the power of a good idea. In the last decade, businesses like Hotmail have rewritten the rules of starting a new business. The first idea that has been junked is that you need a large amount of capital to get it off the ground. The second concept to go was that you must make a tangible product to sell. Their demise has been helped in no small measure by the increasing access of the common man to the Internet, as well as by the emergence of the services, rather than manufacturing as a huge and fast-growing sector. Further, the emergence of angel investors, venture capitalists and private equity funds has made it easier, although still not easy, to fund a new venture. The first new requirement for new-generation businesses is what old advertising hands would call the big idea, the ability to spot unmet needs for products or services.
One, two, clean a shoe ... Take the case of Mumbai's Sandeep Gajakas. He saw a lot of otherwise cleanly dressed people going around in expensive, but dirty, footwear. That was because age-old methods were not good enough for cleaning hi-tech branded shoes that used different materials and textures.
20 Businesses You Can Start With Rs 5 lakh Or Less
| Business | What's it about | Skills needed | Amount you need to start (Rs) | Gross Profit (%) | Break-even period | Company in the Name | business Entrepreneur(s) |
| Ultra-short temping services | Arrange temporary manpower for event managers. There are young people reaady to make some quick money and event managers are looking for more hands. | Networking | 1,000 | 20 | 10 months | Radicals, Mumbai | Chirag Bhatia, Varun Parekh |
| Shoe wash | Canvas shoes were cleaned earlier with just detergent and an old toothbrush. But people who wear today's fancy sneakers prefer paying a bit to have them cleaned by experts. | Knowledge of using the chemicals involved, marketing | 7,000 | 40 | 3 months | Shoe Laundry, Mumbai | Sandeep Gajakas |
| Food delivery | How do you lay out a dinner spread with the best dishes from the best restaurants in town? Or, get food from your favourite resturant? A specialist food delivery service can do just that. | Marketing and sales | 15,000 | 20 | 2 months | Dial-a- Meal, Hyderabad | Pani Kumar Reddy |
| Uniform making | B-schools are making dress codes compulsory for students. Law and medical colleges may do the same. Tie up with these institutions to deliver dresses at student-friendly prices. | Man management | 20,000 | N.A. | 1 year | Ecstacy Enterprises, Kolkata | Atiq Shah |
| Property management | Find a suitable workplace for business enterprises and save their time by doing all the cumbersome paperwork for them. | Marketing and sales | 50,000 | 50 | 1 month | E-States International,Pune | Sundip Joshy, Sachin Dhanwala |
| Telecom Business Consultantcy | With the spirit of entrepreneurship reaching new heights, leverage your knowledge and expertise to make business plans for budding entrepreneurs. | Networking | 50,000 | N.A. | 4 months | Tons Telecom, Bangalore | Sridhar Pai |
| Wedding planning | Weddings in India have unmatched opulence and are a long drawn process in some parts. Organise them for people who do not have the time. | Creativity | 50,000 | 15 | Depends on projects you get | TAB Events, Delhi | Rita Bhasin |
| Concierge services | Arrange services like medical treatment, babysitting and even plumbing for newcomers to a place. | Networking, communication skills | 50,000 | 10 | 6 months | Concierge 4 India, Delhi | Arvind Pandey |
| House keeping (hotels) | Help hotels keep their rooms spick and span. | Man management, communication skills | 50,000 | 20 | N.A. | Pristine Interiors, Delhi | Ritu Mukherji |
| Pre-recruitment and assessment exercise | There is a talent crunch in India. Help cos hire workers by preparing tests and then evaluating applicants on the basis of their performance. | Marketing and sales | 75,000 | 25 | 2 months | MeritTrac, Bangalore | Madan Padaki |
| Custom-making chocolates | Prepare the perfect food, chemically speaking, and serve in fancy wrappers. | Creativity, love for chocolates | 100,000 | 30-35 | 1 week | Rage Chocolatiers, Bangalore | Rashmi Vaswani |
| Bus service website | Inter-city bus service is booming. Create a webpage that shows all the bus routes and their rates and through which tickets can be booked. | Knowledge of IT, bus routes | 200,000 | 10 | 5 months | RedBus.in | Phanindra Sama, Charan Padmaraju, Sudhakar Pasupunuri, Bangalore |
| Custom-making festival gifts | Innovatively choose festival gifts for a client and have them appropriately wrapped. | Sensitivity, idea of direct gift makers' outlets | 300,000 | 20 | 3 months | Sacred Moments, Mumbai | Prakash Mundhra |
| Online ads | Have a directory of websites and use your access to those in charge of them to get the right niche ad space for a client, so that he maximises his reach to his target audience. | Media planning, knowledge of Net, networking | 300,000 | 20 | 1 year | Ozone Media, Bangalore | Kiran Gopinath |
| Verification services | Informaton security is a big concern for BPOs. Check the background of prospective employees to avoid corporate fraud. | Networking with police, legal knowledge | 400,000 | 10 | 6 months | Pinkerton Consulting & Investigations India (PCII), Gurgaon | Krishnendu Biswas, works for PCII as MD |
| Tank cleaning | Growing use of water tanks and concern for hygiene gives you a chance to displace the guy in dirty overalls and professionally clean tanks with the right equipment. | Tech-savvy | 400,000 | 30 | 7 months | TanClean, Mumbai | Sunil Uplab |
| Travel guide | Pollution, long working hours, stress ... customise trips to forests, fishing riverines and mountains for those who just wanna chill (Ye man!) | Knowledge about getaways, high fun quotient | 1,50,000 | 35 | 24 months | Outrigor, Bangalore | Sandeep Chakrabarti |
| Revenue credit billing | Manage the credit finances of hospitals that are outsourcing this job. The quicker you recover money for your client the more the chances of success. | Knowledge of insurance, networking | 2,00,000 | 20 | 3 months | Health and Insurance Integrated, Noida | Deepak Mendiratta |
| Merchandising services | Merchandising by business establishments is growing. Do it efficiently for them. | Marketing, creativity | 2,00,000 | 10 | 15 months | Desk Digital Print, Delhi | Yogesh Bharadwaj |
| Housekeeping (offices) | Help Shining India. Get its offices cleaned. | Man management, communication skills | 5,00,000 | 5 | 12 months | Collections, Delhi | Ramesh Varma |
So, armed with a knowledge of chemicals and cleaning methods and all of Rs 7,000, he started a shoe cleaning service, Shoe Laundry, four years ago. His service appealed to company brass, TV and film stars, models and politicians, among others, who did not mind spending Rs 120 a pop to have their costly sneakers looking like new. Today he has the likes of Yash Chopra and family among his clients and his turnover has ramped up to about Rs 1.5 lakh a month. While initially he did all the cleaning himself--he did not trust anyone else to do the job--he has now hired help to keep his business growing.
Low entry fee. Gajakas is not the only one who has managed to turn a good idea into a successful business. The table 20 Businesses You Can Start Within Rs 5 Lakh is about initiatives that do not require very high seed capital, taking into account both the initial capital expenditure as well as the working capital required to get rolling. In each case, somebody has actually made a success of it. And all of them can be replicated, although the specialised knowledge that most of them need creates an entry barrier that keeps competition in check and prevents them from becoming commoditised.
Spot a need. Few things can be more mundane than cleaning a drinking water tank. But Mumbai-based Sunil Uplap thought there was a job to be done when he saw tobacco chewing, beedi-smoking men cleaning one. So, in 1995, he set up TanClean, which uses modern cleaning and disinfection methods to ensure the water is potable. Today, TanClean operates in 87 cities and towns now and Uplap is on the lookout for more franchisees.
The dotcom bust of 2000 proved that you cannot succeed simply because the entry barrier is low. But Bangalore-based Phanindra Sama, Charan Padmaraju and Sudhakar Pasupunuri proved that good ideas still work with www.redbus.in. It is one of the few websites through which you can buy bus tickets in India, just as you buy air tickets over the Net. Investment is low, but you need grit to stick through the initial stages, says Sama. Sanjay Anandaram, managing director of JumpStartUp, provides the perspective: "Bus service is usually ignored, but in India it is a $2 billion-plus (approx. Rs 8,000 crore) industry."
Hyderabad's V. Pani Kumar Reddy has found a novel way of bringing demand and supply together. His Dial-A-Meal has tied up with restaurants in Hyderabad to deliver food to all parts of the town. Today, it is a household name in that city.
Bangalore-based Kiran Gopinath's Ozone Media is an Internet advertising network. It brings together those with advertising space on the Web and those who need it. He partners online publishers to take advertising reach across the world. His initial investment was just Rs 3 lakh, but his success is also a proof of his networking ability.
Even the killing pace of today's life can throw up an opportunity. Bangalore-based Sandeep Chakrabarti's Outrigor organises stress-busting trips for others. Says Chakrabarti, "I was a little hesitant in the beginning and did not want to put all my savings in a business venture." Initially, he used to hire equipment to keep costs down. Now he has his own.
Business creates more business. E-States International of Pune-based Sachin Dhanwala and Sundip Joshy will take over the job of finding the right office space for companies, which can be quite a headache. Say Joshy and Dhanwala, "We will not only find a place or two but also take care of all the paper work, which can be quite time consuming." The spreading boom has brought opportunities for professional housekeeping companies too. Says Delhi-based Ramesh Verma, who owns housekeeping firm Collections: "With many malls and BPOs coming up in different parts of the country, there is a lot of scope for the success of such a venture." Ritu Mukherji, who owns Delhi's Pristine Interiors, which does housekeeping for hotels, adds: "The real investment that a person needs to make is their time and knowledge." Her business is based on the 16 years of experience she had with the Oberoi group. And Arvind Pandey's eponymous Concierge 4 India offers concierge services to expatriates. With more of them moving to India, there is enough and more opportunity for anyone who enters this field.
Ride the boom. The BPO upsurge has made data security a growing concern. Pinkerton Consulting and Investigations takes care of this by checking the credentials of prospective employees. Managing director Krishnendu Biswas says the "growth potential is massive". Sridhar Pai, a 15-year telecom industry veteran, set up Tons Telecom to mentor newcomers and even help them work out their business plans. Event management is growing in India and managers often need temporary staff. Mumbai's Chirag Bhatia and Varun Parekh bring them in touch with students wanting to supplement their pocket money.
Deepak Mendiratta has been successfully using his expertise and knowledge of insurance to bolster the revenues of his Noida-based revenue credit billing company, Heath Insurance Integrated. His job is to handle the paperwork and complications that arise when patients make payments in credit and claim the amount due from their parent organisation.
Do what you love. Passion is a key element in these ventures. You need loads of it. That's what lies behind chocolate freak Rashmi Vaswani's Rage Chocolatiers in Bangalore. Appreciation for a casual chocolate preparation for a friend two years ago got her an order of 150 kg of customised chocolates, and there was no looking back. Like her, you too can give a new twist to a common product. With average incomes in India soaring, weddings are becoming more opulent and a need has arisen to creatively organise them for others. Delhi-based Rita Bhasin's TAB Events has been doing just that. "Seed capital is minimal, but what one really has to invest is time," she says. Prakash Mundhra of Pune has made a business out of his skill at sourcing gifts for festive occasions. His Sacred Moments makes designer puja and festival kits, down to the last agarbatti.
KNOCKING AT THE DOOR
Finally, we leave you with five more business ideas that have been successful in the West, but have not seen much activity in India yet. Given that some aspects of life are becoming homogeneous across the world, it is just a matter of time before Indians, too, start demanding these services. To that extent, we think they have good prospects. What's more, you should be able to start them for Rs 5 lakh or less. Here goes.
Home inspection. Looking for a house to buy or rent can get pretty tedious. Many would be grateful if someone shortlisted houses for them--for a fee.
E-bargain website. A website that simplifies the job of choosing the best price--for toasters, trucks and anything in between--is bound to find lots of users.
Payroll administration. This includes tax deduction at source, PF contributions and tax-saving investments. Target clients: SMEs that cannot spend too much on administrative expertise.
Website for children. A website that lists children's names for parents to choose from and also investment options to save for your child's future.
Warehousing services. The job of transporting products from warehouses to retail outlets.
With such a wide range of choice available to start small and think big, what are you waiting for? Go, start up!
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