Desi Boyz Show How To M&A

Below is the article that i recently checked on ET 500 THE BIG LEAP by Kiran Somvanshi. A very crisp article showing how our Desi Boys are playing their M&A Impression management to this world.

Local FLAVOUR - Practices followed by Indian Cos in acquisitions

1. Non-interference in day-to-day management
2. Controlling costs by plugging leakages
3. Using the Indian IT advantage
4. Adoptation of homegrown practices or technologies
5. Seeking the right fir in target companines
6. Learn as well as teach approach

< Article from ET >
Respect for local talent and systems while pushing through best practices goes a long way in not only winning over management, but also the employees. And that is not the only lesson that India Inc has to offer on managing foreign acquisitions.

The last decade saw many Indian companies take their growth plans beyond India. Most of them have been successful in steering their foreign acquisitions — either bringing them back from the brink of bankruptcy or improving their profitability or milking their growth potential. Doing business in a diverse market like India has stood them in good stead, apparently.

A study of these acquisitions reveals some common practices followed by most Indian companies.
The most striking among them is non-interference in the day-to-day management of the acquired entity.Godrej Consumer Products (GCPL), the FMCG company with the highest number of overseas acquisitions in its sector, has been following this strategy for its overseas expansions. "Local knowledge and talent is extremely valuable to us. We believe in strengthening the existing management team by underpinning them with key functions," said Shashank Sinha, president, international business, GCPL.

United Phosphorus, too, shares the strategy. "When we acquire a company, whether it is in France, Holland or Italy, we do not disturb the operations team apart from visits by experts from India to try to sort out problems and address requirements of the company," the company's spokesperson said in an email reply.

Another sign of non-interference is retaining the name of the acquired company. Under Godrej, Indonesia's Megasari and Rapidol of South Africa continue to function under their old names. The only aberration is Godrej Argentina, a name change that came about when the management of Argentina's Issue group insisted on close identification after being acquired by Godrej.
"If the management is doing a good job, it should be encouraged to continue," said Sunil Duggal, CEO ofDabur India. In the company's US acquisition — Namaste Group, the promoter continues to run the company as its CEO.

Controlling costs is another feature of Indian acquisitions. Most Indian companies are good at plugging cost leakages and zeroing in on areas where there is scope for improving efficiency. Margins of Israeli companyTaro have gone up since Sun Pharma acquired a controlling stake in it in September last year as Sun helped improve its productivity, sales and marketing practices.

Hindalco's turnaround of Novelis in September last year came about through cost cutting and restructuring. In the words of chairman Kumar Mangalam Birla, "Novelis is today a leaner and more nimble entity."
"Wipro works on a detailed process plan, towards integration," said Jatin Dalal, CFO of the company's IT operations. It acquired mPower in 2006 and went on to improve its process efficiency, support function processes such as expenses reimbursement and administration as well as procurement efficiency, Dalal added.

However, while controlling costs, care is taken to retain functions that are important for the company's growth. After acquiring large seeds company Advanta, United Phosphorus lent support to the company's R&D operations, the budget for which had been curtailed by Advanta.

Most Indian companies use the availability of low-cost information technology (IT) in India to their advantage. "We upgrade or invest in the backbone of the business," said GCPL's Sinha. This involves investing in enterprise resource planning systems to integrate the international geographies. Dabur has outsourced the IT networks of its overseas acquisitions to India, making it the hub for IT solutions for the consolidated entity.

Adoption of homegrown practices or technologies is another common feature of Indian acquisitions. A good example is Bharti Airtel. While Bharti typically operates at a margin before depreciation of 33-36%, its African business has an operating margin below 30%. To improve this, Bharti is currently implementing its outsourcing strategy in the African operations with a focus on revenue leadership. Operating margin of its African operations has improved by 270 basis points (bps) to 26.7% in the last three quarters.

Another classic example is that of Sun Pharma's acquisition of US-based Caraco. After the acquisition, generic products were developed in India and transferred to Caraco, which had no such capability. So in a way, an Indian company was transferring technology to a US company, completely reverse of what is usually seen.

Seeking the right fit is another area where Indian acquirers do their fair bit of homework. Knowing what you are, and accordingly finding the right targets is one of the basic tenets of successful acquisitions. With over 15 acquisitions in the last seven years, Wipro is a strong case in point here. Its target company is typically small and suffers from under investment and inadequate automation needs. Wipro benefits the acquired player with a larger scale of operations, improvement in efficiency and by associating it with Wipro's brand.
"We are not turnaround specialists, said Sinha about GCPL. We pick up small local businesses with strong and profitable companies with good management, he added.

DTH FESTIVAL INDIA - Happy Retail Employees Day !

Festive Season is the one which triggers not only the psychology of a consumer but also induces the needs, which all tighter results in profits of our market experts.

There is a good combination of such offers in the market but one of the prime favourite all time element is our own TELEVISION. What not if you already have high definition television?

Here comes the point of better services and the quality that marketers bring for dear consumers. Gone are the days of the cable television, atleast seeing the promotions being offered one after another by various channels. Competition is always good and so is it here.

DTH service is one such offered to consumers.

Yes, I am consumer. I need services. I need Quality but i need only what i need and not what you want my needs to be be like.

I am given all comparison in the competitive market.

I am happy that there are number of service providers, that make me do negotiate. I go to shops and select the best plan for me.

Does it stop here or do i or Dear Sellers Need more information?

Happy Retail Employees Day Mr. Seller ! :) :)

International Management Institute - I-Score Card (Balance Scorecard)

Any HR manager will agree that – “Key Performance Indicators are always taken in context to Multiple Dimensions.”

Balance Score Card term seems very mundane to some people and very technical to many, But IMI way to handle the scorecard is bit different.

It provides sufficient Learning and Growth opportunity for any individual to perform out of her comfortable areas. It further gives enough assessment to assessors in form of a 360 degree view. Be it any stakeholder. I personally , not just because of being IMI student , believe that this simple looking perspective is very beautifully mapped to individual profile position.

A small example – Let us say, If there is clarity / incentive to perform something, She will put her efforts in her interested development area. But how this has been happening usually ? I personally observed, many a students have a lot of capabilities but there is something that resist them to come out. What ? A lot of GYAN has been given in this context of O.B by many fantastic authors.

IMI’s Score card ( as per me ) acts as facilitation than measurement. It is not only being a performance measurement but Learning tool.

I must quote here - “Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.”

Rockstar is Class Apart

Rock based movies are revered and admired in Hollywood, but Bollywood hasn't been too kind to this genre.

Imtiaz Ali has always managed to strike the right balance between the hoi polloi and the gentry. Movies like JAB WE MET and LOVE AAJKAL are proof that the enormously talented raconteur won't attempt a film if he's not fully convinced about it. Known for his imaginative and inventive take on love stories, Imtiaz takes up yet another challenge with ROCKSTAR. The story of a rebellious singer/musician, it traces his journey of love, anguish, ego, trouble, sorrow and devastation. A difficult path to tread, no doubt, but Imtiaz could be a game changer, if the film strikes a chord. Alas!

Read more: http://www.bindassbolly.com/2011/11/rockstar-2011-movie-review-storyline.html#ixzz1dZb7gyzF



"What you take back from Rockstar are some terrific moments, a bravura performance (Ranbir Kapoor is a class apart!)and of course, AR Rahman's musical score. Wish one could carry the entire film back in our hearts!," feels Adarsh.

Ranbir has put a lot of efforts to look like a real ROCKSTAR and is visible !

Ranbir as rockstar

On the whole, Rockstar might not live up to the confidence and expectations from the otherwise very skilled and accomplished film-maker Imtiaz Ali. However, the silver lining or the comforting prospect is the virtuoso performance by Ranbir Kapoor and the captivating score by AR Rahman, which justify that one extra star

If you are not mundane movie lover, Do watch and try yourself. 

I say- This  is a class apart !

Rocket Singh - Ranbir's Vision and management

Tonight, I am writing about one of the best movies I have ever seen in my life. Not because I appreciate the way Ranbir kapoor has been greatly performing, but here i am writing for some different purpose.

I still remember, that Friday, I lied my boss that I was unwell , and alternatively went for the first day first show and forced my mom to company  me to see the new role of an actor whom you would praise. Sorry to my boss first of all :D  ( as this movie provided great lessons on management.)

Ranbir as Harprit plays role of a B.Com graduate who has a VISION, vision to make it large; BIG LARGE in sales. He joins the corporate as he wants to become SALESMAN, full of honesty and integrity, yes! That is why even having about 35% of marks; he is SALESMAN of the year. He joins as a trainee in a company that sells computers but goofs up in an early deal that invites him abuse by bosses and ridicule by colleagues. Relegated to his desk, Harpreet is restricted from going on field and realizes that his ideologies are not in sync with the so-called professionals of today.

This is where he will find out that honesty is NOT the best policy; will be treated as a 'Joker Sardar'; be shunned and mocked by his superiors and colleagues alike. His overtures to make a name for himself will compel him to partner with four other employees from the firm, namely Girish Reddy, Koena Shaikh, Chhotelal Mishra, and Nitin Rathore, leading to the creation of a fictitious organization - 'Rocket Sales Corporation'.

Soon he thinks of a way to get even with his boss Puri (Manish Chaudhary) and starts his own secret sales and service agency while continuing to work in his existing company.

Read the plot from here http://en.wikipedia.org/wiki/Rocket_Singh:_Salesman_of_the_Year

"Business kuch nahin hota hai , hote ha sirf log , customer . Log khush honge toh figures apne aap badhenge."

"Risks to spiderman bhi leta hai....main toh sirf ek salesman hoon!!!"

“Tum main upar jaane wali quality hai, lekin tum main neeche jaane wali quality bhi hai”

"Customer ke naam mein hi likha hota hai 'mar'"

“jab paseena khoon se milta hai, daftar palang ban jaata hai, bachche bhul jaate hain; tab ja ke banti hai yeh COMPANY , Dhanda"

Accidently, today I had exam of marketing BRANDING and I can relate my fav. movie -

Branding is not just a logo. So in the movie, Rocket Sales Corporation reaches great heights with its good pricing and unique service offerings and the AYS computers now take over the company and make it AYS Rocket Sales Corporation putting the AYS badge on the logo. But AYS being a bigger and bloated company fails to deliver on customer expectations of the Rocket Sales Corporation and sales figures start to come down. When take over another firm and its brand, it is important to inherit its philosophy and culture and see how you can make the most out of it.

Rocket Sales Corporation is based on


Rule 1 : We never lie to clients. No matter we lose order,let the order go but never lose client's faith


Rule 2 : We believe in services more than sales because sales goes to only that company which offer services.


Rule 3 : We don't give bribe if client ask for it, we don't get such orders.


Rule 4 : We do not promise in false delivery and what date we promised, we deliver by the same date.


Rule 5 : We are always available for client, days and nights.

LESSONS 

The first real lesson the movie gives is, sales should be about people and not numbers; numbers must always follow people

Take Risks in life: “Even Spiderman needs to take risks, we are just HUMANS”

To be an ENTERPRENEUR, one doesn’t need to invent anything, just do things differently

Sales, Services and Supports are the three pillars of a successful business

Treat everyone with respect and have more partners in a company than more number of employees. Rocket Singh addresses one of the key problems faced by any large organization – of how to treat employees like co-owners.

Don’t sell to client what you have, arrange everything what client needs

Never lose hope. Continue to struggle, there will be lots of small gains and big losses on the way, but don’t miss the target.

Winning is not something but it is everything. History only remembers the winners not the runner up

Dishonestly BE HONEST: As a SALESMAN, never enter your correct name and address in the entrance register :p

Finally, one of the more personal lessons that one can learn from this film is that it not only pays to be honest, simple and truthful in the long term, but that this can also help you to improve your public image – and even help you ‘get the girl’ in the end!

Atif's kinara in coke studio

I extol Atif Aslam & Coke Studio which made Kinara (Coke Studio, Ep 2, Harmony) sung by Atif Aslam & Riaz Ali Khan

Atif has a great fan following , yet , he is too down to earth. See the Story behind this song as

He says - Neither i know singing , nor i learnt , i am here to learn from you. The concept was to fit a vocal part Man-Kuntun Mulla of Riaz Ali Khan, however he adds , my song is needed to be fit.

I really appreciate this kind of attitude. It makes his performance so lively and yes, a heart-driven ambiance. The song starts from Atif Aslam's version of Kinara and it sounds pretty much the same with improvised music making it a worth listen. But what amused me the most was the change in lyrics as the song progressed.

The real inspiration comes from a song from an old pakistani urdu 'Jinna De Raati Yaar Wichrae' from movie 'Fareeb'. It was hard to believe such a beautiful composition from such a different song.

The real differentiation is today's word is being true and that is depicted from atif's performance. His molding style makes his composition unique.

If you see the video, you realize, unknowingly he makes moves like shaking his heads. What does it mean here? Well, he is lost in his performance , that many a times, it gives passion to the music.

A lot more to learn from this chap. Not only this but the song itself conveys much more.

Life is very different and take it as dream. Live every moment. Sing the same for your life !

Nike - A connected vision behind the victory

I have started recently a study for my organizational design theory subject and for the project work i have chosen "NIKE" just like to do it !

Though i have a lot more to study on this organization and i will surely reconnect with some of the practical strategies, however, there is something i would love to extol in the beginning.

In very few words, the organization started with understanding of being connected with its stakeholders.It is this strategy that made it  "just do it !" Many a times, we assume, vision and mission is just something to talk in books, but when an organization connects it in every action it takes (here, makes) , the results become visible.

You develop an idea and you do every action around the same , Or simply do but differ from the central theme. Choice is yours and so are the results.

Will soon discuss the fine details of the learning.

http://www.scribd.com/doc/71951831/NIKE-Book-Review-by-Vinod-Gandhi-International-Management-Institute-IMI-Delhi

Nike Book Review Project By Vinod Gandhi ( IMI , Delhi)

Politic myopia and Anna

With his recent announcements, about supporting one political formation or the other, many are wondering if Anna Hazare is joining politics. Anna Hazare, India’s reincarnated ‘Gandhi‘ has assured his followers that he is not joining politics, but people are not ready to believe it.

“Absolutely not. I am taking extreme care to keep the anti-corruption movement free of politics. There is absolutely no such possibility”, he said while talking to the media. Hazare re-assured, “Our movement has nothing to do with RSS or VHP. All this is being talked to mislead the people.”

Seeing the cause and not just the vocals is more that matter to me and i hope so does to all ! Anna wants people to be aware about voting. Is that wrong?

Anna wants every one to vote. Isn't it great ?

But , Anna wants people not to vote a corrupt government. That creates a trouble. At least in media ! Though , i am not a believer of any single party , yet is there any need to connect it with Anna and politics?

A very positive cause is being taken totally in very narrow direction. It is nothing but a politic myopia. Myopia refers to the "short-sightedness", a refractive defect of the eye. The condition turns to be like instead of focusing on the retina, the light that enters, remains in front of the retina. With lack of focus on retina, it affects the outcome. Hence, the image becomes out of focus while looking at a distant object but in focus while looking at a close object.

Yes, Politics is seen in a very negative connotation in our country but this myopia is doing nothing great to us at the same time. Let us try to build our vindication first by seeing the cause and what all are the viable recommendations to that.

For me, I support the cause because i need a triggered change. Even if Anna goes against any PARTY , that is because PARTY is representing corruption ( as per the stats).

Anna started with corruption and not leading against any PARTY is surely a concern but till the time Anna joins any PARTY, i am not in favor of this mismatch.

Training Need Analysis

I wonder today when was it first time when i ever realized the importance of this training.

Oh yes !

Who gives training to a child to suck the thumb?

Who gives training to a kid to demand the mom for the milk with unspoken words?

and it goes on.......

I know only basic concepts and so do i practice them. Life is a lot to learn from the above examples.Be it management, engineering or any other stream , no one can ever devalue the concept of this blend of Learning.

Without going into Theory lectures, It is important to understand that when one is responsible for one's needs , the analysis itself gets linked to the goal.

I hope the idea gets clear somehow. Start to Learn yourself and success is next standing to you !!