December 2010-January 2011 | Volume 01 | Issue 5 BUSINESSANDECONOMY RURAL UPDATE INNOVATION CORNER EMERGING ENTREPRENEUR YOUNG INNOVATORS CHANGING TECH GRADUATE’S LOW-COST PCS DESIGN GRADUATE PIONEERS THE FACE OF FARMING IN INDIA REVOLUTIONISING COMPUTING UNIQUE LEARNING CENTRES

INNOVATING FOR SUCCESS For needs that are Indian, solutions that are also Indian. From the smallest of farms to the largest of laboratories, each asking: “How can I do this better?” And the answers are flowing in. EDITORIAL VOLUME 01 01 | ISSUE| ISSUE 05 03| DECEMBER | AUGUST-SEPTEMBER 2010-JANUARY 20112010

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EDITORIAL Editor: Anuradha Das Mathur One Billion Consulting Editor: Hemant Kumar Managing Editor: Mahesh Ravi Copy Editor: Rohini Banerjee Innovators Everyone DESIGN Sr. Creative Director: Jayan K Narayanan is thinking of newer Art Director: Binesh Sreedharan Associate Art Director: Anil VK ways of doing the Sr. Visualiser: PC Anoop Sr. Designers: Prasanth TR, Anil T, Joffy Jose, Suresh Kumar, Anoop verma, NV Baiju & Chander Dange same thing. Designers: Sristi Maurya & Charu Dwivedi Chief Photographer: Subhojit Paul ne billion plus, and counting! India’s population Photographer: Jiten Gandhi is now its mightiest asset. Its young and working SALES & MARKETING population is both an ocean of a resource, and a bur- VP Sales & Marketing: Naveen Chand Singh geoning market that corporations know they must National Manager-Events & Special Projects: Mahantesh Godi innovate for. The nurturing ecosystem required to Regional Manager (South): Vinodh K boost and sustain innovation exists—the industry, the government, O Regional Manager (North): Lalit Arun the educational system, the research and development apparatus Regional Manager (West): Sachin Mhashilkar

and the consumer, all work in tandem. The government has right- PRODUCTION & LOGISTICS ly called this the decade of innovation. Sr. GM. Operations: Shivshankar M Hiremath Often, in rural India a farmer comes riding proudly on a vehicle Production Executive: Vilas Mhatre which is a happy and ingenious mix of parts of a bullock cart, Logistics: MP Singh, Mohd. Ansari, Shashi Shekhar Singh

maybe a water pump, a fan and whatever else is available. And yes, INDIA BRAND EQUITY FOUNDATION it works. If he can improvise, he can innovate, and that’s what the CEO: Aparna Dutt Sharma Indian farmer has shown repeatedly, whether in designing a new Project Manager: Priya Sahai Shirali lightweight tractor, developing new seed varieties, an amphibian bicycle that can float just as well as it can ride, or a refrigerator that needs no electricity to run. In the age of a nation, there comes a time, when people look inward for solutions, instead of constantly looking around. That comes from social and intellectual maturity. India has shown both in good measure. It is said that when people return to their roots, they prosper. India Now—Business and Economy is a bi-monthly magazine published and No wonder then, that Rikin Gandhi, a bright young technologist, printed by India Brand Equity Foundation (IBEF), Gurgaon. It is published at 249- F, Sector-18, Udyog Vihar, Phase- IV, Gurgaon – 122015, Haryana and printed at Silverpoint Press Pvt Ltd, D-107, TTC Industrial Area, Nerul, Navi who went to the Ivy League Massachusetts Institute of Technology, Mumbai – 400706. The magazine is edited by Anuradha Das Mathur, Nine Dot came back to India and is now helping farmers share their knowl- Nine Mediaworx Pvt Ltd., B-118 Sector 2 Noida – 201301, Uttar Pradesh. India Now—Business and Economy is for private circulation only. Material in this edge digitally. From technologists to farmers, everyone is thinking publication may not be reproduced in any form without the written permission of IBEF. of newer ways of doing the same thing, or building solutions to Editorial opinions expressed in the magazine are not necessarily those of IBEF and IBEF does not take responsibility for the advertising content, content issues in their immediate vicinity. obtained from third parties and views expressed by any independent author/ contributor. (India Brand Equity Foundation, c/o Confederation of Indian Industry, That is the spirit of innovation, and it is infectious. 249-F, Sector 18, Udyog Vihar Phase IV, Gurgaon 122 015, Haryana, India; Tel: 91-124-4014060-67; Fax: 91-124-4013873/75; Email:[email protected]). Opinions expressed herein are of the authors and do not necessarily reflect any opinion of Nine Dot Nine Mediaworx Pvt Ltd., B-118 Sector 2 Noida – 201301, Uttar Pradesh, India; Tel: 91-120-4010-999; Fax: 91-120-4010-911; Email: [email protected]

Hemant Kumar

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CONTENTSD E C E M B E R 2 010 -JANUARY 2 011 BINESH SREEDHARAN

12 COVER DESIGN:

MNC WATCH COVER STORY 10 | FULL STEAM AHEAD: SIEMENS 12 | India Innovates As its The global tech giant is reap- economy becomes stronger and ing a rich harvest of having more stable, India looks inward for invested in India's progress. meaningful solutions to its own, unique needs, and everyone joins the ARTS & CULTURE national effort to innovate. 42 | ART WITH HEART: KIRAN NADAR MUSEUM OF ART COPYRIGHT Published & printed by India Brand Equity Foundation (IBEF), 249- F, Sector-18, Udyog Vihar, Phase- IV, Gurgaon–122015, Haryana. India Tycoon's wife opens a museum Please Recycle Now–Business and Economy is for private circulation only. Material in this This Magazine of premium Indian art where And Remove publication may not be reproduced in any form without the written permission Inserts Before of IBEF. artists and art lovers find equal Recycling warmth and encouragement.

2 DECEMBER 2010-JANUARY 2011 www.ibef.org INNOVATION CORNER 40 | ON CLOUD NINE Tech graduate designs a low-cost PC that runs on the internet cloud and takes the computing world by storm.

MADE IN INDIA 37 | CLICK TO TRAVEL IIM graduate's comprehensive online travel portal is clicking away to success. 20

EMERGING ENTREPRENEURS REGULARS 20 | Education By Design 01 | EDITORIAL Young design graduate opens a unique 04 | NATIONAL ROUND-UP 38 | MICROFINANCE school in Ahmedabad, where students 44 | TOURISM UPDATE excel in more than just academics. 46 | RURAL UPDATE 47 | BOOK SHELF

SECTORAL UPDATE 48 48 48

24 | INSURANCE: 28 | TEXTILES: 31 | REAL ESTATE: 34 | POWER: WELL COVERED SPINNING SUCCESS SOLID FOUNDATION STRONG CURRENTS Economic robustness now Reforms and a rapidly grow- The economy has finally As the economy expands and spurs renewed demand for ing domestic market have recovered from the effects its power needs grow, the insurance, spelling good tailored a fine suit of growth of the recession, and real sector cranks up its capacity, news for the sector. for the sector. estate is on solid ground. network and reach.

www.ibef.org DECEMBER 2010-JANUARY 2011 3 VOICE OF A VISIONARY If you shut the door to all errors, truth will be shut out Rabindra Nath Tagore National ROUND-UP PHOTO BY PHOTOS.COM Near Double-Digit Growth DATA BRIEFING IMF upbeat on India's GDP 9.7 % THE INTERNATIONAL Monetary Fund has projected tion manufacturing index and measures of that the Indian economy will grow by 9.7 per business and consumer confidence -- continue cent in 2010. It is the result of strong domes- to point up," the report said. “Robust corporate Growth rate tic demand that has powered a remarkable profits and favourable external financing will of Indian industrial recovery, said the IMF in its recently encourage investment," it added. released World Economic Outlook report. On a recent visit to India, the Managing Direc- economy in Advanced economies, on the other hand, are tor of IMF, Dominique Strauss-Kahn, told 2010: In- projected to grow by just 2.7 per cent in 2010 reporters: “India is becoming one of the leading ternational and 2.2 per cent in 2011, according to the report. powers in the world. It is really an economic "India's macroeconomic performance has powerhouse...Your results here in terms of Monetary been vigorous, with industrial production at a economic growth and also in terms of inclusive Fund two-year high. Leading indicators -- the produc- growth are really amazing.”

4 DECEMBER 2010-JANUARY 2011 www.ibef.org N AT I O N A L ROUND-UP

THEY NANDAN SAID IT NILEKANI

Speaking recently on the delivery of India's hundred thousandth Unique ID card, to a villager in Tumkur in Karnataka, Nandan Nilekani, Chairman of the Unique Identification Authority of India (UIDAI).

“Crossing one lakh enrolments in this short span of time is a welcome milestone for us. And the credit for this goes far beyond the UIDAI team. A lot of people...are working together, Net ProfitInternet users in India and have put in substantial will treble by 2015, making the country effort towards getting the better connected, better prepared. enrolments done.” BY 2015, nearly 240 million Indians will have access to the Internet, almost three times as many as now, says management consulting firm, The Bos- ton Consulting Group (BCG). Its recent report, 'Internet's New Billion', says that Brazil, Russia, India, China and Indonesia (BRICI) will lead the world in the growth of internet penetration. A little less than half of all the world’s population lives in these countries. The mobile 3G network is expanding and rural networks are developing. As a result, the net-connected population in India, will grow at a CAGR of up to 20 per cent, said the report. By 2015, Internet users will cover nearly 20 per cent of India's population. The number currently stands at 81 million, added the report. The internet is more likely to be available on the mobile phone, rather than on computers. By 2015 the BRICI countries will be home to 1.2 billion internet users, double their current number and thric the number in the US and Japan combined. According to a 2009 World Bank study, economies advance as the number of mobile phone users increases.

UPDATE ON RESEARCH STUDIES Indo-US R&D Pact. During US President Barack Obama's recent visit to India, the two countries agreed to conduct joint re- search on eco friendly technologies. They will set up a Clean Energy Research and Development Centre for work on solar energy, second generation biofuels and building efficiency technologies.

www.ibef.org DECEMBER 2010-JANUARY 2011 5 NATIONAL ROUND-UP

SOUND BITES “Thinking is prog- ress. Non- thinking is stagna- tion of the individual, organisation and the country. Thinking leads to action.” –Dr A P J Abdul Kalam

Chennai—in the driver’s seat Port “We be- long to an city rapidly emerging as automobile hub age where TAMIL NADU’S capital Chennai of Japan and Doosan of facturing. By 2016, the output it does not matter is emerging as one of the top South Korea chose Chennai will touch US$145 billion, 10 global automobile manu- to set up their large earth giving the sector a more than whether you are a facturing centres. By the end moving equipment manu- one-tenth share of the gross of this fiscal (2010-2011), it facturing plants. Studies by domestic product (GDP). man or woman, as will have an annual installed Hyundai, Nissan and Ford On its website, the state’s long as you are good capacity of producing nearly found Tamil Nadu the most department of industries says 13 million cars and about cost-effective location for the government’s policy of at what you do” –Naina Kidwai, Country Head, 350,000 commercial vehicles. manufacturing cars. offering attractive packages to HSBC India According to the govern- It is also the largest auto- automobile and component ment of Tamil mobile and manufacturing firms that Nadu’s Depart- By 2016, auto compo- invest more than US$990 ment of Indus- India's au- nents exporter. million, has brought in huge try, Chennai Of India’s total investments. boasts of six tomobile automobile Between 2006 and 2009, car projects, industry will export earnings it attracted investments of namely Ford, of US$2 billion “Good net US$ 145 almost US$5 billion, almost Hyundai, BMW, from 2007 to five times the investment education Renault, Nissan billion: Au- 2009, exports that came in from 1991 and Mitsubishi- tomotive from Chennai to 2006. The Centre has is crucial HM. Hyundai alone earned also set up the ambitious to building a just, has made it the Mission Plan more than a bil- US$ 100 million National manufacturing 2006-2016 lion dollars. Automotive Testing R&D equitable, humane and export hub The Automo- Infrastructure Project near and sustainable for its small cars—Chennai tive Mission Plan 2006-2016 Chennai, to introduce world- is the company’s largest base says, India will be the world’s class automotive safety and society.” outside Korea. Caterpillar destination of choice for performance standards to –Azim Premji, Chairman, USA, Komatsu & Koebelco automobile design and manu- the industry. Wipro Technologies

6 DECEMBER 2010-JANUARY 2011 www.ibef.org N AT I O N A L ROUND-UP

UPDATES BANKING Higher Connections UPDATE Good Account Indian banking on high growth path

THE INDIAN banking industry is their rating for the Indian Banking expected grow as much as 20 per industry from ‘Negative’ to ‘Stable’ cent a year, according to a survey in September this year. by consulting firm, McKinsey. The Earlier this year, international industry will improve its profitabil- ratings firm Standard & Poor's ity with a return on equity of more (S&P) had revised India’s outlook than 18 per cent, said the report from negative to stable. It had cited MOBILE TELEPHONY This handsets. By 2014, nearly conducted for the Indi- India’s improving fiscal year, mobile connections in 206 million handsets will be an Banks’ Association. situation and strong India will exceed 660 million, sold in India per year. Last Favourable economic growth for growing nearly 28 per cent year, this figure was 117 demographics, rising 20 % having revised the rat- over the last year, says mar- million, and this year, it will aspirations of corporate ing. S&P had said that ket research firm Gartner climb to nearly 140 milliion, EXPECTED RATE OF India, strong regulatory the upward revision Inc. Revenue from mobile says Gartner. push, technological GROWTH OF THE in outlook was based services will also touch US$ India is an important mar- innovations, rising INDIAN BANKING on expectations that 20 billion by the end of the ket for manufacturers, as it productivities and the economy would year, again a near 20 per contributes about 10 per INDUSTRY: economies of scale are grow at 8 per cent this cent jump over 2009. cent to the worldwide sale driving the growth, MCKINSEY REPORT year, one of the highest In 2010, mobile penetra- of mobile handsets. it said. According to among the major econ- tion in India will reach 56 per The entry of Indian play- the report, there is a omies in the world. cent. But by 2014, Gartner ers focussing on value value creation opportunity of more "The revision in outlook reflects says it expects the cover- conscious consumers has than US$55 billion in incremental our view that India's fiscal posi- age to be nearly 82 per intensified competition in the revenue, by 2015. tion could now begin to recover cent, powered mainly by market. A large volume of Besides, credit rating agencies and that its economy will remain the spread of mobile tele- mobile device sales in India like Standard and Poor’s also on a strong growth path," an S&P phony into rural India and come from the low-end seg- confirmed this when they raised release had said. the availability of affordable ment, Gartner adds.

RESOURCE TRACKER likely to exceed to $370 bil- India (RBI) survey has said. lion in two years’ time, up In the same period in 2008, Remittances Rise, from $307 billion in 2009, the remittances were a little Again India retains top spot adds the report. World- more than US$ 26 billion, in remittance receipts wide, remittance flows are said an RBI press release. expected to reach $440 bil- Remittances remained a MORE THAN eleven million report Migration and Remit- lion by the end of this year. resilient source of external Indians working abroad sent tances Factbook 2011, According to the report, financing during the recent home US$55 billion this remittance flows to devel- India again leads the list, fol- global financial crisis and year, making India the oping countries is expected lowed by China, Mexico, the were steady despite the top recipient of remit- to reach $325 billion by Philippines, and France. touched US$27.51 billion, pangs of financial recon- tances, says a recent the end of this year—an Between April and largely unaffected by the struction in the developed World Bank report. increase of 6 per cent from S e p t e m b e r, 2 0 0 9 , global financial meltdown, world, the World Bank According to the bank’s the 2009 level. The figure is remittances to India a recent Reserve Bank of report said.

www.ibef.org DECEMBER 2010-JANUARY 2011 7 INDIA $18 billion Indian exports in WATCH Sept, 2010 Area Population Male Female Population Density Urban Population 3,287,590 sq km 1.175 billion 613.75 million 552.15 million 361.1 per sq km 350 million

Key performance India’s Economic Outlook Projection indicators of the Fiscal Year FY 07 FY 08 FY 09 FY 10 Indian economy, with GDP Growth 9.40% 7.30% 5.40% 8.50% patterns, trends and CPI 6.40% 9.30% 5.50% 14.44% forecasts Source - RBI website (data taken in September 2010).

Mean Probability Pattern of Real GDP Growth Forecasts 2010-11 2011-12

60% For 2010-11, the forecast for agriculture has improved by half a percentage point—from 50% 4.1 per cent in the last survey to 4.6 per cent 40% now. For industry, the forecast of 9 per cent is the same as in the last survey. For services, 30% the forecast is marginally up from 9.1 per cent to 9.2 per cent. For 2011-12, the forecast is 20% 3.2 per cent for agriculture, 9.1 per cent for industry, and 9.5 per cent for services.

10% Forecasters Professional of Survey RBI Source:

0 7 to 7.5 to 8 to 8.5 to 9 to 9.5 to 7.4% 7.9 % 8.4 % 8.9 % 9.4 % 9.9 %

Chart 1: Year-on-Year Growth IIP Chart 2: Year-on-Year Growth in Sectoral Indices 20% 20% 16% 16%

12% 12%

8% 8%

4% 4%

0% 0% Source: CSO Source: Source: CSO Source: -4% -4%

Apr-09 Oct-09 Apr-10 Jun-09 Aug-09 Dec-09 Feb-10 Mar-10 Jun-10 Aug-10 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Mining & Quarrying Manufacturing Electricity

8 DECEMBER 2010-JANUARY 2011 www.ibef.org INDIA WATCH

Chart 3: Contribution to IIP Growth Chart 4: FDI & FII Inflows in September 2010 4 3 6.0% 5.0% Electricity Non-Durables 2 0.1% 0.5% 4.0% Durables 1 FII 3.0% 1.1% 0 2.0% Manufacturing Intermediate FDI 3.9% 2.6% 1.0% -1 Mining Basic 0.3% 0.9% July-2010 0.0% Aug-2010 Sep-2010 -2 April-2010 June-2010

Capital March-2010 May-2010 -1.0% 0.7% -3 -2.0% CSO Source: billions in are Figures RBI, Source:

Monthly trends in Wholesale Price Key Macroeconomic Indicators Index- monthly average (% change) Cash Reserve Ratio All Commodities 6.2% Primary articles 6% 20 Fuel Power Light & 5.8% Lubricants 5.6% 15 Manufactured Goods 5.4%

10 5.2% 5% 5 4.8% 4.6% 0 4.4% Source: RBI

-5 Jan-2010 Oct-2010 Mar-2010 Feb-2010 July-2010 Aug-2010 Sep-2010 Nov-2010 May-2010 April-2010 -10 2009 2010 June-2010 Source: RBI Source: Augst Sept Augst Sept -15 RBI Policy Rates Stock Market 7% Date BSE Sensex % Change S&P CNX NIFTY %Change 6%

1.09.10 18,205.87 -3.19 5471.85 0.75 5% 1.10.10 20,445.04 6,143.40 12.35 12.29 4% 1.11.10 20,355.63 -0.45 6,117.55 -0.43 3% 1.12.10 19,850.00 -2.49 5,960.90 -2.58

Source: RBI Source: 2% Currency Exchange Rate 1% Date INR/USD INR/GBP INR/JPY INR/EUR 0% July 10 46.58 72.87 53.51 60.96

Aug 10 46.89 72.51 55.33 59.47 Jan 2010 Jan Feb 2010 Feb July 2010 July Mar 2010 Mar Aug 2010 Aug 2010 Nov Nov 2009 Nov 2009 Dec May 2010 May April 2010 April Sept 2010 Sept June 2010 June Sep 10 44.95 71.46 53.92 61.38 Repo Rate Oct 10 44.43 70.3 53.34 61.12 Reverse Repo Rate Source: RBI

Nov 10 44.95 71.29 55.1 61.72 RBI Source:

www.ibef.org DECEMBER 2010-JANUARY 2011 9 M N C WATC H SIEMENS

COMPANY DASHBOARD

PROFIT AFTER TAX (2009-10): INR 8,272 million (approximately US$182 million), up by 27%

NUMBER OF EMPLOYEES: 17,500

MANUFACTURING UNITS: 21 FULL STEAM AHEAD For more than three-fourths of a century, global tech- nology giant—Siemens—has had a close association with the Indian market. It is now geared to partner in the country’s big leap into the future. BY SHREYASI SINGH

10 DECEMBER 2010-JANUARY 2011 www.ibef.org SIEMENS M N C WATC H

EW MULTINATIONALS can claim to have a looking to generate up to 20 gigawatts (GW) of solar power relationship with India that dates back nearly by 2022 as part of the National Solar Mission. This presents a 150 years. It was in 1867 that Werner von Sie- great opportunity for Siemens, since it has experience in the mens, founder of Siemens Limited, personally Concentrated Solar Power (CSP) and the Solar Photovoltaic supervised the laying of the first telegraphic line (PV) businesses, globally. betweenF London and Calcutta. The company opened its first Siemens has said it plans to invest US$ 346 million in India office in 1922. Today, Siemens is a leading provider India over the next three years, a third of which will be fun- of industry and infrastructure solutions, with an aggregate nelled into wind turbine production. It announced a wind business volume of US$2.7 billion—the bulk of which turbine manufacturing site in India earlier this year and the comes from the energy and health care sectors. Siemens has factory is expected to be established by 2012. a nation-wide sales and service network, 21 manufacturing Siemens AG has also made India a major hub for the plants, nearly 500 channel partners, and employs more than research and development of medical diagnostic tools, using 17,500 people in India. computer-aided design (CAD). The US-based Siemens Medi- “Siemens is on a growth upswing. This year turned out to cal Solutions, which established a CAD Group in 1995, has be quite good. Our short-cycle product more than 60 per cent of its scientists business grew and our project busi- working in Chennai and Bengaluru. ness was on track. Our technology, “OUR It employs more than 100 engineers as well as our additional focus on TECHNOLOGY, and scientists, who work with profes- the base-level segment and environ- sionals of the information technology ment portfolio, gave us an edge in AS WELL AS OUR and diagnostics research projects of the competitive market environment. FOCUS ON THE Siemens Health care. Our initiatives to ensure operational Siemens is also constructing the excellence, robust portfolio and BASE-LEVEL country’s first Formula 1 race track customer-and-employee centric SEGMENT AND close to Greater Noida, near Delhi. The approach supported our results,” US$ 28.5 million track is more than said Dr Armin Bruck, Managing ENVIRONMENT five kilometres long and should be Director, Siemens. The company’s PORTFOLIO, ready by next year. It is being built to be profit after tax for 2010 grew by 27 among the world’s top five race tracks. per cent over the last year, and stood GAVE US AN Vijay Paranjape, Director of Siemens, at US$ 184 million. EDGE IN THE says, “As a global leader with vast In the last 10 years, Siemens has COMPETITIVE experience in numerous F1 race tracks done defining work in India. In 2003, around the world, and proven exper- it completed India’s largest high volt- MARKET tise in this sector, this prestigious age power transmission project. In ENVIRONMENT” project provides us with yet another fact, this was the second-longest such opportunity to bring state of the art transmission line in the world, cover- sporting systems to India that match ing a distance of 1,400 kilometers. A year later, the company international standards.” opened a research centre in India. In 2006, Siemens won the Clearly, the company has continually striven to set bench- bid to provide a complete security solution and intrusion pro- marks in India. It is investing heavily to make its India offices tection system for Bengaluru International Airport Limited. greener by 2012. The company is examining its seven Indian Siemens is determined to continue looking at India as the company-owned offices with regard to environmental protec- geography for innovation and experimentation. In September tion and energy consumption. The goal is to reduce energy 2010, it began operations of a renewable energy division at consumption and CO2 emissions by at least 15 per cent. This Vadodara, Gujarat. “The market outlook for renewable ener- will be equal to planting 9,000 trees. gies in India is positive. We see a potential for the wind and Business magazine Business Week had ranked Seimens solar business in the near future,” says Bruck. “The setting as number one company in its annual rating of Asia’s 50 up of the Vadodara office marks our foray into the solar and companies in 2008. Siemens was also ranked number one in wind business in India.” India has one of the most ambitious corporate reputation by The Wall Street Journal in its survey solar energy development plans in the world. The country is of Asia’s 200 most admired companies.

www.ibef.org DECEMBER 2010-JANUARY 2011 11 COVER STORY INDIA INNOVATES BINESH SREEDHARAN ILLUSTRATION BY

12 DECEMBER 2010-JANUARY 2011 www.ibef.org INDIA INNOVATES COVER STORY

INDIA INNOVATES An entire nation is designing indigenous solutions to local needs. As the economy cruises along, enterprise is meeting ingenuity. Innovation is happening. BY SHUBHA SINGH

hanjibhai Mathukiya lives in spread fertiliser over his fields. His entire fam- Kalavad, a tiny coastal village ily had to toil under the scorching sun for days adjoining the sprawling Gir at times, just to ferry armloads of the fertiliser National Park in Junagadh, from the back of a bullock cart to the fields, and B Gujarat. For years, he tilled his back, hundreds of times a day. Agrawat could two-acre land with a heavy-duty rent a motor-operated machine, but it was too commercial tractor that was too cumbersome to expensive for him. What he needed had to be manoeuvre and too expensive to run. He knew cheaper than the machine and less punishing he needed a smaller, lighter, quicker tractor. than the manual grind. He designed Aaruni, a Speaking in chaste Gujarati, the 70-year old told lever-operated cart that would tilt like a dumper. India Now over the phone, that his huge tractor Now, he sits on his cart and spreads fertiliser all “felt like a gigantic ship in a tiny pond. I wasn’t over his field, and the fields of others. getting much out of it but I was spending a lot In the eighties, when open heart surgery was on it.” He needed a smart machine, but who still a rarity in India, researchers at Kerala’s Sree would build him one? It took him eight gruel- Chitra Tirunal Institute for Medical Sciences ling years, but he built one himself. And now, and Technology were hunched over their work- he has a US patent for his agile, adaptable and benches, determined to design an artificial heart much lighter Vanraj 10-horse power tractor. valve. There were valves in the international It was taking Amrutbhai Agrawat, also of market, but they were frightfully expensive. Junagadh, too much time and too much effort to India needed the valves by the hundreds of thou-

www.ibef.org DECEMBER 2010-JANUARY 2011 13 COVER STORY INDIA INNOVATES

sand. At that time, six in every 1000 who do not have money, education or Indians were afflicted with the poten- institutional support, but whose ideas tially fatal Rheumatic Heart Disease We plan are interesting. It also protects their (RHD) that destroys valves of the heart. IPR, provides micro venture capital, It is curable, but needs an open heart to set up a business development support, and dis- surgery to replace the damaged valve seminates the ideas. with an artificial one. But the surgery is billion dollar “The Indian experience shows that risky, expensive and highly specialised. creativity and innovation are not The valve itself costs thousands of fund for traits that only the rich and highly rupees. It took time, but in 1990, the educated have. Anyone who is strug- first such valve from the institute was innovation gling with a problem, and has a implanted in a needy patient’s heart. desire to improve his condition, Several thousand grateful people are in India... can experiment. Not all experi- now living healthy lives with the valve ments can succeed, and not securely inside their hearts. And we want all experiments will lead to Unlettered honey seller Saidullah of entrepreneurship. So we Motihari in Bihar’s flood-prone East to seed the began looking at even the Champaran district had grown up failed experiments,” Prof fearing the monsoons and the floods right kind of Gupta told India Now. “It they brought each year. But, he decided is important to realise that he wasn’t going to suffer silently. In innovation. minds of the people on the three straight days of hard work, he — Sam Pitroda margin, are not marginal fabricated his now famous amphibious Chairman, National Innovation Council. minds. They may not have bicycle Noor, named after his wife Noor the acumen to convert their Jehan. Saidullah added four rectangular learned of Saidullah through Prof Anil ideas into enterprise, but air floats and two fan blades to his Gupta of the Centre for Management they must not stop think- bicycle, and it was ready to float, not in Agriculture at the Indian Institute of ing. In most cases, their only forward, but also backwards. The Management (IIM), Ahmedabad. knowledge and ideas cost: not more than US$318. Now, flood Bharat Ratna Prof Gupta created the are the only wealth waters can’t bring life to a standstill, Honey Bee Network for innovation. It they have. It’s the not where Noor is available. Thousands brings together innovators, farmers, only resource in of websites worldwide and magazines scholars, policy makers, entrepreneurs which the poor and newspapers have written millions and non-governmental organisations are rich, so of words on Saidullah and Noor. “I have (NGOs). The network ensures that the t o s a y , ” he no idea about that, because I don’t have traditional ‘knowledge holders’ and added. the Internet, nor do I read, but I hope grassroots innovators are acknowledged my work will save lives wherever it and rewarded. In 20 years, the network can,” said an excited Saidullah when we has documented more than 100,000 spoke with him over the phone. ideas, innovations and traditional America’s prestigious business maga- knowledge practices. Prof Gupta also zine Forbes was looking for names of set up SRISTI, an organisation that people, places, ideas and products the protects the intellectual property world will be talking about next year. rights of innovators at the grass- Instead of brainstorming in-house, the roots level. Prof Gupta is also magazine decided to “throw it to the executive vice chair of the crowd, ” asking its readers to list the 50 government’s National most important people they thought Innovation Foundation the world would need to know in 2011. (NIF). With a corpus Writing on the magazine’s website, of US$4.5 million, Stanford and Princeton-educated its mandate is to deputy editor Nicole Perlroth said the scout, support person featured third on the list was and add value to Mohammad Saidullah. She said she i n n o v a - tors

14 DECEMBER 2010-JANUARY 2011 www.ibef.org INDIA INNOVATES COVER STORY

member, planning commission Dr K Kasturirangan; and chairman of the Unique ID For All National Innovation Foundation Dr Aadhaar, the ambitious, hi-tech, exercise of giv- Ramesh Mashelkar. He is former direc- ing every Indian a unique identification number tor general of the Council for Scientific is a landmark of sorts. No country has ever un- and Industrial Research. NIC will dertaken to build a national registry at this scale define policies, recommendations and and accuracy. The Unique Identification Authority methodologies to implement and boost of India (UIDAI) has already started issuing these innovation performance in the country. 12-digit cards, whose number is stored in a Pitroda is developing a national strat- highly secure server called the Centralised ID egy on innovation with a focus on an Repository (CIDR) and linked to each resident’s Indian model of inclusive growth. The photograph, fingerprints and iris scan. idea is to create an indigenous script of development suited to Indian needs and challenges. “We plan to set up a billion dollar fund for innovation in India,” an excited Pitroda told India Now. “We absurd—it’s not true. And we have will see how it goes, it may be US$500 proved it beyond doubt. Complete million, to begin with. But it’s going autonomy, full faith and complete to be a big fund. And we want to seed success. The ecosystem of innovation the right kind of innovation. It will all in this country permits people to take depend on how we can energise a large initiative and make things happen.” number of young talented people about this idea of inclusive growth. Innova- Organising Innovation tion for the bottom of the pyramid, the Recognising that innovation will propel Indian model of innovation, low cost, growth, the government has named affordable solutions, sustainability... all this decade the Decade of Innovation. of these are going to be critical ideas, The Prime Minister has also set up the but these things take time. It is not a About the NIF, he said: “This is the National Innovation Council (NIC), two-year cycle, it is a ten-year cycle, only organisation which has filed 250 headed by industrialist-technocrat Sam even more.” patents, five of them granted in the US. Pitroda. NIC has an entire galaxy of Pitroda said NIC plans to set up a If we can get a patent in the US, what distinguished Indians as its members. whole network of innovation councils does it mean? It means there isn’t such Some of them include thought leader, going down from the national level to existing idea, technology or product. writer and member, planning com- the state level and even lower down Otherwise, they wouldn’t grant the mission Arun Maira; astrophysicist, to the districts. “I believe the next ten patent. Take Mathukia's tractor, Vanraj. former head of the Indian Space years are going to be the most critical It can easily switch between being a Research Organisation (ISRO) and also ten years in the history of modern 3-wheel or 4-wheel vehicle, depending India. Because we have gained from on the soil, terrain or crop. Global telecom, IT, from the economic liber- giants in this field had not even consid- The National alisation, and now we have the needs ered this need, but it existed. Why else of a youthful nation in the twenty-first would Mathukia go to such lengths to Innovation century,” he added. make it, in the first place? Therefore, he Identifying and encouraging innova- got the patent in the US.” Foundation has tors is a good thing, says IIM’s Prof About the government and its com- filed 250 patents, Gupta. But, he says, it is not enough. It mitment towards such innovation, Prof is important to bring what he calls the Gupta says: “We have had absolutely no 5 of them have three vectors of the triangle together: interference from the government, at innovation, enterprise and invest- all. The notion that if you take money been granted in ment. This is very important. “This from the government, you must accept is the golden triangle for rewarding their interference as a prerequisite, is the US. creativity,” he says. “Why should big

www.ibef.org DECEMBER 2010-JANUARY 2011 15 COVER STORY INDIA INNOVATES

capital operate only where markets went into the market was an herbal his unique product. Inspired by the exist. What about ideas, technologies cream for treating eczema, developed firefly, he went into the principle and and products for which the need exists, by pooling the knowledge of six com- materials behind the insect’s light. but there isn’t a ready market yet. For munities in Gujarat. "All the six get a After years of research, he developed a them, someone has to take the risk. To royalty cheque every year. People with tile that glows in the dark. The Council start a micro venture fund we set up traditional knowledge can now aspire for Scientific and Industrial Research the Grassroots Innovations Augmenta- to have their knowledge turned into a and the Department of Science and tion Network (GIAN), an incubator product,” he adds. Technology helped him with the money of traditional knowledge and innova- This is precisely how mechanical for research. The Indian Institute of tion. NIF has also pooled traditional engineer and innovator Madhav Sawant Technology (IIT), Mumbai, also helped knowledge. The first product that of Goregaon in Mumbai developed him with precise measurements. Sawant told India Now that his tiles are in a sense solid state batteries that store photons instead of electrons. ING SUCC “Just as solar photovoltaic cells store SPIR ESS IN ST current from sunlight, my tiles absorb OR and store the ambient light and emit IE it when it's dark. Extracted from a S mineral, the material is hundred per Toying with Ideas cent safe and will never degrade.” Sawant said that developers Mahindra Arvind Gupta: is all from discarded materials. Life Spaces have built a group of eight After graduating from IIT, Kanpur and In the introduction to his book Little 30-storey residential towers in subur- working for truck maker Telco, Arvind Toys, Gupta says: “It is an irony of modern ban Mumbai, and have coated their Gupta had had enough of the adult world. consumerism that junk products are packed corridors with Sawant's wall paper. He wanted to make toys, from trash. Why in tough cartons. While the frail human “It will give off enough light to trash? “Because, if you look close enough, body consumes and digests the junk, it is keep corridors and staircases there is a wealth of opportunity in trash,” the environment that has to grapple and illuminated,” said Sawant. He says Gupta. “You will find wires, foil, tin, reckon with the tough, non-biodegradable says he is now looking for a aluminium, discarded motors, buttons and waste. Film-roll cases can be transformed venture capitalist who can almost everything you will ever need. You into a high-efficiency pump, tetra packs into fund his next level of invest- can make all your toys from trash. And I measuring cylinders or butterflies, packets ment to make his innova- wanted to show children the wonders of of cigarette into merry-go-rounds.” tion widely available. science and life through the medium of toys An Abacus made from a sneaker sole and models.” And that’s precisely what he and some pencils; a mechano set using Innovation Mechanics has been doing for more than twenty years. matchsticks and bike valve tubes; a train On the nuts and bolts of He has also written more than one hundred made from batteries, buttons and drawing making the innovation books and made nearly as many films on pins—these are just some of the fantastic dream a reality, Sam Pitro- science. On his website www.arvindgupta- toys Gupta has made from trash. But what da said it is a huge task, toys.com, he has listed toy after attractive is even more beguiling is that he shows you but not impossible. “There toy that he makes from discarded everyday exactly how to make each toy or model are 700 million cell phone objects like wires, pouches, cans and a host that he has created. On his website, you connections nationwide. We of other items. will find pictures of all his toys and models, are now a nation of one billion Using just discarded plastic bottles, some complete with graphic illustrations of the connected people. We will use foil, wires, cables, cellophane, and a whole materials needed and how to make them, the power of the Internet, digital lot of creativity and imagination, he makes step-wise. training and education tools to the stunning models to explain basic principles If this how science, math, geography maximum.” of science, like how pumps work, what are and life can be taught, no child Academicians and entrepreneurs electricity and magnetism, Newton’s laws, would ever miss school, no agree that innovation is an entire what is pressure, uses of light, and so on. learning would ever be ecosystem that needs nurturing and There isn’t a toy Gupta cannot make, and it forgotten. constant stoking. Dr Anil K Wali, Man- aging Director, Foundation for Innova- tion and Technology Transfer (FITT),

16 DECEMBER 2010-JANUARY 2011 www.ibef.org INDIA INNOVATES COVER STORY

at the Indian Institute of Technology (IIT), Delhi, says: “There are multiple STORIE CESS S actors in this and that includes publicly UC funded research laboratories and aca- S demia, new economy businesses, tradi- G IN tional industry segments, the govern- IR ment, NGOs and numerous individual P innovators and entrepreneurs.” FITT S connects institutional research with IN Breath of Life industrial entrepreneurship. Rishikesha T. Krishnan, Professor of Dr Arti Kinikar: too many lives at stake. So, she picked up Corporate Strategy, IIM, Bengaluru, When the swine flu broke out last year, a bottle of saline solution, an IV fluid transfu- told India Now that India has already the government-run Sassoon Hospital sion set and a nasal canula, a tube that would shown innovation and leadership in in Pune, Maharashtra, was flooded with go into a child’s nostril. In no time, she had the widespread, low-cost diffusion of patients, mostly children. But the doctors made a ventilator that worked just as well as telecom services and information were wringing their hands and praying for a factory-produced one that costs more than technology services. He said at a miracle—there were 900 patients in need US$11,000. Her device cost less than five the national level, the National of critical care, and the hospital had only four dollars! Both devices did the same thing—oxy- Rural Employment Guarantee life-saving ventilators. Associate professor of genated tormented lungs. Dr Kinikar's device, Programme (NREGP) is provid- paediatrics and head of the paediatric critical the nasal bubble CPAP, saved the lives of hun- ing families below the poverty care unit, Dr Aarti Kinikar, however, made the dreds of children. She also gave them the life- line with an assured income in miracle with her own hands. She saved hun- saving drug Tamiflu, “but that in itself does not return for contributing to devel- dreds of lives by fashioning a ventilator out of save lives. It was an emergency and I needed opment work, close to where local materials, a clear-thinking, sharp, scientific to something immediately. Collapsing air sacs they live. This, he says, must be mind and a heart that cared. need to remain open with oxygen, otherwise one of the largest programmes She realised that the patients were going into they will collapse and the patient won’t survive. of its kind in the world. That’s respiratory distres--their lungs were collaps- Exhaling forms bubbles in the saline, keeping uniquely Indian. ing from the rapidly spreading infection and the air sacs from collapsing. I call them bubbles Krishnan talks with pride about its complications, and if they did not get of hope,” Dr Kinikar told India Now, still feeling Sheikh Jehangir of Jalgaon, Maha- vital oxygen, she would lose them. But the surge of emotions from having witnessed rashtra. “Sheikh, 50, is an unlettered delivering oxygen to collapsing lungs the trauma and felt that helplessness. car painter, he has no vocational train- is the task of a machine through a Using warm water for humidified oxygen, she ing, and had to start earning at eleven technique called nasal Continu- created a circuit, a method now routinely used to support his family. Yet, he owns a ous Positive Airway Pressure at her hospital, and many others. The remark- (CPAP). There weren’t able indigenous device has turned out to be many machines and a viable alternative to a ventilator. And Dr Arti there were Kinikar has not stopped thinking on her feet. We're a nation patent, and has applied for a second one. Never to be put down, he devel- of 1 billion oped a contraption to turn his scooter at will, into a light, portable wheat grinder connected for his wife. His motivation: his wife and author of Winning in Emerging people. We'll needed to grind just a few kilogrammes Markets, told India Now: “Innovation at a time, and it had to run without elec- the world over is context-specific. India use the web tricity.After a few critical modifications, has its fair share of stalwart organisa- and digital Sheikh developed his scooter-based tions, even though there is enormous grinder. Its success inspired the makers distance to cover to address India's tools to the of the super hit film 3 Idiots to feature needs, and the needs of the developing an invention based on Sheikh’s idea. world. These range from the Tata Nano maximum Tarun Khanna, Jorge Paulo Lemann to examples of entrepreneurship in civil — Sam Pitroda Professor, Harvard Business School, society, like the renowned PRS.” A unit

www.ibef.org DECEMBER 2010-JANUARY 2011 17 IN preneurs. His list included three S Mansukhbhais—Mansukhbhai P I Jagani, Mansukhbhai Patel Wafer Thin Watch R and Mansukhbhai Prajapati. IN Rajkot's Jagani’s motorcycle- Titan Edge thin as a wafer, an equally thin casing and G based tractor is both cost Think watch, think Swiss. It is difficult glass to match, Titan Edge seemed good to effective and fuel efficient. S to imagine any innovation in any watch, go. Well, almost. It was the battery, however, At just US$ 318 (INR U anywhere, that isn’t Swiss made. Imagine that gave the designers sleepless nights. 14,400), it can plough an C a wafer-thin, feather-light watch, that works Initial Edge batteries lasted barely six months, acre of land in 30 min- just as well as it looks good. And it is one but now boast of an easy two-year life. The C utes using two litres of hundred per cent Indian. Designed indige- watch uses a hi-tech silicon chip to conserve E fuel, something only a nously by Tata’s Titan Design Studio, it is safe power and double the life of the battery, and S marginal farmer will to say that the Titan Edge is the slimmest a specially designed step motor. "We needed S understand.

watch the world has ever seen, and it is not a to develop a set of micro motors that would S Gujarat's Patel is

nano second out of synch! consume less power and yet drive the set. T a farmer who made

For years, Concord of Switzerland ruled We could not have used the regular batteries. O the cotton stripping

the watch world with its super thin 1.75mm And smaller ones would also have a shorter R machine that has quartz movement. Titan set out to challenge life," says Bijou Kurien, COO, Watches Divi- I drastically cut the cost

the market by designing Edge, a 1.15mm sion, Titan Industries Limited. E S of cotton farming. movement. It wasn’t just the movement, "The Titan Edge is a significant achieve- Prajapati is a potter in the casing also had to be super thin and ment and matter of pride, not just for Titan, Gujarat and he made a incredibly light, otherwise all that effort would but for every Indian, as it reiterates our clay non-stick pan that have gone in vain. Pat came the specialised technological strengths and expertise as costs just two dollars. He Titanium case for Edge, which is not just the a nation. With its combination of rare has also made a clay refrigera- slimmest in the world, but also the lightest. precision and elegant styling, the tor, Mitticool, that works on the prin- The ultra thin watch needed matching Titan Edge will leave an indel- ciple of circulating and evaporating glass, a .35 mm slice of Sapphire crystal, as ible mark on history,” adds water, and does not use electricity. thin as the human hair. With a movement as Kurien, beaming. Next on the list was Dadaji Ramaji Khobragade of Chandrapur near Nagpur, who developed the HMT rice, a highly successful rice variety which yielded 80 per cent more rice than of accessing stored data through the the conventional variety. HMT is now mobile phone. According to him: grown on an estimated 100,000 acres “Innovation doesn’t just happen. The in five states across India. recognition that a change is needed is Then Prof Gupta speaks of Madanlal of the Centre for Policy Research, PRS the first step towards innovation.” Kumawat, a grassroots innovator with Legislative Research tracks the func- no more than a fourth-grade education. tioning of Parliament, to strengthen Mapping Innovation He developed a fuel-efficient, multi-crop the legislative process by making it In an exercise to identify the innovators thresher that yields cleaner grains, which better informed, more transparent and in India’s villages, Forbes had asked can be bagged directly, eliminating the participatory. It works with Members of Prof Gupta to compile his list of seven cost of cleaning. The list included Ketan Parliament across party lines to provide most powerful rural Indian entre- Patel of Troikka Pharmaceuticals who research support on legislative and policy issues. Innovators are increasingly finding more faith in the Indian system. A product of IIT, Kanpur and Louisiana Innovation is propelled by State University, Ramneek Bhasin is need-local need, more than founder and CEO of US-based mobile technology firm Mobio. He also holds anything else. the patent for a voice-activated method — Prof Anil Gupta, I IM, Ahmedabad.

18 DECEMBER 2010-JANUARY 2011 www.ibef.org INDIA INNOVATES COVER STORY

Innovation doesn’t just happen. The recognition that a change is needed is the first step towards innovation. — Ramneek Bhasin, Founder, Mobio, USA made the world’s first diclofenac injec- ogy (MIT) is taking note. MIT's Tech- Chandra and Indrani Medhi. Chandra tion for acute pain and inflammation, nology Review magazine has featured demonstrated at the Microsoft campus and Chintakindi Mallesham. He made Rikin Gandhi, CEO of Delhi-based in Redmond, Washington, the potential the Laxmi Asu Machine that makes six Digital Green, as one of the three of of using white spaces to extend the saris worth of material in a day, and Indians in its annual list of young inno- reach of Wi-Fi signals dramatically. At needs “no human effort beyond placing vators. The list names top 35 innovators Microsoft Research India's Bengaluru thread on the machine and removing under the age of 35. You can read more laboratory, Medhi has done field the finished product.” about Rikin Gandhi on page 46, in the research to design text-free interfaces to It is not just Forbes magazine. Even Rural Update section. help illiterate people find jobs. the Massachusetts Institute of Technol- Other Indians on the list are Ranveer Indigenous Solutions “Innovation is propelled by need—local need, more than anything else,” says G SUC Prof Gupta. PIRIN CES S S S “True,” says Sam Pitroda. “We have to IN T solve our own problems. The energy to OR IE innovate is not going to come from the S West. In the Western world, the best brains are busy solving problems of the rich, who really don’t have problems to Taking Off solve. As a result, the problems of the poor do not get the right kind of brain Dhruv, the shining Star own variants, and so do the paramilitary power innovating for their needs. So, Making an aircraft from scratch brings to- forces, Border Security Force and the only we can focus on putting the best gether too many cutting edge technologies, Central Reserve Police Force (CRPF). One of brains to work on the problems of the and all of them have to be tried, tested, and only three helicopter aerobatic display teams poor.” tested again. Most aircraft, whether fixed- in the world, Sarang, of the Indian Air Force, IIM, Bengaluru’s Prof Krishnan wing planes or helicopters, are made in the performs with four Dhruv helicopters. agrees: “We can’t solve any of developed world, where either the technolo- It is a rugged multi-role new generation India’s pressing problems – health, gies exist, or can be bought easily. Develop- helicopter in the 5.5-tonne weight class. The education to name just two – using ing countries mostly buy the planes from the cost-effective chopper has flown extensively the models of the developed world. advanced countries, like the US, Russia and in diverse terrains ranging from hot tropical Innovation is essential if we want some European nations. India, however, has deserts to the great Himalayan ranges. Dhruv to build the India of our dreams in not only broken that tradition, it has even has high military capabilities for heliborne as- a reasonable time span.” begun exporting to other nations. Enter the sault, logistical support, casualty evacuation, In his concluding remarks, indigenously developed and sophisticated reconnaissance and training. It is an armed NIC chairman Sam Pitroda said, Dhruv, the Advanced Light Helicopter made gunship, a utility transport, an anti-submarine confidently: “Need will engender by Hindustan Aeronautics Limited. warfare/anti-surface vessel warfare helicopter the creative application of resources, Deliveries of the Dhruv started in 2002, and a platform for search and rescue and and innovation will foster. This is the a full ten years after the prototype's first casualty evacuation. decade of Indian innovation, and it will flight. The Indian Coast Guard became the Dhruv has been exported to Turkey, Peru, happen.” first service to receive the helicopters. Now, Myanmar, Israel, Bolivia, Nepal, Eqauador, There is every indication that it will. all wings of the defence forces have their Mauritius and the Maldives.

www.ibef.org DECEMBER 2010-JANUARY 2011 19 EMERGING ENTREPRENEURS KIRAN BIR SETHI

WHAT AN IDEA! Ahmedabad’s Kiran Bir Sethi’s innovative ideas have changed the way children relate to school, learning and their environment. Bright, energetic and inspired, Kiran is a one-woman idea-factory, and is now set to change the world. BY SHUBHA SINGH

hat happens when a student of design is what an idea can become, so I can fired by a mind that is teeming with ideas? make it accessible. Then, it is rep- An innovator is born. And what happens licable, and because of these two, it when that innovator has the large-hearted- should become sustainable.” ness to set her ideas free for the world to Unafraid of failure and ever willing Wown and take forward? Meet Kiran Bir Sethi of Ahmedabad, to adapt and demystify complex ideas designer, educationist, innovator and social entrepreneur. into simple, user-friendly ones, she has On the phone from Ahmedabad, Kiran sounded charged taken India and the world by storm. “I and almost child-like in her exuberance. She is a strident think where I might differ from others is in young woman—confident, highly focussed and resourceful. my openness to failure. I’m not afraid of failure.” She is an entrepreneur in the true sense of the word. Not only Kiran Bir Sethi has shown how to turn an idea into does she have innovative ideas for doing business and chang- an enterprise. In fact, many ideas. It is no small achieve- ing lives, but also the right kind of energy to turn them into ment, that among the 20 Indian entrepreneurs that US successful, self-sustaining enterprise. Kiran affects you with president Barack Obama met during his recent visit to India, her effusiveness and conviction, and most of all, her ideas are Kiran Bir Sethi was one of them. about social change and general good. She had just returned At a seminar called TEDIndia, held in Mysore, Karnataka, from an extended tour of Japan and Korea, without any sign late last year, Kiran Bir Sethi was invited to talk about her of jetlag or exhaustion. Her enthusiasm is infectious. ideas for change, an honour few Indians have had. Having When asked why her ideas work, she said clearly: “One, I started in New York as a grouping of technology, entertain- think because I come from a design background, so embed- ment and design professionals, TED is now a highly respect- ded in the way I address a situation. I am able to demystify ed nonprofit organisation devoted to ideas worth spreading.

20 DECEMBER 2010-JANUARY 2011 www.ibef.org www.ibef.org DECEMBER 2010-JANUARY 2011 21 EMERGING ENTREPRENEURS KIRAN BIR SETHI

After graduating from the National School Riverside is viewed as a “labo- curriculum models to public schools Institute of Design, Ahmedabad, Kiran ratory to prototype design processes in many regions. Of late , she has been set up the Riverside School in her that enable exceptional teaching and working with the Indian army to adapt city, in 2001 with only 27 students in transformative student participation,” the Riverside model to army schools elementary grades. She had tried her in Kiran’s vocabulary. The curriculum across the country. She established the hand as a newspaper reporter, acting is customised and developed each year. first “Beacon School” in Bhutan, and and even singing with a local rock band. This process is complete only when the introduced a Riverside curriculum But her heart was in education and she student feedback is incorporated and pilot for teaching English as early as gravitated to it. Although Riverside is a the curriculum modified, if needed. All grade one at two municipal schools in mainstream school, it is anything but a processes and outcomes are captured Ahmedabad. regular school. It is a place for learning on paper, documented for future use Kiran says she believes that a child- without a drab, fear-inspiring appear- and refined continuously. friendly society breeds responsible, car- ance. The school has set a benchmark Adding classes every year, the River- ing citizens. She has created systems for excellence. side School now has classes from one of learning, campaigns, and initiatives School Riverside now has more than to ten. Class eight onwards, the school that enable children to interact freely 300 students and 55 teachers. Kiran has offers the International General Certifi- in their community. Her classroom shown her method works and her stu- cate of Secondary Education (IGCSE) curriculum hones individual potential. dents are making a mark in every field. They are not only learning to be good citizens, they are also good in academ- “Sharing and spreading your ics. Her sunny countenance reflects in everything she does—whether in idea makes it sustainable, and the design of the school building, its rooms and facilities, or the general that’s critical. If an idea is worthy, atmosphere on the campus. At first glance, it hardly looks like an institu- people should take it, and make tion. But then, that’s precisely what it their own. The critical question Kiran wanted it to be—a fun place to learn, not a school to fear. It is warm isn’t how it’s done. It is rather and welcoming. When speaking about children why it’s done.”–Kiran Bir Sethi and her approach to education Kiran says with confidence, “You know, for decades, we drill it into our children curriculum. It is conducted by the Together, classroom learning and that they are too young, too small, too internationally recognised Cambridge engagement with the society, prepare meek and they can’t do this and they International Examinations. From her students to become active stake- can’t do that. And then we turn and classes one to seven, the school uses holders in the society. ask why it is that they can’t deliver, or its own Riverside Well-Being Curricu- She tests ideas, studies the feedback be responsible citizens.” She says she lum. Kiran says it is a “world-class, no she receives, reworks them, and lets believes when children are raised in compromise, primary and middle years them go free. Her thoughts are startling nurturing environments, they in turn, programme.” The school’s website says in their simplicity. “Sharing and spread- create such environments for their chil- IGCSE is like any other Indian board, ing your idea to the whole world makes dren. This is a fortunate cycle and ulti- and is recognized internationally. It it sustainable, and that’s critical. If an mately a culture of citizenship develops also says that students leaving River- idea is worthy, people should take it, and between children and adults. side can get admission to other schools make it their own. The critical question Her belief is that ‘everyone can.’ and easily enter college. isn’t how it’s done. It is rather why it’s “Then they will make this world a better In 2004, Riverside began selling done. In Taiwan, Mexico, and so many place. And isn’t that what it’s all about?” its curriculum and teacher-training other places, local adaptation of my ideas It is refreshing listening to her and methods to other privately owned will need local solutions. The beauty she smiles, saying that often people Indian schools, creating a model is that everybody has connected to my are pulled into her projects because for financial sustainability. In 2005, thinking. The concept that the human they are “infected with her enthusiasm Kiran also started collaborating with being is seeded with the concept of cre- which is contagious!” Undoubtedly. regional governments, donating the ation, and that it can create,” she says.

22 DECEMBER 2010-JANUARY 2011 www.ibef.org KIRAN BIR SETHI EMERGING ENTREPRENEURS

Early last year, Kiran launched her ter and they can make I love the fact that if I biggest initiative to date, a national a difference. Kiran says Kiran Bir Sethi have a model, approach campaign that encourages school- she thinks a step ahead, or idea, then it is seen, children across India to participate in and her idea is brilliantly "The beauty of attempted or invested a one-week project to change some different. letting an idea in by a set of radical aspect of life in their own communi- That is all very nice, minds. Therefore, it is ties. With only a few months’ lead time, said her critics and go is that those important to let go. I she bravely vowed to involve 20,000 some parents of the who take it, are put everything on web- schools and 100,000 students. More students of her school. more respectful sites, it’s all available to than 32,000 schools eventually partici- They appreciated the of the intent of download, there is no pated in the campaign. social consciousness in the idea." charge for it. Too many The radical, but hugely successful the students but wor- rules and regulations idea is called Design For Change and is ried about their grades. for an idea, make it Kiran showed them how empowered meaningless. That means you are mak- children made excellent students as ing so many reasons for the idea not to well—they beat the city’s ten top go. And for me, I just want it to spread schools in Math, Science and to as many people. The beauty of let- English. ting go is that those who take it and Now, Kiran has taken work with it, are more respectful of the her idea to the rest of intent of the idea. I’m really humbled the world. Renamed by the way people say that they are the "Design for using it, and loving the idea of making Change School Con- it their own.” test," the model has Her latest project is called AProCh spread to 24 coun- -- which stands for A Protagonist in tries that are par- every Child. It is a long-term campaign ticipating through to see how children can engage with a a global website. large city — not only making the city Some of these coun- safer for themselves, but also learning tries include Canada, to be its active participants. A major Finland, Singapore, road through Ahmedabad is closed New Zealand, USA, once a month for a day of citywide Mexico, Thailand, and the child activities. So convinced are the United Kingdom. people of Ahmedabad about AProCH, “I introduced Design for that the administration has decided to change in India just last year. Today, let children have a say in the design of it’s in 24 countries. In a year, which two parks to be built in the city. For her spreading like laughter does, or enthu- is unheard of, right? Purely because I work on the project, Kiran was named siasm. Design For Change encourages said—go , take it.. it’s yours, make it an Ashoka Fellow in 2008. young people to think beyond money, your own story,” she says. “The generator of the idea has to stay and fundraising. They are asked to “Every time I get shaken in my own with it long enough for it to take root. get directly involved in designing conviction, I just think of Mahatma And that’s what I am constantly learn- and leading change in their local Gandhi, I say: My God! For forty years ing: that if it’s in my interest that the community--hands on! The solutions he stayed with an idea, why am I giving idea stays, then I have to stick with it they design must work, too. The driver up in six months,” says Kiran about for as long as it takes to float it, nurture is the belief that each individual change her inspiration for pressing on with her it, help it mature. Nurturing the idea builds a momentum, gathering the ideas and their execution. is as important as the very idea itself, requisite energy to enable significant Dismissing insecurity and the very if you want your idea to go beyond the positive change. Design for Change thought of being possessive about romance of inception,” she adds. aims at becoming a community that her brilliant ideas, she says she firmly When asked what is next, she says will inspire and empower young people. believes that an idea is sustainable only she does not know. But we know her It will send out a strong message to if it is usable and available. She says mind is furiously working away! the youth, telling them that they mat- eagerly, “I love radical collaborations.

www.ibef.org DECEMBER 2010-JANUARY 2011 23 FEATURES INSIDE Textiles: The industry is spinning a fine story of success and growth. Pg 28

Real Estate: Founded on a SECTORAL solid economy, the sector is expanding. Pg 31

Power: Much rests on this rapidly expanding UPDATE sector. Pg 34

INSURANCE

DATA BRIEFING Insuring Success 7.6 % The insurance sector is poised for major ex- SHARE OF THE pansion, spelling good news for insurers and INSURANCE consumers together. BY CHARU BAHRI SECTOR IN INDIA'S GROSS he economy is growing, and com- the potential for growth is staggering. Last year, DOMESTIC panies are slowly making inroads insurance penetration was 7.6 per cent of the into the huge untapped Indian gross domestic product (GDP). It may seem PRODUCT market for insurance. Their mood low, but it is a marked improvement over 3.3 (GDP) T is upbeat and for good reason— per cent, seven years ago. There is still plenty of

24 DECEMBER 2010-JANUARY 2011 www.ibef.org INSURANCE SECTORAL UPDATE

scope for insurance take-up to grow. The sector has made considerable progress in the past decade. Ten years ago, there were just four players in According to the Life Insurance the life insurance segment, and twice as many offering non-life insurance. Council, India’s US$ 41 billion Today, life insurance alone has 23 com- panies, while 24 in the non-life insur- life insurance market is the fifth- ance segment compete for a share of the pie, which is growing larger by the largest in the world, and it's day. An industry report says that insur- ance in India will become a trillion- growing at a healthy 32 to 34 dollar business by 2030. Compiled by the Confederation of Indian Industry per cent, annually. (CII) and Ernst & Young, the report entitled “Indian Insurance Sector: Step- ping Into The Next Decade of Growth”, says growth in the sector is inevitable as the economy grows. Some insurance the industry with a three-fourths share ance plans (ULIP), which combine schemes, notably in the life segment, of the premiums written last year. “The investment and life cover. These have receive long-term deposits, sometimes impressive growth in the sector in proved a major source of revenue for for as long as 30 years. These invest- recent years can be attributed to the insurers despite competition from ments help fuel economic growth. government’s liberalisation policies mutual funds.” which have enhanced product aware- Earlier this year, the government Life Insurance ness, promoted consumer education raised the mandatory lock-in period for According to the Life Insurance Coun- and created more organised distribu- all ULIPs, from three years to five years. cil, India’s US$ 41 billion life insur- tion channels which ultimately proved During the lock-in period, an individual ance market is the fifth-largest in the decisive for industry growth. In addi- has to stay invested in the policy he world. The industry is also growing at tion, strict regulatory control has sus- has purchased. Maheshwari says rais- a healthy 32 to 34 per cent, annually. tained the faith of Indian consumers ing the lock-in period has practically The Insurance Regulatory and Develop- and helped the market grow,” he adds. made these policies long-term financial ment Authority (IRDA) puts the total According to Radhakishan Rawal, instruments with enhanced risk pro- premiums collected in 2009 at nearly Associate Director Tax & Regulatory tection. Reducing commissions and US$ 25 billion. This is an increase of Services, PriceWaterhouseCoopers, expenses by distributing them evenly more than 25 per cent over premiums “Rising affluence has led to a huge throughout the lock-in period, and the collected in 2008. Shushmul Mahesh- increase in demand for insurance. guaranteed annual returns of 4.5 per wari, CEO, RNCOS, a research organi- Among the most successful life insur- cent on pension and annuity plans, sation, says life insurance dominates ance products are unit-linked insur- have also helped attract a huge number of hitherto uninsured consumers to the market. “India is seeing a grow- ing demand for long-term saving and PUBLIC-PRIVATE MARKET SHARE investment products – a gap that life insurance products bridge,” he notes. Of the nearly US$ 5.3 billion that the non-life and this year. Its premiums rose by nearly 26 Research by Swiss Re, a leading glob- insurance segment netted between April and per cent , compared with 21 per cent for al reinsurer, says that the penetration of October, 2010, nearly 60 per cent, or US$ 2.7 the public sector. Last year, public sector life insurance (defined as a percentage billion, came from public sector companies. firms underwrote premiums of US$ 2.5 of GDP) was 10 per cent in the UK last Private sector companies brought in the rest. billion, as against US$ 1.8 billion for the year. It was 7.2 per cent in France and Even though its share is lower than that of the private sector. 7.8 per cent in Japan. In India, however, public sector, the private sector has shown Source: Insurance Regulatory and Develop- it was 4.6 per cent. But as the number higher growth in premiums between 2009 ment Authority (IRDA). of bankable households swells and per capita income rises, this penetra- tion will increase in the years to come.

www.ibef.org DECEMBER 2010-JANUARY 2011 25 SECTORAL UPDATE INSURANCE

Maheshwari says he expects average strategic priorities and return expecta- beneficial partnership. LIC has 2,000 household premiums to treble in the tions. Considering that the existing branches nationwide, while all its pri- near term. Developments on the sup- leading insurance sector players are vate sector competitors put together, ply-side will also spur penetration in either state-owned or JVs already, firms had only one-fourth as many branches both urban and rural areas. As compa- must open up to the prospects of an in March this year. nies lower the share of single premium alliance with partners from other sec- products to ensure regular collections, tors. BNP Paribas Assurance’s JV part- Distribution Methods and change the product mix, the num- ner, State Bank of India, is the coun- Insurers need a distribution network ber of takers will rise. try’s largest bank, and Prudential’s JV spanning semi-urban and rural areas. partner, ICICI, is India’s largest private Those that cannot set up their own Joint Ventures sector bank. However, Allianz’s JV part- branches or have a networked partner, In India, insurance was the exclusive ner, Bajaj, is an automobile company. are adopting new delivery systems. As a domain of state-owned companies until This reality suggests that newcomers result, the channels of reach are chang- less than a decade ago. Liberalisation will need committed investment part- ing. For instance, private sector com- ushered in a handful of private sec- ners who can dig in for the long haul panies are favouring Bancassurance, tor insurers. Of these, early movers in a business that could be beyond the distribution of insurance products such as life insurers ICICI Prudential, their core offerings. Incoming insur- through a bank’s network, and are will- ICICI Lombard and Bajaj Allianz, have ers would also need to provide the bulk ing to fork over hefty commissions for established themselves firmly. But their of the insurance expertise, along with these services. Towers Watson India’s state-owned rivals still control more much of the administrative, marketing, Bancassurance benchmarking survey than half of all insurance done in India. risk management and other support. 2009-10, suggests that Bancassurance The Life Insurance Corporation of Choosing the right partner is key to will play a crucial role in the overall India, for instance, held 65 per cent of generating business and sustaining development of the Indian insurance the new business market last year. it, too. For instance, BNP Paribas has sector. It is expected to generate almost Most of the private firms in this sector gained enormously through SBI’s 40 per cent of the premium income are joint ventures (JVs) between Indian extensive country-wide distribution of private insurers by 2012, nearly and overseas insurance companies. network. It’s the same for Prudential twice the income that Bancassurance And that is showing results. “The arriv- and Allianz, who have benefitted from currently generates. Companies such al of JVs has broadened product choice ICICI and Bajaj’s networks, respectively. as Bajaj-Allianz, are looking at tie-ups and improved the standard of service The existing networks of giants like with well-established NGOs with a within the market,” says PriceWater- LIC are enough reason for seeking a presence in target areas. houseCoopers’ Rawal. Raising the cap on the holdings of foreign partners from 26 to 49 per cent will allow existing foreign insurance companies more strategic influence Private firms on JVs. “This will also encourage firms that may have stayed away because of are favouring the current low threshold. They can now consider making a move into Bancassurance, the Indian market. And, many private selling products insurers would welcome new or addi- tional foreign investment to help fund through a expansion, enhance product expertise and meet increasing regulatory capital bank’s network, demands,” he adds. Foreign firms looking to enter the and are willing insurance market in JVs have a critical choice to make – their local partner. In to pay hefty this context, Rawal cites the universal commissions. wisdom of choosing local business partners—making sure that both understand and agree with each other’s

26 DECEMBER 2010-JANUARY 2011 www.ibef.org INSURANCE SECTORAL UPDATE

Micro insurance is one of the fastest growing segments. A UNDP study says 90 per cent of the Indian population has no insurance cover. This is a huge untapped market. Firms that can overcome the challenges in the segment will score. The focus must be on countering the low level of awareness, introducing innovative yet simple products, and adopting novel distribution means.

—Gopal V Kumar, CEO, Allons Insurance Research & Consultants.

As private companies roll out major lion. This amount is half of the current Development Programme says that expansion plans, the insurance sector minimum paid up capital prescribed 90 per cent of the Indian population will demand more manpower. Private for life or general insurance businesses. has no insurance cover. This is a huge life insurer Future Generali India, for The CII and E&Y say that health insur- untapped market. Firms that can instance, is all set to expand its existing ance premium revenues will multiply overcome the challenges in the micro network of 91 branches. It plans to open six times to US$ 6.5 billion insurance segment will 100 new branches, creating employ- in 2015. Currently, the rev- score. The focus must be ment opportunities for 21,000 people. enue is a little more than a on countering the low level billion dollars. 65% of awareness, introducing General Insurance According to Gopal innovative yet simple prod- General insurance is growing at a V Kumar, CEO, Allons Share of the ucts, and adopting novel healthy pace with state-run insurers Insurance Research & life insurance distribution means.” posting slightly better results than their Consultants, “The health Challenges remain – tax privately owned counterparts. Gross insurance market in India market, held and regulation are key premiums collected last year stood is growing at a compound last year, by issues as is competition at almost US$ 8 billion, showing an annual growth rate of 30 public sector from entrenched players, increase of nearly 14 per cent over the per cent. Considering that and newcomers’ need to previous year. This year’s figures sug- only about two per cent of Life Insurance innovate product offer- gest that the growth is on an upswing. India’s more than one bil- Corporation ing and promotion. But General insurance is primarily driven lion population has health the characteristics of the by the expanding automobile and coverage, this segment offers a great Indian insurance market make it one health insurance markets. In fact, the investment opportunity. Increasing of the most attractive growth markets health insurance segment is expected awareness about life and health insur- in the world. to prompt the entry of new firms once ance and demographic and socio-eco- As FDI in insurance rises, it will the Insurance Laws (Amendment) nomic changes will boost the business.” help the industry expand. As more Bill 2008 comes into force. The bill India’s huge population base in the people living in semi-urban and addresses IRDA’s recommendation to light of its large untapped market and rural areas buy insurance, their lower capital requirements for stand- rapid economic development is also domestic savings are channelled into alone health insurance companies. As expected to help the micro insurance needy segments like infrastructure, such, companies exclusively engaged segment. As Kumar observes, “Micro helping economic growth. in health insurance will be allowed insurance is one of the fastest grow- The growth of the insurance sec- to operate with a minimum paid-up ing insurance segments in India. A tor is beyond doubt a boon for the capital of a little more than US$ 11 mil- study conducted by the United Nations Indian economy.

www.ibef.org DECEMBER 2010-JANUARY 2011 27 SECTORAL UPDATE TEXTILES

TEXTILES SECTOR Wearing a Smile The smiles on the faces of top textile honchos show the shape of things to come.BY CHARU BAHRI.

abad, Surat, Tirupur, and Ludhiana are fac- ing competition from emerging centres like Ambala, Mundra, Mad- urai and Mangalore. Over the next ten years, the industry will need investments of US$ 68 billion across the supply chain, to turn opportunity into actual revenues, says manage- ment consulting firm Technopak. A significant portion of this invest- ment will come from international funding institutions. According to Ministry sources, India will receive more than US$ 5 billion of he textile industry has done of 8.5 per cent. foreign investment over the next five well in recent years and is According to the Ministry of Tex- years. By contrast, the foreign direct set for major expansion tiles’ Annual Report for 2009-10, the investments (FDI) in the last decade on both the domestic and industry contributed about 14 per cent was only a little over US$ 817 million. export fronts, thanks to the to industrial production, four per cent Tcountry’s strong domestic market and to the gross domestic product (GDP) Rising Global Share favourable global developments. and 17 per cent to the country’s export India produces 8 million tonnes of earnings. The promising outlook for fibre, annually. Both the production Positive Standing the Indian textile industry suggests that and export of fibre have increased The Index of Industrial Production this contribution is set to rise. significantly in the last three years. (IIP) data show that cotton textiles The domestic market is strong, Production is growing at a compound registered a growth of 5.5 per cent last thanks to favourable demographics, annual rate of four per cent while year. Textiles made from wool, silk and rising income, rapid urbanisation, and exports are growing five times faster. man-made fibre grew by 8.2 per cent organisation in business. Traditional The outlook for the production and and textile products recorded a growth textile hubs like Amritsar, Ahmed- export of yarn is equally optimistic. The

28 DECEMBER 2010-JANUARY 2011 www.ibef.org TEXTILES SECTORAL UPDATE

country produces 5.3 million tonnes of yarn, and exports one-fifth of it. Fabric “India has the potential to production currently totals nearly 55 billion square metres. Although India increase its share of exports exports only five per cent of this output, in the global trade of textiles exports are rapidly rising. Much of this rise is on account of growing exports of to nearly eight per cent.” knitted fabric. — Ashish Dhir, Associate Vice President, Technopak Advisors Textile exports are also rising because the global textile trade is steadily shift- ing eastward to cheaper Asian centres of production. The global textile and ing the creation of definite segments score in this segment. The plus size apparel trade is also recovering after the beyond the conventional men’s, wom- clothing segment, which has less than economic slump of 2008. Technopak en’s and kid’s wear. This differentiation one per cent of market share, has scope valued the global trade at US$ 510 bil- is helping retailers identify high growth to grow to about 8 per cent. Active and lion last year. This is expected to double areas to specialise for catering to dis- exercise wear is also gaining acceptance to a trillion dollars by 2020. The declin- tinct segments. as Indians get more health conscious ing contribution of most developed Dhir mentions some emerging seg- and seek to live fuller lives by partici- countries is expected to create fresh ments to watch out for – “Women’s pating a lot more in outdoor activities. export opportunities of up to US$ 140 wear, because it was earlier ruled by Closely related to active wear is the billion for developing countries over unorganised players that are not seen growing popularity of event-based the next decade. as adequate to cater to the needs of merchandise retailing, such as the What makes the outlook for Indian the growing number of women in the sales of T-shirts and jerseys of teams textile especially bright is the fact that corporate workforce. Casual wear mar- of the Indian Premier League. Youth China, currently the largest exporter, is kets are growing faster than the overall fashion is another major opportunity, facing rising costs and growing domes- market, thanks to increasing patronisa- as college-going youngsters get more tic demand that may lead it to cede tion by youth and greater acceptance of fashion conscious and seek labels cater- some export opportunity to its com- casual wear at workplaces. The rise of ing exclusively to their needs.” petitors. Ashish Dhir, Associate Vice the nuclear family is giving kids’ wear a Certainly, some of these changes President, Technopak Advisors says, boost. The school segment represents can be seen in the rise of plus size “India has the potential to increase its a huge market considering that uni- brands such as Revolution and Mus- export share in world trade to nearly 8 forms form close to four per cent of the tard, and the growing acceptance of per cent.” On its part, the Synthetic and kids’ wear market. This market will be sports brands like Reebok, Adidas, Rayon Textile Export Promotion Coun- driven by volumes as the margins are Nike and Puma. cil has set a target to more than double understandably lower. The rise of pri- the export of textiles. vate sector education bodes well for this Open Market segment, which is mostly unorganised The entry of international retail com- Apparel Shines at present. Inner wear is another fast panies like Zara, Wal-mart and Tesco Apparel offers the best financial returns growing market. Retailers focussing on is bound to spur competition in the of all the retail textile categories. The product differentiation and innovation industry and make the production pro- market is deepening and experienc- and on introducing standard sizing will cess more efficient. It will inspire com- panies to adopt technologies that help improve supply chain management. Investments in information technology Exports from Asia could be a way for suppliers to develop Country In 2000 (US$) CAGR 2000-09 linkages across the supply chain, and Vietnam 1.8 billion 22 per cent thus open up huge opportunities for Cambodia 970 million 18 per cent technology specialists. China 3.6 billion 16 per cent Large-format retailers such as Marks Bangladesh 5 billion 10 per cent & Spencer would also look to source India 5.9 billion 8 per cent their range from established local Pakistan 2.1 billion 8 per cent manufacturers. This will create ample SOURCE: INDIAN TEXTILE & APPAREL COMPENDIUM 2010, BY CONSULTING FIRM TECHNOPAK ADVISORS. opportunities for existing companies

www.ibef.org DECEMBER 2010-JANUARY 2011 29 SECTORAL UPDATE TEXTILES

to align their systems and processes to international standards and expand Indian Textile Industry’s Projected Growth (US$) their scope of services. Retailers are INDIA'S TEXTILE TRADE more likely to welcome partners that Market 2009 2020 offer additional value added services Domestic 47 bn 140 bn such as design, logistics, warehousing Exports 23 bn 80 bn etc. According to Dhir, “Activities like Domestic apparel retail 33 bn 100 bn design should be perceived as a pre- Home textiles 3.5 bn 9 bn requisite – a key success factor. Manu- Technical textiles 10.5 bn 31 bn facturers will benefit from developing SOURCE: INDIAN TEXTILE & APPAREL COMPENDIUM 2010, BY TECHNOPAK ADVISORS. niche product competencies and offer- ing customised solutions for respective retailers and brands based on their spe- edly looking to cater to the domestic left the textile industry hard-pressed for cific requirements. For example, an up- value market are Arvind and Welspun manpower. Textile majors need techni- market brand might be looking at large Retail. In rural India, innovative low-cost cal staff trained in engineering, design product depth or variety, while a value designs and fabrics are much in demand. and merchandising, churned out by retailer would be looking at basic prod- 103 textile institutes and 118 National ucts but with high fashion content.” Challenges and Initiatives Institutes of Fashion Technology. The The Indian textile industry directly shortage of trained talent necessitates a Rural Tidings employs more than 35 million people, closer industry-academia collaboration Rural India accounts for more than making it the second largest provider of to nurture and encourage bright talent. half of India’s apparel market. Rural employment after agriculture. In recent The industry also needs to help and consumption is also expected to offer years, however, the parallel growth of fund research in priority areas such as a huge ‘low-priced fashion’ market for sectors such as IT, pharmaceuticals, the development of biodegradable and retailers to explore. Apparel brand Kou- automobile, banking, and telecom have sustainable fibres and eco-friendly tex- tons already has more than 1400 stores, tile processes. Innovative marketing is many of which are located in towns also the need of the hour. other than the top 35 cities. Companies Apparel offers In this year’s budget, the govern- are realising the benefits of moving ment allocated substantial funds for early for better brand recall. SKNL is the best the Ministry of Textiles’ Technology planning to launch a ‘mass brand’ for Upgradation Fund Schemes (TUFS). the smaller towns and cities of India. financial returns The ministry’s flagship schemes for “We see the rural sector as the most the industry’s modernisation and promising sector to be in,” says Ashesh of all the retail technology upgradation, TUFS will Amin, director, Apparel and Retail, categories. ensure the sector operates cost-effec- SKNL. The purchasing power of India’s tively and competitively. Investment increasingly young and aspiring rural The market is under TUFS has been increasing population is consistently rising. Also, steadily. Last year, 1896 applications there is no recognisable national mass deepening, were sanctioned at a project cost of brand. So, SKNL is launching World more than US$ 5 billion. The govern- Player – a new apparel brand aimed creating definite ment is also focussing its attention at the bottom segment, to be retailed on the Scheme for Integrated Textile through multi-brand outlets and possi- segments Parks (SITP). The idea is to set up bly a handful of company stores in each textiles parks boasting world-class of the country’s 600-plus districts. Our beyond the infrastructure. Forty SITP projects test launch in four states indicates that conventional have been sanctioned so far. The gov- we will exceed our expectations. We’d ernment has withdrawn customs duty targeted growing to a US$ 7.5 million men’s, on the import of readymade garments brand in one year. From the looks of for retail sales. it, we’ll grow to thrice that figure. Our women’s and From the looks of it, the government low-priced denims, T-shirts, and shirts is leaving no stitch undone to ensure are flying off the shelves,” adds Amin. kid’s wear. the fortunes of the textile industry pan Other manufacturers that are report- out as favourably as expected.

30 DECEMBER 2010-JANUARY 2011 www.ibef.org REAL ESTATE SECTORAL UPDATE

REAL ESTATE Building on Growth Real estate companies are making the most of India’s unquenchable demand for property and allied investment opportunities. BY CHARU BAHRI.

ealtors across stratification and categorisation. India are upbeat For instance, tier one cities in about their busi- India are the economically pro- ness and growth gressive urban centres of Mum- prospects. They bai, Chennai, Kolkata, Delhi, Rhave good reason to cheer. In Hyderabad and Bengaluru. Tier recent years, they’ve experi- two features the second line of enced the nation-wide rush for cities like Ahmedabad, Pune, real estate and are rolling up Surat, Kanpur, Tiruchirapalli, their sleeves for the next phase Coimbatore, Lucknow and Nag- of development, construction pur. Even tier-III cities like Jaipur, and expansion. Ghaziabad and Kochi are attrac- tive investment opportunities Rush for Housing for developers. Considering that Urbanisation is encouraging India has 30 cities with a popula- millions of families to carve tion of a million people each, the out a brighter future in the choice of locations is plentiful. cities. This is giving rise to an These cities have a lot going for unquenchable demand for them, especially as land prices housing. In 2006, the Min- and maintenance costs rise and istry of Housing and Urban yields fall in the tier 1 cities. So, Poverty Alleviation constituted though the investment risks are a Technical Group on the Esti- lower in the metros, some devel- mation of Housing Shortage opers are consciously focussed in India. In its report, the group laid out the scenario for the on markets outside major cities where land is cheaper and eleventh five year plan. It said that at the beginning of the the margins are more promising. According to Rohtas Goel, plan, in 2007, there was a shortfall of a little less than 25 mil- CMD, Omaxe Ltd, “Cities such as Ludhiana, Allahabad, Pune, lion houses in India. By the end of the plan in 2012, however, Indore, Chandigarh and Vishakapatnam are emerging as the the shortfall would still exceed 26.5 million houses. A huge new corridors of growth. They are advanced enough in the market and investment opportunity exists in this gap in the areas that matter and are still not saturated, real estate-wise. demand and supply of housing in the country. They have operating cost advantages, quality city governance, As the urban economy grows and cities expand, they are urban infrastructure and real estate development. The con- attracting people from other cities and villages. As a result, cept of large format integrated townships is a hit in such there is a flurry of construction activity all around. The real cities. We’ve entered Allahabad, Lucknow, Sonepat, Baha- estate market is maturing, consolidating and getting increas- durgarh, Baddi, Rudrapur, Mullanpur, Palwal and Patiala. ingly organised and segmented. The concept of tiered cities Going ahead, we’ll launch high-tech townships in Buland- is now taking hold, where income levels, buying power, land shahar and Lucknow and residential projects in Chandigarh values and economic development form the parametres of and Allahabad.”

www.ibef.org DECEMBER 2010-JANUARY 2011 31 SECTORAL UPDATE REAL ESTATE

Government Engagement As the market matures, it is attracting Progressive government measures are helping fuel this sector's growth. Pub- more private equity commitments from lic sector banks have ambitious home loan targets. The largest among these, foreign investors, which spells good the State Bank of India, is chasing a monthly mortgage target of close to news for the real estate sector in more half-a-billion dollars. Home finance in ways than one. now easily available. For instance, there are special schemes for loans of a little more than US$ 21,000 for houses that measures are creating a win-win situa- now stands at nearly US$ 216 million. cost US$ 43,000 or less. tion for investors and the economy.” Projects of government-owned organi- Tax breaks are also helping lower the Recognising that infrastructure devel- sations, such as the Maharashtra Hous- effective cost of home loans, encourag- opment has the potential to accelerate ing and Area Development Authority ing upwardly mobile younger people real estate growth, the government has and the Delhi Development Authority constituting India’s burgeoning middle also allocated more money for urban have been runaway successes. class, to buy property. Mortgage pen- development. It was a little more than This overwhelming response has etration as a percentage of GDP is at its US$ 660 million last year. This year’s led many real estate firms to move highest ever. allocation touches US$ 1.17 billion—a into the affordable housing segment. The real estate sector now permits 75 per cent jump over the last year. This Puravankara, for starters, has set up 100 per cent foreign direct investment prompts Goel to say, “The government a wholly-owned subsidiary called (FDI) in townships, housing, built-up has done well to promote the realty sec- Provident Housing & Infrastructure, infrastructure, construction develop- tor by focussing on the development of to build 68,000 affordable homes in ment projects, and the development of infrastructure in urban India, especially south India’s largest cities—Bengaluru, Special Economic Zones (SEZ) through in enhancing available infrastructure in Chennai, Hyderabad, Mysore, Kochi the automatic route. It must, however, smaller cities where land is amply avail- and Coimbatore. Omaxe is interested comply with regulatory guidelines. As able. These micro-cities are the cities of in the affordable space, too. Goel’s view a result, the volume of FDI in the real the future.” is that more private participation would estate business last year alone, was help resolve the housing problems more than one-third of all the cumula- Affordable Housing in the country. “Steps such as cross- tive foreign investment in the business Brotin Banerjee, MD and CEO, Tata subsidisation, fiscal and special incen- in the last ten years. Housing says he feels there is a com- tives and land at concessional rates Omaxe’s Goel hails the government’s pelling case for affordable housing: would encourage more private players. Urban Land (Ceiling and Regulation) “India’s urban population is expected to It would also help if the government Act, 1976 and development-focussed reach 575 million by 2030. Affordable provided requisite urban infrastructure schemes like the Indira Awaas Yojana housing is one of the biggest challenges such as water, electricity, mass connec- and Rajiv Awaas Yojana. He also com- associated with rapid urbanisation. Eas- tivity, and adequate parking facilities mends the government for allowing ily scalable public-private partnerships and made a single window clearance FDI in real estate, and making home are the best bet to match the demand system of rapid approvals,” he adds. loans available to buyers, saying “these for such housing. Developers should receive incentives in the form of devel- Challenging Times FDI in real estate opment charge waivers, reduction in In spite of many takers for low-cost April 2000 to April 2010—US$ 8.4 billion stamp duty and registration costs, and housing, both on the supply and Fiscal year 2009-10—US$ 2.8 billion infrastructure subsidies on developing demand side, sceptics caution that townships. The profitability of afford- the rush to build affordable housing able housing projects will be driven by shouldn’t turn out substandard build- numbers, as these have comparatively ings. They also see fewer developers lower margins than high-end formats.” launching new affordable schemes On its part, the government has in key urban cities such as Mumbai increased the allocation for housing and Delhi where land prices have shot and urban poverty alleviation by 17 per through the roof. Nowadays, only com- cent in the current fiscal. It was a little panies who accumulated land inventory SOURCE: DEPARTMENT OF INDUSTRIAL POLICY AND PROMOTION, GOVERNMENT OF INDIA more than US$ 183 million last year. It at prices much lower than the prevail-

32 DECEMBER 2010-JANUARY 2011 www.ibef.org REAL ESTATE SECTORAL UPDATE

ing levels, are reporting better than nets wider. Overseas offic- Also, several real estate average net margins. es help market real estate companies have gone Cost pressures attributed to labour products to non-resident $1.17 bn public in recent years. shortages and rising cement and steel Indians, who are major Amount allocated Oberoi Realty and Pres- prices are a major issue, too. Many buyers of Indian proper- by the government tige Estates managed to real estate companies reported margin ties, especially the premi- raise more than US$ 486 pressures in this years’ second quarter. um segments. An overseas for urban devel- million through Initial Unitech and DLF, for example, are presence also comes in opment in 2010. Public Offerings (IPOs). leading realty players who saw their handy to raise funds and This is a 75 per Listing also makes infor- raw material costs double year-on-year source raw materials. To cent jump over last mation more easily avail- in the September quarter. Conservative capture new terrains, it year's US$ 660 able and spurs detailed financial institutions and banks looking makes sense to launch reviews by equity analysts to reduce their exposure to real estate new projects in lucrative million. of the performance of have also adopted a cautious approach overseas markets. PRA these companies and the on home loans. They’re going slow on Realty, for instance, has established a real estate industry as a whole. This their vetting process and taking more base in Chicago, USA, to tap venture opening up and regularisation of the time to scrutinise loan applications. funds. Sobha Developers expanded its sector augurs well for investors. They Despite the pressures, real estate operations to the UAE as far back as in are better able to read market signals. companies are making the most 1991, where it has developed renowned The India realty growth story is a com- of emerging opportunities. With a projects in Dubai. Considering that pelling one, and likely to continue, potpourri of asset classes to choose every market is subject to some fluctua- albeit in a more stable manner as end- from, depending on their appetite and tion, real estate companies are wise to users take over the driver's seat from perceptions for the growth of each embrace every opportunity that comes speculative investors. segment, they’re not putting all their their way. eggs in one basket. The real estate Investor Speak categories have sharpened and new The Industry Matures A recent report puts India at the top of ones have entered the picture – com- As the market matures, it is attracting the pack of real estate investment mar- mercial complexes, hotels, hospitals, more private equity commitments from kets in Asia for 2010. Prepared by inter- educational institutions, and service foreign investors, which spells good national audit firm PricewaterhouseC- apartments are now almost as much in news for the real estate sector in more oopers and the Urban Land Institute, a demand as residences. Not surprisingly ways than one. That they herald greater global non-profit research institute, the then, Raheja, a well known residential capital appreciation and are a source report cites Mumbai and Delhi as good property developer, is now construct- of much-needed funds is well known. cities for real estate investment. It also ing special economic zones (SEZs). In addition, FDI is seen as the primary categorises residential properties among The Brigade Group has associated with driver for greater transparency in cor- the more promising asset classes. the Singapore-based hospitality brands porate governance and accountability Hotels in Mumbai, Delhi and Bengaluru Banyan Tree and Angsana for its health in the real estate sector. Experts believe were also good investments, according spa near Bengaluru. that more FDI is paving the way for to the report. the ready availability of comprehensive Experts say that the age-old rule – loca- New Opportunities information on the real estate sector, tion, location, location – applies as much Diversifications into areas related to such as the companies’ land banks and in the Indian real estate context as it the core business of real estate, such their valuations. does anywhere else. Within India, inves- as infrastructure, are being seen as the tors should identify high-growth states. best hedge against any dips in the main The government There are more than a billion Indians, business. Realty giant Unitech, for has increased the their economy is stable and growing, example, is bidding for road projects and large numbers of them have dis- of the National Highways Authority of allocation for housing posable incomes. The ancient Indian India. On the other hand, some real and urban poverty wisdom of investing in gold and land estate companies are also branching off is still strongly embedded in the Indian into an area as diverse as power genera- alleviation by 17 per mind, and for the right reasons. No tion, where they expect better growth. cent to nearly US$ wonder, realtors are one in their view Another visible trend is of real estate that the outlook for real estate in India companies moving abroad to cast their 216 million. is brighter than ever before.

www.ibef.org DECEMBER 2010-JANUARY 2011 33 SECTORAL UPDATE POWER

POWER Strong Currents A vigorous expansion plan and an ambitious reforms process energise the power sector. BY CHARU BAHRI.

he Indian economy has fruits of Information Technology a lot going for it. What to energy accounting. will keep it going is a To match and to facilitate solid power sector. India’s ambitious economic India has the fifth expansion plans, the power sector Tlargest power generation capacity in must grow proportionately. This the world with an installed capacity would mean an annual capacity of 152 GigaWatts (GW), according to a addition of nearly 20,000 MW. A report by consulting firm Netscribes report compiled by international India Pvt. Ltd. The report says the consulting firm McKinsey, says government’s policies and the power the demand for power in India supply-demand gap are creating tre- will grow at an average rate of mendous opportunities for private eight per cent for the next seven investment in the power sector. years. According to the report, The government has pledged to titled Powering India: Road to provide power for all by 2012. This 2017, India’s power needs will means raising the per capita con- rise to about 325 GigaWatts. sumption of electricity to more than These ambitious targets trans- 1,000 kilowatt hours (kWh), the late into huge opportunities. The commonly known billing unit for report forecasts the need for a supplied electricity. Last year, the five-to-ten-fold rise in power gen- figure was a little more than 700 eration and investments worth a kWh. A 60 watt light bulb consumes staggering US$ 600 billion. 0.06 kilowatt hours of electricity in an hour. If it remained on for a thou- Power Generation sand hours, it would consume 60 kilowatt hours of electricity. According to the Ministry of Power, almost 64 per cent of the Planners estimate that India needs an additional generation total installed capacity of nearly 160 GW comes from thermal capacity of more than 100,000 Megawatts (MW) of electricity, power plants. Hydro power accounts for 23 per cent and the to meet the goal of power for all. In keeping with that think- balance is covered by renewable sources and nuclear energy. ing, the government launched the ten-year Accelerated Power The McKinsey study estimates that India needs to almost Development & Reforms Programme (APDRP) in 2002. treble its existing capacity to 440 GW by 2017 to meet its By 2007, the programme had added nearly 22,000 MW of growth targets. This would mean an annual capacity addition installed capacity. For the next five years, the plan is to add of 40 GW. By the end of the eleventh five year plan in 2012, more than 15,000 MW of capacity each year. By 2015, India the country will have an additional power generation capacity will have an additional generation capacity of 78,000 MW of of 65 GW, representing 80 per cent of the planned capacity. electricity. The now restructured APDRP has moved into the To encourage the participation of private entrepreneurs, the eleventh five-year plan with revised terms and conditions. It government has allowed mega power projects of more than 1 is focussing on demonstrable performance in reducing trans- GW, a 10-year income tax holiday in the first 15 years of their mission losses in power distribution, and in bringing the operation. It has also waived capital goods import duties

34 DECEMBER 2010-JANUARY 2011 www.ibef.org POWER SECTORAL UPDATE for such projects. The government INVESTMENT IN THE public sector investments. Several lead- has also lifted restrictions on foreign POWER SECTOR ing domestic players such as Larsen direct investments for power generat- and Toubro, Reliance Infrastructure ing companies and capital equipment Cumulative FDI in the power sector from April and Kalpataru Transmission Systems, manufacturing companies. As a result, 2000 to February 2010 was US$ 4.53 billion. and foreign companies such as Areva the share of the private sector in power T&D, have responded to the opportuni- generation is expected to more than Foreign direct investment from April 2009 to ties by ramping up their capacity to pro- treble to 34 per cent through the next February 2010 was US$ 1.34 billion. duce transmission equipment in India. plan. Today, it stands at 10 per cent. Lalit Jalan, CEO and whole time SOURCE: DEPARTMENT OF INDUSTRIAL POLICY AND PROMOTION director, Reliance Infrastructure, says Generation Equipment public-private partnerships are urgently Private equity India’s largest power generator, the investments in needed in the transmission and dis- public sector National Thermal Power the power sector tribution of power. He says there are Corporation (NTPC), proposes to scale totalled US$ 1.1 two models of private sector participa- up its capacity by 250 per cent, by 2017. billion in 2009-10 tion in electricity distribution—the In this year alone, NTPC will spend US$ privatisation (licensee) model and the 6.3 billion to build an additional capacity SOURCE: VENTURE INTELLIGENCE, CHENNAI franchisee model. He says: “Privatisa- of 4,500 MW. Recent changes in policy tion is the more attractive option as it allow NTPC to procure power generating provides a long term solution. In the equipment from private sector power construction of import and handling franchisee alternative investments are equipment manufacturers. infrastructure, such as unloading focussed on reducing losses. In the This move levels the playing field for jetties for coal carrying ships. The privatisation model, however, invest- private domestic and foreign manu- Indian Railways also stands to benefit ments are based on business efficiency, facturers of key components such as through an expanded coal market covering requirements emerging from boilers, turbines, heavy castings and leading to an enlarged transportation growth, customer service and tech- forgings and special steel pipes. India’s network. Private companies are also nological upgradation.” He also says planned expansion makes it one of the being allocated captive coal blocks for that the franchisee model is the softer most promising markets in the world for assured fuel supplies. route, and has worked successfully in equipment and component suppliers. Uttar Pradesh, Bihar, Madhya Pradesh, Power Transmission Maharashtra and Uttarakhand. Fuel Availability The National Tariff Policy of 2006 Coal is the mainstay of India’s power encourages private investment in the Renewable Energy production since most of its power transmission sector through competi- Renewable energy sources include comes from coal-fired plants. Earlier, tive bidding. The Electricity Act, 2003 small hydro units, solar, wind, bio- thermal power units were hard-pressed also identified transmission as a sepa- mass, and urban and industrial waste to manage coal supplies. In a move rate activity, and rightly so. There is water power plants. The government to regularise the sup- a gap between what the has ambitious plans of increasing the ply chain, the Electricity plants produce and what role of renewable sources in the coun- Act 2003 allows thermal 325 gw is eventually supplied try’s energy mix. Not surprisingly, the power producers to enter to the consumers. The plan outlay for the Ministry of New into binding long-term INDIA'S TOTAL transmission and supply and Renewable Energy increased by arrangements with domes- POWER REQUIRE- network of pylons, cables, more than 60 per cent this year. Last tic coal producers. It also MENT BY 2017. TO sub-stations and feeders year, the outlay stood at a little less liberalises the import GENERATE THIS is undergoing expansion. than US$ 140 million. It is almost of fuel and feedstock by MUCH POWER, The Ministry of Power US$ 225 million this year. The govern- domestic power producers THE COUNTRY plans to establish an inte- ment has also launched a solar energy seeking to secure supplies WILL NEED TO IN- grated National Power mission to generate substantial solar by purchasing, develop- VEST NEARLY US$ Grid that will be connected power by 2022. ing and operating coal 600 BILLION. to a generation capacity of Policy reforms are underway and mines or oil and gas fields, 200,000 MW. The grid funds are coming in. Planners are con- internationally. Significant will also double its capac- fident of meeting the target of adding imports of coal may create lucrative ity to deliver the generated power. This almost 100,000 MW of capacity by the opportunities in its trade and in the expansion calls for huge private and end of the next plan.

www.ibef.org DECEMBER 2010-JANUARY 2011 35 MICRO FINANCE SELF HELP GROUPS

ost bankers are cagey about lend- ing to individuals. But, even the brav- est of them pales at Mthe idea of lending to an individual without regular income, collateral, or a bank account. However, since such a market does exists, an institu- tion did evolve. And what a splendid institution it turned out to be! Enter Self Help Groups (SHGs). In the mid-eighties, a little-known gov- ernment organisation started organis- ing village women into small groups. Twenty was the magical number—that is how many illiterate, rural women it took Rashtriya Mahila Kosh (RMK) to set up an SHG. Members came togeth- er because they faced common hurdles. It was thought impossible that these ladies, with no prior history of entrepre- neurship, will form cohesive groups. But they did, with results! RMK had laid down simple rules for them: participants had to be willing to Numbers meet for a set number of times each year. They had to show savings, how- ever small, and record them in books and ledgers, and maintain them. If they could not write, they had to take the Count! help of any literate person who could. Banks that once avoided the poor for being high- This inculcated financial and book keeping discipline among women, risk borrowers, are now welcoming them. What’s who could neither read nor write, who different? Strength in numbers. BY HEMANT KUMAR had little or no money, no collateral, no bank account and no credit. Working through an informal net- a sewing machine, or a gas stove. The From being powerless and unorgan- work of non-governmental organisa- women knew how much they could ised individuals, the needy have trans- tions (NGOs), RMK taught women the take on. But it was not a “dole”, it was a formed into an institution of substance, value of savings, planning, investment, loan. And they understood it. with an identity and accountability. book keeping and repayment. It didn’t The RMK website says rather force- SHGs have reversed the logic why matter how much, but each member fully: “... The poor are bankable... banks would not lend to the poor— had to save. Groups that completed Successful initiatives in micro finance default in recovery. a year of savings, book keeping and demonstrate that there need not be a Their loan recovery rates, especially meetings, became eligible for loans for trade off between reaching the poor under well-monitored and regulated sustainable vocational activity. Finally, and profitability.” institutions, have been significantly members had to make presentations RMK realised that the only way to higher than those achieved by commer- before their groups, describing in detail reach the needy, was the informal way. cial banks. how much money they needed, how SHGs have come this far only with the Now, bankers are rushing to lend to PHOTOS.COM they would use it and how and when government’s readiness to work with the poor and the needy. It has taken they would return it. The amount hard- informal NGOs and its willingness to time, but it has happened.

PH OTO BY ly ever exceeded a few thousand: to buy set aside paper work and procedures.

36 DECEMBER 2010-JANUARY 2011 www.ibef.org LOGGED IN TO SUCCESS After a dream IPO run, IIM Ahmedabad alumnus Deep Kalra’s hugely successful travel site, makemytrip.com, is all set to become India’s own ‘Expedia’. BY SHREYASI SINGH

very day, more than 12,000 air tickets are booked on makemytrip.com, on the domestic traveller. The com- India’s largest online travel agent. Bagging the best business seats, pany has achieved a lot in a short span however, is a trick the company has taught itself best. It made history of time, even though it is yet to book recently, by being listed on NASDAQ, America’s largest and the world’s profits. In fact, soon after going public, fourth largest screen-based equity securities trading market. Barely ten MakeMyTrip said it incurred a loss of Eyears old, MakeMyTrip is only the fourth Indian company since 1999 to be listed US$ 1.8 million for the quarter that on NASDAQ. In August this year, it raised US$70 million from selling five million ended in September 2010. Last year shares at US$ 14 each. Traded under MMYT, the company’s stocks surged nearly had ended in profit, even though small. 90 per cent upon being listed. Industry watchers said it was the best IPO in the US None of this fazes IIM Ahmedabad since Athena Health Inc went public in 1997. alumnus, Deep Kalra, who founded the However, MakeMyTrip has not yet been listed in India, in spite of its main focus company primarily as an air ticketing

www.ibef.org DECEMBER 2010-JANUARY 2011 37 MADE IN INDIA MAKEMYTRIP

platform for US-based expatriate Indians. Ten years Turning A Dream into Reality ago, the online business in India was still in its infancy. “We tapped this potential at the right time Wise people always say you should undergoing significant changes at the and when we turned profitable in 2002, we knew do what you are most passionate consumer level.” that this sector held a lot of promise for us,” says about. But, often that amounts to tak- His faith in the venture has helped Kalra, Chairman & CEO. ing the biggest risk of your life. Deep him weather many storms. MakeMy- The Indian business was launched in 2005. Kalra knows a thing or two about Trip launched in the US ten years ago. “There were signs of growth. Indian Railways' online that. When he left his successful cor- It experienced turbulence early on. booking system had taken off, demonstrating both porate career with GE Capital to start Those were the days of the dot com that Indians were comfortable booking online and MakeMyTrip, he probably surprised crash. And, the future looked par- that they were ready to pay a premium for booking himself as well. ticularly bleak in the aftermath of the at their convenience,” recalls Kalra. Armed with impressive educa- 9/11 disaster. “Raising capital for the “We catered to customers across categories and tional credentials after an economics company was the real challenge as offered winning propositions like Best Deal and degree from St. Stephen’s College the damage was massive and inves- Lowest Airfare Guarantee,” adds Kalra, who quit a and an MBA from IIM, Ahmedabad, tors had cut back on all financing. We successful corporate career to turn entrepreneur. Kalra was destined for the high-flying were in a tight situation and were left Headquartered in Gurgaon, MakeMyTrip herald- corporate life. But, after stints at ABN with two probable alternatives: either ed a revolution in the way travel was bought in India. to buy back equity or to shut shop Today, millions of customers visit the website to and go back to our respective jobs,” book air tickets, customised holiday packages, hotel remembers Kalra. reservations and railway and bus tickets. It gives He bought back his equity in the access to all major domestic full-service and low- business and along with two senior cost airlines in India, all major airlines operating to colleagues in the company, took huge and from India, more than 4,000 hotels within the pay cuts for more than 18 months to country, and a wide selection of hotels outside India. keep the company afloat. “We knew Of course, educating the customer and develop- that the tough time would stay till we ing the ecosystem were key challenges when Kalra achieved break-even and shared this entered the Indian market. “Overcoming issues of candidly with the entire team,” he Internet penetration was a major cause of concern. adds. Seventeen employees backed Even within the small tech savvy population, not out, tendering their resignations. But, many were comfortable with the idea of booking 25 others stayed. “Undeterred, we their travel and holiday online.” continued to focus on selling travel But, his team’s ability to change mindsets and its to NRIs rather than locals, while turbo-powered journey over these five years explains keeping a keen eye on the domestic Kalra’s calm confidence about the good times ahead. market,” explains Kalra, who is also a Internet businesses achieve tipping point at a sales Amro Bank and GE Capital, he knew scuba enthusiast. volume of half-a-billion to a billion dollars, explains there was an entrepreneur inside him By 2002, the company had broken Kalra. At a sales turnover of roughly INR 2,200 that was itching to go. Meeting inter- even. “We had won our first major crore (approximately US$ 480 million) in 2009- net pioneers like Sanjeev Bhikchan- battle.” And, in 2004, Kalra began 10, and almost half the market share, MakeMyTrip dani, founder of naurki. com and Ajit to attract investors again to launch is rapidly breaching the point where revenues will Balakrishnan, founder of rediff.com, services for India. turn into profits. helped him focus his energies in build- He managed US$ 10 million in fund- Volumes will power this flight, says Kalra. Despite ing a web company to which he could ing from the SB Asia Investment Fund growing competition in the sector and concerns marry his biggest passion--travel. in 2005. Another US$ 13 million came over Internet bandwidth, there are few worries It’s a coming together that made per- from Helion Venture Partners, Sierra about the website’s ability to bring both repeat cus- fect sense, he says. “After studying var- Ventures and SAIF Partners in 2006. tomers and new ones. “We are well positioned to ious verticals that could be well-suited In its third round in 2007, the company capitalise on the long term opportunity that comes to the Indian online market, I found that raised another US$ 15 million. with the expanding Indian economy and its growing the travel industry lent itself effortlessly Deep Kalra’s gutsy flight of fancy middle class. When broadband Internet becomes to the Internet. It did so because it was looks like an easy cruise. He has more readily and widely available nation wide, it will a service industry with well-automated just started using his well-deserved only popularise e-commerce.” processes at the supplier-end and was frequent flier miles. According to Omniture Web Analytics, makemy-

38 DECEMBER 2010-JANUARY 2011 www.ibef.org MAKEMYTRIP MADE IN INDIA

trip.com attracts nearly four million unique visitors each month. Internet “We want to continue information company Alexa says make- mytrip.com is rated 89 among India’s growing in the lucrative top 100 websites. A range of innovative, clever marketing ideas have shaped the band of holidays and hotel brand’s easy recall. Its viral marketing campaign, considered a case study now, bookings. As more people spoofed moments from the Ramayana and the Bollywood blockbuster Sholay, book their travel online, this to take its lowest fare guarantee to consumers. Their easy-on-the-tongue will not be a difficult target tagline, “Just Wish, Click and Go” has also been a winner. to achieve­”—Deep Kalra, Founder, MakeMyTrip The real kick, however, came from a virtual marketing coup the company pulled off earlier this year. It got director-producer Karan Johar to promote the website’s holiday pack- Online businesses in India have to Kalra. “It leads to healthy competi- ages to the US in his new and highly contend with challenges like low tion and ensures that each player only publicised film My Name is Khan, Internet penetration in smaller towns strives to get better.” starring the mighty Shah Rukh Khan. and cities of India, and that its small He says he believes his employees But what’s even more awe-inspiring and medium hotel segment is really help differentiate MakeMyTrip from is, that makemytrip.com had to pay unorganised and fragmented. “Our the competition. Recently, MakeMyTrip nothing for the publicity. constant effort is towards unifying and was ranked second in a list of India’s In this year’s second quarter, the com- organising the segment,” claims Kalra. Best Companies to Work For – 2010. pany’s gross combined bookings for air The company has also constantly The list was compiled by the India tickets, hotels and packages more than innovated by introducing a range of chapter of The Great Place to Work trebled to US$156 million from just a products like holiday packages, com- Institute, Inc., a US-based research and little more than US$51 million last year. bination products and retail outlets. It management consultancy, with offices The travel and tourism industry itself has also partnered with travel agents throughout the world. is growing. A slew of low cost airlines to consolidate its leadership position. “Empowering the team, developing have emerged, the Internet is rapidly This year, it introduced charter flight the work culture and building a great proliferating, including on the poten- holiday packages to outlying destina- place to work are indispensable fac- tially profitable mobile platform, and tions like Leh, the Maldives and the tors in our success,” says Kalra. He e-commerce is taking roots, economy- Andaman and Nicobar Islands. Even often says entrepreneurs must work wide. According to industry now, air travel accounts for as employees before they start their estimates, nearly a quarter nearly 70 per cent of Make- own firms to understand the value an of all the business conduct- MyTrip’s transactions. “Our employee can bring. “Our rise is the ed in the Indian travel mar- effort is to continue grow- result of superior vision and the spirit ket, comes from its online ing in the equally lucrative of each one of our employees.” segment. band of holidays and hotel The company has also won a host MakeMyTrip is looking at million: bookings. As more people of other awards like last year’s CNBC acquisitions to accelerate its Unique Visi- book their holidays and Travel Award and the Galileo-Express growth. “We want to spend tors 4to make- travels online, this will Travel World’s Best OTA Award. It was the proceeds from the IPO, mytrip.com not be a difficult target to also named last year as a super brand on acquisitions. We are in every month achieve,” adds Kalra. by Consumer Superbrands India. talks with some shortlisted MakeMyTrip isn’t anxious India is still opening up to the tre- firms and will probably announce an about the competition in the indus- mendous possibilities of e-commerce acquisition by March, next year. We are try. Apart from international players and MakeMyTrip is positioned perfectly looking to acquire a travel technology entering the country, a lot of domestic to capitalise on it. It aims to take us, company or a regional player,” a com- companies are also growing well. “We and travelling, to unexplored heights. pany spokesperson told India Now. believe in more the merrier,” says And that is a happy outcome.

www.ibef.org DECEMBER 2010-JANUARY 2011 39 INNOVATION CORNER CLOUD COMPUTING

CLOUD SURFING

Firms welcome tech hat would you do if you needed to go online for just a little while, once or twice daily at the most? graduate’s popular low- Would you buy a PC for US$300 or more, or look for a cheaper and equally effective alternative? But is cost PCs that do all their there a cheaper alternative? Yes, there is. Ask Mum- computing online. BY VIKRAM SINGH Wbai’s Rajesh Jain. He graduated from IIT Mumbai and went on to gain his masters degree at the University of Columbia, USA. An astute businessman and

40 DECEMBER 2010-JANUARY 2011 www.ibef.org CLOUD COMPUTING INNOVATION CORNER master technologist, Jain saw “We're its own package of services with the opportunity in a definite gap NetPC. Cellular giant Ericsson India in India’s computer market. leveraging also recently acquired a minority stake A lot of people needed to in Novatium to speed up the broad- use the internet daily. Yet, the band enabled user services in emerging they were not interested simplicity of economies. Novatium will now have in any other application a funding and competence to further computer carried. For them, computing. develop the offering and grow outside there was no point investing NetPC is India in markets with similar needs. in a dud laptop that would sit According to Alok Singh, MD and idly for the most part of the day. For truly plug and CEO, Novatium “All you ever need to them, the only solution was visiting go online are the NetPC and a broad- the cramped, noisy and glitch-ridden play,” band internet connection, whether —Alok Singh, CEO and MD, Novatium network of internet cafes. “Such people wired or wireless.” About the market, needed to own a device that would Alok told India Now, “our research quickly and cheaply get them online has shown that there are without having to buy and upgrade “Nearly nearly 60 million Indians expensive software. For them, cloud 30 million who use the internet every computing was the grand panacea of day, but only about seven all computing and net surfing ills,” Indians go million of them own com- adds Jain. puters. So, clearly here, the So, Jain, 41, founded Novatium, a to internet gap is our market to tap, Chennai-based company that makes cafés daily. and it’s a huge one.” Alok NetPC. The machine is based on cheap said NetPCs are powered cell-phone chips and without the hard- We plan to by an Intel Atom dual-core 1.6 disk drive, extensive memory and pre target this group GHz processor (CPU) and have 1Gb of packaged software that add hundreds onboard RAM. The basic model does of dollars to the cost of regular PCs. aggressively” not have a hard disk. The comput- Instead, NetPCs are little more than a —Rajesh Jain, founder, Novatium ers are loaded with their proprietary keyboard, a screen and a couple of USB cloud operating software that takes the ports--and use a central network server tions can save a lot, gain a lot.” user online. From that point onwards, to run software applications and store Cloud computing essentially means elementary cloud computing takes over. data. Novatium sells the NetPC for only computing over the internet. Comput- The cloud computing market in $155. Unlike most thin clients (another ers have a basic processor and connec- India will hot up in the next five years. name for such devices), NetPCs work tion to the internet. Once online using Market intelligence firm IDC estimates on cloud computing, without requiring a broadband or wireless connection, the market to be nearly US$67 mil- major modifications, whether servers the user connects to a remote server. lion. In a recent report, IDC said the use proprietary software from Micro- All the software needed to go online, market will grow at a CAGR of 40 per soft or Sun, or free software from an to write or save files, sits on the server. cent over the next five years. Interna- open-source company like Linux. The user executes the software online, tional companies are also taking note “Nearly 25 to 30 million Indians, and generates files and even saves them of India’s unique position in this space. counting, go to internet cafés every on remote hard disks online. This Speaking at the Sixth India Innovation day. We plan to target this group does away with the need for a lot of Summit organised by the Confedera- aggressively,” Rajesh Jain told India expensive hardware and software that tion of Indian Industry (CII), recently, Now. “We also want to attract the very computers must have today. Ravi Venkatesan, Chairman, Microsoft large number of small and medium Novatium has tied up with India’s India, said India will lead the world in enterprises that need computers leading telecommunication companies adopting cloud computing, with small to function but whose needs keep and internet service providers for the businesses and the government leap- fluctuating within short periods of sale of its NetPC. Its partners include frogging directly to the cloud. time. For them, investing in such high BSNL, MTNL and Bharti Airtel, India’s “We are leveraging the simplicity of depreciation hardware as computers top three internet service providers computing. Our NetPC is truly a plug is always a lose–lose proposition. With with the bulk of the market within their and play machine,” adds a confident our affordable solution, such organisa- grasp. Each of these companies offers Alok Singh.

www.ibef.org DECEMBER 2010-JANUARY 2011 41 ARTS & CULTURE

Visitors admire exhibits at the museum. (Below) M.F. Hussain's oil on canvas–Ganga Art with Heart Kiran Nadar builds a thoughtful bridge between high-value art and people who value it. BY RUCHIRA MITTAL

hiv Nadar knows the fine art of business—start- dation, Kiran has since transformed into ing out in a garage, he has built a multi-billion dol- an art benefactor with public interest at lar IT company, HCL Technologies Limited. heart. Her 13,000 square foot museum is His wife, Kiran, collects fine art. Not for herself, but for home to more than 300 works of art with a all art lovers. What began as a simple acquisition of need to total value of more than US$55 million. Sdecorate her mansion, has turned into a full-time passion for collecting, Kiran does not limit herself, but is par- showcasing and promoting art. Early this year, she opened the sprawl- tial to modern artists such as M.F. Hus- ing and well-appointed Kiran Nadar Museum of Art (KNMA) in Noida, sain, Manjeet Bawa and S.H. Raza. She also near capital city Delhi, with an exhibition rightly called Open Doors. enjoys the works of Shibu Natesan, Subodh “Art should be made available for the common man to Gupta, Surendran Nair and Jagannath Panda. enjoy. It is not to be kept locked away in lofty mansions. It is The museum’s star attraction is Raja Ravi a reflection of the minds of the people and it must be seen, Verma’s beautiful painting of Shakuntala for it to be truly valued and understood,” says Kiran. lost in thoughts of her lover, while an enrap- Aided by a generous grant from the philanthropic Shiv Nadar Foun- tured deer gazes at her magical beauty.

42 DECEMBER 2010-JANUARY 2011 www.ibef.org MUSEUM ARTS AND CULTURE

Kiran Nadar bridge player, philanthropist helped IT major NIIT’s founder founder Bill Gates and Named ‘Hero of Philanthropy’ and avid art collector. An Rajendra Pawar promote his Hollywood actor Omar Sharif. by Forbes Asia this year, English (honours) graduate brand. She represents India's Kiran is married to billionnaire Delhi-based Kiran is an of Miranda House, Delhi, bridge team globally, and and founder of HCL international competitive she is a brand builder who has played against Microsoft Technololgies, Shiv Nadar.

Kiran is a passionate but astute collector. “She has visited my place numerous times over the sale of a series of rare Chughtais,” says col- lector of art, V.S. Chordia. Renowned for his unique style, painter-intellectual Abdur Rahman Chughtai left for Pakistan after the partition, in The Kiran Nadar Museum 1947. Collectors understand the value of his of Art has become a sort of rendezvous for priceless paintings and drawings, now almost art critics, budding a century old. “Kiran adores art, but bargains artists, enthusiasts and art lovers. A group of relentlessly. She has a deep understanding visitors gets a guided tour of the contemporary art market. She knows of the museum (above paper, canvas, period, artist and works of art left). New York-based Pakistani painter Shahzia rather well, and can stratify price and value. Sikander's 1973 work Veil She will never let you know she has her heart 'n Trail is a giant 8 foot by set upon a particular piece,” adds Chordia. 16 foot canvas (above). But when her heart is set upon a piece, she London-based artist Raqib will own it, whatever the price. At an auction at Shaw's 2006 work Cheap Rice is quite Christie’s in London, earlier this year, she paid a draw (right). ably one of the finest of Indian contemporary the highest price anyone has ever paid for a art. Some prominent pieces include Anjolie modern Indian painting—US$3.5 million. The Ela Menon's ‘Woman on a Threshold’, Rashid canvas: Padma Bhushan S.H. Raza’s seminal Rana's stunning carpet with miniatures of dark work Saurashtra. The octogenarian has been liv- and sinister scenes, and the collective appeal of ing in France for more than half a century. His Harsha's Sewing machines. Then there is the much sought after and vibrant oils and acrylics floating fanciful world of Manjit Bawa, depict- draw upon Indian cosmology and philosophy. ing so much that is loved and revered in India.” Blogger Marina Marangos of Cyprus, who Had it not been for Kiran Nadar, most or all lives in Delhi with her diplomat husband, wrote of the art at KNMA, would have been acquired about the museum recently: “The interior is by private collectors and hung on heavily spacious and layout professional, but friendly, guarded walls or put away in reinforced steel the artwork is impressive for its diversity in vaults. Now, anyone can admire works like form and shape, and the collection is prob- Saurashtra that only a chosen few can buy.

www.ibef.org DECEMBER 2010-JANUARY 2011 43 TOURISM UPDATE RAJASTHAN King Of The Desert: In the deserts of Rajasthan, brightly decorated camels are a common sight. People dress them up in jewellery and gold finery.

Mehrangarh Fort: Grand and solid, this fort in Jodhpur is steeped in Rajasthan's history

Trendy Turbans: Bright and beautiful, turbans are as much a part of Rajasthan as its sands and dunes PHOTOS.COM PH OTO BY Romancing Rajasthan This winter, experience the splendour of some of Rajasthan’s most exquisite locations. BY RUCHIRA MITTAL

herever you go in Rajasthan, you can’t remain Udaipur: Let’s start about 660 kilometres untouched by its vivaciousness. Drive out of Delhi, west of New Delhi, in the erstwhile nub of the you will notice that the vegetation slowly succumbs to celebrated kingdom of Mewar and one of Rajas- the harsh beauty of the desert. The deeper you drive than’s most spectacular cities, Udaipur. Nestled into the desert, the softer the language will become. in a fertile valley, it is a city of palaces, essential- WRajasthan is easy to spot, women and men dressed in the brightest of ly built around the three lakes of Pichola, Fateh colours, in defiance of the desert’s arid brown. A sense of the ancient Sagar and Umaid Sagar. In the heart of the city, exists everywhere, from the heady aroma of its delectable cuisine to the as the setting sun burns a fiery orange and the dancing colours of its native costumes. The experience changes most, for- undulating Aravali range turns purple in the ever. Rajasthan is too vast to cover in a jiffy. Therefore, we have picked out background, reflect upon the stunning architec- four of the most exquisite locations for you to experience, this winter. ture of the palaces girdling the golden waters of

44 DECEMBER 2010-JANUARY 2011 www.ibef.org RAJASTHAN TOURISM UPDATE

the lake. Sit right there, and contemplate life’s FIVE KEY wonder, in the mysterious light from the alcoves HIGHLIGHTS of the Lake Palace hotel and the ethereal glow of the crystal clear, starlit night. Tear away from 1. THE ART OF the sprawling palacial acres, and weave through TIE-AND-DYE the inner city’s magical bylanes, jostling in its noisy little markets. Full of handicrafts and irre- sistible buys, the Bara Bazaar near the Jagdish Temple and Bapu Bazaar near Suraj Pol are memorable experiences.

A popular part of Chittor: Once one of Rajputana’s most magnifi- Rajasthan’s heritage. Pick cent citadels, the fort is situated 150 kilometres a piece to light up your closet or wardrobe. Thar Desert: Shadows fall on the sands of Jaisalmer, as from Udaipur. Nearly 700 years ago, it housed tourists try its desert safari the fabled and beauteous Rani Padmini of the 2. RANI PADMINI OF Sisaudia clan. Drawn by her irresistible beauty, CHITTOR attraction. In 1853, the ruler of Jaipur, Sawai Delhi’s Turko-Afghan ruler Alauddin Khilji Ram Singh, had all the city’s buildings painted attacked the fiercely protected fort, early in pink to welcome the visiting Prince of Wales. the 14th century. She preferred to die fighting, Large parts of the city, including all its official rather than give herself up. More than two cen- buildings, are still painted in that colour, hence turies later, historian Malik Mohammad Jayasi the name Pink City. It rightly boasts of the best immortalised her story of honour and sacrifice Poet Malik Muhammad in cultural heritage and markets. in his epic Padmavat. The legend leaps out at Jayasi immortalised the The wide straight avenues, roads, streets, story of the breathtakingly you from the walls and ramparts of the fort. beautiful Padmini in his lanes and uniform rows of shops on either side epic Padmavat. of the main markets are arranged in nine rect- Jaisalmer: Have you stood in the middle of the angular city sectors. The walled city especially desert and watched the sun go down? And have 3. LAKE PALACE reflects its profound architectural planning. you then watched the evening wrap a loving Tourists can enjoy shopping for gems, gar- arm around the shoulders of sun-baked day? ments, blue pottery and much more. If you are You should, in Jaisalmer, this winter. Wait a little adventurous, you will go looking for the best longer and feel the night unfurl above you like a savouries and sweets in the walled city. Glisten- star-studded sheet of calm. Drive 575 km west of ing mountains of sinfully sweet mava vanish

Udaipur, into the golden city at the edge of the In the middle of lake as eager buyers throng the shops in the narrow desert, where the sun comes down and kisses Pichola, the sprawling and bylanes of the market. For the not so daring, the the specks of sands and startled sprigs of grass exquisite palace-turned- LMB restaurant is the place to sample Rajast- hotel covers 1.5 hectares. before it’s gone for the night. The Sonar Quila, han’s cuisine. or the golden fortress, rises like a colossus from 4. KUMBHALGARH FORT In the main city, visit Amprapali at Paanch the sands. Jaisalmer is a city of havelis (artisti- Batti for gorgeous handcrafted silver jewel- cally designed private mansions). In Jaisalmer, lery. Don’t forget to bargain, you could just you have no idea where the desert ends and be pleasantly surprised. Indulge some more where life takes over. Jaisalmer affects you. when you step out of the store and try the famous lassi just across the road. Yes, you can Jaipur: The capital of Rajasthan, Jaipur was ask for it with or without the generous sheet of founded in 1727 by the Kachhwaha Rajput 64 km from Udaipur, cream, cut and carved into soild biscuit-sized Kumbhalgarh is the king Jai Singh II. Jaipur is a five-hour second-most important slices and placed right on top of the blended drive from Delhi on most days, but citadel in Rajasthan. and sweetened yoghurt. Jaipur’s metropolitan you must take the route into town that side caters to all tastes! If you are feeling cuts through the hills lined by the 5. DHOL giddy at the thought of how much there is to An important percussion imposing ramparts of the sprawl- instrument, the dhol see and do, indulge in an evening at Chowkhi ing Amber fort. History is etched is a double-sided Dhani on the Ajmer-Tonk Road. Be treated like barrel played during in white and red sandstone in weddings and royalty, dine in Rajasthani splendour and let its architecture. A sound and festivals. It's surface is the colours and vibrancy of Rajasthan fill up light show at the fort is a popular often painted brightly. your senses.

www.ibef.org DECEMBER 2010-JANUARY 2011 45 RURAL UPDATE

Green Innovators: Two young engineers are changing the face of farming, thanks to their unique thinking. BY HEMANT KUMAR

fter his masters in ers within and beyond their own a modem to the irrigation pump aeronautical engi- villages. As a result, farmers who set, and connecting it remotely to neering from the do not have the Internet, can still a mobile phone number, Ostw- highly sought after reap a rich harvest of knowledge. al's Nano Ganesh turns a mobile Massachusetts Digital Green’s website www. phone into a remote switch for AInstitute of Technology (MIT) in digitalgreen.org proudly pro- operating the pump set. All the the US, Rikin Gandhi wanted to claims that nearly 29,000 farm- farmer has to do is dial a number become an astronaut. With an ers have so far joined this learn- Rikin Gandhi and punch in codes for starting MIT degree, he could have done ing exercise. They have together and Santosh or stopping the motor. It might just about anything. But after a produced more than 780 videos, Ostwal not seem like much, but in the Aeronautical visit to India, he became ground- screened thousands of times. engineer villages, irrigation pumps sets ed in more ways than one. Now, Gandhi’s method is engaging, Gandhi founded are often far away from fields he uses his vision and education and it helps the farmers network Digital Green, and homes. Trudging to them to to help improve the lives of farm- beyond their communities and while electrical once switch them on, and then to engineer Ostwal ers across India. geographical boundaries. made the Nano turn them off, is a gruelling exer- Last year, he set up Digital In the Anand district of Gujarat, Ganesh. cise that only those will under- Green, a project where farmers Sojitra is a little-known village. At stadn who suffer it every day. exchange knowledge through least it was, until a local farmer’s Gandhi and Ostwal come from videos. Using cheap and easily son had a brilliant idea. Young different backgrounds. One went available digital cameras, Rikin Santosh Ostwal is an electrical to Ivy League universities in the teaches farmers to shoot their engineer and he has made Nano United States, while the other own videos of crop, farming Ganesh, a simple but extremely studied in India.

PHOTOS.COM and related techniques. Then useful tool for operating farm They may not know each other, he teaches them to transfer the devices from faraway. It is a but they are connected in the videos into a computer and edit mobile-based remote control strongest of ways. Both are inno- them, too. Finally, he screens the system that can switch water vators, and both have made a

ILLUSTRATIONfilms on television sets, to farm- pump sets on and off. Strapping huge difference.

46 DECEMBER 2010-JANUARY 2011 www.ibef.org “I chose people who were both thinkers and doers”

BOOKSHELF Ramachandra Author: Guha

Pure Thought, Solid Action A one-of-a-kind anthology, featuring the giants of modern Indian thought, and their ideas and perspectives. BY MAHESH RAVI

POSSIBLY one of India’s best known, thinkers and leaders. tent and meaning to the phrase ABOUT THE known living historians, Ram- Guha also talks at length about AUTHOR “standard of living” and which achandra Guha has carved him- the women who shaped modern can be produced in small and self a unique position in the pan- India. Take Kamaladevi Chat- Based in medium-scale industries. Private theon of chroniclers. He dwells topadhyay and Tarabai Shinde, Bengaluru, enterprise should be fostered by on the more “modern” parts of for instance. Chattopadhyay historian- every means available...industrial columnist the timeline, giving readers both founded many progressive insti- Ramchandra enterprise would then spread at perspective and an up-close look tutions, like the National School Guha has written various levels in the countryside.” at Indian history. Three years ago, of Drama, the Sangeet Natak many books and The Governor General further his book India After Gandhi: The Akademi (Music and Drama taught at Yale, writes (circa 1959), “The role Stanford and the History Of The World’s Largest Academy) and the India Inter- Indian Institute of of the government should be Democracy had won high national Centre, while Shinde Science. that of a catalyst in stimulat- acclaim for its fresh insights into was possibly one of India’s first ing economic development modern India. votaries of gender equality. while individual initiative and In his most recent work, Guha One is struck simply by the enterprise are given the fullest captures the ideas and pas- depth and expanse of the phi- play. The government can do a sions that drove the “makers of losophy of the writers that the great deal by way of providing a modern India”. History, they historian has featured. They network of highways and village say, is etched in what men and demonstrate foresight and liberal roads, in improving waterways women write and what they thinking easily considered radical and developing small harbours, say. Therefore, Guha pored over for that time. For instance, in the improving communication and speeches, letters, petitions and initial years after independence, transit facilities, which would essays of leaders of modern India chose a mixed model of all serve to boost the economy.” India, and drew an elaborate economic development, where Rajagopalachari’s words reflect matrix of the complex library the Centre played a dominant the thinking across the political of thought, of that time. He role. However, C Rajagopalachari, spectrum at that time, and its res- has selected a diverse group of the nation’s first Indian Gover- ervations with a state-dominated people, from Mahatma Gandhi, nor General, wrote in the 1950s: model of the economy. Actually, Jawaharlal Nehru, Rabindranath “...There should be encourage- leaders were advocating a struc- Tagore and BR Ambedkar, to ment to industries producing ture where the government took many important, but lesser consumer goods, which give con- care of the infrastructure, and

www.ibef.org DECEMBER 2010-JANUARY 2011 47 BOOK SHELF

left the skilled and resourceful private sector to develop, and India’s first Nobel laureate, deliver to the consumers. Guha also draws the reader’s Rabindranath Tagore, felt a deep attention to India’s own interna- tionalist leanings in the first half humanism and believed in universal of the twentieth century. Today, values for mankind, values that the world has become infinitely closer, allowing people to under- are still reverberating, as India stand the planet’s rich ethnic, social, cultural and ideological strives for global harmony diversity. India’s first Nobel lau- reate, Rabindranath Tagore, felt a deep humanism and believed in universal values for mankind, argues that the political leaders BOOK governance, built on “innumer- values that are still reverberat- in India themselves were the EXCERPTS able villages, with ever-widening, ing, as India strives for global activists on the road to Indepen- never-ascending circles.” Guha harmony. His superior wisdom dence. He notes that the thinkers says Gandhi’s vision is reflected reflects a clear understanding differ in their perspectives, but in the trend towards decen- of humanity’s interconnected- they are all “always instructive.” tralising power across India. ness, compelling the world to The writer talks about India’s As India emerges as a world pause, and think: “Today, at this unique evolution as a democ- power, it is being invited to critical moment of the world’s racy known to the world at large. assume new global responsi- history, cannot India rise?...and Most contemporary political dis- Gandhi:"Those bilities. In that context, this book alone can offer the great ideal to the world courses draw upon established follow the path sheds some light on how our that will work towards harmony Western philosophical models. of passive early leaders viewed international and co-operation between the This book proffers a new view- resistance who relations. More than anything, different peoples of the earth?” ing angle on the same thought. are free from they showed a certain idealism fear, whether India’s role in the formation and The author says that India can as to their and optimism in the dawn of functioning of the Non-Aligned serve as a great example to other possessions, Independence. As India’s first Movement and its current active developing economies on how false honour, Prime Minister, Jawaharlal engagement with the G-20, a nation-state can protect its their relatives, Nehru, remarked in his famous the government, illustrate the country’s eager- diverse peoples and cultures. bodily injuries, “Tryst with Destiny” speech, “At ness to engage with the world Arguing that India is one of the death." the stroke of the midnight hour, and making it peaceful, stronger few countries to have success- when the world sleeps, India will and economically vibrant. fully married “nationalism with awaken to life and freedom. A In putting together this book, internationalism,” Guha urges moment comes, which comes Guha proposes that “the tradition the world to study the Indian but rarely in history, when we of the thinker-activist persisted political experience and draw step out from the old to the far longer in India, than else- lessons for today’s challenges. new, when an age ends, and where.” He speaks of five sig- Mahatma Gandhi’s vision of when the soul of a nation, long BR Ambedkar: nificant transformations that are the village model for India served "Bhakti in religion suppressed, finds utterance.” currently underway. For one, he as the template for the successful may be a road As we step into the second says the industry and the services Mahatma Gandhi National Rural to the salvation decade of this millennium, a sector are increasingly contribut- Employment Guarantee Act of the soul. But new age is indeed dawning. in politics, Bhakti ing more to the economy. Then (NREGA). Gandhi had written of or hero-worship From a fledgeling nation strug- he says India is more stable an India where “...every village is a sure road gling to find its feet, India as an independent nation, its will be a republic or panchayat to degradation has emerged as a significant democracy is firmly established having full powers. It follows, and to eventual global political and economic dictatorship." as the central political system, therefore, that every village has power to reckon with. urbanisation is rising, and a to be self-sustained and capable Slowly, but surely, that pure universal social transformation of managing its affairs...” Gandhi thought of our founding fathers is taking place. He forcefully had imagined an ideal system of is turning into solid action.

48 DECEMBER 2010-JANUARY 2011 www.ibef.org