Success in my Habit

Thursday, February 23, 2012

Ivey ties up with MDI Gurgaon

Mumbai: The Richard Ivey School of Business (Ivey) is expanding its footprint in India through its partnerships in areas of case study preparation, research and executive education. The Richard Ivey School of Business today signed a Memorandum of Understanding (MoU) with the Management Development Institute (MDI), Gurgaon, for development of India-focussed business case studies and distribute them globally. Further, Ivey will also be developing an executive development programme for a large Indian telecom player.

The partnership with MDI will look at training high-potential faculty and case writers in case writing and case teaching process, developing a case writing and case teaching culture in Indian management schools, and expanding the research networks of the institutions.

In an interview with Business Standard, Carol Stephenson, Dean, Richard Ivey School of Business, said, "We are partnering with MDI Gurgaon to develop joint cases. I believe that case based learning is a highly effective and relevant teaching methodology to make management education more attuned to real world business challenges, particularly in fast-growing and emerging economies such as India."

Ivey has a partnership with Indian Institute of Management (IIM), Bangalore, for research and Indian School of Business (ISB), Hyderabad, for developing case studies. The recent MoU is a step in that direction. At the Ivey campus in Toronto, around 10 per cent of students in its MBA programme are Indians. "We have been associated with India for a long time. The number of Indian students in our campuses is also increasing, especially after our alumni, an Indian businessman in Canada has announced 50 per cent scholarships for Indian students," informed Stephenson.

She also said that the Indian students at Ivey, Toronto campus, were looking at coming back to India. “India has the opportunities — entrepreneurial and otherwise. That is why our students are looking at the country more than ever before. Moreover, our mandatory international business trip to India, as a part of the curriculum, is raising awareness among the students about the country, encouraging them to take up jobs here,” opined the Dean.

In terms of executive education, Ivey has been working with several corporates for their internal programmes. Ivey has already worked with GAIL for the latter executive development programme. “Executive education has been our forte. We are thus looking at more partnerships with Indian corporates in this area,” said Stephenson.

The Dean said that the quality brought to executive education was of prime importance. Using its own faculty, unique case method, implementable solutions and getting industry practitioners to the executive education programme has been the focus of Ivey, according to her. "Companies are now realising that they cannot compromise with executive education. Talent is what makes a company and we hope to play a significant role in nurturing this talent among Indian organisations," she concluded.

Nichrome India ships $1 million sugar packaging machinery to White Nile

une: Nichrome India Ltd, a Pune headquartered packaging machinery manufacturer from India has shipped out a turnkey order of US $ 1 million for sugar packing to White Nile from Sudan, one of the largest sugar plants in the world.

The contract was awarded by ISGEC, a turnkey project supply company from Delhi. This plant which will be packing about 700 tons per day for retail sale and would have ten lines of Nichrome machines complete with feeding systems, packing machine, metal detectors, conveying systems, post packaging systems in one integrated set up.

"Recently we bagged an order from Germany to supply HFFS machine followed by this particular order of supplying sugar packaging machine to Sudan,"" Harish Joshi, managing director, Nichrome India Ltd.

""Africa is growing market for processed and packaged commodity. Nichrome has excellent foot print in this market with several projects in food / non -food commodity packing plants. Nichrome expects to reach turnover of over USD 10 million a year from African markets in next couple of years,""said Mr Joshi. Nichrome has already worked on 3 such plants of various capacities in Africa over last 15 months.

Hero MotoCorp joins hands with Erik Buell Racing

New Delhi: Hero MotoCorp, the world's largest two-wheeler maker, has signed a technology-sharing deal with US motorcycle firm Erik Buell Racing (EBR), a year after ending a 27-year-old pact with Japan's Honda Motors.

Munjals-owned Hero MotoCorp will buy technology from EBR without sharing profits or ownership. After its December 2010 breakup with Honda, the Indian company had been scouting for new technology to compete better in the domestic two-wheeler segment where it holds 56% market share.

"It's a very flexible partnership where they will develop cutting-edge technology based on our needs and market demands," Hero MotoCorp managing director and CEO Pawan Munjal said, adding that the company will first develop bikes bigger than its top-end 225cc Karizma ZMR.

EBR, a specialist in customised superbikes, is already working on some of Hero MotoCorp's products and will develop new bikes and scooters that are likely to hit the market in 2013. Hero does not intend to launch 1,000cc and above superbikes immediately and will gradually move up the value chain.

Hero MotoCorp, earlier known as Hero Honda, competes with Bajaj, TVS, Honda and Yamaha in the domestic two-wheeler segment, which is forecast to grow 10%-12% in the next fiscal year. It had grown into the world's largest-selling bike brand on the back of technology from the Japanese automaker, with which it was sharing equity and paying royalty on every product. Honda, which operates its own subsidiary in India, is currently Hero's closest rival in the domestic market.

Hero, one of largest business houses in India, posted its highest quarterly profit at Rs 613 crore in the quarter ended December 31. The company, which is reported to have cash reserves of more than Rs 4,000 crore, plans to enlarge its R&D setup at Daruhera into a full-fledged design and engineering centre with EBR's help.

"We are open to all options as we move into being a diversified automotive company," Munjal said.

EBR has already developed a hybrid scooter concept, Leap, which was showcased by Hero at the Auto Expo in New Delhi earlier this year.

"We are already customising technologies for Hero MotoCorp using the frugal Indian engineering expertise that would be available for developing different kinds of two wheelers," EBR chairman Eric Buell said, adding, "After Leap, we plan to bring in some bikes that would have a global appeal and can be locally manufactured."

Separately, Hero also announced plans to enter motorcycle racing by sponsoring two teams-Hero and AMSOIL Hero-in the AMA Pro Racing National Guard Superbikes Championship in the USA. "As a company to nurture sporting talent, we intend to develop a full-fledged team for racing and would gradually develop teams from India," Munjal said.

Australia turns focus to South, keen on more bilateral trade

Madurai: The signing of strategic partnership with India in 2009 has enabled Australia to raise its diplomatic strength and engage in the promotion of more bilateral trade and investment in the region and establish contact with cities such as Madurai, said Mr .David Holly, Consul General to South India, Australian Consulate General, Chennai, here recently.

Addressing an interactive session on ‘India- Australia Partnership: Trade and Investment' organised by the Confederation of Indian Industry (CII), he said that the increase in diplomatic strength has facilitated devotion of more resources to South India in particular with the establishment of offices in Bangalore and Kochi.

Revenue
Stating that Australia has been the third largest source of revenue for Indian IT companies that has been growing by about 30 per cent, he mentioned that under the Australia-India Strategic Research Fund, a project worth Rs 3.7 crore has been signed with the Madurai Kamaraj University on waste management with particular focus on water treatment.

A project on cyber security is also under way with the Indian Institute of Technology, Madras, he added.

Mr Michael Carter, Consul Commercial and Trade Commissioner, Australia Trade Commission, making a power point presentation on the Australian economy and growing ties with India, said that during the last fiscal the bilateral trade stood at A$ 21 billion and is poised to reach A$ 40 billion in three years. Companies from Tamil Nadu included Polaris Software, Elgi Equipment, Sundaram Business Services, CUMI Australia and Sabero Organics.

Mr R. Dinesh, Vice-Chairman, CII, Tamil Nadu State Council, said that tourism in the region had great potential and Australian tour operators could link up with local tour operators.

Collaboration
Marketing and packaging of food products is another area where collaboration between the two countries could be explored.

That IT companies in the small-scale sector in Madurai had global potential was also pointed out.

Earlier, Mr Shyam Prakash Gupta, Chairman, CII, Madurai Zone, in his address observed that Australia had, in large numbers, students from India. Mr A.Kathir Kamanathan, Member, CII Madurai Zonal Council, proposed the vote of thanks.

SEBI eases advertising code for mutual fund industry

Mumbai: SEBI has loosened the advertising code for the mutual fund industry making it more ‘principle-based, rather than rule-based'.

The rationale behind the change in the advertising code was that the existing regulations were rule-based and imposed a lot of restrictions. AMCs had difficulty in complying with the many prescriptive norms on advertisements (such as mandatory disclosures in standard warnings, font sizes, time for audio visual display).

With respect to the amendment, SEBI has mandated that the advertising, which would include all forms of communication, should avoid extensive use of technical or legal terminology'. It should also be devoid of any extensive details which “may detract the investors”.

Information contained in the advertisement should be timely and consistent with the disclosures made in the documents, such as the scheme information document, statement of additional information and key information memorandum. The standard warning in print form is required to be in legible fonts. In the audio-visual format, the advertisement is required to be in 14 words running for at least 5 seconds. This may be considered as clear and understandable.

M&M to enter Korea with Ssangyong

New Delhi: In a move to increasingly synergise operations with subsidiary Ssangyong Motor Company (SMC), homegrown auto major, Mahindra & Mahindra (M&M), is looking at commencing production and sales of its products in Korea.

Pawan Goenka, president (automotive and farm equipment divisions), M&M, said, “We are integrating operations with SMC, we have decided to develop all new platforms jointly with our Korean subsidiary. A new product based on a new platform will not be out till 2015. In the meantime, we have decided to bring Rexton to India and are now looking at assembling XUV500 in Korea.”

While Ssangyong products would be retailed under the Korean brand in India, the company is yet to decide on branding Mahindra products in Korea. The first product from the Sangyong portfolio, premium sports utility vehicle Rexton, would hit Indian roads towards the end of this year. The Korando C is expected to follow suit in 2013. M&M is investing close to Rs 100 crore for setting up a body shop to produce the Rexton at its plant in Chakan, Maharashtra.

“We want to synergise our operations with that of Ssangyong in sourcing, manufacturing and distributing products to better profitability from resulting economies of scale. The purchase head at SMC is an expat from India and two-three resourcing deals are already underway,” added Goenka.

Mahindra & Mahindra, which currently straddles the UV segment in the country with Bolero, Xylo, Scorpio and the newly launched XUV500, is looking at leveraging SMC’s strong research and development capabilities to develop products to expand its portfolio for global markets.

The company, which had acquired 70 per cent stake in SMC in November last year, is jointly developing two new platforms with the Korean utility vehicle maker – one each in India and Korea. The acquisition made for Rs 2,100 crore was the largest outbound deal recorded in the domestic automotive industry.

While M&M has no plans immediately to enter the United States by leveraging SMC’s distribution network in the country, the company has initiated talks with Sangyong’s distributor in Russia Solaris to assemble Mahindra products.

Goenka informed, “Russia is the second largest market for Ssangyong after Korea. As many as 600,000 SUVs are sold there annually. We are in talks with our partner to decide on what product platforms make sense for the market. If the negotiations materialise, we will start assembling Mahindra products in Russia from completely knocked down kits in two years.”

SMC, which posted a volume growth of 40 per cent, sold between 1,13,000-1,140,000 units in 2011. The company has fallen short of sales target of 1,20,000 units, due to the slowdown in its largest market Europe. SMC is now looking at boosting volumes in emerging markets of India, Russia and China to more than double sales to 300,000 units by 2015-16.

The Korean car maker, at present, has 1,300-strong dealer network in 98 countries. SMC’s line-up comprises a luxury sedan, four SUVs and a multipurpose vehicle.

Ranbaxy launches cholesterol drug in Australia

New Delhi: Ranbaxy Laboratories Ltd has launched blockbuster drug Atorvastatin in the Australian market. The company has introduced the product under the brand name, ‘Trovas' and the drug will be available in bottles and blister packs, through retail pharmacy chains.

Atorvastatin, a cholesterol reducing drug, is the most prescribed statin in Australia and represents the largest patent expiry opportunity ever in the Australian pharmaceutical market with a current market size of approximately $680 million.

The drug company had earlier launched the drug in the US in direct competition to Pfizer's largest selling drug Lipitor.

Commenting on the development, Mr Alex Evans, Managing Director, Ranbaxy Australia said, “Ranbaxy is privileged to be the first generic company in Australia to introduce Atorvastatin. We remain committed to offering the product at an affordable price that will be beneficial to both the Australian healthcare system, and most importantly, to patients in Australia.”

The continent is an important strategic market for Ranbaxy, which entered the Australian market in November 2006.

Reliance Industries Ltd finalises $450-M JV with Russian rubber giant Sibur

Mumbai: Reliance Industries (RIL) and Russian rubber giant Sibur, Eastern Europe's largest maker of petrochemicals, on Tuesday announced the formation of a joint venture company called Reliance Sibur Elastomers that aims to become the fourth largest supplier of butyl rubber - an input for tyres - in the world.

"In the first year of production the company could target a turnover of 2,500 crore," said Nikhil Meswani, executive director, RIL.

The company will produce 100,000 tons of butyl rubber per year at a new plant located in the industrial complex in Jamnagar, Gujarat that also contains the world's largest greenfield refinery. The JV will be the first manufacturer of butyl rubber in India, and will cater to the demand for synthetic rubber from the Indian automotive industry.

That demand, a little more than 75,000 tonnes per year, is currently satisfied by imports.

"Our product will be significantly cheaper than the $4,000-5,000 per tonne cost of imported butyl rubber as it will be manufactured locally and our refinery feedstock will be used," added Meswani

Reliance will own 74.9% of the joint venture company with Sibur accounting for the rest. The JV will invest $450 million to construct the facility, which is expected to be commissioned by mid-2014.

The two partners have also signed a technology licensing agreement facilitating the use Sibur's proprietary butyl rubber production technology at the new production facility.

Sibur will develop basic engineering design for the facility and also train the JV's personnel at its production site in Togliatti, Russia.

"We plan to cater to the large domestic demand and will use the existing supply contracts of Sibur," added Meswani. RIL had first announced its intent to form this JV in December 2010 and will now commission the facility in the second half of 2014.

German firm Steinbach sets up Indian arm

Pune: Steinbach & Partner, the Germany-based global executive search and HR consultancy firm, has entered the Indian market and set up a wholly-owned subsidiary, headquartered in Pune.

“Pune was a natural choice for us to start India operations, since it is home to over 200 German companies and over 1,500 German professionals that are engaged in the auto and engineering businesses,” Mr Sebastian Steinbach, Director and Board Member, Steinbach & Partner, said.

“In the next 2-3 years, we will start our centres in Mumbai, New Delhi and Bangalore, and initially focus on sectors like automotive, engineering and life sciences,” said Mr Ramgopal Rao, President and Country Head, Steinbach and Partner Executive Consultants India Private Ltd.

He added that the company was targeting revenue of €1 million from its Indian subsidiary in the first three years of operations.

Steinbach and Partner uses scientific suitability tools and interviewing techniques such as the Hogan Test and Leadership Versatility Index (LVI) amongst its methods to scrutinize and assess candidates for performance capabilities and culture fit.

The company has a special cell that caters to the needs of start-ups/venture capital-funded companies and has recruited experts for over 100 companies financed with venture capital. The service will also be launched in India in due time.

BSE to launch green index from today

New Delhi: To promote firms working on sustainable business practices, the BSE is expected to launch its second thematic index, the BSE-GREENEX, on Wednesday.

A pick of 20 companies from the BSE 100, the index gives equal weightage to both energy efficiency and profitability — together indicating a long-term sustainable strategy. The Union Corporate Affairs Minister, Mr Veerappa Moily, is expected to inaugurate the new initiative at Mumbai.

25th index
“Though there are other such indices globally focussing on green credentials, this is the first which is based on actual performance in the energy efficiency front, rather than stated future plans,” a source close to the development toldBusiness Line.

The 25{+t}{+h}dynamic index at the BSE, the BSE-GREENEX, has been co-developed with gTrade, a domestic sustainability firm working on financial innovations in energy efficiency. While BSE provides the financial analytics, the carbon analytics are provided by gTrade.

Right time
The index is targeted at retail, as well as institutional investors such as asset managers and pension funds looking for investments in companies with strong long-term prospects and develop green financial products.

“This is a good time for such an index as there is a global policy emphasis on sustainability as resources are getting expensive and scarce,” the source said.

“Research over the last three years has shown that this index is performing better than the Sensex, indicating that companies that are able to balance energy efficiency and profitability, give better returns for investors,” he added.

The index follows a sector-specific algorithm, whereas a benchmark each company is measured only against the best in the same specific industry based on publically disclosed energy and financial data. Thus, if for example, on measures NTPC against other power generation firms, one can know the relative efficiency levels.

Constructive
Mr Ashvin Parekh, Ernst & Young's National Leader for Financial Services said such an index is “constructive and welcome” for retail investors as it will help them make better decisions.

“Currently, there are very few instruments for retail investors and the market is run by FIIs and institutions, who have their own analysts. Any scenario that helps retail investors participate more meaningfully is very beneficial,” he said.