From the Editors Desk President Message CONVERGE July 2012 Dear Friends, I strongly believe in the adage “Coming together is beginning... Keeping together in progress... and Working together is Success”. Taking the online and offline services of various advisory groups in HDCF, members need to get benefit individually and collectively. You may also find lot of synergies and cohesive expertise in other members / members’ organisations. Take the advantage of this wonderful forum and explore new avenues of mutual businesses and new ways of service delivery. I request you all to share your unique experiences, successful business interventions, moments of achievements and accolades in CONVERGE to make them the source of inspiration for others. with warm wishes, Praveen Kumar Machavaram Editor-in-Chief At HDCF, we are committed to the vision of entrepreneurship by addressing topics that impact the lives and work of various entrepreneurs! An issue of concern to every entrepreneur in the state today, is that of inadequate power generation and supply. 12 days of power cut in a month will impact the industry adversely. If this scenario of production loss and scarcity of power continues, it may soon lead to major unemployment. It is high time for Government to seriously take up and complete all pending power projects. Since Thermal and Gas based power is highly volatile due to shortage of raw material, clean and safe Nuclear Power Plants have to be initiated as immediate solution. There should be more emphasis on safety standards in these Nuclear Power Plants. The Government should also work on reducing installation costs for the Solar and Wind Power by promoting local and domestic raw material manufacturers. Industries need to setup their own Power generation units to become independent, while Government should promote this by giving financial support and subsidies. At HDCF, we wish to promote Captive Power Generation by conducting awareness programs and discussions soon with experts. Looking forward for your support and proactive participation for our mutual growth! Venkat Reddy TC President – HDCF Contents From Editor's Desk President Message HDCF Events Mera Events Success Story Reva-Thee, Guest Column Chiru Speaks, Guest Column CEO Capsule, Guest Column Finesse in Financial Markets, Guest Column HDCF - EDC CONVERGE - HDCF Newsletter Business. Collaboration. Success www.hdcf.in 9th Confluence at The Square Begumpet, Hyderabad on July 28th 2012 Hurry up... Register Today
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From the Editor!s Desk
President Message
CONVERGEJuly 2012
Dear Friends,
I strongly believe in the adage “Coming together is beginning...
Keeping together in progress... and Working together is Success”.
Taking the online and offline services of various advisory groups in
HDCF, members need to get benefit individually and collectively.
You may also find lot of synergies and cohesive expertise in other
members / members’ organisations. Take the advantage of this wonderful forum and
explore new avenues of mutual businesses and new ways of service delivery.
I request you all to share your unique experiences, successful business interventions,
moments of achievements and accolades in CONVERGE to make them the source of
inspiration for others.
with warm wishes,
Praveen Kumar MachavaramEditor-in-Chief
At HDCF, we are committed to the vision of entrepreneurship by
addressing topics that impact the lives and work of various
entrepreneurs! An issue of concern to every entrepreneur in the state
today, is that of inadequate power generation and supply. 12 days of
power cut in a month will impact the industry adversely. If this
scenario of production loss and scarcity of power continues, it may
soon lead to major unemployment.
It is high time for Government to seriously take up and complete all pending power
projects. Since Thermal and Gas based power is highly volatile due to shortage of raw
material, clean and safe Nuclear Power Plants have to be initiated as immediate
solution. There should be more emphasis on safety standards in these Nuclear Power
Plants. The Government should also work on reducing installation costs for the Solar
and Wind Power by promoting local and domestic raw material manufacturers.
Industries need to setup their own Power generation units to become independent,
while Government should promote this by giving financial support and subsidies. At
HDCF, we wish to promote Captive Power Generation by conducting awareness
programs and discussions soon with experts. Looking forward for your support and
proactive participation for our mutual growth!
Venkat Reddy TCPresident – HDCF
ContentsFrom Editor's Desk
President Message
HDCF Events
Mera Events Success Story
Reva-Thee, Guest Column
Chiru Speaks, Guest Column
CEO Capsule, Guest Column
Finesse in Financial Markets,Guest Column
HDCF - EDC
CONVERGE - HDCF Newsletter
Business. Collaboration. Success
www.hdcf.in
9th Confluenceat
The SquareBegumpet,Hyderabad
on July 28th 2012
Hurry up...RegisterToday
www.hdcf.in
HDCF Events
HDCF Confluence VIII - 9th june 2012
"An evening full of laughter" is how most of the 80+ entrepreneurs referred to the HDCF-Confluence8 event of 9th June 2012.
The chief guest, Mr. Venkat Changavalli, ex-CEO of Emergency Management and Research Institute (EMRI), sensing the pulse
of the audience took them through a humorous 2 hours interactive talk embedded with a few key profound learning for
entrepreneurs.
Speaking of the success formula being 'Success = Hardwork X Smartness' and how Smartness if a triangle of Knowledge,
Interpersonal Skills, and Discipline. Venkat kept everyone connected with him throughout his entire talk. His stress on leaders
and entrepreneurs' need to avoid the disease of 'Excusitis' (giving excuses for everything) and their importance of being
Honest, Humble, and Humane always touched everyone's heart!
From the humorous and impactful anecdotes in Business, Partnership and Leadership narrated by Mr. Venkat Changavalli, the
evening continued into an active and alive networking dinner between and amongst Venkat and the entrepreneurs.
For any details regarding the forum please log on to www.hdcf.in or contact
Revathi Turaga is an International Trainer & Inspirational Speaker. She can be reached at http://www.revathionline.com
Communicate - Express with WORDS
CONVERGE - HDCF Newsletter
CONVERGE
! continued
July 2012
www.hdcf.in
Chiru SpeaksGuest Column by Chiranjeevi Maddala
Business. Collaboration. Success
We all know the changes that happened to us after the internet has become social. We are able to see more information
than we used to do 10 years ago. I remember spending hours and hours at internet café to find interesting websites
then. Now there is more information than you can consume, because we all have become content generators. Here are
some of the tips which may be helpful for you to leverage the power of social media.
Stop staring and Start sharing!This is the first rule for any new social media enthusiast. When we see so much of content, we generally keep watching
and spend all our time in discovering the content sources and saving them. I did it! I must have saved at least 10000
website urls till now. Is there any use? Well very less. I generally go back to visit a maximum of 20 websites on daily basis.
And I see at least 10 new websites every day. In this way we will spend our time entirely on discovering new things every
single day. Just think, who have been writing all the content? People like you! Why are they writing? Because they have
to say something! What happens when they share it? People like you and me will come to know about the author or the
subject he/she talking about!
Just ask a question to yourself; When and how people will come to know about me and what I care? The answer is;
When you write and share. Its that simple!
What to Share?Share your knowledge. Share your discoveries. Share your ideas. Share your imagination. I bet that they all will have
enough audience. You can write about why you are doing what you are doing now. You can write about what you have
discovered today and how does it matter. You can write about your passion. You can write about your business. You can
write about your services/products.
When you write and when people read, they will keep on coming to see what new content you have to share. In other
words, you are creating an identity for yourself by writing about what you know.
Create A Blog - Creating a blog is the easiest way of start writing about your business. There are many online tools
available for you to create your blog like WordPress, Posterous and Tumblr. You might have already known all these
things and probably you must have used one of them. Creating a blog is not a big deal, keeping it alive with fresh
content on regular basis is!
Write about your business in the blog. Write about your industry, market, products, services, your offers, your specialties.
When you start writing, you will get many more ideas.For better results, keep the blog associated with your website. If you don’t have a website yet, register a suitable domain
name get the blog running from there.
How Small Business Owners Can Use Social Media Effectively
CONVERGE - HDCF Newsletter
CONVERGEJuly 2012
www.hdcf.in
Chiru SpeaksGuest Column by Chiranjeevi Maddala
Business. Collaboration. Success
Create A Facebook Page - As you know, today people can leave without food but not Facebook! That means that’s the
place where most of your customers visit. Create a Page and create a nice attractive banner to tell people what you do.
Write about your business in the about section and start promoting it among your friends. This also is not a new thing
but when you keep your page fresh and engaging content, you will get a better visibility. Encourage people to
participate on your page. Answer all the questions. The more number of people associated with your page will create
more chances for you to get business. Apart from getting the business, your brand will be known by many people.
Print the URL of your Facebook page on your business stationary and ask people to visit. Post your deals, offers and
special announcements in your page. Don’t get discouraged if you don’t have many people liking your page in the
beginning. When you keep them engaging the numbers will grow eventually.
Create A Twitter Account - Twitter is a micro blogging service, where you can post short messages (160 characters).
This is a great place to get associated with many people from all over the world. Once you start your account, give a
short and sweet bio and an attractive profile picture. People assess you based on these two things.
When you share valuable content, people follow you. The more number of followers you have the better visibility your
brand gets. You can share links and photos on twitter. You can also communicate with other people on Twitter using
@mentions or direct messages. To send the direct message, the other person must be following you. I have seen people
starting from less than 100 followers way back in 2008 reaching 100K followers. When you have more number of people
following you, the message your send will have wider reach.
Be careful to avoid spammers by blocking them when they follow you. Use a # tag for the keyword for the other people
to find your tweet when they search.When you do it properly, your reach and your business can grow with twitter.
Use Them Consistently - Consistency matters in Social Media. You should operate all these accounts to post new
content, interacting with your audience on regular basis. That will improve your visibility and reachability in the
cyberspace.
I suggest to keep a fixed schedule for doing all these activities. This should not deviate your from your business
operations. Most importantly, you should spend sometime in reading to be able to create content. Subscribe to the best
sources for your industry and follow them on regular basis. I have my subscriptions in Google Reader and I use Feedly to
read them back. Feedly is a nice tool to read your online subscriptions with ease. And it also makes it easier to share the
posts.----------------------------------------------------------------------------------------------------------Chiranjeevi Maddala is a CEO & Founder of SWEET Interactive. Besides an entrepreneur and designer, he is a writer too.
How Small Business Owners Can Use Social Media Effectively
CONVERGE - HDCF Newsletter
CONVERGE
! continued
July 2012
www.hdcf.in
CEO CapsuleGuest Column by Seshadri Padigala
Business. Collaboration. Success
Improving Quality of Organisational Performance - Role of Top Management
CONVERGE - HDCF Newsletter
CONVERGE
To make management of organisational performance simple, one of the ways top management could look into is
implementation of principles of quality management systems by asking two questions against each of the following principles.
The two questions are :
What is being done today?
What else we should do?
The principles of Quality Management System (ISO 9001) are:
Customer Focus - Organisations depend on their customers and therefore should understand current and future customer
needs, should meet customer requirements and strive to exceed customer expectations
Leadership - Leaders establish unity of purpose and direction of the organisation. They should create and maintain the
internal environment in which people can become fully involved in achieving the organisation’s objectives.
Involvement of People - People at all levels are the essence of an organisation’s and their full involvement enables their
abilities to be used for the organisation’s benefit.
Process Approach - A desired result in achieved more efficiently when activities and related resources are managed as a
process.
System Approach to Management - Identifying, understanding and managing interrelated processes as a system
contributes to the organisation’s effectiveness and efficiency in achieving the objectives.
Continual Improvement - Continual improvement of the organisation’s overall performance should be a permanent
objective of the organisation.
Factual Approach to Decision Making - Effective decisions are based on the analysis of data and information.
Mutually Beneficial Supplier Relationships - An organisation and its suppliers are interdependent and a mutually beneficial
relationship enhances the ability of both to create value.
Top management team could also use for developing5W1H concept (What? Why? Where? When? Who? & How?)
questions against each of the principle stated above. I practice this in my organisation and found this approach simple and
better. Yes, it would also pave way for action items / improvements leading to organisational excellence , which is a never
Mr. Seshadri Padigala is the Founder of Organisation Development Consultants, Hyderabad and is also a CMC - Certified
Management Consultant
July 2012
www.hdcf.in
Finesse in Financial MarketsGuest Column by Pavan Kumar Reddy
Business. Collaboration. Success
It’s been an enormous time being for someone being involved in FOREX markets in the last 4 years, since 2008, and more
importantly the last year. At present the whole financial markets revolving around European Union Hence, I would like to
concentrate more on EURO and the Indian Rupee.
Events of the last month have seen a major setback to the world economy’s recovery. When the greatest financial crisis since
the Great Depression hit in late 2008, a prolonged recession was thought to have been avoided thanks to an internationally
coordinated bank bail-out and fiscal stimulus. However, while a collapse of the banking system and a second depression was
averted, unemployment is still high and almost three years later; growth remains sluggish, with fears of a double dip recession
badly hitting market confidence.
In early 2010, it became increasingly clear that Greece’s sovereign debt level was unsustainable, making it unable to finance its
debt, i.e. sell bonds, in the sovereign debt markets. This led to the EU’s creation of the European Financial Stability Facility
(EFSF), a €750 billion fund to provide assistance to Euro zone states which have been shunned by the markets. Of course, the
claim was that this would be a last resort mechanism, and that Greece would be the only customer. But as we know, contagion
spread to Ireland and Portugal, who both eventually found themselves unable to raise funds in the markets and had to resort
to the EFSF.
During all this, Euro continued to move in a wide range amid concerns that the demise of Euro was not far. The trend has been
lower in the EURUSD since 2008. The long-term and medium term trend is down and neither is in danger of reversing at this
time. The euro tumbled to a two-year low against the U.S. dollar on 6th July 2012, as disappointing U.S. employment data and
sustained concerns over the worsening of the debt crisis in the euro zone prompted investors to flock to safer assets.
EUR/USD hit 1.2259 levels on 6th July 2012 which is currently a two year low. The pair subsequently consolidated at 1.2285 by
close of trade on 6th July 2012, tumbling 3.08% over the week (i.e 2nd July 2012 to 6th July 2012). In July 2008, the EUR/USD
pair was trading around 1.60 levels only to tumble to 1.23/24 levels by Oct 2008. Though the pair recovered quite well in 2009
to move towards the 1.50 levels, the markets were unaware of the underlying fundamental concerns which were only
deteriorating in Europe, especially in small economies. June 2010 saw the pair making a low of 1.18/19 levels and there are no
great reasons to say that EURO would not get to these levels again in 2012.
Now let’s get to the Rupee…
Two sets of factors are known to underlie the rupee’s depreciating trend. The first is an increase in the trade and current
account deficits on the balance of payments as a result of the rise in the prices of oil and the sharp increase in the imports of
gold. The other is the decline in the volume of net capital inflows into the country, largely as a result of the outflow of FII
investments in recent months. What has been particularly disconcerting is that despite the moderate fall in oil prices in recent
weeks, which would have reduced the strain on the trade and current account balance, the rupee’s depreciation has continued.
In other circumstances a depreciating rupee would have helped shore up the balance of payments by reducing the dollar
prices of India’s exports and increasing the rupee prices of imports. Falling export prices would increase global demand for
Indian goods and rising import prices would restrict the domestic demand for imports.
FOREX markets today and what!s happening with Rupee!!
CONVERGE - HDCF Newsletter
CONVERGEJuly 2012
www.hdcf.in
Finesse in Financial Markets
Business. Collaboration. Success
However, with the world economy in recession, export demand has not risen in response to falling prices. On the other hand,the domestic demands for commodities like oil and gold, which account for a large proportion of the increase in India’s importbill, are also not sensitive to prices. So the depreciation of the rupee has not helped to correct the country’s trade and currentaccount imbalances. The effort to increase the supply of dollars in the market must, therefore, rely on drawing down the RBI’sforeign exchange reserves or on increasing the flow of capital into the country.
The RBI has indeed opted to use its reserves in recent months, resulting in a significant decline in the volume of foreigncurrency assets it holds. But this has at most prevented a sharper depreciation of the rupee than has actually occurred. It hasnot helped correct the depreciating tendency. Continued reliance on this means of enhancing the supply of foreign exchangein the market could shrink reserves to a degree that risks triggering a speculative run on the rupee. Not surprisingly, the RBI isseeking ways of enhancing capital flows into the economy.
The months of May and June this year saw Rupee being volatile the most in the recent history. It is not only weakness in acurrency that impacts sentiment in investors but also the volatility. Investors don’t like to see a currency moving in the range of49.60 to 57.42 levels in a 3 month period.
When Rupee was at 52.50 levels in March 2009, EUR/USD was trading around 1.2635 levels and Dollar Index was tradingapproximately 88.55 levels and today the Dollar Index is approximately at 83.10 levels.
So, it is not only strength in Dollar that is making Rupee weaker, but also the negative sentiment that is prevailing in the Indianeconomy. Lack of reforms and the so-called “Policy Paralysis” have hit the Rupee badly. If things in India change domesticallywith respect to reforms and steps to control the current and fiscal deficits may get the Rupee back to the 50/53 levels, which Ithink is the fair value for the currency against Dollar.
It is at the base that a weak currency will impact the investors’ confidence negatively, as 2012 dawned, strong US data turnedglobal sentiment upside down, the risk-on trade came back into favor, Indian equities rocked and the rupee, amazinglystrengthened. Then came the budget 2012 which had some taxation terms which many believe were not clear and thusimpacted the investors’ confidence again. Rupee plunged the most since the budget release. The immediate impact of thegovernment’s retrospective taxation proposal was about 2 rupees on the dollar. the rupee’s depreciation is eroding the returnsin foreign exchange that foreign investors in both equity and debt markets earn. If, in addition, a decline in interest rates isengineered with the aim of spurring growth, it would discourage rather than attract the debt that is seen as solution to theproblem of a shortfall in dollar availability. For lack of more prudent alternative measures, that could leave the rupeefloundering and convert a problem into a crisis.
Markets would dearly like to see some serious steps to be taken to stabilize the Indian Rupee. Reforms viz., FDI in retail and inother sectors possible, decontrolling of diesel prices and reduction in subsidies are something which India can do with. PrimeMinister has announced reforms to accelerate the growth again. Guess it will be done after the presidential election. But theother thing created some of the negative perception is retrospective amendments in the budget and some of the GAARprovisions. Now the GAAR provisions have been corrected to a certain extent. They have to be further reviewed and furtheramended but the retrospective of the amendments need to be reviewed and corrected. If that is done then the perceptionglobally will be much better. Positive moves now will restore confidence towards Indian markets and hopefully get back to thegrowth mode.
Mr. Pavan Kumar Reddy is a Business Analyst at NOSTRO Financial Services Pvt. Ltd. which provides FX Consulting services tosmall to medium sized exporters and importers at a marginal cost. It also facilitates trading services in Currency DerivativesSegment.
FOREX markets today and what!s happening with Rupee!!
CONVERGE - HDCF Newsletter
CONVERGE
! continued
July 2012
Guest Column by Pavan Kumar Reddy
www.hdcf.in
HDCF-EDC
Business. Collaboration. Success
Through the HDCF-EDC, we also intend to
contribute to the city and beyond in teachings and
learning on various areas of entrepreneurship,
encourage entrepreneurship as a profession among
the youth, and help them learn concepts, skills,
techniques, domain knowledge, and applications
that will aid them on their path to
entrepreneurship.
The week long HDCF-JNTUH Entrepreneurial
Development Program in June 2012 was the
beginning starting step of the above mission. On
behalf of the HDCF-Entrepreneurial Development
Cell (HDCF-EDC), we would like to invite all the
members to share with us the various topics and
trainings that you can offer to the society. Do send