VOLUME– IV ISSUE- 03 MARCH 2014 NEWSLETTER FROM DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
VOLUME– IV ISSUE- 03
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4 NEWSLETTER FROM DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Editorial ………………………………………………………
02 | DOMINATION, MARCH 2014 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Dear Readers,
With the onset of spring and a
new financial year around the
corner, this issue of DoMina-
tion is all about past learning
and new beginnings. Cover sto-
ry of the month is an in-depth
discussion of corporate govern-
ance, its need and challenges
ahead of Board of Directors by
Mr. Abhilash Choudhary.
Today organizations are
streamlining sales and mar-
keting by replacing high-touch,
repetitive manual processes
with automated solutions and
Ms. Apurva and Ms. Shifia have
wonderfully covered the topic
under perspective story. A gen-
eral election will be held in nine
phases, the longest election in
the country's history, from 7
April to 12 May 2014 to consti-
tute the 16th Lok Sabha in In-
dia. Ms. Monica Singh has ana-
lyzed its effect on Sensex and
Indian Economy.
DoMination is never short of
the fun quotient. This edition
features the next round of quiz
for them who love brain
twisting powered by “Buzzing
Crowd” – Quizzing club of
DoMS and a thought provoking
poem by Ms. Archana Singh.
Your thoughts and feedback
are always welcomed and ap-
preciated. Feel free to write to
us for any input. Stepping into
the spring with a new zest, we
hope to deliver to you a fresh
start with this new edition of
Domination!!
- Regards
Team DoMination
………………………………………………………
Contents
Faculty Adviser
Dr. R.L. Dhar
Team DoMination
Apurva Sood
Gaurav Mittal
Mehul Lala
Sudeshna Naskar
Vignesh B
Designing Team
Ashish Kumar Jaiswal
Dhruv Kadian
Rakesh Ranjan Kumar
Roorkee- 247 667, India Tel: +91-1332-285014, 285617
Fax: +91-1332-285565
Email: [email protected] Website: www.iitr.ac.in/departments/DM/Pages/Index.html For private circulation only
DEPARTMENT OF MANAGEMENT STUDIES INDIAN INSTITUTE OF TECHNOLOGY ROORKEE
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Qutopia
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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
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03 | DOMINATION, MARCH 2014
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DoMS da Evince Success Story
“Corporate Governance: The Role of Independent Directors”
Marketing Automation Chlorophyll
Sensex ahead of elections
“Corporate Governance: The Role of Independent Directors”
Corporate Governance is the frame-
work of rules and practices by which
a board of directors ensures account-
ability, fairness, and transparency in
a company's relationship with all its
stakeholders which constitutes of
financiers, customers, management,
employees, government and the
community. The board of directors is
typically central to corporate govern-
ance. Corporate governance is based
on principles such as conducting the
business with all integrity and fair-
ness, being transparent with regard
to all transactions, making all the
necessary disclosures and decisions,
complying with all the laws of the
land, accountability and responsibil-
ity towards the stakeholders and
commitment to conducting business
in an ethical manner. There has to be
distinction between what are per-
sonal and corporate funds while
managing a company, particularly in
case of the family owned corpora-
tions in Asian countries.
Broad of Directors Consists of:
1. Executive Directors (EDs)
2. Non-Executive Director’s (NEDs)
3. Independent Directors (IDs)
Need for Corporate Governance
With increased global com-
petitiveness, the growing market is
faced with the challenge of attracting
and retaining investment in order to
participate more fully in the global
economy and address other con-
cerns. Poor corporate governance
weakens a company’s potential and
at worst can pave the way for finan-
cial difficulties and even fraud. If
companies are well governed, they
will usually outperform other compa-
nies in long term and will be able to
attract investors whose support can
help to finance further growth.
Corporate governance helps in pro-
tecting the basic rights of its stake-
holders and provides stability to the
corporation for making decisions
which follow the various legal frame-
work, company laws and norms set
by regulatory bodies like MCA and
SEBI in India.
Corporate Governance Regulatory
Authorities
An effective regulatory and
legal framework is indispensable for
the proper and sustained growth of
the company. Over the years, the
issue of corporate governance with
many high profile case of poor gov-
ernance been exposed, it has re-
ceived a high level of attention
around the world. There are several
reports and recommendations of the
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Cover Story
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie
04 | DOMINATION, MARCH 2014
………………………………………………………
………………………………………………………International Committees/ Associa-
tions, etc. on the development of
appropriate framework for pro-
moting good corporate governance
standards, codes and practices to be
followed globally. In India, the Minis-
try of Corporate Affairs and Security
and Exchange Board of India imple-
ment these frame works. Recently
SEBI has come out with clause 49
along with existing Companies Act
2013.
Around the world some principles
have been introduced. These Princi-
ples of Corporate Governance focus
on publicly traded companies and
are intended to assist governments
in improving the legal, institutional
and regulatory framework that un-
derpins corporate governance. They
also provide practical guidance and
suggestions for stock exchanges, in-
vestors, corporations, and other par-
ties that have a role in the process of
developing good corporate govern-
ance. Corporate governance ar-
rangements and institutions vary
from one country to another, and
experience in both developed and
emerging economies has shown that
there is no single framework that is
appropriate for all markets. So the
Principles are not prescriptive or
binding, but rather take the form of
recommendations that each country
can respond to as best fits its own
traditions and market conditions.
Relevance of Independence of a Di-
rector in Corporate Governance
Independence of a Director is
defined as a person who has no di-
rect or indirect material relationship
with the Company, its subsidiaries, or
its auditor, or as a partner, officer or
significant shareholder of an entity
that has a material relationship with
the Company.
The big change in recent decades has
been the mandatory appointment of
independent directors (IDs), but
there is very little power given in
hands of these IDs by the law and
top management of companies
which makes their role very limited
and ineffective. Independent direc-
tors are expected to act inde-
pendently of management thus
should be expected to ask tough
questions, take tough decisions, in-
cluding the removal of the CEO
where necessary. In practice, very
little of this happens, because the
independent directors are beholden
to management for their appoint-
ment. If corporate governance is still
unsatisfactory, it is because the
mechanism and appointment of in-
dependent directors is not effective
enough.
The clause 49 is introduced by SEBI
ensures companies have set of inde-
pendent directors on board. The IDs
now have a limit of only two 5 years
tenures at a company with a 3 year
cooling off period and a cap of maxi-
mum 7 public companies at a given
time. The board should be chaired by
an independent director.
Issues and Challenges for Independ-
ent Directors in Corporate Govern-
ance
The regulatory environment
in India around corporate govern-
ance is changing rapidly and those
entrusted with governance i.e. the
Board of Directors and the Audit
Committee are being made responsi-
ble for the prevention and detection
of fraud. The current legal frame-
work does not differentiate be-
tween Independent directors
(IDs) and executive directors (EDs) as
it fails to distinguish between their
liabilities. The real question is, since
independent directors only play a
supervisory role, should they be pe-
nalized only in the event of a discrep-
ancy that directly relates to their re-
sponsibilities?
The role of IDs in fraud prevention
and detection has come under the
direct scanner of regulators, mem-
bers and other stakeholders due to
the recent exposure of high-profile
instances of fraud in India and
around the world. The IDs can play
the crucial role of bringing objectivity
to the decisions made by the board
of directors by playing a supervisory
role.
Importance of Corporate Govern-
ance
The big scandals of poor gov-
ernance of Enron, WorldCom,
Satyam, BP all are signs of emergen-
cy and should ring alarm for the cor-
porates to think how they handle
and govern themselves. Questions
are raised around the world and it
have become very important for the
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
“Corporate Governance: The Role of Independent Directors”
05 | DOMINATION, MARCH 2014
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie
………………………………………………………corporations to understand the most
basic reason of their existence.
Today the corporations believe that
their main purpose is to maximise
shareholders wealth, shareholders
are the ultimate owners of the cor-
poration and that ultimately they are
to exercise their control if the board
and management is not able to do
what they are ought to do, then they
have right to remove them. The
problem particularly with public
listed companies is that they want to
raise the share prices not in the long
run but rather in very short period.
This ideology allures the manage-
ments to cut security corners(like in
BP) and adopt unethical means to
enhance their stock performance.
Future prospects and developments
in corporate governance
India has become one of the
fastest emerging nations to have
aligned itself with the international
trends in Corporate Governance. As a
result, Indian companies have in-
creasingly been able to access newer
and larger markets around the world;
as well as able to acquire more busi-
nesses. The response of the Govern-
ment and regulators have also been
admirably quick to meet the chal-
lenges of corporate delinquency. But,
as the global environment is chang-
ing continuously, there is a greater
need of adopting and sustaining
good corporate governance practices
for value creation and building cor-
porations of the future.
It is true that the 'corporate
governance' has no unique structure
or design and is largely considered
ambiguous. There is still lack of
awareness about its various issues,
like, quality and frequency of finan-
cial and managerial disclosure, com-
pliance with the code of best prac-
tice, roles and responsibilities of
Board of Directories, shareholders
rights, etc. There have been many
instances of failure and scams in the
corporate sector, like collusion be-
tween companies and their ac-
counting firms, presence of weak or
ineffective internal audits, lack of
required skills by managers, lack of
proper disclosures, non-compliance
with standards, etc. As a result, both
management and auditors have
come under greater scrutiny.
It would not be sufficient to
form corporate governance frame-
work alone and take it as the solu-
tion to stop all the wrong doings
practiced by the companies, it needs
to be ensured in occurrence of any
wrong doings found there is proper
judicial framework present to punish
the convicts.
However, inapt application of corpo-
rate governance requirements can
adversely affect the relationship
amongst participants of the govern-
ance system. Institutional investors
are increasingly demanding a deci-
sive role in corporate governance.
Individual shareholders, who usually
do not exercise governance rights,
are highly concerned about getting
fair treatment from controlling
shareholders and management.
Creditors, especially banks, play a
key role in governance systems, and
serve as external monitors over cor-
porate performance. Employees and
other stakeholders also play an im-
portant role in contributing to the
long term success and performance
of the corporation. Thus, it is neces-
sary to apply governance practices in
a right manner for better growth of a
company.
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
“Corporate Governance: The Role of Independent Directors”
06 | DOMINATION, MARCH 2014
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie
By-
Mr. Abhilash Choudhary
DoMS, IIT Roorkee(2013-2015)
………………………………………………………
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Marketing Automation is a tech-
nique, which uses various software
platforms and tools to automate the
tedious marketing activities. It pro-
vides automated solutions for repeti-
tive, manual processes and removes
the scope of human error involved in
sales and marketing activities.
Marketing Automation Software is
used for lead generation, segmenta-
tion, converting prospective custom-
ers to actual customers and in retain-
ing customers by building strong and
long-lasting relationships. It also
plays a key role in cross-sell, up-sell
and Marketing ROI measurement.
Key Components in Marketing Auto-
mation
Database: Before starting the
automation process, one needs a
comprehensive marketing database,
which includes the details of all the
customers, the customer behavior
and the interactions with them. This
helps in choosing the target segment
and customizing the message for
each customer.
Relationship Marketing Engine: This
domain creates and automates the
marketing processes and conversa-
tions across various channels.
Analytics Engine: After build-
ing an effective database and an en-
vironment for the management of
the various processes comes the ana-
lytics engine which tests, measures
and optimizes marketing ROI. It also
helps in the evaluation and improve-
ment of the marketing process.
Approach to Marketing
Automation
Marketing Automation is a combina-
tion of a number of platforms chiefly
Social Media Marketing, Email Mar-
keting, Phone Campaigns, CRM Inte-
gration, Campaign Management and
Analytics.
Users of Marketing Automation
Since Marketing Automation is cus-
tomer oriented and helps in reten-
tion of customers by building mean-
ingful relationships, the industries
which use this range from B2B
(Business to Business), such as soft-
ware, business services, manufactur-
ing etc., to B2C such as media, enter-
tainment, healthcare etc. Even small
and mid-sized businesses are widely
adopting marketing automation to
automate their marketing processes.
Due to increasing competi-
tion, fluctuating market conditions
07| DOMINATION, MARCH 2014
Perspective
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie
Marketing Automation
Marketing Automation ………………………………………………………and pressure to increase the reve-
nue, more and more B2B marketers
are opting for automation of their
marketing process to manage their
complex ecosystem.
How does it help in the growth of a
business?
Besides increasing market efficiency
and improving ROI, marketing auto-
mation helps in the growth a busi-
ness by performing following tasks:
Management of Marketing Cam-
paigns by maintaining the data-
base, providing an environment
for creation and management;
and an environment to analyze,
evaluate and improve the cur-
rent marketing campaign.
Generation of quality leads
Converting leads to customers
Aligning sales and marketing
goals
Pitfalls of Marketing Automation
For marketing automation to work
properly it must be in conjunction
with the marketing strategy. Without
a comprehensive plan it can lead to
the following pitfalls:
Sending emails to customers
forms an integral part of Mar-
keting automation technique and
if not utilized properly it can
often be perceived as spam.
It requires a constant updating of
the leads and customer data-
base. If the organization is una-
ble to generate new leads and
expand its database and is in-
stead just trying to convert leads
into customers, it is unable to
acquire the unexplored market
share.
Confinement to email as the only
channel for marketing campaigns
Keys to successful Marketing Auto-
mation
Marketing Automation minimizes the
human element in mundane tasks,
but it does not generate leads or do
marketing for a firm. It can only help
in the management and scaling of
the efforts.
The success of the automa-
tion process depends upon a firm’s
strategy, its people and the content
on which the company works.
Though one gets a decent
ROI from marketing automation, the
returns one reaps depends upon the
incremental work put into the strate-
gy and the automation process.
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 08 | DOMINATION, MARCH 2014
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie
By-
Ms. Apurva Sood
DoMS, IIT Roorkee(2013-2015)
Ms. Shifia Mittal
DoMS, IIT Roorkee(2013-2015)
Chlorophyll ………………………………………………………Its wise to learn, its GOD like to create
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 09 | DOMINATION, MARCH2014
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie
She lit a flame
She wanted to live,
Just this merciless killing
Can never end our grief.
But what had happened cannot be undone,
Brutally assaulting someone is just not fun.
You cannot force a girl for your own hunger for SEX,
What all it requires is a change in our mindsets.
I fear going out, not just in dark but in the day too,
But who cares, this government will let it go in a day or two.
She was daddy’s lil girl,
Wanted to conquer the world.
But they chopped off her wings,
In a way one cannot even think.
For them, it was just a fun game,
But now this hue and cry is all in vain,
The whole humanity is in shame.
She lit a flame,
She wanted to live,
To never die again
By-
Ms. Archana Singh
DoMS, IIT Roorkee(2013-2015)
Qutopia ………………………………………………………
It’s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say more? ‘Qutopia’ – A Utopia of the best Biz Quiz Tidbits to wreck your brains! Rush in your answers to [email protected] before 21st April 2014. The winner will have their names published in the next issue. Also, person getting the highest score in the current quarter will get a gift voucher. Answers in the next issue of DoMination.
Powered by Buzzing Crowd - Quizzing club of DoMS, IIT Roorkee
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 10 | DOMINATION, MARCH 2014
1. Name the BitCoin exchange that declared bankruptcy in February 2014.
2. The power of knowledge’ is the tag line of which newspaper .
3. Which was the first Indian bank to open its branches outside India?
4. By what name is Phiroze Jeejebhoy Towers better known as?
5. Name the Brand with the tagline “Handcrafted in Chennai”.
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie
Section A (1 Point for each correct answer)
Qutopia
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 11 | DOMINATION, MARCH 2014
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie
Section B (2 Point for each correct answer)
………………………………………………………
Q1. What is the name of the mascot on the
bonnet of a Rolls Royce?
Q3. Identify the company
Q4. Identify the watchdog organization.
Q5. Identify the group.
Q2. Identify the celebrity.
Qutopia ………………………………………………………
Section A 1. TATA
2. Karbonn
3. Bihar
4. National
5. Youngistaan
6. Infosys
Winner of February edition
Agam Gupta DoMS, IIT Roorkee (2013-15)
12 | DOMINATION, MARCH 2014 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie
Answers for February edition
SECTION B
1. Sochi Olympics picture is in longer side of the note,
unlike the usual notes which have picture in the land-
scape
2. Micromax
3. Ranbaxy Laboratories and Jaiprakash Associates are
moved out of Nifty. Tech Mahindra and United Spirits
will replace them.
4. Tata Tea
DoMS-da-Evince
Tulima Ranjan is a 2010 batch passout and currently work-
ing as Senior Business Analyst
in Delta Airlines.
1) Please let us know about your
journey prior to joining IIT Roor-
kee.
An engineering degree from
VTU in information technology and two
years of Data-Warehousing experience
with WIPRO Technology – to sum it up,
an average MBA aspirant.
I worked as project engineer
(that’s the fancy title you get as a fresh-
er) on an ETL tool called Ab-Initio in the
UNIX environment. The backend was
mostly Teradata. Interacting with the
machine 8 out of the 10 hours was ex-
tremely boring. So MBA seemed like
the most logical pit-stop to change ca-
reer path.
2) What are your roles and responsi-
bilities at Delta Airlines?
Senior SOA Business Analyst is
a two part role – in projects and in SOA
governance team.
In any project I am Responsible for Cli-
ent Engagement throughout the lifecy-
cle of the Project. I conduct JAD ses-
sions and create various artefacts (use
cases, service contract, traceability ma-
trix etc.) for requirements assimilated
from different channels. In delta we
have various channels reservations,
delta.com, kiosk, ACS etc. who are the
clients to the SOA team. Within the
SOA team I support developers and QA
throughout the SDLC lifecycle. This is a
typical business analyst role most of
MBA graduate get offered in the IT
space.
SOA governance team ensures that SOA
policies, procedures and templates are
followed throughout the SOA team and
that these are updated as required.
3) What is your views on the current
situation of airlines industry in
USA, particularly in the current
recession?
The Airline industry in the USA
hit major snag after 9/11. People had a
fear of flying and avoided air travel.
This has resulted in many airlines filing
for bankruptcy and consolidation
(M&A) of major carriers - Delta-
Northwest, AirTran-Southwest, Conti-
nental-United over the past decade.
And the latest being US Airways and
American Airlines merger. With this
consolidation of competition and peo-
ple getting their faith back in flying, the
airline industry overall has seen profita-
ble growth and has come out of the
recession. Airlines are now aligned to-
wards discovering new ingenious ways
for cost cutting. For example delta has
acquired a refinery to produce jet fuel.
Personally I do feel that this trend of
diminishing number of competitors
increases the chances of market manip-
ulation. We will have to wait and watch
how this plays out.
4) Have you noticed any change in
the customer behaviour in recent
times?
The customer now wants their
travel to be priced to the minimum –
get me from A to B – no frills. And then
depending on their needs they add on
things like meals, wifi, extra leg room,
etc - even a checked in bag. So the
amenities which earlier were expected
to be provided, have to be paid for
now. And the customer feels they are
not paying for something they don’t
want or don’t use while travelling. From
airline perspective this broadens the
number of price-points for the same
seat. So they can cater to the demand
of a broader market and expand their
customer base.
Also, the whole loyalty pro-
gram has caught on big-time in every
industry. This is even more so in air
travel because of two things. Loyalty
programs get you different levels of
membership which make you eligible
for freebees such as free upgrades, free
first checked in bag, priority boarding,
free Wi-Fi, access to lounge etc. This
inclines customers to align themselves
with one airline and then stick to it, so
that they can reach the highest medal-
lion with that airline. Also you can earn
miles with your daily credit card pur-
chases and use it towards air-travel if
you are in the airline loyalty program.
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 13 | DOMINATION, FEBRUARY 2014
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie
………………………………………………………
DoMS-da-Evince ………………………………………………………
5) Recently there has been a lot of
talk about analytics. How do you
see the function of analytics in
your job?
Analytics is not a part of my
job. I perform more of business process
analysis.
Having said that I would like to
mention Analytics is one of the major
contributors to deltas phenomenal
quarterly results. Analytics has tremen-
dously improved the accuracy with
which delta can predict on which route
how much a customer is willing to pay
at most in any given time period. This
allows delta to determine the correct
price point on which they should offer a
fare such that the aircraft flies full ca-
pacity and generates maximum reve-
nue. Also By analysing passenger traffic
on routes it has helped in determining
which type of aircraft to fly on which
route for maximum profitability. During
an unforeseen event such as volcanic
eruptions, it was analytics which helped
to re-route passenger traffic in real time
to minimize the negative customer
feedback.
6) What is the most challenging role
in your career so far?
After my MBA, I came to the
US. When I finally started working it
had been more three years since I left
WIPRO, and my technical skills were
rather rusty. I joined WIPRO (onsite) as
technical lead for at Capital-One. I was
overseeing the transition of their entire
Statistical Infrastructures and Tools
(SIT) Platform from Infosys. Due to re-
source constraints, it was just me onsite
and rest of the team was in Bangalore. I
used to get KT’s in mornings and then I
had midnight KTs with offshore. I was
handling production failures on week-
ends. Managing client expectation with
seamless transfer of application devel-
opment, code deployment, defect fixes
within tight deadlines and in an agile
environment has to be the most chal-
lenging role so far. My sincere advice to
anyone planning to come here on H4
(spouse visa) – its very difficult to con-
vert h4 to h1. The only jobs that are
available are in pure IT development or
QA. So please plan accordingly.
7) Would you like to share an inter-
esting incident with us?
Instead of sharing something
from work life, I would like to walk
down the memory lane with one of the
most unforgettable incident during
MBA.
In our first year half of our
batch went white water rafting. We
were 27 of us in 3 rafts divided in a very
interesting fashion. The nerds (all of
them – except one had glasses) were in
the first raft, the happy-go-lucky back-
benchers (mostly freshers) were in the
second and the heavyweights (literally)
were in the third.
After sometime, folks in raft1
turned back and they see blue helmet
floating across the Class3 rapid they
had just crossed. It so happened, that
Raft2 had done two flips right in the
middle of the rapid and the only person
who was left on the raft was a spunky
lady. Slowly she helped pull the instruc-
tor and few others onto the raft. But
the raft had floated downstream faster
than those in water could keep up.
Luckily, the few remaining hitch hiked
with the already overcapacity raft3. It is
still a mystery how they managed to
stay afloat!!!
Thank god no one was hurt. But some
of our friends were in water a long
time; one even lost his helmet while in
water. The other was under the raft2
for around 200mtr stretch and that was
super scary. Those few minutes made
them appreciate life even more. Today
we can look back and laugh over it, but
it was a very dangerous situation to be
in.
So when folks go rafting, which you
should, Be Safe, Be by the book and
make sure you are not in the last raft!!!
8) Any message for readers, especial-
ly for the current batch of DoMS?
While at DOMS - some of us took trips
at every given opportunity – Rishikesh,
Dharamshala, Vaishnodevi, Chandigarh
– anything that we could fit into the 2-5
days breaks we got. Some of us partici-
pated and won in lot of B School
events. Some of us organized events
such the IIT fest, Spornado. And some
made use of the amazing sports facili-
ties we have. In short, apart from stud-
ies we all did something that we thor-
oughly enjoyed.
In between your busy schedule – make
efforts to find time to do the thing that
you enjoy. Because when you look back
you might now remember the hours
spent in office, classes or libraries, but
you will always remember the trips, the
awards and the pool table!!!
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 14 | DOMINATION, MARCH 2014
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie
………………………………………………………
Success Story
A diamond-studded watch, a
private island, a business jet, a
chauffer-driven super luxurious car,
bespoke anything—luxury is limited
only by the imagination. And by the
depths of your pocket. Ajay Bijli, 46,
an entrepreneur who has made a
fortune for himself building PVR Cin-
emas into India’s largest chain of
multiplexes (with a turnover of
around Rs 1,100 crore) has no such
constraints. But, he says, “I am just
very reluctant to talk about it be-
cause there is no end to luxury.”
It’s not that he doesn’t live
the good life; he merely isn’t in a
mad pursuit of the best things that
money can buy. There is a Bentley to
go to work in, first-class international
travel, made-to-measure clothes
stitched in the UK or Singapore, se-
cluded destinations for family vaca-
tions and a house that’s been under
construction for the past 12 years.
“The fact that the choices I have
made are priced higher than other
things is incidental. It is not the driv-
ing factor for me,” he says. This is not
a show for the world to see and
judge.
Many of Bijli’s choices can be
traced back to his growing-up years
and to the phase after his father,
Kishan Mohan Bijli, passed away—
that was when he had to find his feet
in the world.
It would be fair to say that
Ajay Bijli had a privileged childhood.
As a kid, he was pampered—he was
used to being driven in good cars and
travelling first class on holidays. “My
dad was fond of Mercedes for the
longest time and he was a collector,
to the extent [that he would buy]
whatever would come on the State
Trading Corporation or what was
possible to import—and he had a
good collection. He influenced me as
far as travel and cars are concerned.
He would always say that if you are
travelling, then travel well. That has
stayed with me,” says Bijli.
His father, who ran a truck-
ing company called Amritsar
Transport, passed away in 1992. Ajay
also inherited a cinema hall called
Priya in New Delhi’s Vasant Vihar.
The theatre business excited him,
especially the potential of multiplex-
es in a country full of single screen
theaters. Building Priya Village Road-
show (PVR) became priority. It was a
tough period and the idea of having a
good time took a back seat. “After
that I became very conservative. Ac-
tually the need of the hour was to
run the business and take care of the
inheritance. At that time people used
to wonder why I never bought any
cars—whenever something would
get spoiled, only then it would be
replaced,” says Bijli. It was only after
2005, when PVR Cinemas had
achieved a certain scale that he
found time for himself again. That’s
when the cars and the holidays reap-
peared.
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 15 | DOMINATION, MARCH 2014
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie
Ajay Bijli, 46, an entrepreneur who has made a for tune for himself building PVR Cinemas into India’s largest chain of multiplexes
………………………………………………………
Regardez I’economie
The fever of elections is pick-
ing up in India, and so are the stock
market figures. Unlike the pre-
election situation in 2004, when
Sensex was on a decline due to the
imminent loss of NDA, the stock mar-
kets are soaring. Since the trend of
coalition governments started in the
mid 1990’s, the pre-election season
generally sees a decline in the mar-
kets due to uncertainty. But this time
around, the Sensex breaching 22,500
mark and the rupee strengthening
against dollar have a different story
to tell. With the American brokerage
firm Goldman Sachs on Tuesday up-
grading India to “overweight” from
“marketweight” after the domestic
markets scaled lifetime highs and
Experts forecasting Sensex to touch
24,000 mark before the elections,
the economic outlook of India is
looking positive. Argument ensues
between the two political bastions
trying to claim the rewards, with the
BJP arguing that this is a result of the
public faith in their prime ministerial
candidate, Narendra Modi, while
Congress attributes it to the sound
economic policies introduced by
their party during their regime. Pin-
pointing a single factor behind this
market high would not be correct.
There are more than one factors con-
tributing towards the upward market
trend
Modi effect
The present UPA govern-
ment is riddled with corruption, bad
governance, scams and lack of lead-
ership and are highly unlikely to
come to power in the general elec-
tions this year. The anti-incumbency
against UPA government and the
projected image of Modi as a devel-
opment driven leader may benefit
the BJP government. The investors
believe that BJP’s prime ministerial
candidate will implement the Gujarat
development model on a national
level hence increasing their confi-
dence in the economy. Modi is be-
lieved to be a pro-business and pro-
industry leader and has displayed
commendable performance in the
economic front. This possibility
seems to be instilling confidence in
the foreign investors in Indian mar-
kets .Although Modi has been unable
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 16 | DOMINATION, MARCH 2014
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie
Sensex ahead of elections
………………………………………………………
Sensex ahead of elections to come up with a sound agenda to
improve the economic scenario of
India except for a broad economic
vision. Launching bullet trains, laying
optical fiber networks and interlink-
ing rivers are what the Gujarat Chief
Minister is proposing when he comes
to power. The supporters praise
these promises as visionary while the
critics call them empty promises that
are practically unattainable.
While whether Modi comes to power
or not remains to be seen, one can
expect a stable government at the
center focused towards development
on the economic front. The disen-
chantment of the Indian voter man-
dates better governance and eco-
nomic reforms.
FII inflow
A number of studies in the
past have observed that the move-
ment of Sensex is directly related to
the investments by FIIs. It is also ob-
served that FIIs have a considerable
influence on market sentiments as
other market participants consider
FIIs as infallible in market assess-
ment. Among the major emerging
economies, marred with political
mismanagement, high fiscal and cur-
rent account deficit and high infla-
tion in the previous year, India still
managed a growth of around 5%
thus faring better than other emerg-
ing economies. With the FIIs pump-
ing over $1 billion in Indian stocks
since the beginning of 2014,the mar-
kets are infused with confidence and
likely to continue this way.
Indian Economic Fundamentals
With the Consumer Price
Index easing to 4.7%, the current
account deficit dropping to around
$35 billion from $87.8 billion in 2012-
13,rupee strengthening to below 60
against dollar, and Sensex breaching
22,500 mark, the fundamentals of
Indian economy seem to be growing
stronger thus reviving faith in the
investors.
QE tapering
The news of Quantitative
Easing tapering in the month of May
last year led to the sharp decline in
the value of rupee against dollar and
also saw the plunging to record lows.
Every currency saw a decline in value
due to the announcement of QE ta-
pering. FIIs pulled out large chunks
of money from the Indian markets
dragging down Sensex and hitting the
rupee hard. But recent RBI moves are
expected to provide a cushion to In-
dian Rupee. The recent cuts in QE did
not see the market declining, on the
contrary Sensex has been on a high.
This is because the announcement of
QE tapering came as a shock in May
while now the markets are better
prepared to handle the tapering.
The result of general elec-
tions will be announced in May and if
experts are to be believed, India will
see a stable coalition at the center
which will spur the economic growth
further which is most probably going
to be sustainable in the long run.
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 17 | DOMINATION, MARCH 2014
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie
………………………………………………………
By-
Ms. Monica Singh
DoMS, IIT Roorkee(2013-2015)
Department of Management Studies, IIT Roorkee
Roorkee - 247667, INDIA
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