Two women prove how successful feminine shakti can be!

Deepak Chopra may be guru to Hollywood stars but he's sure not to have these two women on his speed dial. For a man raking in the bucks, selling old wine in stylish, new bottles, he's got some antediluvian ideas. He believes women in the corporate world lose their feminine shakti!

He certainly should line up to meet Swati Piramal and Kiran Mazumdar-Shaw. Both of whom are in cutting edge careers. Director of Nicholas Piramal, Swati A Piramal and Chairman & Managing Director, Bicon, Kiran Mazumdar Shaw are the women, who are in the forefront of the biotechnology movement in India. The West may be miles ahead of us, when it comes to biotech research but these two women have atleast given us a good start.

Mazumdar explains, "I think what has happened is, biotech has been a sort of an untrodden path and it hasn't been a crowded space. In fact, it has been a fairly unexplored space, so I think the focus on the opportunities, were more in the pharma sector and less in the biotech sector and in terms of scientific challenge, there are plenty of women in this country.

Though, women have never had it easy, even in the West, there is a belief that scientific careers are not meant for them. This kind of statement created quite a ruckus recently, when the Harvard dean and Former Treasury Secretary, Lawrence Summers made it. Mazumdar told CNBC-TV18, "Well I think that was quite a controversy and I don't think there were too many people, who would agree with his view, we don't agree."

Piramal explains, "Women in science, they are really coming up and Larry Summers talked about some of the hurdles and I think we have those, but the point is, how do we get across those hurdles. I am on the Prime Minister's advisory board, and we're writing a paper called Women in Science, on how do we get more women in India to study science."

Indian women could be cajoled into studying sciences, Swati Piramal explains, "There are 3-4 things that really make them scientists. One of them is a parent who really believes that a child can learn science, whether it's a boy or a girl. The second is that, someone has told her that you can achieve, you can do this. The third is, somebody has taught you this love for science - a teacher, a professor, a book, it could be anything. So these are the three factors which I think really influences a woman, and of course, the last is a role model."

Ofcourse, these two women are exactly the kind of role models for a future generation of female scientists. They have started the race and the baton will surely be passed on. In fact, they are already making a difference in boardrooms.

Piramal elaborates, "I actually found myself, though I am scientist, on three finance and insurance companies and I asked them why did you ask me on the board, they said we want people who can think of things in a different way and not their own standard. And I think, women bring that sort of diversity, the differentiation and creativity, this is kind of natural for them."

Mazumdar agrees and says, "There is a little sensitivity attached to whatever you are doing. When it comes to human relations, I think their sensitivities are far more acute amongst women, than it is among men."

"Very often in my company, many of my male colleagues when they are faced with the human relation dilemma, they come to me and say, hey do you think, I should dissolve this problem. You can ask them why they come to me, they say, somehow, you give us a very different way of thinking about these issues and maybe that's the way it's going to be solved."

Both of them are representing a new science and they have been the faces of India abroad in their field. Mazumdar acknowleges this, "Yes, I have sort of been a brand ambassador for Indian biotech for many years and yes there has been a credibility issue because India has never been really an R&D hot bet and I think that is something that I wanted to kind of change - that we are not just imitators, but we are innovators."

"But today, I think when I stand there, people sit and listen to me and take me seriously and I think that's the transformation I am seeing." Piramal admits that people do seem to take them seriously now. Especially with India's potential to deliver affordable drugs for five billion people.

Mazumdar explains, "Obviously, when you are in a business like ours and when you are driven by an ambition to basically deliver a billion dollar drug, out of your research table, I think that is really a very exciting space to be in. I think, to me affordable drugs for a large part of the world is something that is very possible, only out of India. And I think, if we can really develop an important drug in an affordable way out of India, that would mean a lot to me."

The flipside to being so incredibly focused is that one could lose out on the lighter moments in life. Kiram Mazumdar says that after Biocon went public, she's become a bit boring! The pressures of running a company with shareholders to answer to have not left much time to pursue her interests much.

So, she considers it a bonanza, when she can catch a rock or a western classical concert, in India or abroad. She also tries to watch a game of tennis, when the Wimbledon's on but even though she like golf, she hasn't been able to tee off for two years now! Well, you win some and you lose some.

Both have also authored and co-authored books, appreciate art and both are a 'husband-wife team', as Mazumdar puts it. She says, "There is another dimension which I never thought about, even though I knew about it, and that is, we both are a husband and a wife team. The most important role that someone can play in building these careers for women, are husbands."

Swati Piramal has co-authored two books with Mrs Tarla Dalal titled 'Eat Your Way to Good Health,' and another 'Diet and Nutrition Guide for Patients with Renal Disease and Renal Disorders'. While Kiran Mazumdar's coffee table 'Ale & Arty: The Story of Beer' is for the lager fans.

The multifaceted Piramal has also directed a music video called 'The Science Anthem with some of India's greatest musicians, lyricists, dancers and filmmakers and written an Indian opera called 'The Dance of Life', which tells the story of 2,500 years of Indian scientific discoveries, including astronomy, mathematics, ayurvedic medicine and other life sciences

That beauty is a part of their environment is obvious, as anyone who has been to Kiran Mazumdar's lovely home in Bangalore would attest. Swati Pirmal admits she was struck by Mazumdar's office. She says, "I visited her beautiful research centre, which is just stunning, all the work that she is doing and I really enjoyed her office, there were lots of beautiful paintings."

Swati Piramal's a free spirit who is into communing with nature. She says, "My big indulgence is my boat. Whenever I can, I take off with a few friends and we have this gourmet meal on the boat, with a glass of wine, with the sea and some great music for company. It’s so nice to get away from the city of Bombay because we have too much of traffic and buildings and when you are close to nature, you kind of respect everything."

These infrastructure problems do exist and that's what is keeping India back, on delivering on the brand-India promise. Mazumdar explains, "I don’t think the government is doing enough, because all that we want from the government is an enabling environment and infrastructure. Now in our business of biotechnology, there are lots of initiatives being taken and I think we have to address these with a sense of urgency. Somehow, I just feel that the government is not quite in sync with India Inc."

Piramal says, "I spoke to the Prime Minister only a few weeks ago and I said please do something to implement all the things that we have put together. If they can put that, India will really become a world power."

They have visions for a better country, and by the nature of their work, a better world. They also continue to be looked up to but whom do they idolise? Mazumdar says, "When I was setting up Biocon, I looked at certain people who have done things very differently. So I was very inspired by Jack Welch. In India, I was inspired by Professor Mashelkar because he was a big change-maker in science and technology. I was also inspired by Vaghul of ICICI and Narayan Murthy."

"The one woman who influenced me in terms of business, was Anita Roddick of Body Shop. I used to like her style of doing business because I have always looked at very unconventional people. I like unconventionality in people and I am very unconventional and when I set up the company, I certainly wanted it to be a very different kind of organisation and I insisted that every single person in the workplace call me by my first name, and I said everyone should call each other by their first name and it was quite an alien concept in those days."

Piramal's icon was the ultimate beacon of hope for the downtrodden, Mother Teresa. She recalls, "The one who really moved me, when I met her was Mother Teresa. She came to my hospital and she gave out packages to all the little kids who were paralyzed and she wrote that working for children is working for peace and she was so beautiful, that I can never forget her face. She was truly one of most beautiful women I have ever seen."


To order Kiran Mazumdar Shaw's coffee table book:
http://www.prakashbooks.com/details.php3?id=5965&c=Cookery,%20Food%20/%20Drinks

Written for www.moneycontrol.com

He brought the Satya Paul brand to life

He is the man who helped give the Satya Paul design label, a fresh lease of life. Sanjay Kapoor is an economist armed with a management degree from the University of Rochester. A short stint as Assistant Manager with Citibank later, he made a decision to do something entrepreneurial.

He teamed up with Jyoti Narula in the early 1990s to start Genesis Colors, to export designer neckwear. He formally tied up with Satya Paul in 2001 and has kickstarted their mission to corporatise the ready-to-wear market in India.

He says he decided to do something by himself because he didn't want to work for someone else for the rest of his life. He had also spotted a gap in men's wardrobe - that India was exporting a $2.5 Madras plaid shirt but neckties were being ignored. Being a banker, he realised how important ties were to complete the corporate look.

So he started Genesis Colors in just one room in his parents' home and now he has given the Satya Paul design label, a pan India footprint. With 13 standalone stores across the country and a foray into women's wear, Kapoor is now working on promoting a menswear line.

Managing Director of Genesis Colors, Sanjay Kapoor told CNBC-TV18, "In the next 18-24 months, we will be coming out with a menswear line."

His joint venture with Satya Paul has been on since 1992, but it has become more of a partnership now, with Satya Paul's son Puneet joining him and Jyoti Narula as an equal partner. He feels marketing a designer brand is something that needs newer and fresh approaches

In keeping with this motto, Satya Paul fashion shows have been held at Madame Tussaud's or models have catwalked to the notes of Pandit Hariprasad Chaurasia's flute. Kapoor is always looking out for innovative brand promotion strategies.

With a view to building economies of scale, he is open to private equity funding and is also looking at issuing an IPO. Backing promising designers is also part of his mentoring strategy and they have made a start with Sanjana Jon and Deepika Gehani. This might pay in the long run as well, when these young designers hitch their wagon exclusively to Kapoor's successful brand.

There is an irony in this tale. Kapoor remembers a time, when he had just started out and bankers were wary of extending loans because they didn't feel garment exporting could be banked on.

Today, he fends off plenty of calls in a week, from investors and venture capitalists, VCs, who are looking to buy a bit of his business. Suddenly, now he seems to have a very appetising cake, from which he's eating all by himself - barring the two others who were smart enough to get on board when they did.

Note: At the time of writing this story, his deal with Sanjana Jon was on but since then, they have parted ways because of major differences.

Written for www.moneycontrol.com

If London & NY can do it, then so can India!

She is one of the crop of Generation Next investment bankers who dabble in global depository receipts, GDRs, in the US, do some interesting mergers and acquisitions, M&As in London, sell equities to foreign institutional investors, FIIs and have a world of experience in a very short span of time. The managing director at Kotak Investment Bank, Falguni Nayar is one such bright spark.

She began doing her homework on stocks early when her father was investing in them, she would look up P/E margins in the newspaper. It was then she knew she wanted to go on to do an MBA course, so IIM - Ahmedabad beckoned. She liked everything in her course but soon decided to specialise in finance. She graduated and went to work with Ferguson & Consulting, which she credits for giving her "a very good, all-round experience in the aspect of management."

But all the same, she did move on to Kotak Investment Bank in 1993. She joined the M&A department. She told CNBC-TV18, "Around the early 90s, Kotak had set up an investment banking division and they were doing a lot of equity deals and they wanted to build a strong M&A department and they felt that I had the right skill set. So I had to build it from there. Fortunately for me, within six months I got transfered to London and I moved into the equity business. So I set up our London office to sell equities to FIIs as well as high networth individuals, HNIs."

"So I think it was a good call, otherwise for many years in M&A, I may have not seen enough action. I was fortunate because by then, Uday (Kotak) had probably seen potential in me, so he asked me set up our London office. Then when I moved to the US, I set up our US office. So my career continued to progress.

In the US, she did get some experience working with Goldman Sachs for about 6-8 months. She was particularly impressed with a big name on Wall Street back then - Abby Joseph Cohen. She elaborated, Around 1998, Abby Joseph Cohen was a big name on the street and listening to her was fascinating. I must say, that I do believe in growth and I do believe in secular growth and I was convinced with her story that the US was in for further growth, even in spite of high valuation."

"I think at that time, US price-earnings multiples were around the low 20s and I thought that their accounting system was so strong and she (Abby) used to constantly highlight that compared to Europe or Japan, the US accounting (practices) was so strong, that I thought that US multiples would expand even from there.

She has also seen the internet bubble days but she acknowledges "I saw the value creation so to speak during the internet bubble days. On hindsight, it was truly a bubble. But there are always risks and at that point it didn’t feel like that. The fact was that every merger was accruing value for these firms because they were trading at such high multiples, that once they acquired some earnings, that multiple created huge market cap growth. So, it was a virtual cycle that taught me a lesson that there are (business) cycles."

Then she came back to India in September 2001. Here, she started on the sell side of equities and came across a gamut of investors. She's dealt with and serviced so many investor relationships, she has developed a couple of investment philosophies. She explained, "There are value investors who go for value stocks. There are growth investors who like growth stocks, then there are macro-investors who take a macro theme - top-down investing."

"A top-down approach is selecting the sector and then winners within that sector. So that’s the third type of investors and then you have arbitrage investors, who always try to arbitrage. It could be arbitraging differences between convertible and equities or a special situation arbitrage, where a merger ratio is announced and the stocks don’t reflect that. So those are the special situations."

"We also had investors who were long-short investors. They take a call upstream and buy downstream. They want to be short even within the intra-sector. At every stage there is may be one philosophy which is more prevalent than others, but there are investors with different philosophies in all phases of the cycle."

"Unfortunately, on the sale side you don’t have the liberty of choosing any one philosophy and just sticking to up. You have to really know your client and see what investment will suit his style."

She describes her personal style as being an optimist and a bullish person. She is also a growth investor who sometimes thinks a contrarian investment strategy may work. She said, "I believe in the structural factors and the macro economic factors, which drive growth over a longer term. So since I have a such a long-term perspective, within that, I do believe in secular growth and I think there are countries like India and China, which will see a very long-term secular growth."

"However, I have to some extent, matured. I mean there was a time when I used to really believe only on secular growth and now I truly believe that even if it’s secular growth, there will be cyclicality."

In India, she quickly moved into the flow of things and was involved with the big Maruti Udyog, MUL, initial public offering, IPO. She explained, "There are simple rules by which we evaluate a stock. What we (Kotak) thought as an investment bank did add value in terms of fitting Maruti within a (financial) yardstick with regard to international investors. While the stock was priced at 20-times historical multiples, we had worked with the company for certain improvements to their earnings model, so it was a huge success. So I think you need to have that clear judgment about what investors will think based on certain yardsticks of finance."

She's also level-headed about PSU disinvestments and about the share prices going down. Falguni reiterated, "It’s a market and there will be buyers and sellers. I mean for everyday when there is buying, there is a seller out there. So I just felt that to a certain extent, to be concerned about stock prices going down or selling in those shares was not right."

"Bankers are always working in the interest of their clients and even the bankers in the (PSU) deals were also working in the interest of clients. But it is a market and there will be some investors who will sell a particular stock during the time, when they think that IPOs are coming out and they don’t necessarily always gain because the stock may outperform during the period up to the launch. So even if the deal happens at market or slight discount to market, the stock maybe 10%-15% higher."

Apart from such hi-flying issues, she has also pioneered the GDR market - by marketing them under her own brand name. She said, "That’s where my international experience came to use, the offices (she set up) as well as the legal and compliance aspects. So I knew how it works. So when I came back, I worked with my equity team towards being one of the first Indian investment banks to in fact, lead manage as well as participate in GDR transactions in our own capacity, and similarly even on a convertible. Kotak did one of the first convertibles ever done by an Indian investment bank."

"I think this business has been done by foreign banks, but as an Indian investment bank, we are one of the first who are also offering a full service product range to our clients. So clients don’t need to come to us for domestic offerings and go to foreign investment banks for ADRs/GDRs, we are trying to offer them an integrated package."

Since, she's also looking at M&As, she has a gameplan in mind. She said, "For a successful M&A banker, sector expertise is very important and I am going to be focusing on having sector experts in as many sectors as we want to service. It’s only when you have the expertise on your sector, then you can be a true advisor to senior corporates heads like CFOs/CEOs. They really need you to be able to give them ideas on how they can take their business forward through M&As. So, you need to be very knowledgeable on their sectors."

Falguni is foreseeing a huge record volume in the IPO markets. She elaborated, "I think we are going to see a lot of IPOs as well as secondary offerings because we are in that growth phase, so there is a need for growth capital and also infrastructure - related financing will start off. Also new sectors are coming into play. So I definitely think that the markets are positioned well."

She signs off on a buoyant note feeling that Mumbai has the potential to become a powerful and truly world class financial centre, like London or New York. She has some parting pearls of wisdom for anyone looking to follow her footsteps. She said, " I would say that customer needs are important. Everything needs to be done from a customer’s perspective and you have to give excellent quality of execution, to satisfy that need."

Written for www.moneycontrol.com

Providing you with a classy makaan

Want a swanky home with a swimming pool on the roof and in a area like western Bandra, then you should book a flat at the upcoming Buena Vista. The going rate there is Rs 20,000 per square foot. And you thought good things came only to the deserving. In reality, it comes to the people who can afford it - good or bad.

The man who is selling such expensive real estate is Boman Irani, the 37 year old Chairman and Managing Director of Keystone Group. He has a Mechanical Engineering degree from the Mumbai University. He came into contact with real estate developers at the young age of 19, when he was trying to sell a family property. Though far from being organised, this industry lured him in.

He told CNBC-TV18, "I got into this industry because I realised the scope this industry had. Roti, kapda, makaan are the basic needs of any human being and the makaan had a long way to go in this city. This is what I set out to do and this is what our future goals will be."

Despite no degree, pertaining to putting up buildings he still wanted to be here. He recalls, "When I put up a building in Dahisar, I found out that the rooms we were making were too small and I asked my architect if we could make them a little bigger. He told me about what the city is like, what the area is like, what the people are like and where exactly I should go and get my grounding from. Basically just being interested teaches you a lot."

He does admit that there is a lot more that needs to be done in Mumbai and he feels it is happening - slowly but steadily. But he says that it takes a slap in the face for the sharpest reations to occur - like for instance the July 26 floods finally made the Mumbai authorities wake up.

But of his company's residential properties, he says, "We've decided to concentrate on locations and build only in places which will be considered great places to live in." So he settles on locations, he would be comfortable and want to live in himself. His company has been making apartments, keeping in mind what people want and if they are getting environmentally conscious now, his firm has been using sewage treatment and rainwater harvesting techniques for 6-7 years.

He feels people should be educated about the fact that to live in such environment-friendly homes has a cost attached to it. He says because people don't understand the sewage treatment technology, he's had people complain about treated water being used to water the gardens, just because their children play in the garden! He says that people should undertand the technology and ofcourse, make sure their children don't drink that water!

A Rustomjee home will be an efficiently functioning property, or so claims Irani. With the garbage disposal, sewage treatment, swimming pool all working and being maintained in perfect order. He promises that his firm builds quality into design and keeps people's needs foremost in mind.

Today, Keystone Group has a turnover of Rs 150 crore and employs over 200 people. So with his company doing well, he has set up the Rustomjee International School in Borivili (W), which gives good quality English education to children, who normally wouldn't be able to afford it. He says, "I told the teachers at this school, that it won't give me any shame if no engineers, doctors, scientists or artists come out of this school, but it would hurt me immensely, if I found out that one of them turned out to be a thug, rogue, cheat or a killer."

He has started a programme called 'Shiksha', where child labourers are taken to school between 1.00-3.00 pm and 5.00-7.00 pm and taught. There the child is taught basic reading and writing, about hygiene and moral values and basic things they need to know about this city.

With work and philanthrophy taking so much of time, how does he relax? This multifaceted man unwinds by reading, listening to music, riding his bike, going for long drives. Just to give himself that extra edge, he's also learning karate.

For more information on Keystone projects:
Call: +91·22·56766888
or e-mail : info@rustomjee.com
Website: http://www.rustomjee.com/index.asp

Written for www.moneycontrol.com

Clemenceau controversy: A lethal weapon

Green groups are up in arms and it's a cause that has found many believers and some recent converts. The decommissioned French warship, Clemenceau is a sailing load of asbestos and it's on its way to Sriram Scrap Vessels at the Alang shipyard in Gujarat. There it will be broken down. This ship has created such a ruckus because it is believed that it carries lethal amounts of asbestos, which is going to ruin the health of people, who work on dismantling the ship.

This is a Rs 40 crore contract, which has been rejected by other countries like Turkey, Greece and Spain but there are as many countries willing to pounce on it, if India says no as well. Bangladesh being one of them. Newspapers have been making environmental activism a daily feature, which is a good thing, since in this case, the Supreme Court has ordered the government to prevent the ship from coming near Indian waters till February 13.

The apex court order couldn't have come sooner because Greenpeace's toxic campaigner Ramapati Kumar told CNBC-TV18, "There are a lot of hazardous materials on board, which makes it unsafe. And also because, they lied from day 1 - they said it would go to Turkey for scrapping, once it is decontaminated but when it arrived there, it was found that it had not been decontaminated and due to Greenpeace's intervention, Turkey refused to accept it."

Both France and India are signatories to the Basel Convention, where it was promised that toxic waste would not be imported and exported. The French are conveniently arguing that warships are an exception to that, while the Chairman of the Monitoring Committee, Dr Thiagarajan says that no such exceptions must be made.

Well known environmental lawyer and Magsaysay award winner, Mahesh Chandra Mehta says that Dr Thiagarajan is right and at this point, this ship is not a warship at all, but rather, almost like junk. Ofcourse, it hasn't helped that the warship has 220 tonnes of asbestos on board and that France promised to decontaminate 90% of it but didn't do it.

Now, the French are singing a different tune and are saying that according to the weight of the entire ship, there is only 45 tonnes on board, which is 0.02% of the whole and which the French Defence Minister, Jean Francois Bureau calls "very neglible."

Not only is Greenpeace skeptical, but even the French NGO, 'Ban Asbestos' says the ship must be carrying somewhere between 140-180 tonnes compared to the official figure and Technopure - the French company, which was supposed to carry out the decontamination process - said that the real figure could also be as high as 500-1,000 tonnes.

Technopure provided the Ship Decommissioning Industry Corporation, SDIC, two quotations - 3 million euro and a 6 million euro - so that the high level of contamination could be properly dealt with - but the cheaper one was chosen. Kumar feels that the French government is lying and that Technopure is the one telling the truth. He feels that Technopure wasn't allowed to do a proper job about decontaminating the warship.

He's even more convinced because he heard the French ambassador make a remark on a TV channel, that India was a poor country and needed the money. The implication being that morality and environment issues shouldn't be made such a big deal about. The ambassador said they had 'got a good deal'."

Congress party spokesperson, Jayanti Natrajan says that India should institutionalise mechanisms that should prevent such issues becoming a controversy in the future. But at the same time, with regard to Clemenceau, she feels that if there is the slightest danger to workers' health, then the ship should not be allowed into Indian territorial waters.

But as things go in India, the environment minister, the deputy minister and the Secretary of the Ministry of Environment, have refused to reassure people, while in France, public opinion and newspaper editorials are urging the recall of the warship back to France. But now, the matter is in the hand of the Indian Supreme Court and the French government, and something should be done soon before it blows way out of proportion.

Kumar also puts the blame, where it also partly and correctly belongs and says, "The Ministry of Environment and Forests culture of silence is giving tacit approval to the whole game that France is playing. France is lying and India is willing to accept those lies."


Want a ringside view to see how a ship's torn down? Click here:
http://www.hms-vengeance.co.uk/farewell2.htm

Written for www.moneycontrol.com

The code that still intrigues

The Da Vinci Code has been a crucible for religious dogma, myth and emotions to flourish. Some Catholic countries have taken up the cry to ban this movie, while China does what it pleases, and this time it has flouted a Vatican ban and actually screened the movie there!India seems to always make a noise, just because everyone else seems to be doing it. Is there a case for banning the The Da Vinci Code in India or are the Indian Catholic organizations making an outrageous demand?

Spokesman for the Catholic Bishops Conference of India, Father Dominique Emmanuel told CNBC-TV18, "Not all the Indian Catholics are demanding this (ban). There seems to be one Catholic secular forum, which I happened to hear only in the last few days. I do not know what this organization is and there is one Mr Joseph Dias who is demanding this ban."

The fact is that this movie is based on a novel which is a work of fiction, even though this is something that Sony Pictures, (the producers) are not willing to put as a disclaimer and the author Dan Brown himself believes that Jesus Christs bloodline exists.

So there is enough fuel to keep the fire raging here but there was another Fire a movie made by Deepa Mehta that also created a furore in India because it touched on the topic of lesbianism and that time, it was Father Emmanuel who had called for reason. So whats so different now?

Father Emmanuel says, "I have said the same thing now that it is a work of fiction but having said that, what Dan Brown has cunningly done he has brought in certain factual characters in it. If it was a fiction, why did he not use fictitious characters? The way he is misleading people is that, he is talking about fiction and bringing in real characters like Jesus Christ."

He adds, "But nobody should be stopped to see it. While we are talking about the intolerance of the Christian community, I feel that the media has been a bit intolerant towards those who are protesting it because everyone in this democracy has the right to protest that is freedom of expression. If Dan Brown has a right of freedom of expression to what he does, certainly, there are other people who have a right to protest, if they feel they have to."

But some of the protestors are taking things too far. One of them is an activist, Nicholas Almeida who has asked for both the book and the movie to be banned and also has offered a Rs 11 lakhs as a reward to anyone who delivers Dan Brown dead or alive!

Almeida seems to be the Christian version of a Muslim religious fanatic and he says that he has the right to threaten Dan Browns life because "for the of Jesus Christ I can do anything on this earth because "under the garb of freedom of expression, it does not give licence to any person to show my religion at the lowest level."

Hes also going to increase the reward to Rs 22 lakhs, if the movie is released in India and he plans to stand outside theatres and appeal to people not to watch the movie because it hurts his religious sentiments.

Where religious sentiments are concerned, another book got its author a death sentence. Salman Rushdie lived his life in fear of being killed for his book The Satanic Verses and if that book could be banned, then why cant The Da Vinci Code?

Former Attorney General, Soli Sorabjee though doesnt agree with banning The Satanic Verses in the first place. He explains, "I do not agree that the ban of Satanic Verses was correct and besides what was banned was importation of the book. There was no question of banning the exhibition of the movie, if it has been passed by the Board of Film Censors. The two things are entirely different."

"When one comes to the exhibition of a movie, you are in the realm of Article 19/1A Freedom of Expression which ofcourse is not absolute but the grounds on which it is going to be restricted are specified in the Constitution. The relevant grounds would be either obscenity or immorality. Hurting the feeling of a community is not a ground on which you can ban a book or ban the exhibition of a movie."

He also does not agree with the like of Almeida and says that "someone should file an FIR and then action should be taken against him."

He explains. "In the first case, there is no law of blasphemy in the country. In the Indian Penal Code, it says that if any person deliberately, with malicious intention, publishes something, then he can be prosecuted and punished. That law is there in the Indian Penal Code as far as criminal law is concerned. When we come to the question of exhibiting a movie and censorship the relevant heads for censhorship would be what they consider immoral or indecent. The fact that youve hurt the feelings of some people is not a valid ground."

Managing Partner, Counselage, Suhel Seth puts it in a colourful manner. He says. "There are three things here. One is that Christians, who were known for their tolerance have had within themselves, some elements including people like Almeida who believe that by offering a bounty, they are holier than the church. Nicholas Almeida has brought more disrepute to the Catholic movement and to the church in India, by even offering this bounty because one would not have expected it from Christians."

"If you look at the book, it says there are three facts. It doesn’t talk about the whole book being factual. Today, there is a situation in Mumbai, where you have a gentleman who is saying he will go on a fast unto death."

He adds, "The third point that I need to raise is that, we need to stop when films like The Da Vinci Code is being screened in predominantly Christian/Catholic countries, why should India always be at the periphery of lunacy, when it comes to tolerance of creative expression?" He concludes, "This is a country, where you analyse and analyse till you paralyse."

How true! Meanwhile, a perfectly good movie is being held up because some people, for lack of better sense, are going against the tenets of the God they claim to follow. He talked about peace and justice and love for all mankind and had he lived today, may have just enjoyed the movie with a slight ironic smile like the one which plays on Mona Lisas lips!

Written for www.moneycontrol.com

Why finance is no longer male turf

Both of these high profile women bankers came to be where they are, via two very different routes. Deputy MD of ICICI Bank, Kalpana Morparia didn't even want to be there in the first place! She had no great aspirations and just wanted to be married and have kids.

She credits her mother for giving her the impetus to get an education and then take up a job because she wanted her daughter to have an independent income. So she did her BSc in chemistry and microbiology and then did law and in 1975, she found herself working for ICICI Bank.

Since then, she hasn't looked back or regretted her decision. The only regret she has, is of a very personal nature. She says, "One of the biggest disappointments that I had to come to terms with is not having children. Once you get that maturity, to accept such a severe limitation in a woman's life, I felt, if I could do that, I can just about handle any other disappointment."

On the other hand, Morparia's counterpart, Director of Kotak Mahindra Capital, Shanti Ekambaram did her schooling in Ahmedabad and came to Mumbai to attend Sydenham College. She was good at math and wanted to be a chartered accountant. She knew she was destined for a career in finance.

Both of them have given the world of finance, a more humane face. Being women has been an asset rather than a liability, as these two have successfully proved. But they also admit to working in very enabling environments.

Morparia says of her bank, "ICICI is place which gives you a lot of freedom. It really enables you to bring in all your inner creativity. It really inculcates the entrepreneurial spirit in an individual. And an entrepreneurial sprit with the backing of an organization - you can't get any better than that."

"I was also lucky to have good mentors. I have been here for 30 years now. It was a very different style of mentoring but they always created opportunities where l could grow in every opportunity that I was given."

But she does acknowledge that the fame that ICICI Bank has got for giving women such a leg up is now such a cliché! She explains, "I have been making this point at virtually every forum that I get. It's really got to do with the general neutral points. In ICICI, it does not really matter whether you are a male or a female except that we can dress better than men. But there is absolutely no discrimination at the time of recruitment, career progression, assignments or compensation."

Ekambaram agrees, "What is required in your business or your daily decision-making is a certain level of competence and I think if that's given and as long as your committed, I don't think there is too much of a difference. Yes, women do bring a certain amount of emotional quotient, EQ, which may perhaps make them more sensitive to certain situations and they may be able to handle certain situations better."

"But EQ without IQ means nothing. So at an IQ level, if that is a given, the EQ gives you an added advantage of being sensitive in certain situations and may be handling people better, or diffusing a certain situation or bringing a certain sensitivity to certain situations helps, but otherwise I don't really see too much difference."

Morparia feels because of their sensitivity, they make for better mentors as they tend to understand that people do have a life outside of the workplace and hence are more accommodating. But, she's also seen changes taking place. Now, more of her male colleagues can't make it to a meeting on a Saturday because it's their turn to babysit!

However, even if the number of women bankers are on the rise, they don’t have it any easier. They have to live up to expectations as well. Morparia agrees, "This is a world, which is driven purely by performance and no investor of mine is going to say, well you have a large proportion of women in your house. So it's okay if the first quarter numbers are not met."

Her career has thrown up many challenges. Morparia elaborates, "It has been a very varied career. I was a lawyer for 20 years of my career in ICICI. My first real big challenge came in 1996, when Mr Kamath asked me to move to treasury from law and I had never handled treasury and he also put me through corporate communications as part of that. So that was the real challenge - suddenly being thrown into doing something new."

"Another big challenge I faced, was the merger of ICICI and ICICI Bank and another one, which is now almost through, is the Dabhol settlement."

Ekambaram is all proactive and on the go. She says, "I deliver the best when I am pushed into a corner because I hate to lose. When I am pushed into a corner I think it brings out the best in me because it's all systems on wire. Your mind just thinks of 50 different things that you can win and I hate to lose."

She goes onto explain, "I have a favourite theory. I think your best competitor is yourself. You must learn to keep on beating yourself in whatever you do, only then will you excel. But the important thing in our organisation is teamplay. There is no substitute for hard ground execution, dirt under the finger nails work, and that can happen only when you have a team and you have five people in that team working towards one goal and actually delivering it."

Morparia believes, in the future, banking will see a lot of consolidation. She says, "Come 2009, when foreign banks will have an ability to make acquisitions, that's when you’ll see some serious M&A activity. The second trigger could be, if the government decides to privatize some of the public sector banks."

That’s in the future, but what’s in store for both of them, after the hurly-burly of corporate life passes them by? Ekambaram has eclectic plans for after her retirement. She says, "I want to do something different. I want to be a TV anchor. I used to anchor shows for Doordarshan in college and do radio shows for All India Radio But do something different is always that I have said. I dream of getting back to dancing. I almost became a professional dancer, I have done seven years of Bharatnatyam."

Outside work, Morparia unwinds at the movies or could be caught reading Stardust, a film gossip magazine! Sundays are for working out at the gym. Ekambaram is also a Hindi movie buff and loves old Hindi film songs and you would never guess this – cartoon movies! She thrives on Cartoon Network.

Written for www.moneycontrol.com

BPOs are waiting for another Y2K moment

Sanjeev Aggarwal and Neeraj Bhargava give a lot of leeway to their employees. Aggarwal allowed IBM Dakshs's cafetaria to be painted in eye-popping psychedelic shades of pink and yellow, when Aggarwal would have preferred a staid green.

While Bhargava had his moments of letting his hair down, at a company retreat, where he suggested everybody either do a salsa or a tango and then realised everyone didn't have the right footwear, so dinner jackets had to be rounded up in three sizes, to set just the right mood, for a night of dancing. Well, a disaster waiting to happen turned out just fine. It also proves that he and his team were not lacking in sheer ingenuity.

So taking a chance and taking risks is something both of them know a lot about. Bhargava says, "I think it starts with a sense of opportunity. When with some good people, you put a plan together. One thing leads to another, so it’s not usually grand strategizing."

"It is about where you want to be, what you want to be, and what you want to create." From being at a steady job with McKinsey & Company for 8-9 years, he felt like doing something of his own and started by running a venture fund and then got into WNS. Today, Neeraj Bhargava is the Group CEO of WNS.

He recalls, "The IT boom had just started. There were role models emerging in the form of Narayana Murthy and Azim Premji, you could see that coming and then other industries emerged, whether it was BPO or in commerce or media for that matter. The whole notion that you had to be blessed with being born in a certain family, or have access to capital, I think that just went away."

CEO of IBM Daksh, Sanjeev Aggarwal says, "The second big change is validation of India as a (BPO) destination, which I think is more relevant to export-led businesses like ourselves. But I think, you are absolutely right that the barriers to creating anything are pretty much limited by your own imagination."

"So my belief is that, this story has just begun. It’s like a pilot phase. My belief is that it has even started because we just have around 1% marketshare and there isn’t any other country, which is as well resourced as we are."

Initially, there was disbelief that something like this could be done from India. There were question marks about security, data, reliability and whether we can actually move up the value-added chain etc.

Bhargava elaborates, "What’s interesting is that customers are far more relaxed about it, than the people and the media here because in many ways this has happened in other countries. In fact, at the time when they were exposed, there were many such situations in the US, of a much bigger magnitude."

"So I think it’s all a matter of are we more visible? You will see more of this happen here but at the same time, I think you got to take this in your stride because I think I can speak for everyone in the industry - it was doubly hard being in India - to make our premises and our operations much more secure."

The BPO industry has other challenges to deal with, like the ability to transform customer businesses as opposed to managing discreet processes. Now, India has moved on from phase 1, which is the cost arbitrage game. Aggarwal admits, "Arbitrage was a good entry point, like Y2K was a good entry strategy for the IT services industry."

However, India is also poised to offer more knowledge process outsourcing, KPO, as opposed to BPO but Bhargava feels that it is not an easy business to be in. He says, "I think KPO is a part of an overall range of services you can offer from India and you will see a lot of that happen. I think like most buzzwords, it tends to generate more hype than what it is."

WNS has consistently come out on top in Nasscom's ratings and Bhargava sees it as a privilege and a good morale booster. But he does have higher goals tacked up on some softboard somewhere. He explains, "I think we are more married to the notion of numbers, we want to meet. So, we've got to grow 40% a year for five years, which is my personal goal and frankly, in this era of M&A, no one should take rankings seriously."

This sector has attracted a lot of fresh young blood and that gives them a chance to learn. When Bhargava was holed up in his office due to the floods, he made use of the time to get to know his young staff members. He feels people are overly critical of young people. He feels with the right goals, they can get a lot done.

He adds, "I basically like to have good people in my team and leave them alone to get the job done. I am a firm believer of, get good people around you, let them do their job and don’t try and second guess them. Be helpful and help them succeed."

Going forward, this industry will see a lot of consolidation acitivity. Bhargava agrees, "I think consolidation is a way of life in corporate India and it’s got to happen and I think it’s all a question of how good or bad an acquirer is. A good acquirer will know how to be sensitive to a company’s culture and find the right ways to integrate that."

"I don’t think that‘s the scary part at all. I think it's more a question of that one should still see a lot more entrepreneurial activity here. It’s been very healthy, it’s been good that companies come up. I don’t think that the entrepreneurial opportunity in the BPO industry is dead and one should keep on seeing as many companies come up as consolidation grows. We need to see more serial entrepreneurship, we need to see more initiative of that kind."

Coincidentally for Aggarwal, his passion for building a business has now become true. As for Bhargava, he loves to work hard, play with his kids, watch movies, listen to music - he's learning to enjoy rap music. Bhargava says, "I am fanatical about maintaining some balance with my family and I don’t do business dinners. I do miss out on racket sports, which I am very fond of and for which I don't get enough time."

But he admits to hating losing to his kids at Monopoly! He hates losing at anything. In his own words, he's "intensely competitive, I get really annoyed if we lose a sales deal and I am fairly paranoid and insecure guy, I don’t like losing."

On the other hand, Aggarwal is more laidback. He claims to be driven by what he "wants to achieve, which is probably not competitive, from a comparative stand point of view."

For more on WNS and IBN Daksh and the services they offer:

www.wnsgs.com and www.daksh.com

Written for www.moneycontrol.com

What Nobel laureates teach about investing in B-Schools

Fund Manager of Fidelity Fund Management, Arun Mehra studied electrical engineering and then did his MBA from the University of Chicago. He then did a stint with Motorola but wanted to work in the Indian equities market. After all, India is where he sees tremendous growth occurring over a 5-10 years period.

At the University of Chicago, he rubbed shoulders with some eminent minds - it's a school with a fair proportion of Nobel laureates including the now deceased, monetary economist, Milton Friedman. He credits those years for stoking his interest in how the markets function.

He told CNBC-TV18, "Clearly their (Nobel laureate professors) teaching is perhaps at a very high level for the PhD students. But you have constant lectures and you have a chance to interact. But it's that whole thought process which flows down, in almost every course that you do."

This is exactly the kind of intellectual stimulation that engaged his attention when he chose to check out the equity action in India. He explained, "I started trading and looking at markets when I was in college in Delhi and it was really the intellectual process - that one could uses one's mind and really invest and understand something - and see the value of that growing."

But theories and models learnt in some of the best global business schools remain just that - theories. One such theory that prevails is the myth of the markets being an efficient mechanism. So does he believe in it? He said, I think if markets were efficient, then we wouldn't have a job. I think markets are inefficient and that's where the opportunities come. However, if you think about Chicago and what they talk about is that if you have large enough companies and the information is widely disseminated, then the chances are that everybody knows what that company is about and what it's doing."

"But again, I think in a market where different people have different kinds of thought processes and view things differently, that's where the opportunities come and markets are clearly inefficient and valuations keep swinging to extremes."

The Beginning....

The MBA did give him skills apart from textbook knowledge, which he put to use when he began work as an analyst at Fidelity. He recalled, "Coming out of college, it (Fidelity) was clearly the shining light - a brand that you wanted to be associated with, if you wanted to work in this industry."

"The interviewing process is really rigorous. You have several rounds of interviews. You start with 1-2 rounds of interviews where you meet people and based on that, you actually go through the third round, which is a critical round. This is called a prospectus-test round."

He explained, "What you have to do is, you are given a company and you are supposed to do work on it, write up something, do some modelling and then come up a investment thesis. You have to present this report to a committee of fund managers and analysts within the day. After this, is the interactive session."

Mehta obviously made it through those grueling rounds and chose to work in international equities. He chose this specialization because "I had been in the US and was learning about the markets. I clearly saw that the global market was the place to be. One had to be international. The US market was there but there were a lot more opportunities outside of the US and clearly that is where the inefficiencies were. That is where research was not being done properly. So I really want to look at the entire globe and look at different parts of the world."

He was sent to Hong Kong which was in the midst of the handover to the Chinese and there was concern that once China took over, it would be the end of Hong Kong. But that never happened.

He recalled, "But then, there was the Asian crisis. I was coming out of college and getting into this profession which was hitting the bear market, which is perhaps one of the best experiences you can get. What I had learned is that, a bear market really teaches you all about investing."

"In this scenario, companies disappeared, brokers, dwindled, there was no interest in Asian equities and all you had to do at that point in time was, go out and do research and just spend time visiting companies, understanding which company is going to survive. And, the most critical part was understanding the balance sheet, because the companies that had a balance sheet, had the capability to survive."

His research supported his optimism about the virgin equity markets that was Asia, particularly India. He did see a lot of opportunities that were in favour of the Asian continent, like demographics and the fact that these countries were evolving along the same pattern as the developed countries.

Want to work with Fidelity? See if you can match up!

-To start with, there are 1-2 interviews
-Then comes a prospectus-test round - where you are given a company on which you write up an investment analysis.
-Present the analysis to a committee of fund managers and analysts at the end of the day.
-Then comes the interactive session.

With regard to India, the market was developing. The trading systems were being put in place. Some clearly emerging sectors were IT and pharmaceuticals and these weren't very well developed then. So as Mehra put it, "clearly at that point, there was no pull but the opportunities were immense."

Having witnessed a bear market in Asia and in Europe, the learning process continued for him. He said, "I think the very fact that at Fidelity, we stick to fundamentals, we stick to numbers and we stick to discipline. That really helped identify a business model that we made money in."

Investing philosophy

So these developments gave him an insight, on which to base his own investing philosophy. He explained, "As far as I am concerned the basic process is clearly the same (as Fidelity's). I focus on companies, on managements and try and understand their business models. But clearly, most of the money is made when you differ with the street. That's really the way to make a lot of money - when you use your original thinking to do something, which you think is right."

The contrarian investor has to go against the flow, which can be a lonely feeling. He explained, "If you look at the companies and if you think about how investors think, the worst times in a market are when nobody really knows what's going on and it's generally during those times when you have to take the tough call and make a decision, because you see value in the company, in a brand or a franchise, which is just down for no reason."

But he does look at other parameters as well while investing. He said, "We (Fidelity) look at a management's track record and disclosures and their commitment to minority shareholders. We are looking at business models and at franchises. I really want to see the sustainability of the business model. At the end, you come down to valuations and numbers, and then try to put the whole thing together."

"I also spend a lot of time in cross-checking with customers, suppliers, competitors, over and above what the company is saying, to get a holistic picture on the company." He also sets store on diversifying his portfolio but doesn't include too many new companies because he would prefer to keep the risk element low and stick with the consistent performers.

He explained, "When you are buying good companies, then that's really where the overall portfolio performance will come through. However, your bets and the conviction that you have, is really stacked up in those top 10-15 holdings, which give you the data every year."

"In this (equity investing) business, the simpler the business, the easier it is to understand and the more money you can make out of it. So clearly, that is the focus. You have to drill down to the basics, to the key variables that are going to drive earnings and performance."

Mehra's agenda is to have a long-term investment horizon with a record of consistent performance. That's what he emphasizes to Fidelity's customers as well. He aims to "spot winners and pick stocks, that will generate value over the long run and that's what we really want to own in the portfolio."

The India story

The demographics, the return on capital and the quality of management are factors in favour of India being a better bet than China. Higher disposable incomes, companies going global and if infrastructure was strengthened, then India will be an unbeatable package!

Mehra has studied over 400 companies but he's learnt not to be complacent because there is always some new company which pops up, which excites his interest. He feels India could become a stock pickers paradise.

But he elaborated, "The main thing is that the Indian companies know how to make money. Indian managements know how to make money. These are not high capital intensive businesses. These are high cash-generative business and services oriented. There is the mentality of turning out more from an asset. Indians are entrepreneurs but they have been shackled and if you let them free, these companies can grow and make a lot more money. I think that is a big difference between India and China."

He does intend to put his money where his mouth is, and has plans to build a big business In India. He said, "If you look at our overall India exposure today, Fidelity has close to $3 billion invested in India. We are clearly one of the top FIIs. We have raised close to $330 million. I think over time, we want to have a share of the consumers' wallet."

"We clearly have a missing product in cash and in fixed-income but I think over time, we want to build a big business. India is a strategic market for Fidelity and that is really where we are focused. We want do what is right for the investor."

Written for www.moneycontrol.com