AIMK Speaks (Vol. 1 - October 2012)

For the first issue of “AIMKspeaks”, we chose MARICO for our “THE DOCKET” section which is primarily the main story of this edition. Marico - a leading Indian

Consumer Products and Services company in beauty and wellness and FMCG sector is based in the heart of Mumbai. Marico reaches the lives of nearly 1 out of

every 3 Indians and its brands stretch across over 25 countries. Striving to be a market leader, a strategy that proved well for Marico, it has created a dominating

presence in both Asia and North Africa.

Marico grew at a tremendous rate of 26% of the last fiscal year. Hair oils, a large portion of company, grew 24% from FY11 and Saffola Oil 11% from FY11. Marico

has a large amount of rural consumers, so Marico is adapting its packaging, distribution, and advertising channels to take full reign of this

opportunity. The vibrant Mr. Harsh Mariwala, Chairman & Managing Director of Marico Ltd, turned the once commodity based company

into branded business. Now its flagship brands include Parachute Coconut Oil. Parachute has branched into its extensions,

Parachute Advansed. Saffola, Kaya Skin Clinic, Nihar, Revive, and and Mediker are also significant brands under Marico.

Saffola, known for its heart healthy oil, recently launched salts, oats, and fortified rice.

Marico has immense growth potential, not only because of its ubiquitous products, but also because of its

marketing strategies and more importantly, Marico's continuous drive for innovation. Two things on Harsh

Mariwala's mind are growth and innovation, and this resonates within the company and its brands. When

asked how Marico was able to beat the economic downturn, Mariwala responded, “I think it's a continuous

process wherein we demand each and every brand and business to have growth.” Similarly, Mariwala

stresses the importance of innovation and his name is synonymous with it. His enthusiasm for innovation led

him to establish the Marico Innovation Foundation in 2003. This passion for innovating has created revolutionary

brands under the Marico belt.

The company just recently acquired Paras Pharmaceuticals Ltd, a deal that might give Marico the advantage over its competitors, Godrej and Hindustani

Unilever.

“From cooking oil with 'LoSorb Technology', to rice that keeps you active, personalised skinscription services and hair oil that comes with a battery-powered head

massager, Marico believes that it pays to think differently. At our offices, everyone is a member, not an employee. We have a flat organisational structure, with

just five levels between the Managing Director and the shop floor operator. We believe in transforming the lives of all stakeholders be it our suppliers, farmers,

distributors or shareholders by helping them maximise their true potential and it truly articulates the true Mariconian spirit – to be more. Every day.”

October, 2012 VOL. I

CONTENTS

Formerly known as “NAZARIYA”, Army Institute of Management , Kolkata proudly

presents its monthly newspaper “AIMKSPEAKS.” Through this revamped look of the

newspaper , our endeavour is to keep the readers aware and informed about what is

happening in the businessworld , current important issues and also the campus.

Each month in our cover story we highlight one particular company, scrutinizing each and

every aspect of the company’s current status with the help of our clubs-Vikreta, Sampark,

Kuber and Awaaz.

Other features include “The Viewpoint” where we discuss about an issue that has been on

the news lately and of course campus news

We hope that we will be successful in creating awareness amongst our students.

P.S: Please give us your feedback at [email protected]

Product portfolio –pg. 2

Communication strategy-pg.4

Human Resources-pg.5

Financial Report –pg.6

Performance Highlights-pg.7

Supply Chain –pg. 7

Distribution –pg. 8

CSR- pg. 9

Key –pg.9

Brain Teasers – pg.11

Campus News – pg.12

FDI-The current

status– pg.14

Revive was launched in 1993 and

is another Marico product that

created a market where none

existed. Revive Powder gave

consumers the convenience of an

instant cold water starch at home.

Revive Powder

Revive Liquid

At Kaya Skin Clinic, our primary

emphasis is to place the customer first

and offer world-class skincare solutions

customized to an individual‟s skin.

Today, the services-led business arm of

Marico has grown to 82 clinics in 26

cities across India.

“Parachute Advansed stands for care and nurturance; and tries to fulfill the needs of its myriad

consumers through various offerings in the portfolio.”

Parachute Advansed Coconut Hair Oil Parachute Advansed Hot Oil Parachute Advansed Scalp Therapie Parachute Advansed Jasmine Hair Oil Parachute Advansed Cooling Oil Parachute Aftershower Parachute Advansed Starz

PORTFOLIO

1

.)

2

.)

“A market leader in its category and one of our oldest brands, Parachute

coconut oil today stands for purity and quality.

Parachute enjoys enormous loyalty in urban, semi-urban and rural sectors “

3

.)

PORTFOLIO Nihar Naturals Perfumed Coconut Hair Oil

1. Rose 2. Jasmine

Nihar Shanti Amla Hair Oil

Nihar Naturals Almond hair oil

Nihar Naturals Cooling oil

“Nihar Naturals hair oils range offers quality solutions for different hair care needs of the women of today.”

4

.)

5

.)

PRODUCT PORTFOLIO

Saffola comes with

'LoSorb Technology', due to which oil gets

absorbed less, reducing oil consumption in

your diet. Saffola oils are „Free of trans fats‟.

“Saffola is a heart care brand

in the foods category in India.

It has several products in its

portfolio which include edible

oils, functional foods, rice and

salt.”

1

Saffola Arise Basmati Gold:

“The grains are aged along with rice bran

and husk, and when cooked, separate and

do not stick. Its lower glycemic index allows

the rice to be digested slower, which keeps

one feeling light after consumption.”

Saffola arise comes in 3 variants:

Everyday

Premium Grain

Basmati Gold

Saffola Salt Plus:

contains lower sodium levels, as compared

to common salts and a greater level of

potassium. Low sodium levels assist in

managing high blood pressure.

Saffola Oats:

The 100% natural, wholegrain oats are a

great source of soluble fibre, which helps

to reduce cholesterol and keeps your heart

strong. Saffola Oats also keeps you feeling

full for longer, thus reducing hunger pangs

and unhealthy snacking.

Saffola Cholesterol Management Atta Mix:

It is a specialized functional food from

Saffola. The atta mix is a 100% natural,

vegetarian mix of ingredients like soya, oats,

barley, maize and psyllium husk.

6

.)1 3

2

4

5

7

.) MEDIKER Mediker Anti-Lice Treatment has transformed lice removal into a

painless activity, replacing the traditionally-painful lice comb with a

wash-off format. Mediker contains actives such as neem, camphor

and sitaphal extracts.

It was acquired by Marico in 1999 from Procter & Gamble.

Mediker is also available in an Oil format, for those who prefer

using an oil in their regular regime. It contains coconut oil, in

addition to neem and camphor.

NEWEST ACQUISITIONS:

Personal care business from Reckitt

Benckiser.

NEWEST LAUNCH:

Saffola Muesli

24th September,2012.

PRODUCT PORTFOLIO

Saffola‟s communication shift over the years Source: Economic Times Much before organic food and healthy living caught the fancy of Indians,

the Bombay Oil Industries launched Saffola, a healthy cooking oil, in the early

1960s. Positioned explicitly as being good for the heart, Saffola grabbed

consumer attention with its dramatic communication. Clarion Advertising

launched the brand and the early ads created a rather terrifying scenario of a

man being wheeled into a hospital on a stretcher with the wailing of

ambulance sirens in the background. A distressed wife looking on sought to

reinforce the message that food cooked in Saffola could save your life - and

your family.

The cooking oil market in the 1960s was largely disorganised, with a very

large loose oil segment. It was against this backdrop that Saffola was

launched on the platform of being 'Healthy for the Heart'. There was no other

brand offering this benefit and hence there was no direct competition from

within the category. While this message clearly connected with people who

had heart trouble - or those who feared it - it also alienated those who were

confident they could never have a heart attack. The big challenge was to

carve out a niche among the health-conscious. It was a Herculean challenge

at that time, but the brand was ready to ride the long haul.

In the 90s when Grey handled the brand, and by which time the consumer

products division of Bombay Oil was spun off into Marico, communication for

Saffola transformed - from being a product for those with heart trouble into a

brand that everyone who aims for a healthy lifestyle should adopt. "Heart

patients were a shrinking group and there was an obvious need to change this

perception," says a senior professional from the agency working on the

brand.

More than 50 years since the brand was launched, "Saffola today is not just a

brand but a way of life. Today a lot more people are conscious of their health;

they make an effort to read information on the back of the pack and general

awareness levels have gone up massively," says Sameer Satpathy, EVP

&marketing head, consumer products, Marico. Satpathy adds that today in

any health related conversation Saffola definitely makes an appearance. This

positive rub-off has helped the parent brand extend into categories like salt,

oats, rice and atta on the health platform.

As the momentum for the brand grew Marico started an initiative called

Saffolalife.com, a service focused on the health and nutrition aspects of

preventive healthcare. It seeks to impart accurate, credible and expert led

information. Saffolalife is handled by an entirely different team that has its

own ways of spreading the word.

The brand is today the second largest in the Marico stable with revenues of

more than `500 crore. In 2004, McCann Erickson was handed the creative

duties and since then the brand has been at the forefront of a number of

creative innovations. Campaigns with old Hindi melodies like 'Abhi toh yeh

jawan hai', 'Kal se re' and 'Babu samjho ishare' coupled with interesting

creative concepts helped showcase the versatility of Saffola. Saffola's media

partner Madison Media also broke through clutter when 30 minutes of regular

programming was stopped on six radio stations in September 2009 on World

Heart Day; replacing music for that time span was the monotonous sound of a

beating heart to create a stunning effect.

Be it the team marketing Saffola or the Saffolalife team, Saffola has managed

to create occasions across the year to reiterate the brand promise. "Such has

been the goodwill of the brand that a number of partners have joined us to do

initiatives free of cost. When we did the 'Heart Age Finder' a number of

hospitals came on board. We have done initiatives like free cholesterol tests

etc with the help of hospitals/diagnostic centers," says Satpathy.

From an era when creating awareness was difficult to an era where every

brand is talking the same language, Saffola has exploited its early mover

advantage to the hilt. "Saffola has been a brand ahead of its time and it has

waited its turn... This equity has been built on a lot of rigour, it was not gut,"

explains Loveleen Raina, SVP & GM, McCann Erickson Mumbai.

Brand Product Category

Campaign Background Target Audience

Proposition/ Message Channel/ Medium

Tone

Saffola Cooling Oil, Rice, Oats,

Salt, Nutrition Management

Dil Jawaan Toh Zindagi Aalishaan

With an aging body, the heart also grows old. Heart diseases are on the rise when it comes to middle aged persons. Saffola is Marico‟s heart care brand in the food

category that helps keep her at problems at bay. The “Dil Jawaan Toh Zindagi

Aalishaan” campaign is for the entire range of Saffola products.

Middle Aged

Adults; 30+ years;

Men, Women

The brand‟s proposition, “Dil Jawaan Toh Zindagi Aalishaan”,

conveys that if you have a healthy and young heart, you

can have a great life irrespective of your age.

TV, Print, OOH, Radio, Social Media

Light-Hearted,

Energetic, Happy Go

Lucky

Mediker Anti-lice shampoo

and oil

Ab bachpan 100%

natural

Mediker is a specialist brand from Marico. It is an Anti-Lice shampoo and oil. This brand is a classic example of a Niche brand. The main objective behind all their communication was to reach the consumers as an effective, painless and

gentle solution for lice attack.

Children and adult

having the problem of lice.

Initially the brand mainly focussed on conveying the

effective & painless feature in its communication. But eventually, the focus shifted to the “gentle” aspect of it. Hence, the tagline

shifted from „Sunday to Sunday‟ to „ab bachpan 100% natural'

TV, Print, OOH, Radio

Light Hearted, Innocent

Parachute Coconut Oil - Parachute is the flagship brand of Marico. It has more than 50% of market share. Now there is no campaign going

on, because of maximum awareness. Parachute has taken to brand extension

with Parachute Advansed, which has numerous products under its umbrella.

Women (all age

group)

- Website -

COMMUNICATION STRATEGY

HR POLICIES

Personnel Policies

The organisation believes in investing people to develop and expand their capability.

Marico‟s strategies are based inter alia, on processes of continuous learning and improvement.

Personal development plans focus upon how each individual‟s strengths can be best leveraged so help each one to deliver to his/her full potential.

External training programs and cross-functional exposure often provide the extra edge.

Brand Product Category

Campaign Background Target Audience

Proposition/ Message Channel/ Medium

Tone

Parachute Advansed

Cosmetics, Toiletries, Personal

care

Khubsoorathai

Badhna, World‟s best

Hair

Parachute Advansed stands for care and nurturance; and tries to fulfil the needs of

its myriad consumers through various offerings in the portfolio. As it has a lot of loyal customers from decades, who have

a deep trust on Parachute as just a simple coconut oil.

Urban Men and Women

Parachute Advance has approached with total hair

therapy from Hair fall to Hair Conditioning. With its new R&D

and Knowledge Centre. It states that, People using Parachute

Advance has the “World‟s Best Hair”, proved by Scientific

Research.

TV, Print, OOH

Light Hearted, Caring

Kaya Skin Solutions

Services-led Business

Love What You See

Today, the services-led business arm of Marico has grown to 82 clinics in 26 cities across India, 19 clinics in the

Middle East and 2 clinics in Bangladesh. Its recent campaign consists of

Signature therapies, which will make your skin beautiful and radiant. Print

media consist of Offers and discounts with launch of new techniques used by

them.

Urban Men and Women

Kaya understand everyone‟s beauty aspirations. Whether young or old, man or woman,

dusky or fair, everybody wants to look their best. “She could be

you. Here‟s her secret – Kaya Skin Clinic”.

TV, Print, Radio

Informative

Nihar Naturals

Diversified range of hair

oils

Chhotte Kadam

Pragati Ki Aur

Nihar Naturals hair oils range offers quality solution for different hair care needs of the women. It is the market

leader in East India

Women The campaigns features brand ambassador Vidya Balan to

portray how Nihar Naturals is empowering today‟s women to

enable progress in society through small steps. It was to

further establish Nihar Naturals‟ role as a facilitator for Indian

women.

TV, Print, OOH, Radio, Social Media

Emotional, Touching

Revive Instant Starch

Kadak Revive was launched in 1993 and is a product that created a market where no one exists. The real challenge for Revive came when Jyothi Lab launched Stiff & Shine. But Marico reacted very fast to the challenge posed by Stiff & Shine.

Women The brand‟s proposition, “Ab Har Kona Kadak” focuses on

three main attributes in its campaign – Instant starch

(convenience), better stiffness for clothes and no patches

claiming that clothes that are well ironed and shining will earn

you self-respect and social acceptance.

TV, Radio, Print

Problem to Solution,

Sad to Happy

COMMUNICATION STRATEGY

HUMAN RESOURCES

TRENDS

A strong referral mechanism operates under the brand name of 'TAREEF'

(Talent Referred by Mariconians).

Marico has a process of performance enhancement through deployment of MBR

(Management By Results) to create an environment of challenge and stretch.

In line with our philosophy of valuing internal talent first, a structured internal job

posting mechanism, MINTOS (Marico Internal

Talent Opportunity Scheme) is in place.

To build this consciousness and commitment, 'Values Workshops' are held for

teams to identify their focus areas and plan actions accordingly.

X-MEM MARICO HR is a group of people who currently work or have worked at some

time in the past with the HR function of Marico Limited. The Group exchanges HR Best

Practices, through Benchmarking and other Collaboration between Marico and the

present employers of members. It also manages “knowledge” through common

databases of talent and “stories‟ of how Marico handled specific challenges in the

past.

AWARDS & RECOGNITIONS

1. Kaya Ltd won the Asia Best Employer Brand Award for

“Excellence in Training” 2011

2. Best Motivational Practice award by AIMA and IOCL 2010

3. Economic Times Smart Workplace Award 2008

4. India‟s Employer of Choice award 2007

5. HR Excellence award 2005

6. Award for the Best Employer in the consumer products

and healthcare sector

7. Best Employer Branding of the Year 2007

8. Outstanding Achievement Award for “Best HR Practices”

2005

-BY VIKRETA (MARKETING CLUB)

-BY SAMPARK (HR CLUB)

The Indian Fast Moving Consumer Goods (FMCG) sector is booming from last

several years and given steady returns to its investors despite slowdown in

the economy. The India Brand Equity Foundation (IBEF) estimates a total

market size in excess of US$13.1 billion for FMCG industry in 2012. The top

companies of this sector are HUL, Marico, Procter & Gamble, Gillette, etc.

During 2011-12, Marico recorded a turnover of Rs. 40.0 billion (~USD 727

Million) through its products and services sold in India and 25 other countries

in Asia and Africa. The chief contributors towards this growth were:

• Equity of Marico’s brands that provided sufficient pricing power

• Steady growth in the coconut oils market

• Share gain in value added hair oils

• Expansion in Saffola’s franchise

• Performance of new products

ACQUISITIONS AND DIVESTMENTS:

MARICO DIVESTS SWEEKAR:- the sale of Sweekar will enhance

overall profit margins of the company and free cash for use in more

profitable businesses. While the sale of Sweekar is in-line with

Marico’s strategy of rationalising its low-margin businesses and will

free up cash for deployment in other businesses. Analysts believe this

may have some impact on volume growth and margins.

ACQUISITION OF PARAS BY MARICO: - By acquiring the personal

care portfolio of Paras Pharmaceuticals from current owner Reckitt

Benckiser, the Harsh-Mariwala-promoted company has attempted to

fill crucial gaps in its portfolio. In the process, it has extended its

presence well beyond hair oils, hair treatment and soaps into skin

creams (Borosoft, Recova), lip balms (Dr Lips), hair gels (Set wet),

hair serums (Livon) and deodorants (Zatak). The 600 crore acquisition

has helped Marico to reduce its dependency on core brands

Parachute and Saffola, and emerging as a more well-rounded

company that has more brands to play around with.

KEY FINANCIAL RATIOS:

A liquidity position is used to determine a company's ability to pay off

its short-terms debts obligations. Generally, higher the ratio, larger the

margin of safety that the company possesses to cover short-term debts. In

case of Marico the current ratio is good except in the year March 2011. The

company is having quick liquidity position more than the standard which

means there is a chance that the funds are lying idle and tied up in quick

assets. The debt has been decreased with respect to equity. So we can

conclude that liquidity position is strong.

Profitability ratios are used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well. Net profit ratio is used to measure the overall profitability. The ratio is very useful as if the net profit is not sufficient, the firm shall not be able to achieve a satisfactory return on its investment. This ratio also indicates the firm's capacity to face adverse economic conditions such as price competition, low demand, etc. Marico’s net profit ratio has increased in the year 2010 and then continued to increase in 2011 and there is slight fall in 2012.

EPS is the portion of a company's profit allocated to each outstanding share of common stock. In case of Marico, the EPS has increased from 2008- 2012.

ROCE should always be higher than the rate at which the company borrows; otherwise any increase in borrowing will reduce shareholders' earnings. The ROCE decreased from 2009-11 but from 2011 we can see a rise.

RONW is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. In FY 2010-11 the RONW was 41.8% but it has decreased in 2011-12 to 36.5%.This indicates that in 2010-11 performance by the firm's management was comparatively better than 2011-12.

-BY KUBER (FINANCE CLUB)

1,18,266.00 22,347.51

22,143.81

13,226.03

7,761.85 7,679.07

Market Capitalisation

HUL

Godrej Consumers

Dabur India

Marico

P&G

Emami

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2008 2009 2010 2011 2012

LIQUIDITY

current ratio

quick ratio

debt equity ratio

FINANCIAL ANALYSIS Page FINANCIAL ANALYSIS

0

10

20

30

40

50

60

2008 2009 2010 2011 2012

PROFITABLITY

net profit

ROCE

RONW

EPS

SHARE PERFORMANCE ON STOCK EXCHANGE

For 1QFY2013 (first quarter, financial year 2012-2013), Marico posted a 21.7% YOY growth in its consolidated net sales to Rs.1,267cr, aided by a robust volume growth. The operating margin for the quarter rose by 257bp YOY to 14.6%. The growth in the OPM* was led by a healthy 656bp expansion in gross margin to 49.4%. The improvement in margins was due to lower copra prices, a major raw material in the manufacture of coconut oil. The adjusted profit for the quarter grew by 45.7% YOY to Rs.124cr.

Key highlights during the quarter:

The overall volume growth for the quarter stood at 14%. Volume growth in the consumer products business in India stood at ~16%, with Parachute(rigid packs) reporting ~18% YOY volume growth and Saffola’s (refined edible oil) volume growing by ~12% YOY. The company’s volume market share in

the branded coconut oil segment in India (represented by Parachute and Nihar) stood at 56.5% for 1QFY2013 (vs. 53.1% in 1QFY2012). Saffola has maintained its leadership position in the super premium refined edible oils segment with a market share of 58.3% for 1QFY2013 (vs. 53.3% in 1QFY2012). The international business (IBG) grew by ~17% YOY during the quarter. However, organic growth for the IBG segment stood at a mere ~3% YOY, with the remaining 14% YOY growth coming on account of forex gain.

Outlook and valuation:

Going ahead, we expect Marico to post a healthy growth in the domestic business aided by its strong brands. The recent acquisitions made by the company too are expected to fuel growth in the future.

Eyeing acquisitions in beauty and wellness sector to strengthen presence:

Marico has stated that beauty and wellness sector will be the key growth driver in the next few years and it is eyeing buyouts in these segments.

Marico Chairman and Managing Director Harsh Mariwala said, “Beauty and wellness will be main categories to drive growth for the company. Any acquisitions we do, will be in these areas. We are open to inorganic expansion. Acquisitions will be made whenever there are right opportunities.”

While speaking on the sidelines of an event here, Mariwala stated that the company is ready to acquire to strengthen its presence in the beauty and wellness categories. The firm is eyeing to boost presence in the emerging markets of Asia and Africa.

In February 2012, Marico forayed into a pact with Reckitt Benckiser to purchase the personal care business of Paras Pharmaceuticals.

In April last year, Reckitt bought both pharmaceuticals and personal care business of Paras Pharmaceuticals for Rs 3,260 crore

To use Paras' Set Wet, Zatak and Livon to target youth market:

Marico wants to piggyback on Paras' portfolio to attract the youth. Two months ago, Marico had completed the acquisition of the Ahmedabad-based company's personal care portfolio from Reckitt Benckiser.

Marico will use Paras' brands such as Set Wet, Zatak and Livon to focus on high-growth, high-margin segments such as deodorants and hair gels. Marico's traditional portfolio of hair and edible oils, in comparison, is relatively well penetrated.

The company with 6 factories & about 1000 employers, currently has 9 brands, produces 125 SKU's with its 15 subcontracting manufacturers, selling through 3500 distributors to 1.6 million retail outlets. Thus it becomes crucial for the company to have an efficient supply chain management. With the increase in competition & product mix the company faced tremendous challenge in maintaining the same service levels which resulted in stock out, rising inventory, inaccurate forecast, delays in response to market requirement causing dissatisfied customers. To overcome this, the company

implemented my sap SCM across all locations in a big bang way. The implementation started in 1999 and was completed in 2 years’ time. The result was improved forecasting, reduced forecast cycle from 30 days to 15 days, enhanced decision making, decreased stock outs, reduced lost sales, low inventory and improved customer satisfaction. In future the company plans to implement mySAP VMI (vendor managed inventory) which will link the distributors to companies system thus further reducing the forecasting cycle to 10 days leading to further boost to Marico’s top & bottom line.

Marico performance comparison with competitors on BSE as on Sep 21, 2012

Company Current Price Change (%Chg) TODAY 52 WEEK Volume EPS PE

Low / High Low / High

Marico Ltd. 194.4 2.45 (1.27%) 188.50 / 197.40 134.10 / 208.95 36529 37.23 5.22

Colgate-Palmolive (India) Ltd. 1190.9 -5.00 (-0.41%) 1,180.00 / 1,208.95 932.00 / 1,264.00 15267 36.27 32.83

Dabur India Ltd. 125.1 1.25 (1.00%) 123.50 / 127.05 92.05 / 132.05 131839 47.07 2.66

Emami Ltd. 499.55 -2.85 (-0.56%) 496.05 / 511.75 320.75 / 557.65 4471 29.43 16.97

Gillette India Ltd. 2124.9 -4.10 (-0.19%) 2,110.00 / 2,165.85 1,771.15 / 2,624.35 579 91.43 23.24

Godrej Consumer Products Ltd. 658 -2.25 (-0.34%) 657.00 / 672.00 370.00 / 701.90 6386 37.05 17.76

Hindustan Unilever Ltd. 529.55 1.80 (0.34%) 528.25 / 536.55 318.80 / 554.35 115300 42.54 12.45

Procter & Gamble Hygiene & Healthcare Ltd. 2372.4 -6.75 (-0.28%) 2,363.00 / 2,398.00 1,600.00 / 2,499.00 209 42.48 55.85

PERFORMANCE HIGHLIGHTS

SUPPLY CHAIN

Marico instituted its CSR initiative in March, 2003 by forming the Marico Innovation Foundation with a single mission - to fuel innovation in India. The

aim is to put India on the global map by leveraging Indian knowledge and know-how. This foundation gives a platform to the management intellects

showcase successful innovations and thus propagate and encourage a culture of innovation, the Foundation has institutionalised 'Innovation for

India Awards' for Business and Social Innovation. Based on the criteria of uniqueness, impact and scalability, 'India's Best Innovations' are declared

at these Awards. These include projects and businesses that make a real difference to the country and community at large. Over the last 3 years, 23

such innovators have been recognized at the Innovation for India Awards.

3

Marico's distribution width and penetration is acknowledged as one of the best in the industry and is a leverage able strength. Every month, 56 million consumer packs are sold to about 1.8 million households through 1.6 million retail outlets spread across the country. Marico's distribution network covers almost every Indian town with a population of over 20,000. The chart below depicts Marico's distribution network in the urban & rural markets: Thus, 1 out of every 3 Indians is a Marico consumer. Distribution Alliance: Marico’s distribution strength has been recognized by Indo Nissin Foods Ltd. through their association with it for the distribution of Top Ramen products on a national basis. Rural Sales & Distribution: Marico's parallel rural sales and distribution network ranks among the top three in the industry and contributes 24% to the company's topline. Their infrastructure comprises 882 direct distributors, 153 super distributors, catering to 2393 small stockists and 4523 van markets. A dedicated team of Territory Sales Executives and Pilot Sales Representatives distribute Marico's as well as alliance brands through this vibrant network. Sales Capacity: They have made significant progress in the areas that enhance sales capacity. Quality of our distributors Quality and number of the distributor field force Upgradation in the role of the company's front-line sales force. Technology (IT) in Sales: Marico has been making investments in IT to ensure:

Supply Chain efficiencies.

Availability of the SKU at the right distributor point, at the right time in right quantities.

Timely availability and reliability of SalesMIS, which help in taking prudent decisions on a real time basis.

In order to reap maximum benefits from its sales and distribution network, Marico embarked on an internet-enabled application - MI-Net - to establish a network between Marico and its distributors through a web interface. This

project is aimed at providing real time information on the status of various business operations between Marico and its distributors. This initiative is expected to provide business benefits in the form of increased penetration by the sales force, reduced communication costs, reduced working capital requirements, etc. The project went live on April 1, 2002 with connectivity to 330 urban distributors, who together account for about 3/4th of Marico's domestic turnover. The business benefits are expected to accrue over a period of time.

"A good company delivers excellent products and services, and a great company does all that and strives to make the world a better place."

In today’s world, Marico believes in promoting conscious capitalism, gives prominence to CSR and acknowledges that it is an important step towards

fulfilling its purpose. Through various initiatives and activities undertaken by Marico,across all its locations, it contributes towards a better society for

our future generations to live in.

DISTRIBUTION

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Innovation for India

Award Criteria

1

.RURAL DEVELOPMENT

Marico has been promoting the usage of Coconut Climbing Machines among farmers in Kerala and Tamil Nadu to improve their productivity and to ensure the safety of farmers. To encourage this cause more, Tree climbing machines are also distributed free of cost in association with the Coconut Development Board andan Accident Insurance of Rupees One Lac by Marico.

Inaddition, Marico's 14 member team visits around 200 farmers every month for field surveys and addresses preliminary queries on coconut farming.Not only this, Marico also provides rate of guarantee and technical guidance to the farmers of Safflower in Rajasthan & Maharashtra, through out the crop cycle.

Around 2600 farmer families have got benefited from these initiatives.

2

GIVE INDIA

Marico has implemented a Payroll Giving Program for its members through GIVE INDIA, which is a non-profit organization dedicated to raisingfunds for good NGOs.

Payroll Giving is a system where members can voluntarily donate a small part of their salary, every month, to a causeof their choice.

Give India ensures that every donor gets feedback on how his or her money has been utilized. Marico donates Rs.200 on the member's behalf which getsadded to the contribution the member makes every month.

4

EDUCATION & TRAINING

Education is an important issue in our country which requires catalysts to drive the cause.Access to schools is limited and inadequate staff,

limited classes and poor infrastructure act as deterrents. Keeping this in mind, Marico has donated books and study material at various local

government schools and sponsored scholarships to meritorious students in rural areas, summer camps for the local school children,

coaching camps for the talented children as well as workshops on safety for all.Not only this, Marico has also come with its latest campaign

all across India for empowering the younger generation.

Nihar Naturals along with CRY has recently launched its “Chhotte Kadam Pragati ki Aur” campaign on 1st September, 2012. This campaign

provides a platform for the revolutionary women to take various small steps that will help in educating the underprivileged children and

improving their future.

As a part of the initiative, every time a person chooses to buy a bottle of Nihar Shanti Amla, 2% of all proceeds will be contributed to the cause

of children's education in partnership with CRY India. The products may change every month. This campaign has succeeded in the villages of

Rajasthan, Uttar Pradesh, Madhya Pradesh, and Mirzapur.

Nihar Naturals inspires every revolutionary woman across India to do her bit for children's education and we as management students truly

believe in this noble initiative. Hence we would encourage you all to put in your contribution to strengthen this movement which will bring in

success and a smile on many children’s faces.

“A simple step towards changing your

hair oil to Nihar Naturals leads to a

small but meaningful contribution to

society.”

CORPORATE SOCIAL RESPONSIBILITY (CSR)

KEY

-AWAAZ CLUB

Return on Capital Employed (ROCE):

A ratio that indicates the efficiency and profitability of a company's capital investments.

Calculated as:

Divestments: The process of selling an asset. Also known as divestiture, it is made for either financial or social goals. Divestment is the

opposite of investment.

Volume growth : Volume growth is the growth in physical volume of sales.

Earnings Per Share - EPS The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability. Calculated as:

Price-Earnings Ratio - P/E Ratio

A valuation ratio of a company's current share price compared to its per-share earnings. Calculated As : Market Value per Share Earnings per Share (EPS)

Positioning

In marketing, positioning is the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.

Target audience

Particular group of people, identified as the intended recipient of an advertisement or message. Also called target group

Brand extension

A marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different

product category. The new product is called a spin-off.

inter alia (in-tur eh-lee-ah)

Latin for "among other things."

A cross-functional team is a group of people with different functional expertise working toward a common goal.[1] It may include

people from finance, marketing, operations, and human resources departments. Typically, it includes employees from all levels

of an organization. Members may also come from outside an organization (in particular, from suppliers, key customers, or

consultants).

Acquisition

A corporate action in which a company buys most, if not all, of the target company's ownership stakes in order to assume control of the target firm. Acquisitions are often made as part of a company's growth strategy whereby it is more beneficial to take over an existing firm's operations and niche compared to expanding on its own.

Supply chain management (SCM)

the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

SKU

SKUs or stock keeping units of a product in very simple terms are the different size/variant/price combinations in which the product is available in the market.For example : the different SKU s of Coke are ,

Corporate social responsibility

(CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business/ Responsible Business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders.

.

KEY

ACROSS:

1.A video calling app.

2.A brand of vehicles produced by

Toyota.

4.India’s leading tyre brand.

6.It was initially called “Imperial

Tobacco Company of India

Limited.”

TIP OF THE MONTH: Advanced Excel – How to compute internal rate of return (IRR).

IRR is a function that takes a series of cash flows and works out the effective rate of return if they were to be annually invested.

Let's take a look.

Here's an example of an IRR function call:

IRR is easiest explained with a bond example.

In this example, there are 4 cash flows at time 0 (today), I pay 100 for a bond (a negative number means you pay out money... positive means you receive) at years 1 and 2, the bond pays me 10 at maturity, it pays back the 100, and also 10.

The technical name for this is: a 3 year 10% coupon bond trading at par. If you insert an IRR function call and input the cash flows, it returns 10%. The syntax for IRR Function is = IRR(values,guess)

Values is an array or a reference to cells that contain numbers for which you want to calculate the internal rate of return. Values must contain at least one positive value and one negative value to calculate the internal rate of return. IRR uses the order of values to interpret the order of cash flows. Be sure to enter your payment and income values in the sequence you want. If an array or reference argument contains text, logical values, or empty cells, those values are ignored. Guess is a number that you guess is close to the result of IRR. Microsoft Excel uses an iterative technique for calculating IRR. Starting with guess, IRR cycles through the calculation until the result is accurate within 0.00001 percent. If IRR can't find a result that works after 20 tries, the #NUM! Error value is returned. In most cases you do not need to provide guess for the IRR calculation. If guess is omitted, it is assumed to be 0.1 (10 percent). If IRR gives the #NUM! Error value, or if the result is not close to what you expected, try again with a different value for guess. The example above gives us the IRR of the investment. We'll extract the cash flows, invest them at each point, and grow them at 10% each year. If we sum them at the end, they sum to 0. SO, another way to look at IRR is that it is the rate at which these cash flows invested sum to 0 at the end.

IRR Spreadsheet

As a side note, the last thing is that you will notice that the IRR function call has 2 arguments. The 2nd argument is a guess. The reason for this is that there's no mathematical way of solving this equation, so a numerical way is used. The only difference this makes for a sensible set of cash flows is in the speed of the calculation. The closer you are with your guess, the faster the calc. A normal user is unlikely to notice the difference.

FUN FACTS:

HOW BIG COMPANIES GOT THEIR NAMES

CROSSWORD

HINTS:

DOWN:

1.The company that is coming up with

the “phablet.”

3.A lower D segment car from Hyundai

5.First part of the name of the

company that owns “DETTOL.”

7.HUL’s beauty and skin clinic

8.Microblogging site introduced on

March 21,2006.

BRAIN TEASERS

STRIKER CLUB

TOURNAMENT DATE WINNERS RUNNER’S UP

Inaugural Table Tennis Tournament

02/09/12 Deepak Dhami

Manushree Rao (MD)

Saurabh Tyagi

Dipti Tyagi (MD)

Inaugural Badminton Tournament

02/09/12 Manpreet Randhawa

Shehnaz Parveen

(MD)

Chetan Sharma

Meetali Dadwal (MD)

Manushree Rao

Sohini Ghoshal (WD)

Mamta Chauhan

Nisha Basera (WD)

AIMK Football League

09/09/12-16/09/12

WINNER EXPANDABLES

RUNNERS-UP AIMK WARRIORS

Protik Sen Gupta

Deepak Dhami

Amit Singh

Vipin Yadav

Pradeep Yadav

Prasun Pandit

Chetan Sharma

Mukesh Rathour

Dev Guha

Ashok Bhagat

Parduman Agnihotri

Zeeshan Ahmed Khan

Abhishek Upadhaya

CAMPUS NEWS

1.BEWARE!! INVASION OF THE IDIOT BOX IN THE MESS! However , this idiot box is no idiot in terms of technology. With massive 42 inch LED screen and an unparalleled stereo surround sound system. Now the mess has become the new

hangout zone for most of us.

2. TANDOORI NIGHTS! Forget biryani of Arsalan , stop drooling over the chicken bucket of KFC. Now, thanks to the new

tandoor machine even the localities have a reason to stay put and gorge on the yummilicious tandoori delicacies of our very own AIMK mess. NOW MORE IS LESS !!

3.GAME ON! Who would have thought that even classes could be fun? The PDP GUY (COL.Sengupta) has given altogether a new definition to personality development sessions. His classes have become a rage

amongst students. They come out smiling and high on the AIMK josh.

4.SHOCKING REVELATION A market survey was conducted in retail outlets around AIMK and it was found that the sale of deodorants has reached an all time high as the availability of water is more on the outside of the

bathrooms rather than inside! 5. THE SENIORS ’ GIFT TO THE JUNIORS ! SAMPARK between the seniors and juniors is being enabled inorder to make the juniors KUBER’s of management related knowledge so that they become good future VIKRETA’s and STRIKE(er) upon every opportunity that comes across bring about a RENAISSANCE in the corporate world.

CAMPUS NEWS

The club activities have started with a BANG! Here is the list of the winners!

-By Dipti tyagi & Shehnaz Parveen

CLUB EVENT DATE WINNER’S RUNNER’S UP

Vikreta Social Fuzz 1.0 08/09/12 Lavlesh Upadhyay

Sunny Sharma

Varsha Nair

Pinky Biswas

Sachin Singh Negi

Sujit Singh

Parduman Agnihotri

Vineet Sharma

Shweta Sharma

Tarun Pathania

Pawandeep Singh

Sarvesh Thakur

Ankit Sharma

Shamik Das

Rohit Ojha

Sunita Shee

Anubhab Bhattacharya

Vandana Shukla

Anisha Sen Gupta

Namrata Banerjee

Kuber Quibble 09/09/12 Guneet Gill

Garima Singh

Shagun Sharma

Warija Paurel

Sunny Sharma

Sudeep Mishra

Pinky Biswas

Jyoti Kumari

Sampark Synergy 15/09/12 Garima Singh Deo

Anurag Sihag

Jyoti Kumari

Rincal Kaur

Guneet Gill

Pravin Jha

Rahul Moitra

Mahender Suyal

Swadeep Mishra

Sachin Singh Negi

Nikita T Jose

Kaustav Mukherjee

Tanya Datta

Sarvesh Thakur

Shamik Das

Monica Shah

Smrity Pandey

Arijit Deb

CAMPUS NEWS

THE MANDI EXPERIENCE

The smell of hard work noticeably overcame the stink of exhaustion as the team Feriwalas from AIMK performed to the best of their abilities at Mandi 2012.

A competition on pure marketing must always excite B-School students and here was one hosted by Indian Institute of Management, Calcutta.The task was to promote an upcoming bollywood movie. Seven students from MBA16 formed a team called the “Feriwalas” or the street hawkers. The movie selected by them was “Oh My God”, an upcoming comedy featuring PareshRawal and Akshay Kumar. A presentation had to be submitted comprising 5 slides. The team focused on the prime aspect of the movie, a legal battle between a shopkeeper and God, and carefully laid down a 45 day campaign which involved Posters, Teasers, Public Events and of course the Challenges. All these were carefully put together within a budget and a decorative presentation and submitted to the required email.

Was it pure hard work? Was it an element of talent? Or was it sheer luck? No one knows for sure but when the phone call confirming their selection was received, the Feriwalas erupted with joy.

Further communications with the team census of IIMC revealed the rules of the competition. Each team was to set up a stall selling their own original products. Nothing branded was allowed. Every item in the store could be priced at a maximum of INR 100. The teams would be judged on their innovation, marketing, promotion and of course sales. The stalls could be of 2 categories, food and non-food. 60% of the sales of food stalls would be considered for evaluation and 90% for the non food stalls.

The team, “Feriwalas”, decided to go for a stall selling ethnic, custom designed utilities with a unique selling point where each item was “ONE IN THE WORLD”. Every item was designed separately.The products ranged from clay ash-trays to painted glasses and bamboo mugs to wooden junk jewelry. Everything seemed like a taste of real India and the shop name was eventually decided as “Poshora”. This word in traditional Bengali meant variety.

The process began at Kalighat and Burrabazar -the prime mandis of Kolkata where the team procured the raw materials. Every item was carefully handpicked, selected and discussed. The exhausted team returned home tired every evening with a fresh stock of raw materials only to sit down at night and process them to the finished products.

The team is indebted to the entire college for their extreme support in this venture. The plain clay vases and cups were turned into beautiful artifacts by the enthusiastic girls from MBA-16. The results were flabbergasting and it was evident that these girls had surely forgotten the timings of sunrise and sunset as they slogged. The boys provided their support with the supply of tea, paint, raw materials and encouragement at the oddest hours imaginable.

Once this was ready they sweated out their accounting mind and created the balance sheets for the venture. Elaborate photo-shoots, computer and camera skills were employed in creating posters.

Unfortunately the 2 students assigned by team Census, went Missing in Action during the campaign. They were not even found on the day of the final event.

Thus, with all the attractive “poshora” in hand the team of 7 advanced to the IIM campus where they faced the other teams from IIMC, XLRI and IIFT. It was relieving to see familiar faces as nearly the whole college turned up for support and soon the sales had picked up a steady pace.

By the end of the day the team was rather happy with their performance. Nearly all types of items were sold out and the types that weren’t had only a few pieces left..

Results are expected in a week. However the team feels content with their performance. In a line we can say, they came, they sold and they conquered.

-SHUJAAT MITRA

The Feriwalas:

Anubhab Bhattacharya

Shamik Das SunitaShee

VandanaShukla Manpreet Singh Randhawa

Shujaat Mitra SwarnabhaSarkar

“Nissan Auto Acumen ”was a quiz held in Eastern Institute For Integrated Learning In Management (EILM), Kolkata. The Quiz was sponsored by Nissan, but the questions in the quiz were about the Auto Industry in general.

A total of 38 Teams of 2 participated in it,-from AIM-K, Parvat Singh and Pavandeep Singh were in one team and Satish Singh and Rahul Moitra were in the second team.

Indian Institute of Social Welfare and Business Management (IISWBM) teams got the 1st and 2nd prize.

Pawandeep and Parvat could come third,

Satish and Rahul came fourth.

Congrats guys!

"The Spotlight 2012" was held on 16th of September, 2012, in the campus of St. Xavier's College, kolkata. It is an inter-college fest organised by "All India Catholic University

Federation" under St. Xaviers' College. "The Spotlight" is a

fund raiser aiding the AICUF scholarship and child abuse awareness programme.

The fest comprised of four events in total, namely, the dance competition, solo/duet singing, 40 seconds to fame (talent hunt) and western music. Our college team participated in all four events and bagged 2 prizes by the end of the day. Vijay Kumar, won the 2nd prize in solo singing with Shamik Das as accompanier with guitar. Shujaat Mitra, also made it to the 2nd position in the special talent hunt in 40 seconds, by a

musical performance with his mouth organ.

- Nikhat Saheba

Rahul Moitra

WHAT?

WHAT IS FDI?

FDI as defined in Dictionary of Economics

is investment in a foreign country

through the acquisition of a local

company or the establishment there of an

operation on a new site. To put in simple

words, FDI refers to capital inflows from

abroad that is invested in or to enhance the production capacity of the economy.

ORGANISED RETAIL: Trading activities undertaken by

licensed retailers, that is,

those who are registered for

sales tax, income tax, etc.

These include the corporate-

backed hypermarkets and retail

chains, and also the privately

owned large retail businesses.

WHAT IS RETAIL?

In 2004, The High Court of Delhi defined

the term „retail‟ as a sale for final

consumption in contrast to a sale for

further sale or processing (i.e.

wholesale). A sale to the ultimate

consumer. Thus, retailing can be said to be the interface between the producer and the individual consumer buying for personal consumption. UNORGANISED RETAIL: The

traditional formats of low-

cost retailing, for example,

the local kirana shops, owner

manned general stores,

paan/beedi shops, convenience

stores, hand cart and pavement

vendors, etc.

WHO?

WHO DOES IT CONCERN?

The economic growth of India .Thus, from the

farmer to the common man („aam admi‟) and to

the investors (foreign and national) shall be

affected.

WHO PUT IT

FORWARD?

WHO OPPOSED?

MAINLY:

& MIDDLEMEN, TRADERS

WHO? WHO?

WHERE?

? FOR MULTI-BRAND RETAIL:

Retail sales outlets may be

set up in those States which

have agreed or agree in

future to allow FDI in MBRT

under the policy. The

establishment of the retail

sales outlets will be in

compliance of applicable

State laws/ regulations, such

as the Shops and

Establishments Act etc.

Retail sales outlets may be

set up only in cities with a

population of more than 10

lakh as per 2011 Census and

may also cover an area of 10

kms around the

municipal/urban agglomeration

limits of such cities; retail

locations will be restricted

to conforming areas as per

the Master/Zonal Plans of the

concerned cities and

provision will be made for

requisite facilities such as

transport connectivity and

parking

WHY? Why? (pros) Why not? (cons)

On 14th September ,2012 ,the Government of India has cleared the proposal to allow up to 51 per cent Foreign Direct Investment (FDI) in multi-brand retail along with FDI in

single brand retail ,civil aviation and broadcast section as part of its economic reforms to foster economic growth. Since this approval, the country has witnessed a political

fallout with Mamata Banerjee (Trinamool Congress LEADER) withdrawing her support from the government. In this article we try to answer the 5Ws of the current status of

FDI.

WHAT HAS THE GOVERNMENT DONE?

The Cabinet on Economic Affairs has approved the proposal of the Department of

Industrial Policy & Promotion for permitting FDI in multi-brand retail trading,

subject to specified conditions.

The Cabinet has approved the proposal of the Department of Industrial Policy &

Promotion for amendment of the existing policy on Foreign Direct Investment in

Single-Brand Product Retail Trading.

The Cabinet has approved the proposal of the Department of Industrial Policy and

Promotion for permitting foreign airlines to make foreign investment, up to 49

percent in scheduled and non-scheduled air transport services.

The Cabinet Committee has approved the proposal of the

Department of Industrial Policy & Promotion, for 74%

foreign direct investment. in mobile TV. THE

VIEWPOINT

The Govt. of India says 10mn jobs could be added. Huge

investments in the retail sector will see gainful

employment opportunities in agro-processing, sorting,

marketing, logistics management and front-end retail.

Since the working conditions of traders are deplorable

and we are slowly moving to an era of food shortage with

1.2 billion population, the only way out is by

investment in agricultural backend(create storage and

transportation chains)

Better supply chain means less wastage of perishables.

Elimination of middlemen would mean better prices for

farmers and producers.

Big retail chains will invest in supply chains which

will reduce wastage, estimated at 40 percent in the case

of fruits and vegetables.

The aviation industry is divided. More successful

players such as Jet Airways and IndiGo have expressed

their reservation in the past. There are also fears that

bigger carriers may resort to cartelization. Loss-making

airlines, of course, see FDI as the knight in shining

armour.

According to the opposition, the move will lead to large-

scale job losses. International experience shows

supermarkets invariably displace small retailers. Small

retail has virtually been wiped out in developed

countries like the US and in Europe.

Contract Farming has its negatives. Contract farming, in a political economy, is one mode of capitalist penetration

of agriculture for capital accumulation and exploitation

of the farming sector by agri-business companies.

The main Opposition(BJP) further alleges that FDI is

being brought for votebank politics and to appease

foreigners while continuing to stay in power through all

means.

Shri Narendra Singh Modi said that allowing FDI in multi

brand retail would mean immense harm to small

shopkeepers, will hit the domestic manufacturing sector

and create joblessness. The Chief Minister added that

this would also mean cheap good produced outside being

dumped into our nation.

Arun Jaitly says in the Economic Times"That because India

has high cost manufacturing base, foreign retailers will

source a multitude of everyday items from low cost

countries like China. That will have a damaging impact on

manufacturing with sizeable losses of jobs.

FOREIGN DIRECT INVESTMENT- THE CURRENT STATUS

WHEN?

With the Govt. passing the proposal on 14th September,2012 ,the foreign retail giants have already joined

hands with their Indian counterparts. Walmart has joined hands with Bharti Enterprises and shall open

their first store in 18 months.

THE EFFECT FARMERS

BEFORE FDI:THE VALUE CHAIN (SOURCE :BCG)

FARMER AGGREGATOR MARKET TRADER WHOLESALER SUBWHOLESALER RETAILER CONSUMER

AFTER FDI: THE VALUE CHAIN

FARMER RETAILER CONSUMER

PRESENT DAY EXAMPLE - CITY : KOLKATA

The year Mamata Banerjee came to power, PepsiCo sourced thrice as many potatoes from West Bengal's farmers. The US

multinational has been buying potatoes for its Lays Chips for over three years now, but the change in guard made no

difference. In fact, procurement went up from 22,000 metric tonnes in 2010 to 60,000 metric tonnes in the current year.

Pepsi says the agreement benefits more than ten thousand farmers in six districts in West Bengal.

But if farmers cannot sell to Pepsi, the alternative is the Sealdah mandi, Calcutta's main market for vegetables. Every

day, thousand tonnes of vegetable is wasted. And it is so dominated by middlemen, that those who have done business here

say that no farmers even make it to the market.

KIRANA STORES

SHOULD NOT BE AFFECTED TO A BIG EXTENT

3 ADVANTAGES OF THE KIRANA STORE OVER RETAILERS (LIKE SPENCER’S):

the distance criteria : your Laxmi Bhandar is just a few minutes away from the house. Kirana stores often have

home delivery systems.

the credit system : about 60% of these kirana stores provide commodities to consumers on credit. Big retailers

will never allow this.

personal relationship :kirana stores will cater to immediate customer preferences.

Moreover, it is not often noted that FDI in retail will only be for cities with a population of more than a

million. According to the 2011 census, there are 53 such cities in India. That means Kanpur, not Aligarh;

Bangalore, not Bellary; Nagpur and Pune, not Wardha and Satara.

CONSUMER

The consumer will be the biggest gainer in this chain. More competition means the best price for the consumers. Big retail

companies might even practice predatory pricing -(the practice of selling a product or service at a very low price,

intending to drive competitors out of the market).This also applies to the aviation sector.

The Government also believes that this move would help India curb the issue of food shortage and thus food inflation.

FOREIGN DIRECT INVESTMENT- THE CURRENT STATUS

INDIAN ECONOMY

The Government of India says that the passing of the FDI proposal is part of a number of economic reforms that are being

taken in order to reach the 8-10% rate of economic growth. In his speech, while addressing the nation ,Dr. Manmohan Singh

said –“According to the regulations we have introduced, those who bring FDI have to invest 50% of their money in building

new warehouses, cold-storages, and modern transport systems. This will help to ensure that a third of our fruits and

vegetables, which at present are wasted because of storage and transit losses, actually reach the consumer. Wastage will go

down; prices paid to farmers will go up; and prices paid by consumers will go down.”

However to believe that only such measures will help the economy reach its target growth rate is wrong. In the latest

edition of Indianomics(CNBC TV18)Mr. R Gopalakrishnan, Director-Tata Sons says- “Reform has to be seen in totality. There

is a formula for what needs to be reformed is well known. I find it easy to remember the five vowels 'aeiou'; 'a' for

agriculture, 'e' for education, 'i' for infrastructure, 'o' for law and order and 'u' for universal health and then you can

expand for each of this.”

Thus it can be argued that the opening of organised retail to foreign investment solely will not bring in any change if it

isn‟t supported by changes in the other equally critical areas such as labour laws, electoral laws etc.

Mr. Gopalkrishnan also points out, “That reform that economists and business people tend to think is, is couched in a

largely political framework. You talk of electoral reform or Centre-State relationship or judicial reform. These are not

receiving any attention at all. CII has put out a paper on electoral reform, which itself is based on the reports done by

the various committees that have been appointed. I think we are looking at a much broader agenda. This broader agenda

cannot be accelerated during this phase of what I call 'adolescence' that we are going through.”

-Sunayana Basu

MIXED BAG

Answer to the crossword:

AROUND THE CAMPUS

Send in your pics of “in

and around the campus”

with a suitable caption

along with your name to

[email protected]

THE BEST DAYS OF MY LIFE!

ROACH FEST!

BAARISH…..

-by S.MURALI CHOUDHARY

This edition would not have been possible without :

VIKRETA (THE MARKETING CLUB) SAMPARK (THE HR CLUB) DESIGN, LAYOUT & FORMATTING

Pranab Mishra Shipra Swaraj S.Murali Choudhary

Sohini Ghoshal Shehnaz Parveen Sunayana Basu

S.Murali Choudhary Chandni Ghosh TIP OF THE MONTH

KUBER (THE FINANCE CLUB) AWAAZ ( SOCIAL AWARENESS) Vinod Dhoundiyal

Aritra BasuRoy Meetali Dadwal EDITING

Greeshma Gopinathan Lav Kumar Dubey Sunayana Basu

Shiva Biswas Raj Choubay

Please send in your feedback, queries, articles to :

[email protected]

KEEP THE JOSH HIGH!

AIMK Speaks (Vol. 1 - October 2012)

Documents

Transcript of AIMK Speaks (Vol. 1 - October 2012)