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SeasonalVol 9 Issue 10 Cotober 2010

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The markets are continually breaching milestone highs in its effort

to regain the past glory of 21,000+.

In this Issue, we cover microfinancing major Spandana’s probable

IPO plans. Among the hundreds of large microfinancing firms

operating in this country, only around 50 are scalable, and only

around 4 to 5 mature players among these 50 are expected to tap

capital markets this year or the next.

We zeroed in on Spandana not just because they were the first to

announce tentative plans post SKS IPO. Many large players like

Share Microfin and quality players like Equitas do exist. But

Spandana does have some unique credentials to back it. While

our research uncovered many of these USPs, our continuous

dialogues with industry insiders as well as with Mrs. Padmaja Reddy

did the rest.

Now, one question is whether we endorse this IPO or other IPOs

we cover. The quick answer is yes, but with one caveat. Please do

have a look at that little ratio called P/E when considering IPOs.

Many among us are adept at looking at this while buying shares

from the secondary market, but miss this altogether when

subscribing to IPOs. Can’t be blamed as P/E ratios are not reported

at all for IPOs, at least in a readable size. But not looking at P/E is

like not looking at MRP while buying durables or not verifying

interest rates while placing an FD!

John Antony

an eye for IPOs

EDITORIAL

World M&A Focus Turnsto India as West SlowsDownStandard Chartered Plc, ranked 14th amongmerger advisers in India last year, hasclimbed to number two by financing

5 Huge Trends inSocial Media Right NowWhat’s the first thing youngwomen do when they wake up?Check Facebook. How doenterprise employees pass the

“Manappuram isRedefiningHow Gold Loans AreLooked Upon”Riding on the response from a megacampaign to promote the cost-effectiveness, convenience, flexibility, &safety of gold loans, Manappuram Groupis all set to double its loan book this...fiscal and again in next fiscal. Poweringthe rapid growth will be a Rs. 1200

Be lucky - it’s an easyskill to learnThose who think they’re unlucky should change their outlook and discoverhow to generate good fortune, says psychologist Richard Wiseman.

Did the Answer ofMiss Philippines 2010Cost Her the MissUniverse Crown?Once again a frontrunner in apageant has presented an answerthat some believe may have cost

One More Way to AvoidDiabetes: Breastfeed

New moms know thatbreastfeeding can begood for babies,providing them withmuch-needed nutritionas well as a shot ofantibodies and othercells that help buildimmune systems.Now,..

Contents

COAL INDIA PUBLIC ISSUE

The IPO the Nation WaitsForIndia’s largest and the world’s third largest IPOis coming, with some estimates putting the finalsize at Rs. 17,000 crore. With an operatingmargin of 30%, cash reserves of over Rs. 39,000crore, quite reasonable offer valuations, and anambition to grow quantitatively and qualitativelydespite its already world-dominating production,

Manappuram Group as part of its CSR is sponsoring Kochi’s noted art commune, JT Pac, for this year

Contents

Mumbai Cricket Association’s Recreation Centre (MCA RC) is racingtowards completing two years of existence. Even within this shortspan, the elite club has evolved into a lifestyle hub that enrichesthe life of all at home and office. No wonder then that MCA RC hasreceived such a tremendous response to its membership drive fromfamilies and blue chip corporates. The credit for the success of thisjoint venture goes to the influential Mumbai Cricket Associationand the visionary infrastructure player, the Shirke Group. RajivWagh, Vice President of MCA RC, explains to Seasonal Magazine

MCA RECREATION CENTRE

More Than a Club

Can Spandana Delivera MicroFin IPOYou Shouldn’t Miss?

At over 4 million customers, Rs. 15,000 crore total disbursements,annual growth rate of 100%, the highest employee productivity andlowest Opex in South Asia, an RoE running between 50 to 60%, and anunbelievably high pre-issue EPS of Rs. 152 on a Rs. 10 share, investorsare sure to look twice at Spandana if it goes forward with its IPOplans. Seasonal Magazine interviews Mrs. Padmaja Reddy for this story:

SPANDANA SPHOORTY IPO

Prestige Redefines Luxurywith Silver OakBangalore headquartered Prestige Estates Projects iscontinuing their efforts to differentiate themselves fromcompetition by launching distinctly premium projects likeSilver Oak, which is mainly a

Madonna schedules 15-minuteappointments with kidsMadonna’s kids have appointments made to spend time withtheir superstar mum, according to reports.The Material Girl’s personal assistants are said to schedule timefor her with Lourdes, Rocco, David..

Google, The Film: InternetGiant to Star in Hollywood FilmThe founding of Google, the internet giant, is to be thesubject of a Hollywood film.

Verizon to Launch iPadLive TV AppVerizon Communications plans to launcha software application for mobile devicesthat will enable the FiOS TV customersto watch live television shows andmovies on Apple Inc.'s (AAPL) iPad.

Will History HauntFuture?Kishore Biyani is a successful man.Now, even in capital markets. Thatis why the Pantaloon / Futureconglomerate is tapping the marketsfor a third t ime. But prudentinvestors are sure to take a hard lookat the Group’s capital marketshistory while assessing FutureVentures’ IPO. Since its IPO in 1991-

Dell launches $ 100 Aero smartphoneDell Inc on Tuesday released its first US smartphone, entering the in-creasingly crowded market with a 3.5-inch Android device called theAero that costs about $ 100 on AT&T's network.The long-anticipated move by the computer manufacturer puts Dell incompetition with Apple Inc, the market leader in smartphones, and witha clutch of other phones that use Google Inc's Android operating system.

Sobha to Raise a Jurongat Kochi, But from a LakeSingapore raised Jurong Island from sea in 2000. But60 years before this, Kochi had raised WillingdonIsland. But the same Kochi is raising a hue and cryover NRI billionaire from Kerala, PNC Menon’s plan toraise the 400 acres Sobha Hi-Tech City from

COAL INDIA PUBLIC ISSUE

The IPO the Nation Waits ForIndia’s largest and the world’s third largest IPO is coming, with some estimatesputting the final size at Rs. 17,000 crore. With an operating margin of 30%,cash reserves of over Rs. 39,000 crore, quite reasonable offer valuations, andan ambition to grow quantitatively and qualitatively despite its already world-dominating production, nobody is doubting whether Coal India’s IPO would be asuccess. Already a feather in the cap for Sriprakash Jaiswal, Minister of Statefor Coal, and Partha S Bhattacharyya, Chairman of Coal India, the only thinginvestors are looking for from this IPO will be the kind of capital marketstewardship Coal India will accord its scrip, post-listing. If CIL can achieve thisinvestor confidence, this public issue can set records in subscription.

Contents

At over 4 million customers, Rs. 15,000 crore total disbursements, annual

growth rate of 100%, the highest employee productivity and lowest

Opex in South Asia, an RoE running between 50 to 60%, and an

unbelievably high pre-issue EPS of Rs. 152 on a Rs. 10 share, investors

are sure to look twice at Spandana if it goes forward with its IPO plans.

Seasonal Magazine interviews Mrs. Padmaja Reddy for this story:

Contents

Enriching Lives

Pursuing a structured CSR policy around our coal mining areas based on immediate andlong term social and community development programmes

Earmarked 5% of subsidiary profit of the previous fiscal subject to a minimum of Rs.5 per tonof raw coal production in the previous fiscal year for its CSR activities

Providing medical services to employees, their families and local population by supporting85 hospitals and 1565 doctors as of March 31, 2010

Providing water facilities to people living near our areas of operation by installing hand-pumps, tube-well, rain water, harvesting schemes, digging and renovating wells.

Establishing educational institutions that offer courses in engineering, nursing, managementstudies, medicines and other technical courses.

Providing skills development and capacity building programmes such as vocational training,programmes supporting technical and vocational educational institutions, provide assistanceto primary middle and higher secondary schools, provide parental counseling, run awarenessprogrammes and others.

Coal India Limited is proposing to make a public issue of securities and has filed a Draft Red Herring Prospectus (“DRHP”) with the Securities and Exchange Board of India (‘SEBI”). TheDRHP is available on the SEBI website at www.sebi.gov.in as well as on the websites of the book running lead managers at http://www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm,www.db.com/India, www.dspml.com, www.enam.com, www.kmcc.co.in and www.morganstanley.com/indiaofferdocuments. Investors should note that investment in equity sharesinvolves a high degree of risk and for details relating to the same, see the section titled “Risk Factors” of the DRHP”. “The announcement is not an offer for sale or solicitation of an offer tobuy securities in any jurisdiction, including the United States. This announcement has been prepared for publication in India and may not be released in the United States, Australia, Canadaor Japan. The securities of Coal India Limited have not been registered under the U.S Securities Act of 1933, as amended (“Securities Act”) and may not be offered or sold in the UnitedStates absent registration under the Securities Act or an exemption from registration under the Securities Act. There will be no public offering of securities in the United States.” “TheCompany has not been, and will not be, registered under the U.S Investment Company Act of 1940, as amended, and investors will not be entitled to the benefits of that Act.”

Even bigger players like EmaarMGF & Lodha are waiting on the sidelines unwilling to take theIPO plunge, learning from the recent lessons of Nitesh & Jaypee. But Oberoi Realty hasidentified that the market sentiment is better, which even while being true for the main indices,doesn’t apply to the realty index at all, which continues to be risky, having lost another 10%since the beginning of this year. However, Oberoi is banking on some differentiating strengthslike its low debt levels and low land holdings, which has resulted in an above-average IPOrating. But according to some recent unconfirmed reports the Group’s pre-IPO valuation hassuffered since the original IPO announcement, having reportedly halved from Rs. 14,000 croreto Rs. 7000 crore. This may affect the book value of the share as well as force the promotersto part with a bigger stake to collect the Rs. 1000 to Rs. 1500 crore eyed. But all eyes will beon the offer’s price-to-earnings ratio. If Oberoi is willing to offer at a reasonable P/E between15 to 20, there is a good chance of investors warming up to it. But P/E multiples in the 20sand 30s would be a tough call.

Contents

Kishore Biyani is a successful man. Now, even in capital markets. That iswhy the Pantaloon / Future conglomerate is tapping the markets for a thirdtime. But prudent investors are sure to take a hard look at the Group’s capitalmarkets history while assessing Future Ventures’ IPO. Since its IPO in 1991-92, Pantaloon has a history of losing money for investors, floating around asa pennystock in single digits for the better part of six long years from 92-93to 98-99, trading even as low as Rs. 1.50. The Group’s second listed firm,Future Capital Holdings, has a shorter capital markets history of barely threeyears, but not much less of a

A $1 billion windfall awaits the country’shospitality industry this season as‘Incredible India’ almost gets its act rightby way of events and promotions.

Events, AwardsEvents, AwardsEvents, AwardsEvents, AwardsEvents, AwardsTTTTTourists Rain oourists Rain oourists Rain oourists Rain oourists Rain oIncredible IndiIncredible IndiIncredible IndiIncredible IndiIncredible Indi

Events, AwardsEvents, AwardsEvents, AwardsEvents, AwardsEvents, AwardsTTTTTourists Rain oourists Rain oourists Rain oourists Rain oourists Rain oIncredible IndiIncredible IndiIncredible IndiIncredible IndiIncredible Indi

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Also inside:8 Breathtaking

KeralaDestinations

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No marks for guessing Kerala’s most preferred destinations amonginternational tourists – it is well-known tourist spots like KumarakomLake and Varkala Beach. But try to guess Kerala’s most preferreddestination among domestic tourists these days, and you will be hardpressed for an answer unless you yourself haven’t visited Kerala as adomestic tourist from say, Bangalore or Chennai. Enter Kerala by cruisingdown through the Mysore-Kozhikode National Highway No 212, and youwill enter this destination – the one and only Wayanad. And greeting youat the very Kerala border is Muthanga Wildlife Sanctuary. Now, Muthangabrings different memories to different people. For domestic tourists fromBangalore and Chennai – most of them groups of young couples workingat new generation companies – Muthanga is their first taste of Wayanad,complete with forests, indigenous people (‘adivasis’), streams, elephants,wild boars, deer, tigers, and other wildlife. But for Keralites, Muthanga isan unfortunate memory, where police opened fire to evict ‘encroaching’adivasis, some years back. Anyway, Muthanga is peaceful land now andis a major tourist attraction in Wayanad. The sanctuary is spread over an

Once Upon a Forest

Muthanga, Way

It is a monsoon of a different kind.Even while heavier-than-usualmonsoons lash across the country,raising the economy’s hopes, India’stourism industry has been blessedwith a downpour of events, awards,& tourists. Conde Nast ReadersTravel Awards have beenannounced, and India was adjudgedas the 7th best tourist destination,overtaking tourism heavyweights likeFrance, Brazil, Thailand, & Greecethis year. True to the Indian spirit of‘Aditi Devo Bhava’, the country cameas the very first in warmth of itspeople and hospitality with thehighest score of 94.44 / 100. India’sefforts, backed by an annualoverseas promotional spend thatnow stands at Rs. 275 crore seems

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expansive 345 sq km forest land, and comes under theIndian Government’s Project Elephant. This sanctuaryis part of the protected Nilgiri Biosphere Reserve, and iscontiguous with Nagarhole National Park and BandipurTiger Reserve of Karnataka, and Mudumalai NationalPark of Tamilnadu. The main attraction of this Wayanaddestination are the herds of wild elephants that roamfreely. While other species like deer, monkeys, birds etcare frequently spotted, more aggressive ones like wildboars and tigers can also be seen occasionally. The richflora in Muthanga comprises of trees and plants thatbelong to the moist deciduous semi evergreen forests.Scientific conservation is given high preference in thesenatural forests, complete with conserving the nativelifestyle of the tribals. Rides on tamed elephants arearranged by the Forest Department. The nearest town isSulthan Bathery of Wayanad District which is 16 kmsaway, while the nearest airport is Karipur InternationalAirport, Kozhikode, which is 136 km away. The best timeto visit Muthanga and Wayanad is between June andOctober when the monsoons nourishes and paints theforest the richest green you have ever seen.

Inside a suite in The Taj Mahal Palace, Mumbai

to have delivered, with internationaltourist arrivals up by almost 10% inthe first half of this year. Not bad atall considering the global economicdownturn, as well as the Mumbaiterror attacks. Tourism events arealso on a huge upswing, fromAssam to Goa, Delhi to Kerala. IfGuwahati posted the IndiaInternational Travel Mart recently,Goa is all set to host theInternational Travel Mart - Goa(ITM-Goa), with none other thanAmitabh Kant, IAS, former JointSecretary of the Union TourismMinistry, and the man behind thee‘Incredible India’ campaign beingthe keynote speaker. Soon to follow

No Man’s LandImagine a land where man has not dwelled till now.Yes, not even indigenous tribes. An ice empire likeAntarctica was one such place – till explorationteams set base there. Another topography thatmakes dwelling tough for humans is the montanerainforests, which are high altitude rainforests. Andwhat happens in a montane rainforest, whenhumans can’t invade? The rich flora and fauna thriveunhindered over the ages to create an invaluableregion of unimaginable biodiversity. Kerala is hometo such a paradise. Welcome to the one and onlySilent Valley. Breathtakingly beautiful, disturbinglydangerous, and wonderfully virgin. This rainforestgot its name from early British explorers & botanists,like Robert Wight, who in 1847 observed that theplace was devoid of Cicadas, which contribute mostto the non-stop noise in thick forests. Unlike populartourist destinations in Kerala, Silent Valley is notfor everyone. In fact, it is not a tourist destinationin the classical sense – it is a mountainous rainforestwhich can’t be enjoyed fully without trekking.However, you can choose the extent of the trek –

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Silent Valley, Palakkad

The Oberoi Rajvilas, Jaipur

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from a short 2 km downhill day trek to the sparkling‘Kunti Puzha’ (River Kunti), to overnight treks, to treksthat last 3 nights and 4 days with nights spent atcamping spots deep in the forest! Because, there is somuch to explore at Silent Valley that spreads over 22,121acres, and over 80 km of trekking length. But don’t thinkthis no man’s land is open for anyone and everyone –you have to get special prior permission from forestauthorities, and, believe it or not, a forest guard cumguide will accompany each and every trekking group –whether it is a single day trek or multiple days trek.Because, Silent Valley is that precious; it is not just anuninhabited rainforest. It is a rare rainforest of nationalimportance and international renown. Since 1983, ithas been designated as Silent Valley National Park. Oneis not permitted to litter the place with plastic, disturbthe animals & birds, or injure the plants & trees. ThisNoah’s Ark is home to numerous birds and animals,many of them endangered species. The Park is home toover 138 bird species, of which 16 are endangered.Numerous animals including tigers, leopards, &elephants, are found here, with endangered species likelion-tailed macaque and Nilgiri langur hogging morelimelight. The Park is also garden to a delightfulcollection of over 100 butterflies and 400 moths.However, one species will alarm the trekkers – thealmost unavoidable leeches. Silent Valley can be

approached from two sides, with the popular routebeing Palakkad – Mannarkad – Mukkali – Sairandhri– Silent Valley. The Mukkali – Sairandhri segmentis a 23 km stretch of steep winding roads. Thedestination of Sairandhri is the entry point of thePark, and walking is the only way to get around onceinside the Park. Another interesting route to SilentValley involves a heavy downhill trek of over 3 days -Bangitapal – Walakkad – Poochipara – Sairandhri.However, 3 days of walking with 3 overnight stays atBangitapal, Walakkad, & Poochipara is not foreveryone, and is generally taken by adventuroustourists approaching Silent Valley from Ooty. Thiswill be a surprise to many, but from the “Queen ofNilgiris”, Bangitapal is only a 75 km drive away. Infact, Silent Valley forms the most precious core ofthe Nilgiri International Biosphere Reserve. Thenames ‘Kunti’ and ‘Sairandhri’ (Draupadi) shed lighton this region’s religious significance; Hindus believePandavas had visited this place while in exile. ForKeralites, Silent Valley has always been anenvironmental issue too, with proposals forhydroelectric projects coming up every now and then.The newly designated buffer zone around the Parkwill help in pre-empting such projects as well asunlawful activities like ganja cultivation and illicitbrewing.

Athirapilly, ThrissurRiver Wild

She has many moods, and what you see here is nother wildest. Come the monsoon, and she cantransform herself to a more voluptuous figure –plunging down multiple times the water that younow see in the main photo. She is the AthirappillyFalls, arguably Kerala’s finest waterfall. Shecontributes to the river ‘Chalakudi Puzha’; betterput, she is Chalakudi Puzha. Athirapilli is not wildjust for its unhindered drop from over 80 feet ofuntamed black rocks; its location is right inside awilderness – the dense Sholayar forest ranges. Thelure of this waterfall is that you can spend a wholeday here, and still don’t feel like leaving. There aremany things you can do here. You can float aroundin the rock-laden pure medicinal waters, almost asafe kilometre before Athirapilly takes the plunge(caution needed). Or you can climb down a lengthyforest trail to be where the million litres of water hitthe river down with deafening rumbles and sprayingB

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will be God’s Own Country’s KeralaTravel Mart 2010. The state whichpioneered organized destinationmarketing in the country is howeverfacing increased competition fromemerging players like Assam which wasrecently adjudged to have the bestpromotion in a recent event. At thesame time, Kerala Tourism, under theguidance of Tourism Minister KodiyeriBalakrishnan and Dr. Venu V, IAS, isfocussing more on growing domestictourism now, after conquering keyinternational markets like Britain,Germany, & France. This move has beenproductive with domestic footfallsjumping to 75 lakh from 66.42 lakh inthe previous year, and the domestic

mist (adventure needed). Or you canswim through the river to stand betweenthe plunging waters and the rock columns(madness needed). Or back up throughthe forest trail, you can even tread, wade,and swim through the river to perch rightnext to where Athirapilly takes the plunge(not at all advisable). In fact, lurkingdangers has always been Athirapilly’sbiggest drawback. Many have lost theirlives here, despite serious warnings putup by the local authorities and police.However, for the less adventurous and forthose who exercise sufficient caution,Athirapilly is a completely safe place evenwith kids. The water is cool and sparkling,and a few minutes of being in itinvigorates one like nothing else can. Thewaterfall is best enjoyed in the monsoonseason – with daytimes best suited forbeing in the water; and dusk suited forpanoramic views of the larger picture.During scorching summers, water flowbecomes less, but it remains surprisingly

cool. Just 5 km from Athirappilli, there isanother waterfall, Vazhachal, which islesser in height but nevertheless competesin beauty. Some areas of Vazhachal arecordoned off from visitors, as it has provedmuch more fatal to the foolishlyadventurous. However, tourists can enjoythe full scene through the wire-nets here.Resorts and hotels are less in number atAthirapilly compared with many otherdestinations, while homestays havestarted to come up only recently. There area couple of water theme parks, and aboating service, enroute to thedestination. Recently, a proposal by theKerala Government to establish a 160megawatt hydroelectric power project onthe Athirappilly River has met with stiffresistance from environmentalists whofear destruction of the river, waterfall, andecosystem. Athirappilli belongs toThrissur District, and is 63 km away fromthe city. Nearest town is Chalakudy, 30 kmaway, while the nearest airport is CochinInternational Airport.

The Leela Palace Kempinski, Bangalore

tourists pouring in from awider set of cities andtowns, and not just themetros. Kerala recentlybagged the ‘Most PreferredState’ and ‘Best StateTourism Board’ awards fromCNBC Awaaz. The state’shotels also continue tooutperform with Kochi’s TajMalabar winning the ‘MostPreferred Health &Rejuvenation Resort’ andFort Kochi’s Malabar Homewinning the ‘Best BoutiqueHotel’ awards. Threehomestays in the state hasalso come in the Top-10

Most Kerala destinations have to ‘work hard’ to keep themselvesbeautiful. The waves at Varkala have to continually splashagainst the sands, to keep the tourists coming. The river atAthirappilly has to continually jump down to depths to keepvisitors amused. But there is one destination in Kerala thatamazes all travellers by doing nothing – Kuttanad. She can takeyour breath away, leave you speechless, and remind you ofeternity – all in one stroke, a glance of her. She is the womanwho wakes up beautiful. Endless green fields, sunbathed waterbodies, swaying coconut palms, and a labyrinth of waterways,are only some of the scenes that makes ‘The Rice Bowl ofKerala’ a tropical paradise. All destinations can be explained,but Kuttanad can only be experienced. Or, how will you explainthat 2,71,700 acres of land is water-logged here? Or, how willyou explain that a majority of this land is submerged underwater for most of the year? Or, how will you explain that despitethis, she is the most fertile land for the staples in Kerala? Quitedifficult. But even more difficult to explain is the incomparable

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geographic dynamics of Kuttanad.Believe it or not, around half ofKuttanad – around 1,23,500 acres –lie below the sea level! Moreprecisely, 2.2 metre to 0.6 metrebelow sea level. And sea is not fareither; while only a narrow strip ofland separates Kuttanad from

Kuttanad, Alappuzha

Marriott Hotel, Hyderabad copy

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Arabian Sea, Kuttanad is directly connected toVembanad Lake which is connected to the sea!Amazing, isn’t it? However, you have only scraped hersurface until now. Kuttanad is nourished by four majorrivers – Pamba, Meenachil, Achankovil, & Manimala– and her vastness is crisscrossed by numerous canalsand waterways. Many of the inland waterways willastonish the first-time visitor – they flow above the landlevel! During monsoon, the rivers bring freshwater tothe region; and during summer, sea water entersKuttanad making the water brackish. And Kuttanad hasa unique claim to fame – it is the only place on thiswhole earth where paddy is cultivated below sea level;and one among a few places in the world where anykind of farming is done below sea level! Now youshould be beginning to appreciate the gumption of thepeople who call Kuttanad home, and who has toiledwith land and water alike to survive. They are the peoplewho once completed a dam (Thanneermukkam Bund)all by themselves, when Government action was stalleddue to lack of finance. To this day, this earthen segmentof the dam is in action, preventing salt water fromentering the fields. Yes, the nearly 2 million people ofKuttanad and their unique lifestyle is something worthexploring for the discerning tourist. Where else willyou find men in small boats shepherding a paddling ofducks? Where else will you find women waiting at canal

shores for country boats that bring grocery andvegetables? Where else will you find flocks of parrotsfeeding from paddy fields, and flocks of darters flyingacross water? Get ready to also explore shrimp farmingand at least half a dozen fishing methods. There arenumerous ways to explore Kuttanad. You can use theroads, you can use the waterways, or better still, acombination of these. Don’t forget to stop at waysideor waterside eateries serving local delicacies like‘Karimeen’ (pearl spotted fish) with Tapioca. The2,71,700 acres of land that make up Kuttanad falls intothree districts, Alleppey, Kottayam, & Pathanamthitta.Kuttanad is also broadly classified into Lower Kuttanadand Upper Kuttanad. While Lower Kuttanad ispredominantly made up of areas in Alleppey &Kottayam, Upper Kuttanad consists of areas in Alleppey& Pathanamthitta. Many Kuttanad villages have becomelegends of their own in Kerala’s social, cultural,historical, tourist, literary, and religious existence.Famous Lower Kuttanad villages include Kumarakom,Nedumudi, Kavalam etc, while Upper Kuttanad hascelebrity villages like Niranom, Thakazhi, Parumala etc.During the recent decades, Kuttanad has been affectedby environmental problems like water pollution,drinking water shortage, & lake encroachments. Themost scenic views of Kuttanad are seen on theAlappuzha-Changanassery road that spans 31 km.

Radisson Hotel, Chennai copy

Some Kochiites might not agree with the title, ‘Deep BlueSea’. Because, what we see here is a view from Kochi’sfamed Marine Drive, and the view is technically ofVembanad Lake. Kochi (earlier Cochin) is on the ArabianSea coast, but the city is also witness to the confluence ofVembanad Lake and Arabian Sea. But when lake meets sea,what can demarcate between them? Kochi is the only citycovered in this compilation of breathtaking Keraladestinations; all others are forests, valleys, waterfalls,mountains, lakes, & beaches. In fact, that is one of Kochi’sprime strengths – despite being a bustling city Kochi holdsenough natural charms to rival any destination in Kerala.The geography is that unique. Kochi is made up ofmainland, islands, backwaters, lagoons, seasides, and whatnot. Kochi can be rightly said as a destination ofdestinations. Beaches like Cherai & Fort Kochi; islands likeWillingdon, Bolghatty, Vallarpadam, & Vypeen; megainfrastructures like Cochin Port Trust & Cochin Shipyard;and heritage locations like Mattancherry and TripunithuraHill Palace, are all destinations unto themselves. Kochi City

Deep Blue Sea

homestays compilation by London’sGuardian. Elsewhere in the country,many states are going that extra mileto win tourists on specific themeswith the most productive these daysbeing the wildlife theme withsanctuaries like Ranthambore andSariska in Rajasthan, The Jim Corbettin Uttaranchal, Kanha, Bandhavgarh,Pench, & Panna in Madhya Pradesh,much in demand now. But thebiggest driver for Incredible India isgoing to happen by way ofCommonwealth Games, when lakhsof foreign and domestic tourists areexpected to throng the nationalcapital. The momentous nature ofthis event can be seen from the fact

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The Zuri White Sands, Goa Resort & Casino

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belongs to Ernakulam District, while the mainlandportion of the city is often called Ernakulam Town.Kochi has a generous coastline of 48 km, and isvirtually at the sea level. The metropolitan limitsof Kochi include a scattering of islands on theVembanad Lake, ranging from tiny 250 acreislands to modest 1500 acre ones. Water bodiesare the principal tourist attraction of Kochi, andthe sea-lake confluence can be explored throughvarious short and long trips in boats. Regularpublic ferry services are also available from thetwo ferry stations in the mainland ErnakulamTown. Popular ferry trips from the main boat jettyinclude the 15-minute trip to Willingdon Island;the 20-minute trip to Fort Kochi; the half-hourtrips to Mattancherry & Vypeen; and the 2-hourjourney to Varapuzha. Longer travels connectingall these spots, as well as timed pleasure trips tothe lake, the sea beyond, and back, are alsoavailable. There are also a wide variety of boatsavailable – from small speedboats, to statelyhouseboats, to big commercial boats with food,dance, & music. Exploring the expanse of KochiHarbour in a

Some Kochiites might not agree with the title, ‘Deep BlueSea’. Because, what we see here is a view from Kochi’sfamed Marine Drive, and the view is technically ofVembanad Lake. Kochi (earlier Cochin) is on the ArabianSea coast, but the city is also witness to the confluence ofVembanad Lake and Arabian Sea. But when lake meets sea,what can demarcate between them? Kochi is the only citycovered in this compilation of breathtaking Keraladestinations; all others are forests, valleys, waterfalls,mountains, lakes, & beaches. In fact, that is one of Kochi’sprime strengths – despite being a bustling city Kochi holdsenough natural charms to rival any destination in Kerala.The geography is that unique. Kochi is made up ofmainland, islands, backwaters, lagoons, seasides, and whatnot. Kochi can be rightly said as a destination ofdestinations. Beaches like Cherai & Fort Kochi; islands likeWillingdon, Bolghatty, Vallarpadam, & Vypeen; megainfrastructures like Cochin Port Trust & Cochin Shipyard;and heritage locations like Mattancherry and TripunithuraHill Palace, are all destinations unto themselves. Kochi City

Cold Mountain

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that Delhi has declaredholidays during the span of theevent, and unprecedentedmoves like Bread & Breakfast(BnB) Schemes by Delhihouseholds are beingorganized to accommodate thetourist inflow. Even then,

belongs to Ernakulam District, while the mainlandportion of the city is often called Ernakulam Town.Kochi has a generous coastline of 48 km, and isvirtually at the sea level. The metropolitan limitsof Kochi include a scattering of islands on theVembanad Lake, ranging from tiny 250 acreislands to modest 1500 acre ones. Water bodiesare the principal tourist attraction of Kochi, andthe sea-lake confluence can be explored throughvarious short and long trips in boats. Regularpublic ferry services are also available from thetwo ferry stations in the mainland ErnakulamTown. Popular ferry trips from the main boat jettyinclude the 15-minute trip to Willingdon Island;the 20-minute trip to Fort Kochi; the half-hourtrips to Mattancherry & Vypeen; and the 2-hourjourney to Varapuzha. Longer travels connectingall these spots, as well as timed pleasure trips tothe lake, the sea beyond, and back, are alsoavailable. There are also a wide variety of boatsavailable – from small speedboats, to statelyhouseboats, to big commercial boats with food,dance, & music. Exploring the expanse of KochiHarbour in a

ar

The LaLit Resort & Spa Bekal

nobody expects the NationalCapital Region (NCR) tocontain the flow, andneighbouring states like UP,Rajasthan, Orissa, and eventhe Southern States arebracing themselves for spill-over traffic. All in all, some

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When it comes to backwater tourism, Kerala is a natural choice even forinternational tourists. Fed by 38 rivers and linked by 1500 km of navigable canals,the state’s impressive backwater system of 34 lakes, many of them interconnected,is one of nature’s class acts. And when it comes to Kerala’s backwaters, onedestination stands out – Kumarakom. The reason is simple enough – Kumarakomoccupies a prized location on the banks of Kerala’s largest natural lake, the‘Vembanad Kayal’. Measuring an unbelievable 49,421 acres, Vembanad Lakeborders three Kerala Districts – Ernakulam, Alappuzha, and Kottayam. Of these,the cluster of little islands that make up Kumarakom belongs to Kottayam District.Many major rivers including Periyar, Pamba, Muvattupuzha, & Meenachil flowinto the Vembanad Lake. The boat ride from Kumarakom into the expanses ofVembanad Lake is awe-inspiring, and nobody can be blamed for asking theinevitable question – is it a lake or a sea? However, water is only one of theelements that made Kumarakom a tropical paradise. There are other goodiesthat water brought along – mangrove forests, wetlands, migratory birds, paddyfields, coconut groves, and a teeming aquatic population. Kumarakom isstructured around enchanting waterways and canals, where green weeds andwhite lilies make way for boats of all kind – canoes, country crafts, speedboats,and of course, the icon synonymous with Kumarakom – the houseboat or‘kettuvallam’. The Kumarakom Bird Sanctuary, spanning 14 acres, is home toover 90 species of resident birds and over 50 species of migratory birds from asfar away as Siberia. The lake and the surrounding wetlands support what isperhaps the largest waterfowl population in India, and a boat ride around thesanctuary will be enough to spot exotic birds like egrets, darters, herons, teals,cuckoos, wild ducks, and flocks of Siberian Stork. One attraction for these birds

estimates put thewindfall for the country’shospitality industry ataround Rs. 5000 crorethis season. Though theinfrastructure continuesto be woefullyinadequate, and will beso even after the CWG,there are silver lines inthe clouds like theambitious airportmodernisation programfor 35 Tier-II airportsacross the country,slated to be completedby 2012.

Kumarakom, Kottayam

Club Mahindra, Munnar

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– the thriving aquatic life – is also a major attractionfor tourists who relish freshwater delicacies like PearlSpotted Fish (‘Karimeen’), Scampi (‘Konchu’), &Shrimp (‘Chemmeen’). Mouth-watering Kumarakomdishes include grilled ones like ‘Konchu Pollichathu’and ‘Karimeen Pollichathu’. When it comes toaccommodation, there are enough options inKumarakom by way of homestays, and resorts byboth private and public operators. Recently, somemajor resorts in Kumarakom have come under thegovernment scanner for encroaching land byreclaiming lakes, and might face strict actionincluding demolition and confiscation. Though manyrelaxing activities can be undertaken in Kumarakomincluding fishing, angling, hiking, getting anayurvedic massage etc, the real value of Kumarakommight be missed unless one goes for a long tripthrough the backwaters to other destinations likeKochi, Alappuzha, or Kollam. The longest of thesetrips is the Kumarakom-Alappuzha-Kollam trip,which on a typical houseboat will last 2 days and 1night, costing around Rs. 12,000 for single and Rs.15,000 for double accommodation. Or if you prefersomething short and sweet, the island of‘Pathiramanal’ (Sands of Midnight) is just 40minutes away. Kumarakom is 16 km away fromKottayam City and 92 km from Kochi InternationalAirport.

Kumarakom Lake Resort, Kottayam

Glenora Homestay,Wayanad, Kerala

In the Wayanad District, a belt ofrainforest in the northern Keralanhighlands, Glenora is one ofthose homestays for whomsuccess has meant a pushupmarket - but that doesn’t dimthe quality of the experience.Home to the hospitableRajagopal family, and registeredas a “farm tourism provider”, thehouse is set in 90 acres of coffee,pepper, betel nut, lime, ginger,guava and avocado among otherfruit and spices. As well as threelight, well-furnished rooms in thehouse, there are two newcottages on stilts (each of thelatter has two balconiesoverlooking the plantation – birds,monkeys, foliage and not anotherhouse in sight). Activities includetrekking, jeep safaris, badminton

Cliffhanger!Kerala’s most popular beach has always been Kovalam.But with popularity comes the unavoidable evils likedestructive development, overcrowding, lack of privacy,and safety concerns. International tourists – mainly theEuropeans - started asking around for a second beach inThiruvananthapuram where they could safely unwind, andthat is how they stumbled upon Varkala. But Varkala andits beaches have always been there – in fact it is a locationof significant historical and religious importance in Kerala.Also, it was not just the remoteness or privacy of Varkalathat started attracting tourists here. Varkala is amagnificent beach in its own right, even rated ahead ofKovalam by many tourists, for its sheer beauty. The beachsands are expansive, uncluttered, clean, and beautiful,providing for ample space to relax in privacy. The wavesare of right height – enough to overwhelm you, but notaggressive enough to topple you. Adding to theexperience that is Varkala is a unique range of lateritecliffs that shine amber during sunrise and sunset. Thehigh cliffs are next to the beach, can be climbed, andoffer breathtaking views of the waves and sands down.Most of the hotels and resorts in Varkala are atop thesecliffs. The cliffs feature many natural spas and spouts.

and trips to Sunrise Valley (lessthan a mile away), MeenmuttyFalls or the Wayanad WildlifeSanctuary.

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Nelpura heritage homestay in Kerala’s backwatersThe Indian “homestay” experience has grown from strength to strength sincethe idea first emerged in Kerala, a decade or so ago. Now there are homestaytours and specialist agencies for the many hospitable families offering modestlypriced accommodation in a variety of homes from city apartments to plantationhouses. The majority are in the far north or the far south (Delhi, Rajasthan,Kerala), but the idea is spreading into other states. As a general rule, they aremiddle-class houses, largely run by the active retired professionals, thoughthere are younger, or poorer, families among homestay hosts. Website galleries

Technically called Varkala Formation, these cliffs are unique and havebeen declared a national geological monument by Geological Survey ofIndia, the nation’s apex geological body. According to scientists, thesecliffs have been formed by a long-drawn process termed tertiarysedimentation formation, and is a unique feature of Varkala comparedwith the rest of Kerala’s long coastline. The main beach of Varkala is the‘Papanasam’ Beach which means ‘redemption of sins’ in Malayalam.Varkala’s religious importance in Hinduism is closely related to this concept– thousands of Hindus come here every year to wash away their sins inthe waters here. Varkala also features an ancient temple – the SreeJanardhana Swamy Temple, which is believed by many to be 2000 yearsold. The ‘Sivagiri Mutt’, a sprawling monastery established by the greatHindu social reformer Sree Narayana Guru is at Varkala and attractsthousands of pilgrims every year. Catering to the needs of the foreigntourists, Varkala is fast becoming an ayurvedic hub with many healthresorts offering massages and other inpatient treatments. One of themost cost-effective destinations in Kerala, this seaside town also offersmany homestays. Other attractions near Varkala include Kappil, a uniquedestination where the roaring seas and placid backwaters come together.Varkala is 51 km south of Thiruvanathapuram City and 37 km north ofKollam City. While Varkala has a railway station of its own, the nearestairport is Thiruvananthapuram International Airport, 57 km away.

proudly feature pictures of “European-style toilets”; they often promise safedrinking water, station and airport pick-ups, drinks in the lounge among thefamily portraits. Some simply offer homely bed and breakfast while others veertowards the boutique hotel (which is reflected in the price), but the ones tolook for are those that invite you to join the family, sample home-cooked regionalfood and explore the suburbs, hilltops and backwaters of those untouristy cornersof India you might never otherwise see

Lavasa RisesAboveChallengesAgainst formidable challenges from manyquarters, the Group that virtually donated to thenation its first shipyard and its only aircraftmanufacturer, is confident of makingIndependent India’s first hill station truly public.

LAVASA PUBLIC ISSUE

Ajit GulabchandChairman & Managing Director

Imagine hill-stations like Darjeeling, Nainital, Shimla, Manali, Mussoorie,Madikeri, Munnar, Kodaikanal, or Ooty. They are not mere getaways, butthriving economic systems as well. India is home to over 80 such hill-stations,with around 50 built by the British Raj and the rest by erstwhile kingdoms.Sadly, almost none was built or developed further by Independent India for thelast 60 years. Nobody is sure of the reason, but commonsense suggests that theformidable challenges in developing a hill-station was the key factor. Nobodybuilt any hill-station without larger-than-life visions, meticulous planning, andseemingly endless hard work. Undertaking surveys in virgin forests, craftingwinding hairpin roads, anti-gravity trains, and the cable cars to transport men& materials were never child’s play. Recognising this shortfall in hill-stations,both the Government of India and Government of Maharashtra enabled theenactment of Special Regulations for Hill Station Development in 1996. Butnot many in the private sector took the bait. But the Group that virtually donatedto the nation its first shipyard, Hindustan Shipyard, and its first aircraft maker,Hindustan Aeronautics Ltd, took up the challenge within a couple of years ofthe Government move. Because of this, Lavasa by HCC had all the blessingsfrom authorities. But ten years later, after spending unimaginable money, time,and other resources to create Independent India’s first hill-station, HCC & Lavasa

have been caught in a crossfirebetween political parties BJP andNCP. Nobody disagrees that noproject - however sublime it mightbe - should get away with undueconcessions from Government, oreven worse, build the project bytrampling the land and aspirationsof the poor. But the timing of thecampaign against Lavasa issuspicious. After building on itsown for over 10 years, andcompleting the first phase on equityand debt, now is the time thepromoters are approaching publicinvestors through an IPO. The readyquestion that comes to anyone’smind is where were these criticsduring the past 10 years? Both BJPand Congress-NCP alliances hadruled the state in recent past. UnionEnvironment Ministry, who hasraised some issues now, was alsonot oblivious to this mammothdevelopment for the last 10 years.The worst that HCC did was allowstakes by a couple of SharadPawar’s family members, which isan error that stands corrected sincethe last four years. But it was a movethat continues to attract formidablepolitical enemies for the project.Business enemies are also aplenty,as post this Rs. 2000 crore IPO,Lavasa will be valued at over Rs.

20,000 crore, making it the second-largest real estate developer bymarket-cap, behind only DLF, andahead of heavyweights like DBRealty, HDIL, Indiabulls RealEstate, & Godrej Properies. But itis still not clear whether Lavasa will

be considered as a realty player oras an infra developer. Even there, itwill displace all but JaiprakashAssociates, Unitech & GMR Infra,including majors like Lanco Infra,Jaypee Infra, & IRB Infra. LavasaCorporation has recently come outin open through a national

campaign negating almost all theallegations point-by-pointincluding shareholding pattern,land purchase, environmentalissues, water usage, exclusivity, andrevenue loss to Government. TheState Government has alsocorrected its knee-jerk reaction andis now looking whether allegedrevenue loss can be correctedthrough compounding. Severalvillages in the project area have alsocome forward to support theproject. Government of India too islikely to look at the project from aholistic angle, considering the scaleof the project that spans 25,000acres.Seth Walchand Hirachand didthings usually Governments do.That is why his companiesScindia Shipyard and HindustanAircraft later became thenationalized companiesHindustan Shipyard Ltd andHindustan Aeronautics Ltd. Lessthan a century later, the scion ofthis entrepreneurial legacy, AjitGulabchand is taking Hindustan

Just 3 hours fromMumbai, and 40 minutes

from Pune, Lavasa hasbeen designed on a

philosophy of live- work-learn-play within walkabledistances , and is coming

up as 12 towns spreadacross 7 valleys. Thewhole development is

spread across fourphases, with the secondphase getting completed

in 2014, the third in2017, and the final phase

in 2021.

Construction Company (HCC),the construction companyWalchand Hirachand founded, todizzying heights by going in fora Rs. 2000 crore IPO of i tssubsidiary – Lavasa Hill City –which is another project thatusually Governments do.

At 100 sq kms, it is roughly the sizeof Allahabad, Jodhpur, Rajkot,Coimbatore or Kochi. But if thesecities took hundreds, if notthousands, of years to develop,Lavasa’s ambition is to grow to suchscales within two decades. Now,you too can be part of this larger-than-life ambition as this emergingcity project is going for its IPO.

At 100 sq kms, it isroughly the size of

Allahabad, Jodhpur,Rajkot, Coimbatore or

Kochi. But if these citiestook hundreds, if not

thousands, of years todevelop, Lavasa’s

ambition is to grow tosuch scales within twodecades. Now, you too

can be part of this larger-than-life ambition as thisemerging city project is

going for its IPO.

Brigade Group, a leading developerheadquartered in Bangalore, ob-tained the license from the WorldTrade Centers Association to clas-sify and manage their 1 million sq.ft office tower in their prestigiousmixed use project Brigade Gatewayas ‘World Trade Centre Bangalore”.This marks the company’s entry intothe prestigious league of selectWorld Trade Centers across theglobe. The World Trade Centre certifica-tion is awarded after rigorous as-sessment and scrutiny by the World

Brigade Property Selected asWorld Trade Center, Bangalore

Trade Centres Association (WTCA),whose primary objective is to pro-mote prosperity through world trade.A World Trade Centre is a signaturereal estate development and a sym-bol of International trade providingits members services like – tradeinformation, global networking withWTC clubs, exhibit facilities, con-sulting services, administrative sup-port, export / import assistance, tele-conferencing facilities, translation /interpretation, trade missions, officeservices, newsletters and tradepolicy research, among others. Ac-

cording to WTCA bylaws, there canbe only one regular WTCA Mem-ber in a single economic area, whichmeans there would not be any otherWorld Trade Center in Bangalore.Commenting on the achievement,MR Jaishankar, Chairman & MD,Brigade Group, said, “This is a mat-ter of great pride and honour, for theState of Karnataka as well as Bri-gade Group. Bangalore is once againon the global map as the city thathouses a World Trade Center. TheWTCA certification is also testi-mony to Brigade’s unrelenting pur-suit of quality and global standardsin all its work and we are confidentthat the World Trade Center Banga-lore will add significant value to theprocess and growth of world trade.”Robert J. Frueh, Director of Mem-ber Services, World Trade CentersAssociation said, "The new WorldTrade Center Bangalore at The Bri-gade Gateway is a world class busi-ness destination and it is quicklybecoming a symbol of internationaltrade for the greater Bangalore re-gion. We welcome the World TradeCenter Bangalore as its establish-ment links this great city now withover 300 World Trade Centers innearly 100 countries all focused ongrowing their economies in the in-ternational marketplace."Brigade Group is one of the leadingreal estate development companiesin India primarily focussed on thedevelopment of residential, com-mercial & hospitality properties inSouth India. Brigade is a successfulpublic limited company that hascompleted over 100 residential,commercial, retail and hospitalityprojects, covering over 20 millionsq ft of developable area.

rawing up a strategy isexciting. The entireprocess of brainstorming,interpreting consumerinsights, analyzingresearch, playing with

postulates and creating hypotheses isexhilarating. Eating those drysandwiches late at night, gulpingzillion cups of black coffee, knockingoff objections and punching inPowerPoint presentations – that’s anideal day at office. And indeed whatmany of us dreamt of while soakingin Peter Drucker at B-school.Trouble is, there are too manystrategists floating around corporatecorridors but not many doers. Now,what’s wrong with that? Isn’t it theability to think strategies that enablesone to be picked up in any managerialassignment in the first place? Thereare not many who’d like to dirty theirhands with execution. And in anycase, ‘execution’ is not the in-thingbecause it is considered uncreative,mundane and, therefore, boring,where as drawing up strategies getsthe adrenaline flowing. Some leaderssimply delegate execution to theirdown-line though they stay deeplyinvolved through every stage ofstrategy development, therebyreinforcing the misgivings that mostmanagers have about execution.The lowly status of execution is sodeeply embedded in our mindset thatoften when a strategy fails to deliverthe desired results we look for chinksin the strategic construct rather thanlook at the loopholes in the executionprocess. Not too many companiesgive execution the kind of importanceit deserves. A tool that mostorganizations use nowadays to helpdevelop managerial talent is the

Are we obsessed with strategizing? We needto re-focus on the importance of doing, saysmanagement consultant Giraj Sharma.

Assessment Centre, where they havetheir folks assessed on wide-rangingcompetencies such as analyticalability, planning, drive for results,customer focus, impact and influenceand innovation. Everything, it wouldseem, except execution. One of myclients, for whom I am on the panelof assessors, is an, exception in thesense that he maps execution as oneof the competencies. Notsurprisingly, the panel finds flair forexecution to be a development needfor most managers and lands updownloading a development plan onbuilding up this competency.Are we, as a race, obsessed withstrategizing? My answer to this is not‘Perhaps’, ‘Maybe’, but an assertive‘Yes’. I call it the Chanakya-syndrome! We all want to be theChanakyas of our enterprises andwant to be left free to think strategy.We feel that’s our calling. Tell amanager to come for a strategy meetand you see him or her drooling. Callthem to discuss an executionroadmap or review an executionblue-print and they suddenly have a

hundred pre-committedengagements. Recently the CEO ofone of my consulting clients invitedme to work with his entire leadershipteam and get them to re-focus onexecution. Even though we weretalking to senior people, we had toprod, cajole and eventually pushthem to work around the concept ofexecution. On probing, I discoveredthat the basic resistance came fromthe belief that if leaders get involvedwith execution then they aredisempowering people in their teams.“Are you not asking us to micro-manage things?’ was the question thatmost asked. And no, they didn’t wantan answer as they firmly believed thatengaging with execution is akin tomicro-managing affairs.How often do strategies fail for thingsthat were supposed to happen but didnot happen? Execution is all aboutharmonizing people, strategy andoperations. As Ram Charan and LarryBossidy put it in their best-sellingbook Execution – “It is a systematicprocess of discussing themechanisms, of questioning,tenaciously following through andensuring accountability.”Execution may not be glamorous orsensational but it is essential to thesuccess of any strategy. Focus onexecution does not amount to micro-managing. It is all about simplifyingsteps in order to get things done. It isabout reducing things to bare bones.It is about getting everyone in theteam on the same page. It is aboutcommon sense that one sees intheatre rehearsals where everyoneknows his part and works to get insync with others so that there are nogoof-ups in the actual performance.In other words, execution is aboutmaking reliable management ofcomplexity a routine. It is aboutadherence to protocol. The issue isthat people have problems with theidea of adherence to protocol andoften mistake it as rigidity and thusrelegate execution to somethingthat’s unexciting. Not for long thoughas slowly but surely Corporate Indiais getting hooked to execution. Moveon Chanakyas – make space for thedoer!

Strategists, Move On…Doers, Move In!

A Billionaire’sBillion Rupee Beton a Billion+ PeopleA billion people believing that we can’t do it. And ever. One manamongst the billion believing that we can do it. And soon. Assoon as the 2018 World Cup. Who will win? The man who createdthe performance drug, Musli Power X-Tra, is betting one billionrupees to handpick and groom 60 boys, from across rural andurban India, who can bring home the cup in 2018. If a boy knowsto take the ball with him, Abraham will take the boy with himwherever he hails from - Kolkata to Kochi, Goa to Vizag, Jalandharto Chennai. Abraham says, in its core, his Rs. 100 crore bet is abet on the aspirations and hidden strengths of one billion of us.

sk any footballcoach the mostaudacious aimIndian footballcan take by 2018,and you are likely

to hear this - not finishing amongthe last-three in Asian Cup. Andsuch disappointing outlooks can’tbe blamed as Indian football teamhas often failed to even qualify forAsian Cup in recent years. But askKunnath Pharma Founder KCAbraham about the objective for hisRs. 100 crore football foray, hedoesn’t bat an eyelid beforereplying, “2018 World Cup”. Wealmost sputtered while asking,“You mean, qualifying for theWorld Cup?”, and he waves off thatvery idea. “My aim is the Cup, andnot merely playing,” says Abraham.Thus started an incredulousconversation with this entrepreneurregarding his football plan for Indiathat can’t be called anything less thanaudacious. But as he started toexplain the month-by-month, lakh-by-lakh battle plan to rejuvenateIndian soccer, we started doubtingour disbelief. This elaborate plan andhis strategies is a story unto itself,whereas, Abraham’s insightfulphilosophy on why Indian footballis in the current dire straits is quiterealistic. “Where can we hope toreach if we have no high aim? Thatis why we have set this goal,however formidable it might seem.”Secondly, he brings up the issue ofwholehearted focus. “Our FootballAcademy will be totally residentialand our selected players will be oncompetitive salaries, right from theirteenage and till their retirement so thatthey will never fear about their future,and will always have their eye on theball.”KC Abraham answers SeasonalMagazine’s further queries:

Musli Power X-Tra FootballAcademy plans to select 60 boys tocreate the national football teamof tomorrow. Can you explain theselection process?The first step will be a training camporganized during the next summervacation for around 1000 to 2000football-playing boys selected fromall over the country. The trainingwill be for one to two months, and60 junior and sub-junior boys whohave proven their skills at thenational, state, or district levels andhave done well in the camp will beselected. The selected age group willbe 14 to 17. Our budget for the campand selection is around Rs. 2 crore, andwe hope to do the camp and trainingin a distributed style at multiple cities.

The Academy, we understand, isplanned as a residential one. Whyis this so, and don’t you think it willact as a deterrent for many parentsto send their boys?Our idea is that excellence infootball cannot be achieved as apart-time pursuit, especially for acountry like India that ranks verylow in the game. Any nation that hasrecently come up in football, be itSouth Korea, China or US, followsthis focussed residential approach.So, for our selected players, regularcollege-going will be a strict no-no.Instead, we may associate withsome open university kind ofarrangement so that they will laterhave a degree. But once with theMusli Power X-Tra FootballAcademy, their only activity will beto play football. Coming to theparental concerns, we think ourunique salary structure for theplayers will provide more thanadequate comfort.

That is surprising. From whenwill they get these allowances, andwhat would be the guaranteeregarding its regularity andduration?First of all, let me clarify, we are

not speaking about allowances. Allthe 60 selected candidates will beon salary, as they will be on theofficial payroll of the Academy orthe Company. They will be onsalary from day one, and we hopeto begin the salary structure at Rs.5000 per month. Which 14 year oldcan hope for a monthly salary likethat? There will also be regularsizeable increments as well asmilestone-linked increments, whichcan be as high as 100% of thepreviously drawn salary. Forexample, by the time they play theI-League we hope to provide themRs. 50,000+, and when playinginternationals, more than Rs. 1lakh+. As long as they arecontributing to the academy’s and

Abraham’s penchant for sportspromotion is well known,Musli Power being the sponsorof Sri Lankan cricket clubWayamba Elevens and formersponsor of Goan football clubChurchill Brothers. Abrahamhails from a family thatcontributed an Olympian tothe nation. KC Abraham is thebrother of India’s formerOlympian Rosakutty. Abrahamis also taking over the soccerclub, Viva Kerala.

team’s objectives they will beassured of this remuneration. Asand when some of them are unableto play regular football, they willbe absorbed into the regularactivities of Kunnath Pharma, likeits marketing or administrativedepartments, in their own states.That is the kind of guarantee we areproviding.

Football is a serious game, andfootballers are prone to seriousinjuries. What kind of a rehabilitation plan they will have at theAcademy?All our players will be fully insured,and on a scale in which howinternational players are insured. Itwill cover life as well as health in a

comprehensive way, so thatwhatever happens these players andtheir families will never lose out. Infact, we have always felt that thefear of injuries has been asignificant factor inhibiting Indianplayers from playing total,aggressive football.

Have you done the overallbudgeting for the whole exercise?Yes, of course. Otherwise, how canwe be confident that we can achievethis objective of winning the WorldCup on Rs. 100 crore within thenext 8 years? It is a next-to-impossible target. Our spend will bein an incrementally increasingfashion, starting with annualbudgets of Rs. 5 to Rs. 8 crore in

the early years, and ending with Rs.20 to Rs. 25 crore in the last twoyears.

Coaches and officials will play amajor role in this project. Are youlooking at coaches from abroad?And this looks like a project thatwould gain a lot with the supportof government, football federations, and other corporates.How do you plan to enlist theirsupport?Foreign coaches need not be therenecessarily, especially in the earlyyears. But there will definitely beplay-offs with international clubsand interactions with overseasteams. We would be looking atcoaches who share our passion towin the world cup for India, morethan anything else. We are open inaccepting institutional support, andhope to work closely with all ofthem. But a major portion of thework we have planned must becarried out in-house and on ourresources, so that other agencies canbelieve in this model. We also planto enlist the support of all in publicwho share this passion, and who canprovide constructive ideas towardsthis venture.

WORLD M&A FOCUSTURNS TO INDIA ASWEST SLOWS DOWNStandard Chartered Plc, ranked 14th among merger advisers inIndia last year, has climbed to number two by financingtakeovers in the world’s second-fastest growing major marketfor acquisitions.

he U.K. bank, the firstforeign company tosell shares in India, hasadvised on $22 billionof deals, second only

to Morgan Stanley, in the nation’sbusiest year for takeovers since2007, according to data compiled by

Bloomberg.

Eight of the 10 largest acquisitionsin India this year are cashtransactions, compared with onlyone of the top 10 global deals,underscoring the need to providefinancing to win clients. StandardChartered funded the nation’s twobiggest takeovers, by billionairesAnil Agarwal and Sunil Mittal,helping to cement India as thelender’s most profitable market.

“In India, M&A is to a great extentdependant on balance sheetsupport,” Abizer Diwanji, head of

financial services at KPMG India,said in an interview from Mumbai.“You will see more and more banksputting their balance sheet to work.”

Indian companies led by Mittal’sBharti Airtel Ltd. have announced$58.4 billion of transactions thisyear, on course to surpass 2007’s

record $69.2 billion, driven by cross-border takeovers that are also set foran all-time high. The tripling in dealvolume from last year makesIndia the fastest growing afterMexico among the Group of 20nations, the data show.

Standard Chartered over tookGoldman Sachs Group Inc. andJPMorgan Chase & Co., the twolargest global takeover advisers,in India this year. New York-based Goldman Sachs is ranked

No. 10 in the Asian nation, whileJPMorgan is 12th.

Global SlowdownIndia’s acquisition spree contrastswith a slowdown in global deals.Mergers worldwide are on course todecline for a third year, with $1.35

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trillion of transactions, down 56percent from the first eight monthsof 2007. In the U.S., the world’slargest market, volumes dropped 63percent to $577 billion, whileEurope saw a 68 percent decline to$489 billion.

“While the M&A activity in the U.S.and Europe has been weak, it’s beenquite busy in this part of the world,”Prahlad Shantigram, global head formergers and acquisitions at StandardChartered, said in a telephoneinterview. “For strong stories, thebank will look at financing.”

Standard Chartered may provide $4billion to fund the acquisition of acontrolling stake in Cairn India Ltd.by Agarwal’s Vedanta Resources Plc,two people with knowledge of thematter said on Aug. 16. Credit SuisseGroup AG and Goldman Sachs arealso financing the bid, according toa company statement.

The London-based bank has focusedon cross-border deals in oil and gas,metals and mining and telecom,Shantigram said.

There may be “a couple more largedeals” in those sectors this year, hesaid. “It’s been a good year for us sofar.”

Cross-Border DealsCross-border mergers in India haveclimbed to $50.7 billion this year,surpassing the combined takeovervolumes for the previous two years,according to Bloomberg data. Thedeal flow has almost matched the$51.9 billion in the first eight monthsof 2007, which saw a record $58.9billion of such deals.

Standard Chartered raised $530.7

million in May, becoming the firstoverseas bank to sell shares in thenation. The lender, which traces itshistory in India back to 1858, wasthe only one of the nation’s threebiggest foreign commercial banks toexpand credit in the year endedMarch 31.

“We are trying to change the game,at least in our core markets likeIndia,” Jaspal Singh Bindra, chiefexecutive officer of StandardChartered Asia, said by telephonefrom Hong Kong. “The days aregone when you can come into Indiajust on the back of your big-bulgestatus.”

Expanding CreditStandard Chartered’s loan bookexpanded 11 percent to 415.5 billionrupees last fiscal year, while HSBCHoldings Plc’s advances shrank to234.7 billion rupees and CitigroupInc.’s loans decreased to 366.6billion rupees, according to datacompiled by Bloomberg.

HSBC, ranked No. 6 in India M&Aafter part funding Bharti’stransaction, plans to offer financingto win more deals, said Naina LalKidwai, HSBC’s India country head.

“We expect customers whom wefund to also reward us with theevents-business, as in investmentbanking,” Kidwai said in aninterview on Aug. 24. The lenderplans to play a bigger role inproviding advisory services andhelping raise funds for acquisitionsby clients, she said. “That would bea very important part of the way wework.”

May RiseStandard Chartered’s league tableranking may rise in India as the bankis advising Emirates Telecom Corp.,the United Arab Emirates’ biggestphone company, according to twopeople with direct knowledge of thematter.

Jamal Al-Jarwan, chief executiveofficer for international investmentsat the Abu Dhabi-based operator, onSept. 6 said the company isconsidering investing in IdeaCellular Ltd. Rajat Mukarji, aspokesman at Mumbai-based Idea,declined to comment.

Standard Chartered, India’s largestoverseas bank by branches, earnedalmost twice as much in the nationas U.K. rival HSBC in the first halfas India overtook Hong Kong tobecome its most profitable market.The lender has reported eight yearsof profit growth even as financialinstitutions worldwide racked up $1.8trillion of losses and writedownsduring the financial crisis.

“We were around in the last two tothree years when things weredifficult,” Standard Chartered’sBindra said. “People think you havedone difficult markets, difficultstructures in difficult periods, thenyou tick most of the boxes.”

Sunil Mital Prahlad-Shantigram Naina Lal Kidwai Anil Agarwal Jaspal Singh Bindra

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Jamal Al-Jarwan

Those who think they’re unluckyshould change their outlook anddiscover how to generate goodfortune, says psychologistRichard Wiseman.

BE LUCKY -IT’S ANEASY SKILLTO LEARN

BE LUCKY -IT’S ANEASY SKILLTO LEARN

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decade ago, I set outto investigate luck. Iwanted to examinethe impact onpeople’s lives of

chance opportunities, lucky breaksand being in the right place at theright time. After many experiments,I believe that I now understand whysome people are luckier than othersand that it is possible to becomeluckier.To launch my study, I placedadvertisements in nationalnewspapers and magazines, askingfor people who felt consistentlylucky or unlucky to contact me.Over the years, 400 extraordinarymen and women volunteered formy research from all walks of life:the youngest is an 18-year-oldstudent, the oldest an 84-year-oldretired accountant.Jessica, a 42-year-old forensicscientist, is typical of the lucky

group. As she explained: “I havemy dream job, two wonderfulchildren and a great guy whom Ilove very much. It’s amazing;when I look back at my life, Irealise I have been lucky in justabout every area.”In contrast, Carolyn, a 34-year-oldcare assistant, is typical of theunlucky group. She is accident-prone. In one week, she twisted herankle in a pothole, injured her backin another fall and reversed her carinto a tree during a driving lesson.She was also unlucky in love andfelt she was always in the wrongplace at the wrong time.Over the years, I interviewed thesevolunteers, asked them tocomplete diaries, questionnairesand intelligence tests, and invitedthem to participate in experiments.The findings have revealed thatalthough unlucky people havealmost no insight into the realcauses of their

The LuckiestBollywoodActress?Deepika comes from no Bollywoodfamily. She is pretty, not exceptionallypretty. She is not very talented either. Sheis good though. That being said, justchecking her track record in bollywood,how can anyone not say she is the luckiestbollywood actress? First Movie: Launchwith Shahrukh Khan. Second Movie: YashRaj banner. Third Movie: With WarnerBrothers and Akshay Kumar. FourthMovie: With Imtiaz Ali and Saif. Everytop bolly actress, be it Madhuri, Kareenaor Aishwarya had to struggle to get towork with Yash Raj or work with SRK. IsDeepika Padukone destiny’s favoritechild?

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good and bad luck, their thoughtsand behaviour are responsible formuch of their fortune.Take the case of chanceopportunities. Lucky peopleconsistently encounter suchopportunities, whereas unluckypeople do not. I carried out a simpleexperiment to discover whether thiswas due to differences in theirability to spot such opportunities.I gave both lucky and unluckypeople a newspaper, and askedthem to look through it and tell mehow many photographs were inside.On average, the unlucky peopletook about two minutes to count thephotographs, whereas the luckypeople took just seconds. Why?Because the second page of thenewspaper contained the message:“Stop counting. There are 43photographs in this newspaper.”This message took up half of thepage and was written in type thatwas more than 2in high. It wasstaring everyone straight in the face,

but the unlucky people tended tomiss it and the lucky people tendedto spot it.For fun, I placed a second largemessage halfway through thenewspaper: “Stop counting. Tell theexperimenter you have seen thisand win £250.” Again, the unluckypeople missed the opportunitybecause they were still too busylooking for photographs.Personality tests revealed thatunlucky people are generally muchmore tense than lucky people, andresearch has shown that anxietydisrupts people’s ability to noticethe unexpected. In one experiment,people were asked to watch amoving dot in the centre of acomputer screen. Without warning,large dots would occasionally beflashed at the edges of the screen.Nearly all participants noticed theselarge dots.The experiment was then repeatedwith a second group of people, whowere offered a large financial

reward for accurately watching thecentre dot, creating more anxiety.They became focused on the centredot and more than a third of themmissed the large dots when theyappeared on the screen. The harderthey looked, the less they saw.

And so it is with luck - unluckypeople miss chance opportunitiesbecause they are too focused onlooking for something else. They goto parties intent on finding theirperfect partner and so missopportunities to make good friends.They look through newspapersdetermined to find certain types ofjob advertisements and as a resultmiss other types of jobs. Luckypeople are more relaxed and open,and therefore see what is thererather than just what they arelooking for.

My research revealed that luckypeople generate good fortune viafour basic principles. They are

Take the case of a very famous Hindi film actor. In a recentinterview, Ameen Sayani, the host of yesteryear’s super hit showBinaca Geetmala recounted a very interesting story about him.“It was 1969. I was doing 20 shows a week, spending most ofthe day locked up in the studio in my office. A young man walkedin without appointment for a voice audition. I had not a secondto spare for this tall, thin young man. He waited and left andcame back a few more times. He became instantly popularwith my staff, but I could not see him,” said Sayani in theinterview. Ameen Sayani had been too busy to meet the mannow famous as Amitabh Bachchan. Then in 1971, Sayanihappened to see Hrishikesh Mukherjee’s Anand and “wasfloored by the persona, voice and performance of the actornamed Amitabh Bachchan.” What would have happened if thetwo had met in 1969? “Though I regret denying him an audition,I realise that what happened was for the best for both of us! Hisvoice would have finished my career, and he would have gotso much work on radio that Indian cinema would have lost itsbiggest star,” said Sayani in the interview.

The (Un)Lucky Appointment?

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skilled at creating and noticingchance opportunities, make luckydecisions by listening to theirintuition, create self-fulfillingprophesies via positiveexpectations, and adopt a resilientattitude that transforms bad luckinto good.

I wondered whether these fourprinciples could be used to increasethe amount of good luck that peopleencounter in their lives. To find out,I created a “luck school” - a simpleexperiment that examined whetherpeople’s luck can be enhanced bygetting them to think and behavelike a lucky person.

I asked a group of lucky andunlucky volunteers to spend amonth carrying out exercisesdesigned to help them think andbehave like a lucky person. Theseexercises helped them spot chanceopportunities, listen to theirintuition, expect to be lucky, and bemore resilient to bad luck.One month later, the volunteersreturned and described what had

From GovernmentServant to MinisterAs Sankarshan Thakur writes in Subaltern Sahib: Bihar andthe Making of Lalu Yadav, “On the eve of elections of PatnaUniversity Students Union (PUSU) in 1973, non-Congressstudent bodies had again come together, if only for their limitedpurpose of ousting the Congress. But they needed a credibleand energetic backward candidate to head the union. LaluYadav was sent for.” Lalu Yadav at that point of time was anemployee of the Patna Veterinary College. He had quit studentpolitics in 1970, after having lost the election for thepresidentship of PUSU to a Congress candidate. Before this,Lalu had been the general secretary of PUSU for threeconsecutive years. “Assured that the caste arithmetic wasloaded against the Congress union, Lalu readily agreed tocontest. He quietly buried his job at the Patna VeterinaryCollege and got a backdated admission into the Patna LawCollege. He stood for elections and won. The non-Congresscoalition in fact swept the polls.” In 1974, the students’ agitationagainst then prime minister Indira Gandhi spread throughoutthe country. As Thakur writes, “An agitation committee wasformed, the Bihar Chatra Sangharsh Samiti to co-ordinatethe activities of various unions and Lalu Yadav as presidentof PUSU was chosen its chief. “These events catapulted LaluYadav into the big league, after he had quit student politicsand taken up a government job. So, luck had a huge role toplay in getting Lalu Yadav back into active politics. In the 1977elections, Lalu was elected to the Lok Sabha as a JanataParty candidate at a young age of 29.

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The AccidentalBillionaire?Noted author Mlodinow feels that Bill Gates, the co-founder ofMicrosoft was also very lucky in his initial days. As the storygoes, and as Mlodinow recounts in his book, in August 1990,IBM was looking for a programme called “operating system” fortheir “home computer.” A group of executives from IBM went tomeet Gates, who at that point of time was running a smallcompany. Gates told them that he couldn’t provide the operatingsystem they wanted and directed them to a programmer calledGary Kildall at Digital Research Inc. The talks between Kildalland IBM did not work out primarily because Kildall’s wife andthe company’s business manager refused to sign IBM’s non-disclosure agreement. Another story also goes that Kildall wasso busy pursuing his first love of flying planes that he had notime for IBM execs. Anyway, around the same time Jack Sams,an IBM employee, saw Gates again. As Mlodinow writes, “Theyboth knew of another operating system that was available, a systemthat was ready, a system that was, depending on whom you ask,based or inspired by Kildall’s. According to Sams, Gates said,“Do you want to get…[that operating system], or do you wantme to?” Sams, apparently not appreciating the implications, said,“By all means, you get it.” Sams, of course, did not understandthe mistake he had made. Gates got the operating system foraround $50,000, “made a few changes, and renamed it DOS (diskoperating system). IBM, apparently with little faith in the potentialof its new idea, licensed DOS from Gates for a low per-copyroyalty fee, letting Gates retain the rights.” And the rest as wehave seen is history. Much of Microsoft’s success since then hasbeen built on that sheer lucky break.

happened. The results were dramatic: 80per cent of people were now happier,more satisfied with their lives and,perhaps most important of all, luckier.While lucky people became luckier, theunlucky had become lucky. TakeCarolyn, whom I introduced at the startof this article. After graduating from“luck school”, she has passed herdriving test after three years of trying,was no longer accident-prone andbecame more confident.In the wake of these studies, I think thereare three easy techniques that can helpto maximise good fortune:

· Unlucky people often fail to followtheir intuition when making a choice,whereas lucky people tend to respecthunches. Lucky people are interested inhow they both think and feel about thevarious options, rather than simplylooking at the rational side of thesituation. I think this helps them becausegut feelings act as an alarm bell - areason to consider a decision carefully.· Unlucky people tend to be creaturesof routine. They tend to take the sameroute to and from work and talk to thesame types of people at parties. Incontrast, many lucky people try tointroduce variety into their lives. Forexample, one person described how hethought of a colour before arriving at aparty and then introduced himself topeople wearing that colour. This kindof behaviour boosts the likelihood ofchance opportunities by introducingvariety.· Lucky people tend to see the positiveside of their ill fortune. They imaginehow things could have been worse. Inone interview, a lucky volunteer arrivedwith his leg in a plaster cast anddescribed how he had fallen down aflight of stairs. I asked him whether hestill felt lucky and he cheerfullyexplained that he felt luckier thanbefore. As he pointed out, he could havebroken his neck.Richard Wiseman is a psychologist atthe University of Hertfordshire, andauthor of the noted work, ‘The LuckFactor’.

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Kishore Biyani is a successfulman. Now, even in capital markets.That is why the Pantaloon / Futureconglomerate is tapping themarkets for a third time. Butprudent investors are sure to takea hard look at the Group’s capitalmarkets history while assessingFuture Ventures’ IPO. Since itsIPO in 1991-92, Pantaloon has a

Will HistoryHaunt Future?

history of losing money forinvestors, floating around as apennystock in single digits for thebetter part of six long years from92-93 to 98-99, trading even as lowas Rs. 1.50. The Group’s secondlisted firm, Future CapitalHoldings, has a shorter capitalmarkets history of barely threeyears, but not much less of a

rollercoaster ride for investors thanPantaloon. From highs of Rs. 1044in FY’08, FCH had tumbled to Rs.93 by the next fiscal. But isn’t allthat history? We will have to askinvestors who burnt their fingersthis all-important question. Thereis also another difference. If theearlier value proposition was“Invest in the Retail King”, thecurrent will be “Invest with the

Retail King”, as the now plannedIPO is for a venture capital fundthat will invest in other companiesas well as Future Groupcompanies. Thankfully, the Issuesize has come down to Rs. 750crore from Rs. 3730 crore, theamount Future Venturesunsuccessfully tried to raise in2008 before the crash. Now alleyes will be on whether the Groupwill expect stratospheric valuationstoo like Pantaloon that trades at 57P/E and FCH that trades at a price-earnings of 88, which makes themfit candidates for a significantcorrection if smart money againtakes a sojourn from India as in2008.

If the earlier valueproposition was “Investin the Retail King”, thecurrent will be “Invest

with the Retail King”, asthe now planned IPO is

for a venture capitalfund that will invest in

other companies as wellas Future Group

companies.

FUTURE VENTURES IPO

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Once again a frontrunnerin a pageant has presentedan answer that somebelieve may have cost herthe crown. In Mondayevening’s Miss Universe2010 Pageant, MissPhilippines 2010 MariaVenus Raj, who seemed tobe a crowd favorite,according to the SanFrancisco Chronicle,answered a question fromactor/judge WilliamBaldwin that didn’t seemto really be an answer.Although it wasn’tcontroversial,Miss Philippines 2010 left manywondering about her answer, her22 years of mistake-less existence,and why she kept thankingeverybody.The interview segment of the MissUniverse pageant can be a pointskiller, as Carrie Prejean andMorgan Elizabeth Woolard canattest. But with William Baldwin’squestion, it seemed as if MissPhilippines 2010 was going tocoast through and perhaps securethe Miss Universe crown. Thecrowd loved her and she was thetalk of the Internet going into thefinal round of competitionMonday. But what seems like asimple question can sometimes tripa person up.“What is one big mistake you madein your life,” Baldwin asked, “and

Did the Answer ofMiss. Philippines 2010 Cost Herthe Miss. Universe Crown?

what did you do to make it right?”The beauty queen would thank thejudge for his question, then say“Good evening” to the Las Vegascrowd.She attempted to answer thequestion. “You know what, sir, inmy 22 years of existence, I can saythere is nothing major, major — Imean, problems — that I have donein my life, because I am veryconfident with my family with the

love that they are given to me.So… Thank you so much that I amhere! Thank you, thank so much!”One thing was clear: MissPhilippines 2010 Maria Venus Rajwas thankful to be in Las Vegas.William Baldwin, in a camera shotnear the end of Miss Philippines’answer, had a smirk on his face, asif he knew that Raj’s answer wasjust short of convoluted andmeaningless.

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New moms know thatbreastfeeding can be good forbabies, providing them withmuch-needed nutrition as wellas a shot of antibodies andother cells that help buildimmune systems. Now,evidence suggests that thepractice may keep the moth-ers themselves healthier too.Researchers led by Dr. EleanorBimla Schwarz at University ofPittsburgh found that women whobreastfeed are half as likely to de-

Breastfeedvelop type 2 diabetes as women whodo not. That's a big statistical differ-ence, and although it's not clear whatis behind the gap, scientists speculatethat it has something to do with preg-nancy pounds that expectant momsgain. Breastfeeding helps moms losethe abdominal fat they gain duringpregnancy more efficiently. And whileabdominal — or visceral — fat is im-portant for the gestating baby's devel-opment, it can be detrimental to amother's health if it continues to buildafter delivery, since it's been linked togreater risk of metabolic disorderssuch as insulin resistance and heartdisease as well as diabetes.

One More WOne More WOne More WOne More WOne More Waaaaay ty ty ty ty to Ao Ao Ao Ao AvvvvvoidoidoidoidoidDiabetes:

"When you look at mammals, youhave to consider lactation as part ofthe pregnancy experience," saysSchwarz. "When women don'tbreastfeed after pregnancy, or lac-tation is curtailed or prematurelydiscontinued, women end up retain-ing more fat than they would have ifthey breastfed. Then the mother'shealth can suffer."Animal studies have helped revealother reasons this is so.Breastfeeding, those studies found,can increase a mother's response toinsulin, allowing her to break downglucose more effectively and keepsugar metabolism in check. Lacta-tion also inhibits hormones that pro-mote growth hormone activity,which can also affect insulin levels.In addition, studies have shown thatwhen women do develop diabetesduring pregnancy, known as gesta-tional diabetes, breastfeeding thenewborn can improve their glucosemetabolism and help stabilize thecondition.Despite the growing body of re-search establishing the health ben-efits of breastfeeding, moms in theU.S. remain resistant.The AmericanAcademy of Pediatrics recommendsthat new mothers breastfeed theirinfants for at least six months, yetonly 14% of women do. For the 86%who don't, Schwarz says lifestyleinterventions such as exercise andchanges in the diet can go a long waytoward lowering their diabetes risk— even if it doesn't replace thehealth dividends the babies wouldbe receiving if they were breastfed."This [study] shows that perhapscounseling these women to try toreduce their personal risk of devel-oping diabetes should be somethingthat doctors should consider," saysSchwarz. "And if you are pregnantor thinking about getting pregnant,or currently breastfeeding, then stickwith it because it's important to bothyour baby's and your own health." SE

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HEALTH

5 Huge Trends inSocial MediaRight Now

Social Scanning Q&A and IntelligentInformation Discovery Group BuyingSmartphone owners have the world at their

fingertips. As grandiose as that may sound,advances in mobile barcode scanningtechnology have given rise to applicationsthat allow for comparison shopping, QR codeplace checkins and ultimately a socialexperience around product barcodes.

Web-based Q&A services have been around foryears. Now the previously sleepy space isseeing renewed interest from some of theInternet’s biggest names. This second iterationof Q&A services will likely forever redefine theway we find information, because it re-imagines“search” as intelligent information discovery.

Group buying is the deal-a-day group coupontrend made popular by Chicago-based startupGroupon. It’s also a slight variation on flashsale sites such as Woot, an Amazon property,which originated in the early 2000s.

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SOCIAL SPACE

hat’s the first thing youngwomen do when they wakeup? Check Facebook. Howdo enterprise employees

pass the time at work? With socialmedia. With so many studieshighlighting ever-accelerating socialmedia usage rates, the conclusion isobvious — social media is everywhere.What follows are five of the hottestsocial media trends right now. Each areinfluencing our social, online andmobile behaviors in significant ways.Entertainment checkin services arechanging the way we watch television.Mobile loyalty applications are helpingus connect the dots between our real-world shopping behaviors and digitalrewards. A new breed of Q&A servicesare changing the way we search.Barcode scanning applications aremaking products social, and deal-of-the-day sites are giving us ways to saveby recruiting our friends to the party.

Mobile Meets LoyaltyChecking-In toEntertainment

As consumers purchase more and moresmartphones and phone technology heads inthe direction of the “super,” it’s only a matterof time before old-fashioned loyalty, rewardsand club card programs head in the mobiledirection. Two applications — Key Ring andCardStar give us a preview of what’s to come.

What are you watching on television right now?Whether it’s the latest episode of Mad Men or thenext installment of a reality dating show, chancesare that you’re sharing the entertainment experienceeither through face-to-face interaction with friendsand family, or by posting outrageous and shockingmoments to your favorite social media channels.

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What this means is that at any givenmoment, any smartphone ownercan pull out their device, fire up abarcode scanning application, scana code and complete activities orgain access to a wealth ofimmediately relevant information.Really, what we’re seeing is theconvergence of social media andbarcode scanning to create “socialscanning.”The consumer’s scanning behavioris so significant that location-sharing checkin services such asSCVNGR are giving away QRcode decals to retailers free ofcharge. Even Google is sendingtheir own QR code decals out tosmall businesses with popularPlace Pages. What makes the scanso significant? It is a tangibleconnection between the physicaland digital world. For Google,

SCVNGR, and the businesses theyserve, it’s about access tomeasurable offline behavior.These scans aren’t inherently socialin nature, but because they candouble as verifiable place checkins,they can also possess the socialproperties of a checkin: location-sharing with friends on the sameservice or via social networkdistribution.Services such as Stickybits andBakodo are taking the socialscanning experience beyond thecheckin and creating product-driven communities around brandsand items via barcodes.Stickybits lets users add video, text,photos and audio to the barcodesthey scan in the physical world viaiPhone and Andriod apps. It’s aclever way to use barcodes to helppeople tag, share and connect

Social ScanningSmartphone owners have the world at theirfingertips. As grandiose as that may sound,advances in mobile barcode scanningtechnology have given rise to applications thatallow for comparison shopping, QR codeplace checkins and ultimately a socialexperience around product barcodes.

around items. It has also recentlybecome more brand-friendly.“Official bits” are barcodes thatbrands can claim in order tohighlight their own content. Newsocial features allow for userresponse in the form of threadedconversations, and voting to ensurethat the best content attached to thecode rises to the top.Bakodo’s iPhone app began as abarcode scanner primarily forcomparison shopping, but it’sevolving to add social scanningfunctions as well. App users canscan barcodes of all varieties toreview items and check outrecommendations from friends.The barcode intelligence searchengine combines a wealth ofproduct-related data and socializesthe process for a comprehensiveproduct-driven experience.As scanning becomes a moresocially acceptable practice, thebarcode scan will only becomemore social in nature. Expect futureQR code marketing efforts to tapinto the social opportunities, andfor brands to explore ways toengage with consumers at the scantouch point.

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Q&A andIntelligentInformationDiscoveryWeb-based Q&Aservices have beenaround for years. Nowthe previously sleepyspace is seeing renewedinterest from some ofthe Internet’s biggestnames. This seconditeration of Q&Aservices will likelyforever redefine the waywe find information,because it re-imagines“search” as intelligentinformation discovery.

The most buzzy of the bunch rightnow is Quora, an intuitive andrelatively straightforward Q&A sitewhose co-founder, Adam D’Angelo,is most known for his past role asFacebook’s CTO. Quora wasfounded in June 2009, released intoprivate beta in January 2010, andimmediately became a hit Q&A sitewith the technorati crowd. In fact,web celebrities have been known touse the site to answer questionsabout themselves.There are few Q&A services thathave received the same type ofattention as Quora, but the just-launched Facebook Questionsproject — which mirrors Quora inpurpose and function — wasreleased before Quora ever achievedmainstream recognition. Now thetwo products are essentially goinghead-to-head, competing for thesame audience.Facebook has the clear edge whenit comes to its built-in user base, butwe’ve repeatedly seen biggercompanies fail at side projects —just look at Google Wave — simplybecause smaller startups caninnovate faster and have the benefitof progressively scaling over time.Quora’s opportunity lies inFacebook’s somewhat bungledlaunch of Questions, and its smartAnother notable Q&A site thatcontributes to the intelligentinformation discovery trend isGoogle’s Aardvark.Aardvark approaches the space witha model that helps users surfaceanswers through friends of friends.It’s an algorithmic social system thatshould help Google improve itssearch algorithms. In fact, Googleshould be able to use the technologyto provide socially-relevant answersin search queries.

Google does have a reputation forletting purchased startups wilt aftertheir pre-acquisition bloom, butgiven how closely aligned Aardvarkis with Google’s core searchproduct, that likely won’t be the casehere.There’s also the freshly enhancedAsk.com, which is seeking to jointhe “people plus search results”party with its new beta Q&Aoffering.Most of the key players in the spacebelieve in the power of intelligentinformation discovery and define itas the intersection of people andtheir social circles, with scientificmethodologies for surfacing the bestpossible answers in the shortestamount of time.Apple-owned artificial intelligenceapp Siri, however, eliminates thesocial and instead focuses on thescience of finding the right answer.Right now the overlap betweenservices such as Aardvark and Siriis minimal, primarily because Sirifocuses on solving immediateproblems of convenience — findingfood, calling a taxi or making areservation — and not on long-term,more conceptual problems. Still, Siriis unquestionably a mobile searchengine keen on intelligentinformation discovery, which meansthe technologies could become morecompetitive in the months ahead.Another startup to watch for in thisspace is Swingly. The private betaservice describes itself as a “Web-scale answer engine designed to findexact answers to factual questions.”Humans are largely eliminated inSwingly’s machine-driven Q&Aformula, so it too challenges thenotion that social integrationenhances the Q&A experience.

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Group buying is the deal-a-day group coupontrend made popular byChicago-based startupGroupon. It’s also a slightvariation on flash salesites such as Woot, anAmazon property, whichoriginated in the early2000s.Groupon is the brain-child of CEOAndrew Mason, who came up withthe group buying idea after foundingthe earlier group-focused site ThePoint in 2007. The Point is acampaign platform designed tosupport group action around causes.In 2008, nearly a year after launch,the platform was repurposed to bringGroupon’s deal-of-the-day vision tolife in Chicago.Today, Groupon deals are availablein cities across the world, thanks inpart to the acquisition ofinternational clone Citydeal. Thecompany has also managed to comeby a $1 billion valuation, partnerwith Twitter to power @EarlyBirddeals, find alternative distributionvia newspapers, and startpersonalizing deals for subscribersin select cities. Just yesterday,Groupon introduced its firstnationwide deal — a 50% discountat the Gap — to much fanfare,attracting roughly 10 Grouponpurchases every 10 seconds.Over the years, Groupon’ssuccessful model has been copiedwith ease. LivingSocial, 8couponsand a host of other clones have foundtheir own way on the web. Recently,Yelp, Zagat and OpenTable haveveered away from their core productstrategy to bring group buying totheir respective site audiences.The clones and copycats keep on

Group Buying3

Andrew Mason, CEO, Groupon

coming, but what’s also interestingis that a host of group buyingenterprise-targeted software-as-a-service products are also croppingup. Each hopes to attract brandclients interested in offering theirown Groupon-style deals. Wildfirehas a Facebook-friendly do-it-yourself Group Deals product,Megachip Technologies justlaunched their own daily deal couponsoftware, and daily-deal site Adilitylaunched a Groupon-like platformfor small business earlier thissummer.All signs indicate that the groupbuying trend will only increase inpopularity over time. Localbusinesses are finding that they cansuccessfully attract new and repeatbusiness by introducing customers totheir services with a deeply-discounted group coupon. In fact,Groupon asserts that 97% ofmerchants featured on the site wantto be featured again, which furtherdemonstrates just how much demandthey are dealing with.In the future, look for more brandsto create their own Groupon-styledeals and for Groupon and its largercompetitors to snatch up smallerclones in order to expand andenhance their offerings. Also watch

for checkin and location-basedservices to intersect with groupbuying to create services similar toGroupTabs. The notion of havingpatrons check-in in masses to unlockdeals is extremely business-friendly.

Mobile MeetsLoyalty

4

As consumers purchase moreand more smartphones andphone technology heads in thedirection of the “super,” it’sonly a matter of time beforeold-fashioned loyalty, rewardsand club card programs headin the mobile direction. Twoapplications — Key Ring andCardStar give us a preview ofwhat’s to come.

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What are you watching ontelevision right now?Whether it’s the latestepisode of Mad Men or thenext installment of a realitydating show, chances arethat you’re sharing theentertainment experienceeither through face-to-faceinteraction with friends andfamily, or by postingoutrageous and shockingmoments to your favoritesocial media channels.Consuming most entertainmentmedia is an inherently socialexperience. A crop of services havepopped up in recent months torefine that social experiencethrough entertainment checkins —the act of checking into thetelevision show or movie thatyou’re watching right now.We’ve already explored whyentertainment will drive the nextcheckin craze, and three of theemerging startups — Philo, Miso,and GetGlue — propelling this

Both applications are designed toeliminate plastic loyalty cardbuildup with a single digitalrepository. The apps leveragebarcode scanning technology sousers can save gym cards, grocerystore cards, drug store cards and thelike, right to their phone.This trend is just beginning to takeshape as smartphones become morecommonplace, scanners becomemore sophisticated and retailersbecome digitally savvy. In thefuture, we can expect integrationwith merchant loyalty programs, aswell as integration with checkinservices like Foursquare. The latteralso demonstrates the inevitableconvergence of social media withtraditional loyalty programs, which

we’re already seeing from Tasti-d-Lite’s innovative approach toautomatic, POS-integrated socialmedia rewards system.Shopkick’s retailer-friendlyautomatic checkin service iscurrently being tested by Best Buy,Macy’s, Sports Authority andSimon Property Group. This earlyinterest in Shopkick points toretailer interest in verifiable,checkin-driven rewards. There’salso private beta mobile appPushpins, which seeks to leverageQR codes to further enmesh the in-store shopping experience withdigital retailer rewards, the likes ofwhich resemble the sophisticationof SCVNGR’s recently releasedrewards program.

Checking-In toEntertainment5

trend toward mainstreamaudiences.There are a few other services inthe same mix that are certainlyworth watching. CBS recentlyreleased their entertainmentcheckin service, TV.com Relay. It’sa browser-based mobile app formost smartphones that allows usersto checkin to live television showsand follows the same TV guide-style format that Philo employs.The CBS offering is nice to lookat, and offers content-driven badgeslike the other guys. It also excels inthe real-time comment department.In talking with the Senior VicePresident and General Manager ofCBS Interactive’s Entertainmentand Lifestyle Division, AnthonySoohoo, it became clear that thevision behind TV.com Relayextends far beyondentertainment checkins.Soohoo also iterated thatthe application, which isjust a few weeks old,already has 100,000users thanks to TV.com’s

built-in audience.Tunerfish is another mobile and webtelevision checkin service. It’sbacked by Comcast and boastspartnerships with networksincluding HBO, Showtime andNBC. App users answer thequestion, “What are you watching?”by typing in the name of a show ormovie and clicking the “I’mwatching” button. The service alsoprovides behavioral incentives in theform of awards, and has beenactively working to bring network-sponsored, show-themed awardsinto the mix.There’s also Clicker Social, arelatively new addition from Clickerthat turns the television searchengine and web TV guide into anentertainment checkin service aswell.The re-purposed entertainmentversion of the checkin is a smart wayto link entertainment consumers withcontent they love, enhance the socialexperiences around television, andpotentially inspire new audiences totune into trending or friend-approvedtelevision shows. The enormousamount of competition in such abrand new space means that thingsare just starting to get interesting.All of the services need to evolve toattach real value to the checkin. Theyeach recognize that awards, badgesand stickers are easy ways toencourage new user participation, butthese existing game mechanicsmerely scratch the surface in termsof user engagement. In the comingmonths, look for constant iteration onthis front. For example, we can expectMiso to introduce even more show-specific content exclusives via itsshow fan clubs and for GetGlue toexperiment with offering discountsand coupons that users can redeemfor their Glue points.

COAL INDIA PUBLIC ISSUE

TheNationWaitsfor thisIPO

10 REASONSWhy

Robust BusinessModelCoal India is the world’s largestproducer of Coal, thanks to being

born in Coal Country, India, and

thanks to the head-start it enjoyedas the sole PSU in this sector.

Despite being India’s largest

employer, its operating costs aremuch lower than almost all coal

majors, including those in China. At

the same time, it services thesecond-largest coal demand in this

whole world, India’s power sector.

Together, this has resulted in arobust business model, seldom seen

elsewhere in any sector or country.

Support of WallStreet & DalalStreetIf Coal India created history, when

international banking giants vied

with each other to underwrite itsIPO for next to nothing, it is again

going to surprise by way of support

from international institutionalinvestors. The idea of having 30%

reserved for anchor investors is

already being scrapped, as theinternational road-shows progress,

and the underwriting institutions are

themselves busy readying fundsand formalities to subscribe to the

issue. The IPO is supported by

Wall Street majors like Citi,Deutsche Bank, BofA - Merrill

Lynch, & Morgan Stanley, as well

as Dalal Street biggies like Enam& Kotak.

Nil CompetitionTechnically, Coal India is not a

monopoly. Many private sector

players today have captive coalfields for their own use. But Coal

India and its myriad subsidiaries

virtually control the bulk of thisbusiness, if not for anything else,

for the simple reason that nobody

else is equipped to cater to thehuge Indian demand. For many

many years, if not decades, Coal

India is not expected to have anyserious competition.

Best RatingCoal India has garnered an IPO

rating of 5/5 from CRISIL, which

goes even one step above the‘above average fundamentals’,

which in itself is rare in this

country. In fact, the onlychallenges CRISIL found in Coal

India’s strategy are efficient use of

their cash reserves and how the

main promoter (who will hold 90%post-issue) will act by way of

enacting new coal regulations.

Those are the kind of drawbacksmany PSUs would love to have!

More solid ratings from more

assessors are expected for this IPOin the coming days.

Size thataccommodates allIf Coal India IPO was just India’s

biggest, many would have beenhappy. Because, all interested retail

investors would be able to hold a

pie of this. But Coal India is alsoreportedly world’s third largest

CIL’s International Edge

Players / Metrics Reserves Production Market Cap P/E(billion tons) (million tons) (billion $) (multiple)

Coal India 63 431 NA NAPeabody Energy 9 201 12.58 23.40Yanzhou Coal 2 36 10.54 13.83China Coal 5 104 46.66 16.92China Shenhua Energy 7 186 96.40 15.70

IPO. That means all interested

investors will be comfortably

accommodated - FIIs, DIIs, retailinvestors, pension funds, everyone.

Honest valuationsBeing a public sector company,

nobody expects Coal India to be

exorbitantly priced like privatesector IPOs, despite being in the

high-buzz energy sector. Whatever

heavy pricing Government had

resorted to earlier is likely to bemissing as such IPOs like NHPC &

SJVN had failed to appreciate

much. More likely for Coal Indiawill be how Engineers India FPO

was finally priced, or even better.

On reasonable P/E and P/BV, boththe Government and potential

Despite being the largestminer, CIL has often wonaccolades for their green

initiatives.

CIL’s Increasing Momentum

Core Metrics / Years 2006 2007 2008 2009 2010

Total Income 34,009 35,005 38,617 46,064 52,592

PBT 8,754 8,586 8,190 5,739 13,965

PAT 5,891 5,709 5,243 2,079 9,622

Restated Profit 6,114 4,205 4,285 4,063 9,829

Share Capital 6,316 6,316 6,316 6,316 6,316

Net Worth 14,254 16,213 17,201 19,008 25,844

Dividend % 20 23.75 27 27 35

EPS (Rs) 9.62 6.63 5.95 6.43 15.56

investors are all set to gain.

Efficient ManagementChairman Partha S Bhattacharyya

understands both the science and

commerce of coal. A physicspostgraduate and an ICWA Fellow,

Bhattacharyya has clearly applied

superb strategy over the yearsleading to this IPO, to convert this

once loss-making complex of

subsidiaries into a strong networkof coal mining operations. His

secrets include a concern for the

labour force which can be seenfrom the largest ESOP, his concern

for making Coal India a highly-

profitable organisation, and hisconcern for the environment.

International PotentialCoal India’s story so far is Indian.

But this is going to change soon as

Coal India starts to get results fromthe next-gen washing process that

will enable Coal India to deliver

international quality coal. Combinethis with Coal India’s expertise in

delivering the most competitive

pricing, and you see theinternational story starting to appear

in the horizon. Talks are already on

to take stakes in international mines.

Fit for Invest n’ ForgetThere are chances that Coal Indiawill be one of those issues fit for

the invest n’ forget philosophy,

much like Reliance Industries orInfosys. The demand story and the

growth story of Coal India is akin

to the best in Indian industry, withthe demand insatiable and the

growth relentless. Such factors

make Coal India one of those rare

IPOs that can be massive wealthcreators over two, five, ten, or

fifteen years down the lane.

Potential for Listing GainsIf you are looking for short-term

gains too, Coal India comes acrossas a strong case. If not for anything

else, the above nine factors will

ensure that Coal India will set newrecords in over-subscription, paving

the way for significant listing gains.

But, more seriously speaking, CoalIndia’s attractive valuation will

leave enough money on the table for

many weeks, months, and quartersto come, and make it a heavily

traded scrip fit for Nifty and Sensex.

Karisma andI can't marrythe same man:Kareena

"I enjoy acting. Acting is in my blood,it is in my genes, it is in my DNA andyou can see that on screen I like doingdifferent roles. I can't do just those filmswhere I am looking pretty and sing anddance around trees. I want to act, "Kareena told in an interview.The actress considers her debut film"Refugee" (2000) a special film." 'Refugee' was a very special film be-cause I always wanted to prove myselfas an actress and not to be known justas a glam doll. There are films like'Refugee', 'Chameli', 'Omkara', 'Jab WeMet', '3 Idiots' and 'Kurbaan'; they allhave been very different."I don't think any other actress has beenable to do such a variety of roles. Sothe journey, I think, has been colourful," said Kareena, 29.Nine years after "Kabhi Khushi KabhieGham" (2001), where she playedKajol's younger sister, Kareena hasteamed up with Kajol in SidharthMalhotra's directorial debut "We AreFamily". She is elated to share the sameframe with the senior actress."I think it's an exciting challenge to beworking with Kajol. In 'Kabhi KhushiKabhie Gaam' we didn't have too manyscenes together, but in this film we are

both in the same frame.We both live in the same house,

have equally powerful roles; infact, mine is the most complex

and complicated part. It's veryeasy to be emotional and

gain sympathy but very dif-ficult to win over the

sympathy and I hope I

BollywBollywBollywBollywBollywood star actress Kood star actress Kood star actress Kood star actress Kood star actress Kareena Kareena Kareena Kareena Kareena Kapoor fapoor fapoor fapoor fapoor feels sheeels sheeels sheeels sheeels shehas managed thas managed thas managed thas managed thas managed to striko striko striko striko strike the right balance bee the right balance bee the right balance bee the right balance bee the right balance betwtwtwtwtweeneeneeneeneencommercommercommercommercommercial and meaningful cinema. Hailing frcial and meaningful cinema. Hailing frcial and meaningful cinema. Hailing frcial and meaningful cinema. Hailing frcial and meaningful cinema. Hailing fromomomomoman illustrious fan illustrious fan illustrious fan illustrious fan illustrious film film film film film familyamilyamilyamilyamily, she sa, she sa, she sa, she sa, she says she can't doys she can't doys she can't doys she can't doys she can't dofffffilms where she only has tilms where she only has tilms where she only has tilms where she only has tilms where she only has to dance aro dance aro dance aro dance aro dance around trees.ound trees.ound trees.ound trees.ound trees.

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could achieve that, " she said.Releasing Sep 3, "We Are Family" isthe Hindi adaptation of Hollywood hit"Stepmom" (1998). Arjun Rampalplays what Ed Harris did in the origi-nal, while Kajol steps into SusanSarandon's shoes as as a divorcedmother.Kareena plays the same role that JuliaRoberts did, but in her own style."I am absolutely honoured that Karan(producer Karan Johar) and Sidharththought that I could do the Julia Rob-erts role because to me she is the fin-est actress, " said the actress who feelsthe adaptation could have been morecontemporary. "It's a very desi film. I think it shouldhave been made more contemporary.Indian audiences are ready for that.It's about the journey of two women.They start off with hating each otherand due to unforeseen circumstancesthey end up loving each other."While working with Kajol, Kareenaobserved that her co-star was quitesimilar to her sister Karisma when itcomes to their child."Kajol is a hands-on mother. I haveseen Karisma. Both Kajol andKarisma, I don't know if it's the traitof that generation, are just there withtheir children, " said Kareena.Asked how it would have been ifKarisma had played Kajol's role, shequipped, "Oh god! She can't do thatbecause we can't marry the same man.No way."There are three child stars - AanchalMunjal, Nominath Ginsburg and DiyaSonecha - in the film, but Kareenadidn't have to handle them. She is allpraise for their professional behaviouron the sets though."In the film, I didn't have to be withthe kids because they had their mother(Kajol). The children were reallylovely, they didn't get impatient. Theywere acting like adults, not like chil-dren, " said Kareena.

Madonna’s kids have appointmentsmade to spend time with their super-star mum, according to reports.The Material Girl’s personal assistants are said to schedule time forher with Lourdes, Rocco, David and Mercy in 15-minute increments.

“The children are said to have appointments made to see their mother,who will help with homework, or sing, or even make food with them- but only if it has been planned in advance,” the Daily Mail reports.

The youngsters are said to have three nannies, all of whom speakFrench as the kids are being raised to be bilingual. Two macrobioticchefs whip up meals, and there is no red meat, pork or refined sugaron the menu, while dairy products are strictly limited.

Madonna schedules15-minuteappointmentswith kids

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COAL INDIA PUBLIC ISSUE

The IPO theNation Waits ForIndia’s largest and the world’s third largest

IPO is coming, with some estimates putting

the final size at Rs. 17,000 crore. With an

operating margin of 30%, cash reserves of

over Rs. 39,000 crore, quite reasonable offer

valuations, and an ambition to grow

quantitatively and qualitatively despite its

already world-dominating production,

nobody is doubting whether Coal India’s IPO

would be a success. Already a feather in

the cap for Sriprakash Jaiswal, Minister of

State for Coal, and Partha S Bhattacharyya,

Chairman of Coal India, the only thing

investors are looking for from this IPO will be

the kind of capital market stewardship Coal

India will accord its scrip, post-listing. If CIL

can achieve this investor confidence, this

public issue can set records in subscription.

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ver wonder whyPSU banks are all-time favouritesamong discerninginvestors – both

retail & institutional investors -despite most of them trading in thesub-100 and sub-500 price ranges?It is just because they were offeredto the public at reasonablevaluations, and from those levels,most of them have at least tripledin value within a few years time.

And ever wonder why some of thebig brand names of India Inc havefailed to enthuse the investingpublic? Again, it was a case ofvaluation, with many private sectorgiants in power & real estate sectoroffering their shares atastronomical valuations, but withno follow-up by way of actualperformance in income or profits.

Now, when Coal India Ltd goes forits IPO in the second-half ofOctober, the good news is that itwill be on reasonable valuations,probably on a price-earnings ratioof 17-18. CIL scrip’s book valuewill also be high due to its capitalintensive operations, and together,these valuations present acompelling case for the investingpublic as Coal India has someunique potential.

Unlike the power sector, which hasthe growth potential but relativelylow and steady margins, Coal Indiais an organization that hassucceeded in creating an operatingprofit margin of 30%. The growthprojections are massive with anaim to double its turnover within atimeframe of 3 to 5 years. Thoughtechnically not a monopoly, CoalIndia enjoys unbeatable head-startin this sector, as well as the

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Sriprakash Jaiswal,Minister of State for Coal

Partha S Bhattacharyya,Chairman, Coal India

patronage from Government due toits demonstrated growth curve.

The strength of Coal India’sfinancial health will be clear fromjust one metric. Normally,companies go for their IPO to entera higher orbit of capex and/orcorrect the debt-equity ratio. CILdoesn’t need an IPO for either ofthese objectives. Not that it is nothaving a mega capex plan. But itcan fund the Rs. 10,000 crore planvery well on its own as it is sittingon cash reserves of over Rs. 39,000crores.

Because of this vital difference,Coal India is not issuing any freshequity on its part, and the wholeof the issue – which can even beupwards of Rs. 17,000 crore - isjust a divestment by the onlypromoter, Government of India.This prevents equity dilution,which is a big plus for the newlyentering investors.

Coal India will have only a 10%public float, which in itself canmake the scrip dearer and enjoyprogressively high valuation overtime. The Government’s recentcorrective stance that PSUs won’t

come under the compulsory 25%public holding norm has also comeas a blessing for CIL, as this willensure that the public float willremain 10% for long, until thecompany plans for an FPO, that toowith fresh equity. In fact, thecompany will have only 9% as freefloat for now effectively, as 1% ofthe issue will be reserved for CoalIndia employees as ESOP, whichwill obviously have a lock-inclause.

Even more importantly, the lowfloat, the huge reserves, & the

mega ESOP signal that Coal Indiawill be free to deploy tools like abonus issue in the coming quartersor years to compliment allstakeholders.

With the IPO and listing, CoalIndia is also entering some of themost prestigious national andinternational ‘clubs’. Inclusion inFortune 500 and Maharatnas arejust two examples, where thelisting clause was preventing CIL’sinclusion. The company will alsobe the largest publicly heldemployer in India after the IPO.

The strength of Coal India’s financialhealth will be clear from just one

metric. Normally, companies go fortheir IPO to enter a higher orbit of

capex and/or correct the debt-equityratio. CIL doesn’t need an IPO for

either of these objectives. Not that it isnot having a mega capex plan. But it

can fund the Rs. 10,000 crore plan verywell on its own as it is sitting on cash

reserves of over Rs. 39,000 crores.

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Internationally, Coal India has beengathering much attention as not only thisglobe’s third largest IPO after twoChinese banks, but for some exemplaryperformance in their core segment, aswell as in managing human resources.Recently Coal India and its ChairmanPartha S Bhattacharyya won a couple ofAsian HR awards at Singapore. World’slargest coal producer is also planning forstrategic tie-ups with American,Australian, & Chinese mines to better itsoutput quality and increase itsdominance. In India too, the companygot a shot in its arm when the Cabinetdecided in its favour on the go/no-go areadebate proposed by the environmentalministry. In some ways the decision wasethically sound, as CIL has oftendemonstrated a rare concern for theenvironment, their massive afforestationprogram being one.

The world is taking note of this IPO forone more reason. Coal India has beenable to weave this magic despitesuffering from geographically poorerquality coal, and the mandate to providealmost 50% subsidy compared withinternational coal prices. In a scenariowhere its coal quality improves due tointernational tie-ups and investment in anew washing facility, as well as morenon-subsidized deliveries, Coal Indiastands to have a significantly better profitmargin in the years to come.

The only thing investors will watch outfor is the kind of stewardship for the CILscrip in the capital markets, post listing.If Coal India can excel on that front bymeeting stringent analyst requirements,as well as ensure value multiplication forits investors quarter-to-quarter, fiscal-to-fiscal, as much as it excels in ensuringits actual growth, there is no reason whythis can’t be one of the most significantwealth creation stories that public cansafely participate in. Indications of suchstewardship are already coming in withplans on to have high-profile anchorinvestors for the IPO, a step that will betaken by a PSU for the first time. SE

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f you look at the NBFCsector today, fourbusinesses are boomingviz. microfi nance,

housing finance, gold loans, and ofcourse, the fourth is the prospectsin starting banking operations.Though Manappuram is onlyinvolved in goldloans, you havebeen involved with each of thesesectors as a co-promoter in certaincompanies and as a former bankertoo. How do you asses thepotentialities of each?As you have rightly pointed out,these are NBFC sectors that arebooming, and I would also add auto

finance into it. If you assess eachof them, there is no doubtmicrofinance is in momentum, andI would say it is fully deserved ifyou take into consideration thegood work they do. Still, the risksare high and we should carefullywatch how this pans out in the longrun. Housing finance, again isbooming, and for a housing financecompany it is a good thing that eachof their accounts will stay with themfor 15 or 20 years. However, thereis a flipside too in that profitgeneration is a long-drawn process.Gold loans on the other hand is avery dynamic business with

immense possibilities as not onlyare the risks negligibly small, butalso the ticket-sizes and repaymentperiods are small, making themsuitable for a wider customer base.That is why you hear about so manyNBFCs / Banks planning to entergold loans, even if they don’teventually due to a lack of corecompetency in this line.

What about NBFCs consid eringconversion into banks?Here the question is different asbanks have a dynamics of their ownwhich is not comparable withNBFCs. There are upsides likeaccess to low-cost funds, but whatI am wary about is losing one’s corecompetence. Today, if you look atany successful NBFC, be it ShriramTransport or Manappuram, whatworks is the sharp focus on a singlebusiness on which the organizationhas built up a formidable corecompetence. So, if there is a way toget converted into a bank withoutlosing one’s core competence, thatis well and good. In fact, an earlierproposal to encourage specializedbanks like auto loan banks orhousing loan banks or gold loanbanks was a good proposal, wethink. It is the norm in manycountries.

Since the announcement of yourpreferential issue of Rs. 100 crore,the Manappuram scrip haszoomed. Now, going forward, doyou subscribe to the view that for

“Manappuramis RedefiningHow Gold Loans AreLooked Upon”Riding on the response from a megacampaign to promote the cost-effectiveness,convenience, flexibility, & safety of goldloans, Manappuram Group is all set to doubleits loan book this fiscal and again in nextfiscal. Powering the rapid growth will be aRs. 1200 crore QIP that will be backed byCiti, UBS, Enam, & Religare, and likely towitness US based PE funds who exited thestock with 5X returns re-entering thecompany as anchor investors. ManappuramGroup Chairman VP Nandakumar inconversation with Seasonal Magazine:

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NBFCs, market cap can continueto move in tandem with assetsunder management?The preferential issue by promoterswas taken well by the market asbeing done at almost all-time highlevels, it conveyed the message thatwe were fully confident of ourgrowth projections. When thishappens to a currently underratedscrip, the prices can correct, andthat is all that happened. Comingto your second question, well, thisAUM / market cap co-relation hasbeen exhibited in the past by somestrong NBFCs includingManappuram. I shouldn’t saywhether this will continue to be soin our case, but one thing is sure,we will be reaching our annualAUM target by the second quarteritself, and that means we willhopefully double our loan-book bythe end of this fiscal.You have indicated plans for aQIP which we learn is going to beon a larger scale than you haveattempted before. Can youprovide more details, as also thedilution it will involve?We are planning for a Rs. 1000 -1200 crore QIP so that our capitaladequacy ratio will remaincomfortable even if we double ourloan book. It is planned on a largerscale, supported by Enam &Religare, as also internationalmajors like Citi & UBS. You willbe surprised to know that even someinternational PE funds who exitedManappuram with 5X profits haveshown interest to come backthrough this QIP as anchorinvestors. The dilution won’t bemuch, likely to be around only20%, and weighed against ourgrowth it should be a non-issue.

Gold loan companies tend toperform well in downturns, andplateau during periods ofeconomic growth. Now, as thecountry is in an economicrecovery, do you foresee a SE

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We have a Rs. 4000 crore loan book on 35 tons ofgold, and so you can imagine the potential whenwe tap into this 1500 ton unorganized sector. Thatis the short-term potential we are aiming from thiscampaign. The long-term prospects are mind-bog-gling - the household gold reserves is 20,000 tons,that is ten times the currently pledged gold.

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slowdown for Manappuram?Not at all. In fact this idea that goldloans is a downturn business is amisnomer. Many loans tend to dobetter in downturns and gold loansis no exception. But the reverse isnot true for gold loans. Thisbusiness thrives amidst economicrecovery and amidst strong growthphases. The reason for this issimple. Today, if you look atManappuram’s customer base,around 52% is made up of small &micro enterprises. They expandtheir businesses seasonally - onesmall example being the schoolreopening period - as also whenthere is strong economic growth.

That brings us to Manappuram’snew ad campaign with celebrityendorsements. How far is itdelivering - quantitatively andqualitatively?It is delivering excellently, but thatis not the crux of the issue. Ourobjective in that campaign is toeducate the customer regarding theflexibility, convenience, & cost-effectiveness of gold loans asagainst other kinds of personal andbusiness loans. In other words, thestigma associated with gold loansshould stop. As you can see, we arefocussing on growing andprofessionalising the gold loansegment through this campaign,and not only looking at our ownreturns. I think we are all set tosucceed in bringing respectabilityto this segment.

When you say growing the goldloan segment, you know it is along-drawn process. What aboutimmediate returns?I would say you cannot segregate itas long-term and short-termobjectives. But as you say,immediate gains are also quitethere. The current gold loansegment is not small as such. Some2000 tons of gold have beenpledged in this country, of which

banks account for only 400 tons,and the organized sector includingus accounting for another 100 tonsapproximately. But what about theremaining 1500 tons? That lies withthe unorganized sector where youcan’t expect proper documentationor security, let alone reasonableinterest rates. So, when you conveythe message that here is a fullyprofessional gold loan operationwith safety and reliability,customers are likely to beconverted. We have a Rs. 4000 croreloan book on 35 tons of gold, andso you can imagine the potentialwhen we tap into this 1500 ton in

the unorganized sector. That is theshort-term potential we are aimingfrom this campaign. The long-termprospects are mind-boggling - thehousehold gold reserves is 20,000tons, that is ten times the currentlypledged gold.

On a personal capacity, you havealso entered the gold retailingbusiness. What are the strategieshere?First and foremost, Manappuram isselling only 100% BIS Hallmarkedgold. This is quite unlike otherjewellers who advertise hallmarkedgold, and push non-hallmarked 91.6gold in the showrooms, ostensiblyfor offering better prices. On ourside, we have taken up the challengeto offer hallmarked 91.6 gold atnon-hallmarked price points fromother jewellers. Secondly, we dofully transparent accounting, withpayment of 100% applicable taxes.We also offer free insurance againsttheft for gold purchased fromManappuram.

Do you think you can storm thegold retailing bastions as much asyou have been successful inoutperforming family-run goldloan companies?I am more than confident, becausewe will not be targeting thecustomer segments of otherbranded jewellery chains, which islargely made up of HNIs. Our targetpopulation would be the volumesegments for whom gold is also aninvestment or enabler, and as such,purity and price are of utmostimportance. Our shops won’t bemega or large format ones, but moreaccessible to local communities. Wehave done an India-wide study onthe subject and found out that thevolume segment still buys fromsmaller shops, goldsmiths, andjeweller cum pawn shop setups. Weare aiming to be the volume leaderand will have to our creditredefining gold purity and pricetransparency standards.SE

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Many loans tend to do better indownturns and gold loans isno exception. But the reverseis not true for gold loans. This

business thrives amidsteconomic recovery and amidst

strong growth phases. Thereason for this is simple.

Today, if you look atManappuram’s customer base,

around 52% is made up ofsmall & micro enterprises.

They expand their businessesseasonally - one small example

being the school reopeningperiod - as also when there is

strong economic growth.

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he founding of Google, theinternet giant, is to be thesubject of a Hollywood film.

It follows the soon-to-be-released The Social Net-work, directed by David Fincher, which chroniclesthe founding of Facebook, the social networkingwebsite.According to Deadline Hollywood, the entertainmentindustry blog, the film will be based on the KenAuletta book "Googled: The End of the World AsWe Know It" and will tell the story of founders SergeyBrin and Larry Page.Michael London, the film's producer, told DeadlineHollywood: "It's about these two young guys whocreated a company that changed the world and howthe world in turn changed them."The heart of the movie is their wonderful edict: don'tbe evil. "At a certain point in the evolution of a com-pany so big and powerful, there are a million chal-lenges to that mandate."Can you stay true to principles like that as you be-come as rich and powerful as that company has be-come?"Page and Brin founded Google while they were PhDstudents at Stanford University in the 1990s. Theyare now billionaires. No actors have yet been cast toplay them.The Social Network was adapted from Ben Mezrich's2009 book "The Accidental Billionaires."

Google, The Tilm:Internet Giant to Starin Hollywood Film

new study from Pew Internetfound that between April 2009and May 2010, social network-ing site usage grew 88% among

Internet users aged 55-64, and the 65 andolder group’s social networking presencegrew 100% in the same time frame.

Young people still dominate social networks likeFacebook, but their usage only grew 13% during theyear covered by Pew’s report. Older adults are catch-ing up at an incredibly quick pace, though it remainsto be seen whether they will pass the youth or hit aceiling at or below the usage levels reported by youngadults and teens.Older adults who use services like Twitter or Facebookare still in the minority amidst their peers. Pew reportedabout 10 months ago that 19% of all Internet users usestatus updates, but only one in ten Internet users aged50 and older used status updates or read ones writtenby others. That’s a lot more than there used to be, butit’s still a small group — especially when you considerthe fact that Pew’s numbers only cover people who areon the Internet at all. Many people in that age grouparen’t going online to begin with.According to report author Mary Madden, e-mail stilldominates interpersonal communication for the 50 andolder set.

Older AdultsNearly DoubleTheir Social MediaPresence

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he Group continues tobe in news andmomentum with IrfanRazack recently being

bestowed ‘EntrepreneurExtraordinaire 2010’ award byCREDAI & BAI. Prestige has toits credit impressive projects likeUB City and Shantiniketan. TheGroup is very closely and equallyheld by three brothers includingIrfan. Prestige has lined up Rs.7000 crore of new launches incalendar year 2010, of which afew has already been launched.Prestige Silver Oak is one of akind lifestyle residentialcommunity development fromPrestige Group. Spread across 17acres and located in Whitefield,IT’s newest hub in the city,Prestige Silver Oak is poised tobecome the next premium luxurydestination in Bangalore city.Comprising of 146 independentVillas and 32 low-rise Apartments

PrestigeRedefines Luxurywith Silver OakBangalore headquartered Prestige Estates Projects iscontinuing their efforts to differentiate themselvesfrom competition by launching distinctly premiumprojects like Silver Oak, which is mainly a villa projectfollowing Middle East architecture.

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and set amidst scenic landscapes; thisproject is all set to give a new meaningto luxurious living in the city.Prestige Silver Oak promises to be yetanother milestone for the company inthis segment. The developmentreflects an introduction to a popularMiddle Eastern type architecture withspatial designs which combinesfantasy with the practicality ofmodern day lifestyle.” Thedevelopment has been designed toaccommodate only 178 units in orderto provide a sylvan haven to itsresidents. The land coverage is only30% to provide extensive landscape areas.The Independent Bungalows, ranging across3606 – 5091 Sft. are 2 storied edifices ensconcedin their own private gardens. Eight differentmodels of these elegant villas are available, eachincluding 4 palatial bedrooms. The Apartmentsspread across 4 floors, with areas rangingbetween 1851 – 2411 Sft have been designedon an outward looking plan to maximize theviews to the surrounding serene greenery.Keeping in mind the recreational needs of theirresidents, Prestige Silver Oak also provides an

exclusive state-of-the-art clubhouse, which comeswith every imaginable amenity that is a necessityfor modern day premium lifestyle.One of the main features of this residentialdevelopment is the centrally located spaciousclubhouse. The clubhouse boasts of a full fledgedswimming pool, multipurpose hall, coffee shop,spa, gym, atm, indoor sports area, supermarket,mini theater and outdoor lounges aiming to providea healthy community living.

V Shashikanth & Uzma Irfan at City Properties3rd Anniversary event

Can SpandanaDeliver aMicroFin IPOYou Shouldn’tMiss?At over 4 million customers, Rs. 15,000 croretotal disbursements, annual growth rate of 100%,the highest employee productivity and lowestOpex in South Asia, an RoE running between 50to 60%, and an unbelievably high pre-issue EPSof Rs. 152 on a Rs. 10 share, investors are sureto look twice at Spandana if it goes forward withits IPO plans. Seasonal Magazine interviews Mrs.Padmaja Reddy for this story:

he moment newscame out thatSpandana wasconsidering IPO tooas a fund raising

strategy, the question on all investorminds was this – how does this farevis-a-vis SKS? Days later, mostretail investors know that Spandanais the second largest micro financeinstitution, but nothing much morethan that.

Comparisons with SKS, thoughunavoidable, is not the crux of theissue as discerning investors wouldopine. Because, nobody can predictwhether it will be SKS, Spandana,or even any among the 20 oddscaleable MFIs which will be theone calling the shots a couple ofyears from now.

But after a detailed look atSpandana’s history andperformance, one can’t remainunimpressed at its leadershippotential, that too of the absolutekind in the long-term. Because,Spandana seems to have that rareknack of being superbly tuned, inevery sense of that word, and moreimportantly for all its stakeholders.

SPANDANA SPHOORTY IPO

Padmaja Reddy Founder and Managing Director

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For starters, Spandana has one of thelowest lending rates among all MFIsoperating in the country, which initself is lower than other MFIstrongholds like Bangladesh &Vietnam. For Founder andManaging Director Mrs. PadmajaReddy, this is of core importance asunlike many later-day MFIs,Spandana has its origin in grassrootslevel NGO work among the poor.

She has also made sure thatSpandana has one of the leastcomplicated yet most diverse microloan products that are readilyunderstood by the loanees with nohidden costs in the name of value-added services. Falling under sixbroad categories – general, microenterprise, individual, incomegenerating, agri-family, & farmequipment – her branded loanproducts, Abhilasha, Pragathi,Spoorthy, Samruddhi, & Dharani arealready acknowledged as greatenablers in the markets thatSpandana operates in.

Despite such transparency thatfavours loanees and the lowestpossible interest rates, Spandana wasthe first MFI in India to cross theimpressive milestone of Rs. 200crore profit after tax! Against theaverage return-on-equity of 20%enjoyed by similar-sized MFIs,Spandana has an RoE runningbetween 50 to 60%.

Another distinction in Spandana’soperation is their reliance ondomestic funding sources like banksand equity, which is quite unlikeaggressive US based PE funds thatare now making a beeline for MFIs,which unfortunately will result inadulterating the objectives. Instead,Spandana is backed by domesticfinancial powerhouses like IDFC,SIDBI, & ICICI Bank.

Due to this, and her personal beliefin this model, the promoter group ledby Mrs. Reddy has an operatingmajority stake in Spandana which islikely to continue for a long time.

This factor in particular has been acause of concern with investors inSKS, as the firm had to reassign purePE funds as Sequoia into promoterroles.

Spandana’s almost unbelievablematch of service levels and profitlevels is due to two factors that hasbeen noted by various ratingagencies. Even while enjoying 40%better productivity from its teamthan the industry average,Spandana’s operating costs aresignificantly lower.

Mrs. Reddy has also steered this MFIinto a solidly sustainable model withSpandana being the first MFI toachieve the highest possible creditrating of mfR1 from CRISIL, andbenchmarked as one of the mostcost-efficient MFIs in the world bythe international body M-CRIL. Atover 4 million customers, Rs. 15,000crore total disbursements, annualgrowth rate of 100%, and anunbelievably high pre-issue EPS ofRs. 152 on a Rs. 10 share, investorsare sure to look twice at this IPO.

But, of course, much will dependupon how Spandana will price thisissue. If it is better priced than SKS’35 P/E, there is no doubt why thisshouldn’t be a good long-term bet.

Seasonal Magazine interviews Mrs.Padmaja Reddy for this story:

Size-wise Spandana is the secondlargest microfinance company,which is well and good. But arethere some domains in whichSpandana is absolutely No.1compared with SKS or other playerscomparable to you?

In terms of size, the differencebetween SKS and Spandana is 5%on AUM. Spandana operates on thetheme of process efficiencies thatresult in our operating expensesbeing the lowest – we have alwaysmaintained a sub 6% Opex ratiowhile the industry average is 12%plus. Operational efficiencies makeus the most profitable MFI in India.In terms of operational efficiency weare the leader in the industry. Ouremployee productivity has also beenthe best in the industry which hasbeen achieved through innovativepractices and simplified solutions.Spandana also has a cautious growthstrategy. We strongly believe that thiscustomer segment needs efficient,high-quality services. In the last 12years of our operations, we havedisbursed over 15,000 crore andhave over 99% recoveries. We haveabout 50 lac borrowers with an AssetUnder Management of Rs. 4200crore. Also, as part of our growth SE

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strategy, we grow gradually incontiguous states by building localknowledge instead of putting flagsin all states. This has helped usbecome the most preferred serviceprovider in most of the states wherewe go within 3-4 years of our entry.We have the market leadership instates of AP, Karnataka, Maharashtraand Madhya Pradesh and thejourney continues.

You have indicated about Spandanaplanning to enter China and Nepal.What are the synergies you areeyeing there? And what about thegreater risk management necessaryin those countries?

As of now, we do not have any plansfor entering Nepal and China. Wehave a lot to do within our currentgeographical outreach. But as andwhen opportunity presents itself, wewill certainly evaluate cross countryexpansion. Operating acrosslinguistic barriers within India, webelieve that Spandana has thecapability to adapt to newgeographies.

Banking licence is again in thespotlight due to RBI’s discussionpaper and SKS has surpassedalmost 25 public & private banksin market cap, post listing. What isyour view on applying for a bankinglicence for Spandana?

India still has lot of work to be donein the financial services space. As faras SKS market cap comparison withBanks is concerned, I think there isroom for many different financialservices companies operating atdifferent scales – be it microfinancecompanies, asset financiers,insurance players, big/small banksetc. Also, MFIs are beingincreasingly acknowledged asengines of financial inclusion thatcan do sustainable service deliveryat customer doorstep. However, thecurrent legal structure of NBFC forMFIs restricts their ability to offercomplete suite of savings and other

credit products to low-incomecustomers. We are focussed on ourcustomer segment and we are alwaysevaluating how we can improve ourservice provisions. Therefore we willbe evaluating the Banking foray too.However, as of now, we see that alot of strengthening needs to happenon the regulatory framework side sothat MFIs can prepare themselves forbecoming Banks.

Normally for NBFCs, the marketcap moves only hand in hand withthe assets under management. Willthat eventually happen in the caseof MFIs too, as they come downfrom being overvalued on thismetric?

The current market cap of SKS isalmost double of its AUM. Marketcap is a function of many things –quality and size of assets, growthpotential, profitability, and RoE. Weneed to take a holistic view.However, it is clear that the marketsare acknowledging microfinance asa viable, scalable growth modelwhere the working-poor have beenproved to be bankable.

Multiple micro loans to the sameborrowers by different microfinanciers is said to be the biggestrisk to the microfinancingenvironment. How is Spandanamanaging the same?

This is certainly an area that all MFIsneed to dis-compassionately workon. MFIN has been set up as a selfregulatory agency. We hope that astime progresses, all the MFINmember MFIs will be able tostrengthen their systems to ensurethat multiple lending is restricted.Besides supporting the credit bureau,at Spandana we are taking manyinitiatives – including diversifyingour suite of products. Instead ofreaching to the same customers withsimilar products, we are trying toincrease the overall pie of theindustry. At the same time, we arealso evaluating technology solutions

such that the need of the customersto take multiple loans can beaddressed.

Political risk constitute another ofthe projected risks for microfinancing. Do you anticipate forsuch a scenario where politiciansinterfere in the system ofrepayments, much like theagricultural loan waivers?

Every business is fraught withdifferent risks, and we need to ensurethat we are able to manage our risksand build in sufficient mitigants inthe business model. In many ways,microfinance has gained groundsince many of the state-ledinterventions did not achievesufficient financial inclusion. RRBs,DCCBs and many Banks have beentrying to work in this field, but thegap continues to be large. Therecontinues to be a large number ofun-reached working-poor who arenot able to participate in the

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economic growth since they do nothave access to affordable financialservices. We hope that the politicianswould appreciate this fact and helpus to help the working-poor.

In 2007-08, there was a string ofrealty & power IPOs that finallyresulted in the markets crumbling,due to money getting diverted fromperforming companies to planning-to-perform companies. Do youthink such a scenario can happenfrom, say, a dozen microfinanciersgoing in for their IPOs in 2010-11?

I think there are only about 4-5microfinance players who canaccess capital markets with a viablefloat. Rest of them need early stageinvestors. I am confident that evenif many ‘planning-to-perform’companies come to the market, theinvestors will eventually be able tofigure out where they would like toput the money. Some of them might

decide to go for smaller players sinceon a small base, such companies canshow faster growth in percentageterms or some of them might comewith a differentiated serviceprovision. IPO is just one of the fundraising events in the life of a financecompany, and eventually thecustomers will dictate who growsand that would reflect in the stockprice.

Do you think the Governments aredoing enough to promotemicrofinancing? Do you think low-cost funds can provide a furtherboost to companies like Spandana?

Microfinance started as a market-linked intervention since the subsidybased programmes could not growfast enough. In fact most MFIsstarted as NGOs and had to convertto NBFCs after achieving scale suchthat we come under the regulatoryframework. Government already

acknowledges MFIs as engines offinancial inclusion. They cancontinue to play a supportive role inensuring that as financialinstitutions, best-practices arefollowed such that the institutionsbecome more robust. In terms ofpromoting transparency, goodgovernance, operating efficienciesetc, MFIs are increasingly settingstandards in the market. We shouldnot look for subsidies. At the sametime, if the govt brings down the costof funds to MFIs, we can pass onthe benefit to our borrowers.

Is Spandana resorting tosecuritisation of its loans, and whatwould be the appropriate ratio ofsecuritised loans? With stricterconditions coming in forsecuritisation, do you think thesecuritised portfolio increasing ordecreasing in the coming years?

Securitisation is a good enabler andcurrently around 40% of our loansare securitised. As with all otherhealthy regulations concerningMFIs, Spandana welcomessecuritisation regulations too, and Idon’t see our securitised loansincreasing or decreasing in thecoming years.

Going forward, how do you seeSpandana’s USPs helping it to gainfurther ground in this industry?

We handhold our customers throughtheir economic growth and offerthem products at different stagesof their growth. We havecustomised microfinance loanswith variable repayments to suitvarying cash-flows of customers.Spandana strongly believes intransparency and we wouldcontinue to set benchmarks in themicrofinance industry. I wouldcertainly like to acknowledge thesupport from our Bankers throughour journey. We have only touchedthe tip of the iceberg and a lot ofwork remains to be done.

Mumbai Cricket Association’s Recreation Centre (MCA RC) isracing towards completing two years of existence. Even within thisshort span, the elite club has evolved into a lifestyle hub thatenriches the life of all at home and office. No wonder then thatMCA RC has received such a tremendous response to itsmembership drive from families and blue chip corporates. The creditfor the success of this joint venture goes to the influential MumbaiCricket Association and the visionary infrastructure player, theShirke Group. Rajiv Wagh, Vice President of MCA RC, explains toSeasonal Magazine why this 14-acre British Raj themed luxuryclub in BKC, Mumbai, is truly one of its kind in the country.

MCA RECREATION CENTRE

More Than aClub

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More Than anOfficeIf you thought MCA RC is all play and nowork, you got it wrong. Harvard Business Re-view is coming to MCA RC with an HR event.The Businessworld Leadership Series is alsohappening, thanks to the initiative of MCARC. Bureaucrats and local businessmen willhave many things to cheer when the exhibi-tion ‘Maharashtra Marches Ahead’ is stagedin BKC. In the past too, MCA RC has takenthe leadership role in promoting business in-teractions with events like CNBC Storyboardand ET CEO Chair being hosted at the club.A two-day corporate rink soccer was alsoheld among advertising and media industrieswith teams coming from NDTV, Ogilvy, BBH,FCB Ulka, Group M, and many more.

More Thana SchoolImagine getting to celebrate HarryPotter’s Birthday on July 31st. Otherupcoming events at MCA RC - by thekids, for the kids, and of the kids -include Friendship Day, IndependenceDay, Tourism Day, Teachers Day,Chess Championship, Squash Camp,and many more. The kind of varietyand fun involved in these events isdifficult to find in any school, as MCARC members’ children and theirguests from different schools acrossthe city make these occasionsmemorable, thanks to the greatinfrastructure and the greater planning.Past events at MCA RC that thrilledchildren include Sachin Tendulkar’sBirthday, the Cyclothon on World NoTobacco Day, and planting saplings onWorld Environment Day. The summercamp for 4-14 year olds wasmemorable with children learning ahost of arts, crafts, sports, groominglessons, and martial arts. SE

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More Than aClubIf a club is just about recreation, MCA RC isalso about learning and self-development,even in sports. Major championships ortraining sessions are all set to happen inchess, snooker, & squash, not to mentionthe ongoing sessions at the MCA IndoorCricket Academy. Ar t doesn’t take abackseat with all these sports however, with‘Heartistic Expressions’ all set to highlightart based on festivities, in sync with thefestival season that is about to kick off.Doctors’ Day celebrations will highlight theoften overlooked medicine, a good laugh.MCA RC also distinguishes itself from otherMumbai clubs in its celebrity membershipand celebrity participation with events fromthe recent past playing host to celebritieslike Sachin Tendulkar, Shah Rukh Khan,Rahul Bose, Ritesh Deshmukh, PrahladKakkar, Gaurav Kapoor, Mahesh Manjrekar,Bharat Dabolkar, and not to mention theMiss India contestants and winners.

MCA RC Gymnasium

Celebration of Mothers Day

Celebration of Maharashtra Day

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More Than aHomeThere is nothing like home-sweet-home, but

it is ironic that some days of importance are

better celebrated not in homes but in close-

knit groups of friends and relatives. Take

Mothers’ Day or Family Day, for instance. Both

were celebrated with aplomb at MCA RC and

it was no wonder that many emotions that are

normally not shared in between our four walls

were shared here to laughter and joyful tears.

In the coming weeks too MCA RC will host

many a thankful event like Friendship Day,

Independence Day, and Teachers Day, not to

mention festivals like Ganesh Chaturthi. In

tune with Mumbai Cricket Association

Recreation Centre’s commitment to social

causes, a First Giver’s Club is also being

organized for facilitating serious donations to

NGOs.

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RajagiriReiterates itsNo. 1 PositionIn the recent NITCAA Survey of Engineering Colleges in Kerala-2010,Rajagiri was rated as first among self-financing private engineeringcolleges. The study was reiterating a position, as when self-financingengineering colleges entered the professional education scene inKerala, Rajagiri School of Engineering & Technology (RSET) was quickto occupy the top spot. But remaining at the top has been a tougherproposition given the nature of evolving competition. But under theguidance of Director Rev. Fr. Jose Alex, Rajagiri is maintaining itsleadership by a continuous stream of initiatives and innovations.

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All in all, RSET isworking to match thespecial year it is now

in, its decennial ortenth anniversary.

Fr. Jose Alex said to SeasonalMagazine that along with soundknowledge in theory, they give extratraining to students to build theirprofessional as well as communicative skills. With help from theofficial accreditation agencies andfeedback from the recruiting

companies, they are streamliningtheir courses to meet industry needs.

Rajagiri is now organizing an intercollege technical fest on startingfrom September 16th, to 18th. TitledAbhiyanthriki , it would be an idealplatform for engineering studentsfrom all over the country to interactas well as put their skills to test.Consistent with Rajagiri’s idea ofholistic excellence an exciting arrayof events have been lined up eachcovering diverse domains. Fromtechnical events like robo-maze,selecting best hardware and software

engineer, Linux kernel debuggingetc to non-technical events like bestmanager quiz and gaming is welllaid out.

For updating the faculty, regularworkshops are held, the latestexample being the CompilerConstruction Workshop handled byNational Institute of Technology,Kozhikode.

For honing the skills of their studentsfurther, RSET is having short-termcontinuing education courses inhigh-technology specializations likeRobotics, VLSI Design, Microcontroller, PCB Design etc.

A Process Control TrainingProgramme is now being offered asa great opportunity for the jobseeking graduate engineers to getplaced in leading process controlindustries. The concise, but intensivetraining programme is beingorganized by the concerneddepartments at Rajagiri.

No wonder then that the campusplacement performance – that firstcatapulted it to a celebrity collegestatus – continues to be outstandingat Rajagiri. While Infosys has takenin 139 Rajagiri students, TCS has

taken in 98, apart from several otherslike Wipro BPO & Mphasis.

IGNOU has tied up with Rajagiri tooffer two specialized MTechprograms in Embedded SystemDesign and Information SystemSecurity, the admission to which isfor working engineers andengineering faculty. These coursespromise to be ultra-modern withsyllabus updated each year byresearchers at IITs & IISc.

All in all, RSET is working to matchthe special year it is now in, itsdecennial or tenth anniversary.

Director Rev. Fr. Jose Alex

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India’s fourth largest listed realestate company, Sobha Developers,is back with its proposal to developa mega city of 400 acres in a Kochiisland – but with a difference, thistime. With a potential for creating75,000 jobs and at an investmentof Rs. 5000 crore – incidentallyKerala’s biggest so far – it wouldhave had a smooth sailing in anyother Indian state. But in Kerala theproposal met with stiff resistanceon environmental grounds. Now,buoyed with a government nod,Sobha Developers is back, andnone other than industry veteran,NRI, and Group Founding Chair-man PNC Menon is spearheadingthe new initiative. Instead of get-ting the project done somehow,Menon, who understands theKerala psyche intimately, has em-barked upon an open initiative ex-plaining the environment-friendlyaspects of the Hi-Tech City project.Going even one step ahead, PNCMenon is welcoming honest objec-tions to the project with the onlycondition being that they should be

SOBHA TO RAISE AJURONG AT KOCHI,

BUT FROM A LAKESingapore raised Jurong Island from sea in 2000. But 60 years beforethis, Kochi had raised Willingdon Island. But the same Kochi is raisinga hue and cry over NRI billionaire from Kerala, PNC Menon’s plan toraise the 400 acres Sobha Hi-Tech City from Vembanad Lake. Butnow Menon is back, backed by a determined state governmentsmarting from Smart City debacle, to clear the air withenvironmentalists by offering to satisfy all their scientifically backeddemands, and get the Rs. 5000 crore ten-year project on track.

scientifically backed. The crux ofthe objection is the mangroves ex-isting in the proposed Valanthakadregion, which is an island in thesprawling Vembanad Lake. TheValanthakad mangroves are rich inbiodiversity, being home to 77 plant

species and 27 water organisms,and has been a declared Ramsar Siteunder the inter-governmentalRamsar Convention that protectswetlands of international impor-tance. The project’s critics, led byKerala State Biodiversity Board

PNC Menon,Founding Chairman, Sobha Developers

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NRI Billionaire PNC Menon ledSobha Developers is showingall signs of a breakoutperformance from the rest of therealty pack, after coming out ofthe downturn. The Bangaloreheadquartered and South basedmajor is now upping the ante oncompetition by various strategicmoves designed to enhance itsstature in the industry. Sobha,which resorted to equitydilution, de-leveraging, andcost-efficient construction ascore strategies to come out ofthe downturn, seems to haveproven a point for the entireindustry. While one of theirlargest planned projects - SobhaHi-tech City - waits for the lastregulatory hurdles in Menon’shome state of Kerala, the Grouprecently surprised the entireindustry with their New Delhiforay, which is a 153 acretownship of villas in Gurgaon,costing Rs. 500 crore. In theirstronghold of Bangalore too,

Sobha Now Stronger inHome Turf,Starts Pan India Play

(KSBB) and the noted NGOParisthithi Samrakshana Koottayma(Environmental Protection Group),also point to the fact that out of the400 acres required for the project,only 250 acres are available now,and the rest has to be reclaimedfrom Vembanad Lake. But SobhaChairman PNC Menon has coun-tered all such allegations by stress-ing a vital fact – out of the 400 acreproject site, only 5% has mangrovecoverage. This is an argument thathas found great support from StateFinance Minister Thomas Issac andState Industries Minister Elamaram

Kareem, two ‘pragmatic’ voices inthe not-so-investor-friendly but too-much-common-man-friendly ad-ministration of Marxist stalwart VSAchuthanandan. Legal roundaboutsin land acquisition like employingmultiple companies to get aroundthe Land Reform Act is anothersore issue in the state, unlike manyother investor-friendly states likeMaharashtra, Gujarat, Tamilnadu,or Karnataka . Sobha is known tohave acquired the Valanthakad landthrough 18 entities. Anyway,Menon is now also assuring that theHi-Tech City project will be totally

Sobha is in quite a momentum,having launched their 17th

project on Sarjapur Road, anarea that was pioneered bySobha almost a decade back.The rationale for Sobha Classicis sound, as their last project onSarjapur Road was launched just9 months back, but already a fullsell-out. The financial health ofSobha is also impressive as thedebt which has come down toRs. 1400 crore is all set to belowered to Rs. 1000 crore by the

end of this fiscal. Despitemargins getting trimmed, Sobhaenjoys 30+% margins for mostof their projects. The Group nowstands poised to expand pan-India, even though selectivelyand prudently, as it has solid landbanks in 10 cities. Sobha’sperformance in capital marketsis industry leading with itdisplaying the best year-to-dateprice-performance, ahead of allplayers, including bigger pan-India players.

Sobha Classic

Sobha ClassicProject Name : Sobha ClassicType of apartment : Super Luxury

Location : Off Sarjapur RoadLand Area / No. of Units : 6.9 acres –Classic 243 Units; Signature 32 Units

No. of Blocks / Floors : 3 Blocks(B+G+13)Type of flats : 162 exclusively designed

3 BR Apartments, 81 Exclusivelydesigned 3 BR Apartments with servantRoom. 1752 – 1754 sq. ft.; 2060 - 2070

sq.ft.Sanctioning Authority : BBMPLaunch Date : 03/09/2010

Completion Date : Dec-2013Banks approved : Approved by allleading banks

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Sobha TopazLocation : Sobha City Thrissur, KeralaType : Super Luxury ApartmentsTotal No. of Units/Apartments : 216Super-Built Up Area of Individual Units :Type A - 3068.73 sft.Type B/C - 2186.51sft.Type D/E - 1676.37 sft.

Sobha Lifestyle

Location : Sobha CityThrissurType : Super LuxuryVillas ( 4 BR)Total No. of Villas : 40Super-Built up Area ofIndividual Units :Type A/B - 4227.87 sftType C/D - 4774.76 sftType E - 3363.76 sftType F - 3038.28 sft

environment-friendly with a pro-posal to protect sensitive man-groves, and even to grow furthercoverage. Menon’s vision for thecity is that of a mini Singapore, notjust in development, but in the waythe tiny city-state continues to betop-ranked in environmental qual-ity, despite numerous land reclama-tions that created wonders likeJurong Island. Kochi is also nostranger to land reclamation –though from the sea – that createdits Willingdon Island and a widerMarine Drive. If Menon succeedsin winning the confidence of envi-ronmentalists, the next challengewill be the 50 odd families that haverefused to sell and vacate even athigh prices. But Menon, alreadynoted for more-than-average CSRinitiatives is now extending ascheme of free homes for 600 poorfamilies, that can include theValanthakad natives too. But seem-ingly unbelievable estimates like anannual livelihood loss of around Rs.77 crore to the natives has beenraised by KSBB. Maybe the wayaround such objections would be

providing minority stakes in theproject SPV or the parent SobhaDevelopers to affected families.This is very much possible asSobha has less than 6% shares withretail shareholders, with the rest94% split between promoters(60.59%), FIIs (23.19%), and DIIs(10.34). Despite a year of fast de-leveraging of its balance sheet bymassive selling of its unused landbanks across the country, Sobha haskept Valanthakad close to its heart,which may be a reflection of Chair-man Menon’s passion to createSobha’s magnum opus in his homestate itself. Is Kerala listening?

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Steve Newton, Programs and PolicyDirector for the National Center forScience Education, has written ananalysis of the study, titled "DarwinWas Not Wrong--New Study BeingDistorted."

A new study published in BiologyLetters calls into question elementsof Charles Darwin's theory of

Darwin May Have Been Wrong,New Study Argues

MICHAEL JACKSON'S kids aged13 and 12 have gone to school -for the first time.Son Prince Michael and youngersister Paris were sent by their granafter she moaned: "They have nofriends."The pair - kept hidden from thepublic while Jacko was alive - havebeen enrolled at a prestigiousprivate day school that boastsPARIS HILTON and Friends actorMATTHEW PERRY as formerpupils.Jacko's youngest lad Blanket, eight,is continuing to be taught at homewhile his siblings attend TheBuckley School in California's SanFernando Valley.But friends predicted he too will

Jacko's kids (finally) go to school

evolution.

While Darwin argued thatcompetition was the key forcedriving evolution, a research teamfrom the University of Bristol arguesthat "living space" is in fact theprimary driver. Michael Benton, a co-author of the study, said his teamconcluded that "competition did notplay a big role in the overall patternof evolution."

"The new study proposes that reallybig evolutionary changes happenwhen animals move into empty areasof living space, not occupied by otheranimals," BBC News explains. "Forexample, when birds evolved theability to fly, that opened up a vastrange of new possibilities notavailable to other animals. Suddenlythe skies were quite literally the limit,triggering a new evolutionary burst."

Slate describes how PhD studentSarda Sahney conducted herresearch:

Using fossils to study evolutionarypatterns over hundreds of millions ofyears of history, Sahney and teamfound that biodiversity, at leastamong the land animals that theydecided to focus on, matched theavailability of living space throughtime. Living space refers to theparticular requirements of individualorganisms to thrive and reproduce.It can include several componentsbut primarily describes theavailability of food and favorablehabitat.

"Throughout geological time, patternsof global diversity of tetrapod familiesshow 97 per cent correlation withecological modes," Sahney writes inthe Biology Letters article co-authoredby Michael Benton and Paul Ferry.

Not all have accepted the team'sconclusions. According to BBC News,Yale University evolutionary biologistStephen Stearns said the interpretationwas "problematic." "What is theimpetus to occupy new portions ofecological space if not to avoidcompetition with the species in thespace already occupied?" Stearnsasked.

soon be attending classes.The late singer's mother Katherine,80 - who is caring for all three -wants them to have a normal life.A family source said yesterday:"They are such bright kids. They

have adjusted very well to the lossof their father and are definitelyready for this step. Prince wants tobe a movie director and Paris wantsto be an actress."

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Patent No. 241602 is for anayurvedic performance enhancingdrug. Issued by Government ofIndia’s Patent Office to KCAbraham, will it be enough to takehis company to the next level, weasked him directly.“This is the first in a string ofpatents we would be aiming forMusli Power X-Tra in differentcountries. This is an important stepfor us, as we don’t want unhealthycompetitors for this product whichis an invention of mine,” says thispatentee.Patents are, of course, forinventions, and the current patentto Abraham is for inventing this‘herbal formulation used as a healthrestorative and to treat sexualdysfunction.’ The patent legallyprotects Musli Power X-Tra’smaker Kunnath Pharmaceuticalsfrom anybody copying theformulation for 20 years.Kunnath Pharmaceuticals whichalready does brisk business is,however, aiming for a ten-fold jumpto Rs. 400 to Rs. 500 crore, thisyear.Powering this growth is Abraham’spenchant for sports promotion,having come from a family thatcontributed an Olympian to thenation. (KC Abraham is the brotherof India’s former Olympian

Musli Power X-Tra EyesOverseas Markets,Ten Fold GrowthAfter bagging key Indian patent for Musli PowerX-Tra, Kunnath Pharma is focussing on megasports promotion initiatives at an investment ofRs. 100 crore plus, to power ten-fold growth thisyear and strengthening overseas sales.

Rosakutty).Explaining the business logicbehind, Abraham says, “MusliPower X-Tra is a performanceenhancing drug. We started off withsmaller sports sponsorships andendorsements, and are nowentering the big league.”

He surprised the nation’s footballscene recently when he announcedan investment of Rs. 100 crore tostart a national football academy.This shot went a lot longer than theconventional volleys corporates doby way of sponsoring teams andstars.Says Abraham, “All the expenses

of the 60 selected boys will betaken care of and their only agendawill be to play football. We willreward them handsomely as theyprogress and they will be paid anunbelievable amount of money forjust playing football. My aim is thatmy boys will win the World Cup in2018 and it is for that I am spendingRs. 100 crore.”To give the initiative a jumpstart,Abraham is taking over Viva Keralasoccer club. Earlier, Kunnath hadsponsored Goa’s ChurchillBrothers.Abraham is not restricting hissports promotion to just soccer, andis sponsoring Sri Lanka’sWayamba Elevens for theChampions League T20Tournament in South Africa. Andthe diligent entrepreneur he is,Abraham will personally visitJohannesburg to oversee how theinitiative pans out. Sri Lanka is anemerging market of importance forMusli Power X-Tra.Musli Power X-Tra is also asponsor of the upcomingCommonwealth Games in NewDelhi. “Both events would befruitful for us, reflecting ouremerging focus on internationalmarkets, concludes Abraham,standing up from a long chat in hiscorporate office in Kochi, and offto start his next meeting withanother sporting event organizerswho have come for discussions.

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Verizon Communications plans to launcha software application for mobile devicesthat will enable the FiOS TV customers towatch live television shows and movies onApple Inc.'s (AAPL) iPad.

FiOS TV customers can watch one programthrough Verizon's set-top box on a traditionalTV and another program on the iPad withan in-home Wi-Fi connection. Verizonexpects the launch of iPad Live TV App in2011.

This new launch will minimize competitionfrom cable rivals such as Comcast Corp. andTime Warner Cable. Verizon is in negotiationwith content providers like Time Warner Inc.and Walt Disney Co. for the extension oflive TV viewing to tablet computers andhome appliances.

Dell Inc on Tuesday released its first US smartphone, en-tering the increasingly crowded market with a 3.5-inch An-droid device called the Aero that costs about $ 100 on AT&T'snetwork.The long-anticipated move by the computer manufacturer putsDell in competition with Apple Inc, the market leader insmartphones, and with a clutch of other phones that use GoogleInc's Android operating system.Round Rock, Texas-based Dell said its new smartphone willsell for $ 99.99 with a 2-year contract from AT&T, or $ 299.99without the contract.Dell said the Aero will be one of the lightest Androidsmartphones in the United States, and will support Adobe Sys-tems Inc's Flash software. That sets Dell apart from Apple,which has declined to use Flash on its mobile devices.The personal computer maker entered the smartphone marketin late 2009 with the release of its Mini 3 in China. The com-pany also released a 5-inch tablet called the Streak this month,which also runs on Android and and uses the AT&T networkfor phone calls. That will compete with Apple's iPad.The worldwide smartphone market is expected to grow 36 per-cent to 247 million units in 2010 from 182 million in 2009according to IT research outfit iSuppli.

Dell launches $ 100 Aero smartphone

GADGETS

Verizon to LaunchiPad Live TV App

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he debate whether Indian realty will be dominated by realty-only companies like DLF orUnitech, or by diversified conglomerates like Tatas, Mahindras, or the Godrejs would continue.The first round definitely belonged to the pure play realtors, thanks to their larger-than-lifeIPOs during the last real estate boom, that even while hurting retail investors, ended upelevating their promoters to world’s billionaire lists. At the same time, the realty forays oflarge industrial houses like the Tatas and the Godrejs haven’t been up to the mark. But all

these while, a rather small realty firm from the top-ten business house of the Mahindras had been gainingsignificant ground. To start with, Mahindra Lifespace Developers was not a very inspiring player in the industry.But it got its opportunity in 2000-01 when noted real estate player Gesco Corporation, belonging to GE ShippingGroup, turned to its help to ward off a hostile takeover bid by the Dalmias. Thus was born Mahindra Gesco, theforerunner of today’s Mahindra Lifespace Developers Ltd (MLDL). Great Eastern’s Sheths eventually sold off

MAHINDRA LIFESPACE DEVELOPERS LTD

IndustrialAcumen inRealty

Anand Mahindra, VC & MD, Mahindra & Mahindra

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their entire stake to M&M who proved theircommitment to the business by assigning none otherthan Anand Mahindra as Chairman and M&M ExecutiveDirector Arun Nanda as Vice Chairman. Ever since2003, the firm has not dipped in sales or profits, exceptfor a brief dip in net during the last recession, but eventhen putting up an impressive sales growth. FY 2010has been especially good with sales nearly doublingover the previous year and gross profit more thandoubling. Confident that MLDL is now a credible growthstory, Anand Mahindra has entrusted Chairmanship toNanda and the safe hands of MD & CEO Anita Arjundas.But for Mahindra Lifespace it is still a long way to gobefore they can mount a threat to leading players likeDLF or Unitech. However, they believe in playing thegame smarter and neater. Apart from standaloneprojects, MLDL’s portfolio of Mahindra World Cities(MWC) – two of which are already operational inChennai & Jaipur – is a definite edge over competition,as this is a model that can be replicated in many Indianstates. No wonder MLDL is now recognized as the

Arun Nanda, Chairman, Mahindra Lifespace Anita Arjundas, Managing Director & CEO, Mahindra Lifespace

fastest growing real estate developer. Coupled with apenchant for more transparent systems – for which itwon a CRISIL award – and Arun Nanda’s contrarianvision of thinking also from the customers’ shoes issure to take this Mahindra group company to greaterheights. Market is already recognizing this potentialand has effected a year-to-date price-performance ofover 62%, a time frame in which both DLF & Unitechslipped by around 15%.

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Will PuravankaraGather Steam Nowor Lose Further?

Ravi Puravankara

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hen the real estatebubble blew up in2008, it didn’t spare

anyone. Bangalore headquarteredPuravankara Projects which gotlisted in 2007 was no exception.One of the leading developers ofSouth India, then expanding fromits home-base of Bangalore to othersouthern hubs like Chennai,Coimbatore, & Cochin, Purva wascaught off-guard. Demand forluxury offerings like the ones fromPuravankara dried up. While salesslipped by more than 20% in 2008-09, net profit declined by more than35%. The same was reflected incapital markets – a bit too much,may be. From the highs of Rs. 535the stock started a slide that didn’tstop until Rs. 25.60, dragged downby the Lehman crisis and itsaftermath. Then came the monthsof consolidation not only forPuravankara, but for the entireindustry. Everyone from DLF toUnitech to HDIL to Omaxe to

Puravankara were charting theirfuture course. The Group’sbillionaire promoter RaviPuravankara decided to do acontrarian play. As someone whostarted in Mumbai real estatestraight from college, at the age of19, the now 56-year old developerknew that this round of bust was notlike any of the previous ones he hadgone through and survived. Withhelp from long-term confidantesand Directors in Puravankara Boardlike Nani R Choksey and RaviRamu, not to mention US educatedson Ashish Puravankara, he scripteda turnaround strategy that most ofthe developers would have shiedaway from. Under Chairman Ravi’svision, the Group acknowledged thedifficulty in the market, and bet ontwo emerging trends – one being theneed to create a new brand foraffordable housing, and the secondto gradually adjust to the fact thathome sales were moving fromlaunch dates to ready-to-occupy

dates. Today, both strategies havepaid off quite handsomely. WhilePuravankara’s affordable brandProvident Housing is one of ahandful of successful experimentsin this direction, their decision notto launch any new projects until thesupply is more or less depleted hashelped them turn around. Thesecond strategy helped them focustheir whole energy on executingalready launched projects, andmore than it drove sales of ready-to-occupy apartments, it helped thefirm regain the trust of its customersas a developer who didn’t let thedownturn affect project completion.In February 2010, Chairman Ravitook a decisive step in furtherprofessionalizing the entireoperation by inducting formerExecutive Director of SobhaDevelopers, Jackbastian KNazareth as Puravankara’s ChiefOperating Officer. Despite no newproject launches under the Purvabrand, the Group staged a growthof over 13% in sales and over 22%in gross profit for FY10. The Grouphas recently broken its self-imposedholidays for new projects and comeup with an impressive project,Purva Skywood in Bangalore thathas succeeded in creating a buzzaround it. Learning from the marketlows of 2008-09, Skywood iscreated as a need-based product andnot an aspirational one. This is justthe start as the Group has a targetof 12 million sq ft for Puravankaraand 6 million sq ft for Provident forthe current year. Investors are alsowarming up again to the stock,which has witnessed a year-to-dateprice performance of 26.37%against peers like Omaxe’s 3.70%,HDIL’s 6.49%, and industry leaderDLF’s -8.71%. Still, there is longroom to appreciate as the Groupwhich is the 7th largest in India byboth sales and profits, is only 12th inmarket cap. The debt is now downto Rs. 800 crore and the firm enjoysa high promoter holding of 89.96%.

The Purva scrip which shot up post Q1 numbers hasagain slipped somewhat. The reason for the slip is notonly Sensex and the Realty Index slipping, but themarket waking up to Purva’s sequential dip in Q1, andthe fact that the developer is yet to reach the incomeand profit levels of FY’08. The operating profit marginhas also more than halved to 15% in 2010 from 38%in FY’08, partly due to lower realisations and partlydue to the business from their affordable housingsubsidiary, Provident Housing. But on the upside, theGroup has managed the downturn without equitydilution and has turned cash-flow positive, which issomething it couldn’t manage even in FY’08. However,due to exhibiting extreme price volatility within thelast two years - high of Rs. 535 and low of Rs. 25.60 -additional buying support is more likely to happen onlyat least 2 to 3 quarters of sustained turnaround.