August 18, 2012 | 30www.outlookbusiness.com

Think beyond. Stay ahead.Think beyond. Stay ahead.

Weighed down by too much debt and lower than anticipated toll collections, road developers are rushing for the exit

WHICHWAY AHEAD?

Cadbury’s identity crisis

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18 August 2012 / Outlook BUSINESS

ContentsVolume 7, Issue 17, 18 August 2012 | Released on stands on 4 August 2012

12 Think Beyond. Stay Ahead. GV Krishna Reddy on how he engi-neered one of India’s leading infra-structure giants

REGULARS

8 Imagenation: Asia’s largest Global Vipassana Pagoda

18 View: Rishikesha Krishnan wants the next big software innovation to bear the made in India tag

22 Graphically speaking: Football club Manchester United wants to go public again. But will it fi nd enough takers this time?

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ILLUSTRATION BY MANISH MARWAH

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Editor: N MahalakshmiDeputy Editors: Meenakshi Radhakrishnan-Swami,Rajesh Padmashali, V Keshavdev

FEATURESAssociate Editors: Kandula Subramaniam,Kripa Mahalingam, Krishna GopalanSenior Assistant Editors: Ajita Shashidhar, Sudipto Dey, Veena Venugopal Assistant Editors: Rashmi K Pratap, Taneesha KulshresthaSpecial Correspondent: Shabana Hussain Correspondent: Himanshu Kakkar

COPY DESKAssociate Editors: Lalitha Sridhar, Michael CorreyaSenior Sub-Editor: Patanjali PahwaSub-Editor: Adit MathaiTrainee Sub-Editor: Aditi Saxena, Ravina Kothari

ARTDeputy Design Editor: Manish Marwah Senior Designer: Kishore Das

PHOTOPhoto Editor: Soumik KarChief Photographer: Bhupinder SinghPrincipal Photographer: RA ChandrooSenior Photographers: Nilotpal Baruah, Tushar Mane, Vishal Koul Photo Researcher: Raman Pruthi

Consultant: Rashmi Shinde

EDITORIAL CHAIRMAN: VINOD MEHTA

BUSINESS OFFICEPresident: Indranil Roy

ADVERTISEMENTGeneral Manager (National Advertising Sales):Pankaj JayaswalGeneral Managers: Moushumi Banerjee Ghosh (East),Kabir Khattar (Corp), Uma Srinivasan (Chennai)Assistant General Manager: Sushil Menon (Bengaluru)Regional Manager: Prashanth Nair (West),Shipra Mohan Sinha (North)Senior Manager: Tusharkanti GhoshManagers: P S Sudharshan, Suneel RajuBrand Manager: Jyoti Ahuja

CIRCULATIONNational Head: Himanshu Pandey (Business Development)General Manager: Arokia Raj, BS JoharZonal Sales Managers: Anindya Banerjee (West),G Ramesh (South), Vinod Kumar (North)Manager: Vinod JoshiDeputy Manager: Shekhar Suvarna

PRODUCTION Senior Managers: Deshraj Jaswal, Shekhar PandeyAssociate Manager: Jayesh Gaikar

ACCOUNTSAssistant General Manager: Chetan Budhiraja

ADMINISTRATIONAssistant General Manager: Rajendra Kurup

MENTOR: MAHESHWER PERI

HEAD OFFICEAB-10, Safdarjung Enclave, New Delhi 110029;Tel: (011) 33505500; Fax: (011) 26191420Customer Care: (011) 26100722, 26100723; Fax: (011) 26191420Other Offi ces: Mumbai: (022) 33545000, Fax: (022) 33545100; Kolkata: (033) 33545400, Fax: (033) 22823593, Chennai: (044) 33506300, Fax: (044) 28582250,Bangalore: (080) 33236100, Fax: (080) 25582810; Hyde rabad: (040) 23371144, 23375776, Fax: (040) 23375676Printed and published by Maheshwer Peri on behalf of Outlook Publishing (India) Pvt. Ltd. Editor: N Mahalakshmi. Printed at Infomedia 18 Ltd. Plot No.3, Sector 7, Off Sion Panvel Road, Nerul, Navi Mumbai-400706, and published from AB-10 Safdarjung Enclave, New Delhi 110029Published for 5-18 August 2012Total number of pages: 98 + cover

18 August 2012 / Outlook BUSINESS

Enterprise

30 Regional brand: How Laxminarayan Chiwda from Pune became a world-famous brand

34 The big idea: Skydeelz fulfi ls small town aspirations by selling reasonably priced factory seconds in consumer durables

38 Private equity: Nexus Venture Partners has been climbing up the ladder with its successful and strategically planned exits

Strategy

50 Corporate: With rising gold prices, jewellery makers target a new segment of buyers

58 Trend: In a market like India, where Cadbury is synonymous with chocolates, can Kraft Foods afford a name change?

60 Visit note: Rather than harrying its poorer customers, Tata Power has adopted innovative strategies to cut last-mile distribution losses in Delhi

Markets68 Trend: The scarcity of rains in the country will take a toll on companies’ earnings

72 Debate: Will the proposed mutual fund norms prove to be a raw deal for retail investors?

74 Investing: Can lower oil prices really be good news for ONGC?

C’est la vie92 @ease: Mumbai-based mystic astrologer Priyanka Sawant foretells the Ambani brothers’ fate as they go through a lean patch

94 The good life: Murano’s handmade glass is in a class by itself

96 Hardbound: Credit Suisse’s equity strategy head Neelkanth Mishra’s reviews Poor Economics

98 High fi ve: Lupin’s Kamal K Sharma lists out 5Es on how to promote leadership in the organisation

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COVER DESIGN: MANISH MARWAH

COVER PHOTOGRAPH: ANDY ROBERTS/GETTY IMAGES

CORRIGENDUMIn our cover story Fizz gone fl at? (July 21, 2012), Rohit Ohri, executive chairman, Dentsu India Group, was quoted as saying, “Pepsi is a youthful, irrelevant brand. The moment it stuck its neck out, it fell.” It should have read as, “Pepsi is a youthful and irreverent brand.” The error is deeply regretted.

| DEPARTMENT |

4 February 2012 / Outlook BUSINESS

In search of tranquilityIndia is home to Asia’s biggest Global Vipassana Pagoda in Gorai, anisland in north-west Mumbai. The 325-ft -tall stone structure, the world’s largest pillar-less dome, took 11 years to be built and was fi nally inaugurated in 2009 by the then-president, Pratibha Patil. The pagoda was built using 2.5 million tonnes of interlocking stones instead of cement, concrete or metal. It houses a 90-ft high meditation hall that can accommodate 8,000 people. Incidentally, the 11-acre plot that houses the pagoda was donated by Essel group’s Subhash Chandra, who is also the senior trustee of the Global Vipassana Foundation. The organisation off ers a free 10-day Buddhist meditation programme for participants at the pagoda. At the end of the course, donations are solicited to fi nance the next batch of meditators.

Photo by Tushar Mane

| IMAGENATION |

18 August 2012 / Outlook BUSINESS

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Outlook BUSINESS / 18 August 2012

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18 August 2012 / Outlook BUSINESS

Think beyond. Stay ahead.

“Only trust and confi dence will help achieve your goal”

| GV KRISHNA REDDY, CHAIRMAN AND MD, GVK GROUP |

GVK GROUP’S FOUNDER ON HIS JOURNEY FROM JOINING THE FAMILY BUSINESSTO SETTING UP ONE OF INDIA’S LEADING INFRASTRUCTURE COMPANIES

I was born and brought up in a village in Andhra Pradesh’s Nellore district. I was brash and would not study, and since my parents wanted to have complete control over me, they kept me in the village. I was really bright in everything but studies! But when I was in middle school, there were children in my class who won prizes and that caught my attention: why didn’t I get any prizes? My sole objective, then, was to win a prize too. My friends warned me that I would have to study, and study really hard — and that was obviously beyond me. But I love a challenge, so I said to myself, “I have to do this.” That was a turning

point for me, because from there on I started disciplining myself. I would wake up early, do my chores on time and put in a good amount of time studying every day. The result was as expected. I soon started getting good marks and

that motivated me to study even harder. I was made the head boy, so I would go up to the stage during morning prayer and other students would salute me — that gives you such a high, you never want to give it up. I had to retain it, which meant I had to continue working hard. Ironically, until I got out of school, my parents did not believe I had really transformed. They believed me only aft er I passed my SSLC with fl ying colours.

Aft er school, I moved to Hyderabad to pursue my bachelor’s degree in Economics. Moving from the vil-lage to Hyderabad was a huge jump. In the village, you have intelligent people but they do not get the exposure or the opportunity, which can make all the diff erence. I was lucky. Aft er graduation, I was dreaming of going to the US to pursue further studies, but my family wanted me to take over the business. We had just had a family

division and, being the eldest son, my father wanted me to take charge of our portion of the business. I hated the idea of business, and kept protesting the fi rst three weeks, but became somewhat comfortable with the idea as time passed. Well, I had no choice.

My fi rst project was some construction work for Na-garjuna Sagar Dam, which was quite complex and gave me a good understanding of the challenges in the con-struction business. For the next few years or so, I contin-ued with the family business, but my aggressive streak had not deserted me. I wanted to scale new heights — break the roof every now and then — and my parents were scared I would end up ruining everything in the process. I had younger brothers so that made my par-ents even more nervous about my ways. I could under-stand their sentiment, but never agreed with them! And

PHOTOGRAPHS BY RA CHANDROO