DOMINATION VOLUME-III ISSUE-07 S
eptem
ber 2
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NEWSLETTER FROM DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
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Editorial ………………………………………………………
02 | DOMINATION, SEPTEMBER 2013 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Dear readers,
As we bid farewell to the
month of September and wel-
come the new season, we pre-
sent another thought provoking
and interesting edition of
DoMination.
This edition contains a number
of articles from a diverse range
of topics from the growth pros-
pects in North Eastern region to
the issue of Employee Poaching
to the world of Mezzanine fi-
nances. The cover story for this
month is jointly written by
Nilaya Shankar and Prashant
Pandey. It gives us an account
of situation and growth pros-
pects for agriculture, tourism,
trade and power sector along
with action items for improve-
ments. The perspective of this
month is on another burning
issue of current times, Em-
ployee Poaching. In this, Kunal
Bansal tries to look at the root
cause of the problem and its so-
lution. On the finance side,
Sharad Srivastava presents a
piece on Mezzanine Finance, an
instrument which occupies a
middle spot between debt and
equity.
The learning does not stop here.
The current edition has inter-
view of Mr. Tejasvi Puniani, a
2009 batch alumnus of DoMS.
Additionally it also consists of
success story of Mr. Sunil
Handa, Chairman of Evlavya
Education Foundation. These
live examples and learning will
be helpful for budding manag-
ers and leaders. For the creative
souls, we present next round of
quiz. On top of it, a beautiful
poem by Kaushik H Makwana
enhances the charm.
The September month also saw
various summits being con-
ducted in the department.
Among them, the current edi-
tion contains Vipanan, the mar-
ket summit details. In addition
to this, the department was
abuzz with another high pow-
ered activity, Reminiscence in
which three batches of depart-
ment came together.
We hope that the current edi-
tion will be liked by you. Your
suggestions and feedback are
always welcome and valuable
to us. Happy Reading...
………………………………………………………
- Regards
Team DoMination
Contents
Faculty Adviser
Dr. R. L. Dhar
Team DoMination
Abhay Kumar
Arun George
Nilaya Shankar
Priyank Singhal
Rohan Krishnan
Saurabh Paul
Sharad Srivastava
Designing Team
Ashish Kumar Jaiswal
Dhruv Kadian
Rakesh Ranjan Kumar
Roorkee- 247 667, India Tel: +91-1332-285014, 285617 Fax: +91-1332-285565 Email: [email protected] Website: www.iitr.ac.in/departments/DM/Pages/Index.html
DEPARTMENT OF MANAGEMENT STUDIES INDIAN INSTITUTE OF TECHNOLOGY ROORKEE
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Growth Potential of North-East States
Mezzanine Financing for Infrastructure Projects
Spotlight
Cover Story
Qutopia
DoMS da Evince
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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Success Story
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Chlorophyll
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Perspective
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North East consists of eastern
most states in India viz. Assam,
Arunachal Pradesh, Mizoram,
Sikkim, Nagaland, Manipur and
Tripura. These seven states are
popularly known as “Seven Sis-
ters”. The region is endowed
with vast natural resources in
terms of forests, biological di-
versity, hydroelectricity etc.
however the region has re-
mained largely underdeveloped.
A major limitation to the
growth has been poor infra-
structure and limited connec-
tivity, both within the region as
well as with rest of the nation.
The region, linked to the rest of
India by a narrow stretch of
land called the “chicken neck”,
needs infrastructure to support,
significant investments and de-
velopmental aids.
The region has also wit-
nessed a series of insurgent ac-
tivities and is alienated from the
mainland India in terms of both
economic and physical attrib-
utes. According to World Bank,
NE region has a low-level sym-
metry of poverty, less develop-
ment, civil conflict and lack of
faith in political leadership. Go-
ing by the planning commission
data, the total GDP of India was
INR 8,53,495 crores for the fi-
nancial year 2011-12 in which
the contribution of North-East
India was only 2.3%. This is in
spite of the fact that these states
share 98% of the boundary with
five different countries of South
Asia – Nepal, Bhutan, China,
Myanmar and Bangladesh. The
region is highly endowed with
bio-diversity, hydro-potential,
mineral like oil and natural gas,
coal, limestone, dolomite etc.
and forest wealth.
Agricultural
Around 70% of the
population of northeastern
states is dependent upon agri-
culture.
There is a huge opportunity in
rubber, bamboo, fruits, vegeta-
bles and horticulture. India
holds third position in rubber
Growth Potential of North East States
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Cover Story
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
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04 | DOMINATION, SEPTEMBER 2013
10,000 hectares of rubber (the
available plantation area is
35,760 hectares). Besides Tri-
pura, there is a huge opportu-
nity for rubber production in
Mizoram and Assam. The NE
states also produce a substantial
percentage of bamboo, account-
ing for 65% of India‟s produc-
tion value and 20% of the
global production value.
Mizoram alone contributes to
around 40% of the country‟s
bamboo production. While In-
dia‟s bamboo market is ex-
pected to grow to USD 5.5 bil-
lion by 2015, the UN‟s Indus-
trial Development Organisation
has estimated the NE‟s bamboo
production to grow up to USD
1.25 billion in the same period.
The region‟s comparative ad-
vantages in producing vegeta-
bles, fruits and other horticul-
ture products can be tapped by
setting up small-scale process-
ing units for the local market
which will also boost rural em-
ployment. This set-up is eco-
nomically viable as well as do-
able as a small processing unit
requires little capital. The re-
gion produces a large amount
of spices such as chillies, gin-
gers, mustard seeds, fruits and
vegetables which can be proc-
essed and marketed locally.
Arunachal Pradesh has taken up
the cultivation of horticulture
produce especially of sub-
tropical fruits on a large scale
with assistance from the gov-
ernment. In Mizoram, which
accounts for 12% of the total
fruits produced in the northeast,
a special purpose vehicle (SPV)
has been formed with private
sector companies to set up a
plant for the processing of tur-
meric, ginger, chilly, fruits and
other horticulture products.
There is also scope for dairy
processing and poultry, fishery
processing in the region. There
is huge demand for dried fish in
the region, processing of which
is not capital intensive. The Na-
tional Dairy Development
Board (NDDB), which has ex-
tensive experience in mobilis-
ing producers in milk, vegeta-
bles as well as other areas,
could play a key enabling role
in this process. Increase in milk
production will encourage the
milk, butter and cheese process-
ing industry in the region.
Tourism Opportunity
Even though northeast has huge
tourism potential yet tourism in
northeast region does not figure
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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Growth Potential of North East States
05 | DOMINATION, SEPTEMBER 2013
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
Source: North East Vision 2020, Ministry of development of North East Region
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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
among top 10 states of India.
Lack of transport infrastructure,
insurgency and less investment
are the main causes that affect
tourism industry. The rail net-
work in the North East form
only 3.7% of the national net-
work. As for the insurgency,
the Institute of Conflict Man-
agement estimated that 5283
people had been killed due to
related events in the North-East
since 2005. Tourism being one
of the largest service industries
in India, with its contribution of
6.23% to national GDP and
8.78% of total employment,
witnesses arrival of more than 5
million annual foreign tourists
and 562 million domestic tour-
ists. North-East India is well
blessed by Nature and it lies at
the centre of one of the world‟s
richest bio-geographic areas. It
has a rich cultural and ethnic
heritage that can easily make it
a tourist-spot. Moreover, the
wildlife sanctuaries at various
places of North-East India can
attract the tourists from all over
the world.
Trade opportunity
Cross-border trade is the most
important medium of the cur-
rent wave of globalisation. In
this development, the north east
economy has emerged into a
new dimension of cross-border
trade (informal trade) with
neighbouring nations and that
increases social welfare of the
poor masses. Under the “Look
East” policy, India seeks eco-
nomic cooperation with
ASEAN and other neighbour-
ing countries through the gate-
way of the region. The North
East is located at crossroads be-
tween three major economies –
East Asia, South Asia and
Southeast Asia. This geopoliti-
cal advantage, has however, not
really converted into the re-
gion‟s economic improvement.
Despite the superior growth in
India‟s trade ties with Southeast
Asia and China in the recent
past, the Northeast‟s role has
been marginal in terms of its
contribution to trade and as a
trade route. It has not been able
to integrate and benefit from
the various regional and sub-
regional initiat ives that
neighbouring countries have
taken. Out of India‟s export
volume of about $254.4 billion,
the Northeast‟s share is only
about $0.01 billion. In order to
benefit from the cross border
trade initiatives industries in the
region need to develop goods to
be exported to the neighbouring
states. Processing industries
have to be established to manu-
facture quality goods, which
can be sold in international
markets at acceptable prices.
Infrastructure and connectivity
improvements in terms of stra-
tegic roads to border areas as
well as Integrated Check Posts
and border trade points need to
be developed. This will also
lead to reduced informal trade
between NE and the neighbour-
ing regions.
Power Opportunity
The region is bestowed with
perennial rivers and water bod-
ies, and has a huge hydroelec-
tricity prospect. This potential,
if leveraged well, can be used
to export energy to other re-
gions of the country. The spill-
over benefits will be the devel-
opment of infrastructure such as
roads and electricity supply to
remote hilly areas, translating
in better quality of life. States
such as Sikkim, Mefhalaya and
Arunachal Pradesh have huge
potential in hydropower genera-
tion. Many policies such as the
„50,000MW hydro initiative‟,
the Hydro Policy 2008 have
been formulated by the central
Growth Potential of North East States
06 | DOMINATION, SEPTEMBER 2013
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Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
government to promote invest-
ment in hydropower in the re-
gion. As per the „North Eastern
Industrial and Investment Pro-
motion Policy (NEIIPP), 2007‟
by Ministry of Commerce and
Industry, the entire NER has
been declared a SEZ and many
subsidies, tax exemptions and
waivers have been offered on
cost of infrastructure, transport,
power, etc. The central govern-
ment is also promoting private
sector in the region to boost in-
vestment in the power sector.
About 14,000 MW has already
been allotted to private players
in NER for development as part
of the „50,000 MW hydro ini-
tiative‟.
Overall, we can conclude that
the region is promising in terms
of return if investments are
made. Currently the private
partnership is less in this region
which needs to be improved.
The government is encouraging
investment in the region and we
can be hopeful about a better
future.
Growth Potential of North East States
07 | DOMINATION, SEPTEMBER 2013
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By-
Nilaya Shankar
DoMS, IIT Roorkee (2012-2014)
Prashant Pandey
DoMS, IIT Roorkee (2013-2015)
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Why is this even a topic worth
debating? Well, for me, if some
other firm is offering better in-
centives and lots of money,
does it really matter whether
my present employer is worth
sticking with? For starters, the
net worth of every company is
its people and the satisfaction
index of the employers is what
defines the real assets. Not the
patents, not the machineries and
certainly not the closing-
opening stock. Now, if you are
not creating a suitable environ-
ment for your employees, it is
certainly your loss. A study by
The American Society for
Training & Development pre-
dicts that by 2015, 60% of the
new jobs created will require
the special skills held by only
20% of the population. In 1991,
not even half of the U.S. jobs
needed skilled workers. Hence,
the poaching.
Where does the problem lies
then?
The problem lies in the unethi-
cal way and going beyond what
is fair and legal. For example,
well known stock brokering
firm OrdMinnett recently fell
afoul of restraints in a different
way. It utilized the classified
information of Wilson HTM, an
employer of some persons who
were involved in angling for
jobs at OrdMinnett, to try and
'lure away' even more of Wil-
son HTM‟s employees.
08 | DOMINATION, SEPTEMBER 2013
Perspective
Employee Poaching
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
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EMPLOYEE POACHING ………………………………………………………From the prospect of employ-
ers, they always look for
growth; and rightly so, but the
effect on the employee can be
hazardous due to this reasoning.
In several corporate trainings,
employees are trained to respect
the brand they are associated
with, to fill them with a sense
of pride and understanding. But
when the same people step into
the corporate boardrooms, the
result turns out to be destruc-
tive. Instead what employers
should do is, to take more care
on their HR policies, rather than
filling the employees mind with
garbage. If we look at the pre-
sent statistics, almost 12% of
the Google engineers are now
working for Facebook. It was
not the monetary incentives, as
we already know both the com-
panies are very competitive.
Then what was it that changed
the perspective of those 12%
employees.
It was the sudden urge for en-
trepreneurship, as most people
in the tech savvy Silicon Valley
aspire for. And here comes the
crazy Poaching part, where pos-
sible start up companies look
for these people, provide them
with great incentives and the
biggest advantage- give them
freedom like never before. And,
you have your skilled employee
in your lap. As soon as the
brand name has been estab-
lished and the IPO on the way,
these people look for “other ex-
citing stuff”.
So, what should be done?
There are some provisions to
retain your key employees. The
first and foremost is the legal
way. A contract signed and se-
cured with the penalty clause
will effectively protect a busi-
ness from the illegitimate con-
duct of employees and competi-
tors. The second option is to
provide them with the freeness
to work. As seen previously,
the handcuffed employee is
more prone to poaching cases.
Jack Welch started a new con-
cept to curb employee poaching
on a higher level. Whenever a
new VP or CxO wanted to go to
another firm or start his own,
his only reasoning was to train
his successor. And if duly
tested for the job, he allowed it.
The effect of this was the train-
ing and cost could be saved.
The points worth considering
before deciding the final deci-
sion on employee poaching are:
Know your employees right.
Make every suggestion
count. Feel the need to
change the strategy when-
ever necessary.
Link employee success to
business success. It may be
monetary, non-monetary or
even a pat on the back in-
centive.
Find out the reason why
they really want to leave. Is
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 09 | DOMINATION, SEPTEMBER 2013
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
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………………………………………………………it because some executive
decisions or internal dis-
putes?
Find out what others are
giving and why? The basic
poaching methodology
comes down to identifying
your competitors and moni-
tors them closely.
At the end, it comes down to
staff satisfaction. Employees
will always prefer to be in an
organization where they feel
happy and motivated. The risk
(or curiosity) in the uncertainty
will be outweighed by the em-
ployee‟s happiness in their cur-
rent offices. Businesses that fa-
cilitate to foster this environ-
ment will see the advantages,
not only in reduced turnover
and poaching, but also in pro-
ductivity and performance as
well.
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
EMPLOYEE POACHING
10 | DOMINATION, SEPTEMBER 2013
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
By-
Kunal Bansal
DoMS, IIT Roorkee (2013-2015)
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"..शिखर पर है तू, और जमीन पर मै, पर एक यकीन है मुजमे कही है तू..
महऱो का साया छत पे उसके झोपडो मे रहता मै पर एक बात जो मुझ्मे है कक मुझमे कही है तू
सर पे तरेे छत न थी, रास्तों पे तू रहता था, तरेी यही तो बात है, जो तरेी थी, जो मेरी है..
बद्ऱेगा एक "ददन" यह ददन, मै बनूॉगा "तू" क्योंकक एक यकीन है, मुझमे कहीॊ है तू..."
Chlorophyll ………………………………………………………Its wise to learn, its GOD like to create
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 11 | DOMINATION, SEPTEMBER 2013
यकीन
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
By-
Kaushik H Makwana
DoMS, IIT Roorkee (2013-2015)
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Qutopia ………………………………………………………
It’s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say more? ‘Qutopia’ – A Utopia of the best Biz Quiz Tidbits to wreck your brains! Rush in your answers to [email protected] before 21st October, 2012. The winner will have their names published in the next issue. Also, person getting the highest score in the current quarter will get a gift voucher. Answers in the next issue of DoMination.
Section A (1 Point for each correct answer)
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 12 | DOMINATION, SEPTEMBER 2013
1. What is called as the powerhouse of a biological cell?
2. .......................is the first state to register its brand with Government of India‟s trade-
mark registry.
3. Many elements have been named after countries. Which is the only country to be
named after an element
4. In late 1960s, this company was criticized for its marketing of powdered milk formula
in developing countries. Identify the company.
5. Headquarter of Tata Group is known as ........................................
6. Who are Bretton Woods sisters?
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
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Qutopia ………………………………………………………
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 13 | DOMINATION, SEPTEMBER 2013
Section B (2 Point for each correct answer)
1. Identify the occasion by the Google doodle.
2. Identify the organisation by the logo given below.
4) Identify the below personality.
3) Identify the country by its flag.
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
Qutopia ………………………………………………………
1. Death of Thomas Edison
2. Albert Einstein said it for Mahatma
Gandhi
3. Ministry of Corporate Affairs
4. Toxic Assets
5. General Motors 6. Accenture
1. The Big Bang Theory
2. Air Jordan
3. Angola
4. Rex Tillerson, Chairman &
CEO at Exxon Mobil
Answers for July edition
Winner of August edition
Shreyas Shrivastav
OSM India Pvt. Ltd.
14 | DOMINATION, SEPTEMBER 2013 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight ………………………………………………
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DoMS-da-Evince
Tejasvi Puniani is a 2009 batch pass out of DoMS and presently
working as Pro-Manager at Mizuho Corporate Bank
Q: Please let us know about
your journey prior to joining
IIT Roorkee.
Ans: I am basically a mechani-
cal engineer from DBCRUST
Murthal. I don't know from
where I got interested in MBA
and started preparing in the fi-
nal year. I had a pretty tough
time in the interviews as I ap-
peared for 15 odd companies
before getting selected in two
companies Vedanta Resources
and Isgec Thomson. I joined
Vedanta in Orissa and left it in
15 days as I was not getting
enough time to prepare for my
MBA. Then I joined ISGEC
and side by side prepared for
my MBA. I appeared for test
series and appeared for JMET
and got AIR 337. I got calls
from all IITs and finally joined
IITR.
Q: What are your roles and
responsibilities at Mizuho?
Ans: I, like most of you, had
not heard the name of the bank
prior to my interview. Mizuho
Bank is the second largest Japa-
nese bank and a Fortune
303/500 player having presence
in more than 60 countries. I
have been with Mizuho for al-
most two years. The business
has been divided into Japanese
corporate and Non Japanese
corporate. I am a part of Non
Japanese corporate looking af-
ter large corporate. My role in-
cludes day to day interaction
with the clients as well prepar-
ing the credit appraisal note for
sanctioning the limits to the cli-
ent as per their requirements
and our analysis. The credit ap-
praisal is similar to what you
study in Project Appraisal.
Ironically, I did not choose that
subject as my optional subject.
Yeah the dynamics of real
analysis is different from what
you study but yes you get the
basic knowledge of what it is
and how it is to be done.
Q: How your experience at
Mizuho is different from Care
ratings or SIDBI?
Ans: I am a 2009 (during reces-
sion times) passout and did not
have much choice except to
join SIDBI. I am thankful that I
got a good profile of credit ap-
praisal as first think that comes
to your mind once you hear
bank is loan/credit or in a sense
credit is the bread and butter of
banking. I worked there for 1.5
years and I believe that helped
in learning the basics of credit
evaluation. Corporate whether
small or big, are good at mak-
ing stories or presenting rosy
pictures but it‟s your duty as a
credit person to question his
every assumption and do the
threadbare analysis of his busi-
ness and his projections. I
joined CARE Ratings where
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 15 | DOMINATION, SEPTEMBER 2013
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
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DoMS-da-Evince ………………………………………………………
Q: Please share your thoughts
whether credit rating depict
true picture of a sector or
company.
Ans: I am glad you asked this
question as I wanted to express
my opinion on this. I believe –
yes, they do or try to depict the
true picture of the sector or
company. Assuming you are an
investor who does not know
much about any particular sec-
tor/company/country and you
want to invest first thing you
look is the rating of the com-
pany and how this company
stacks among its peers. Credit
rating analysts purely do the
analysis part and express their
opinion. I was with rating
agency so I know how things
are done over there and now I
am a part of the bank and quite
often we use ratings from dif-
ferent agencies to get the first
feel of how good a company
that is through its rating. I read
it somewhere Credit rating
companies and politicians are
pretty much not contributing
but indispensable part of the
system which is fairly true.
Q: How much importance
you give to qualitative assess-
ment in risk analysis?
Ans: This question was asked
in some interview if my mem-
ory is serving me right. Qualita-
tive analysis is very important
from the point of risk analysis.
You evaluate the promoter‟s
credentials, number of years he
has been in this business, vari-
ous business risks in relation to
operations, pricing power, in-
dustry structure, his position in
the market etc. which provide
you with very good insights.
Q: What are your views on
Basel III reforms and its im-
plications in India?
Ans: Basel III reforms are set
of reforms to maintain financial
stability and common standards
regulations across banks. Basel
III norms are made with strict
regulations with better risk
management techniques which
are focused more on funding,
liquidity of banks, leverage and
more stringent capital adequacy
requirement. Indian banks are
needed to adopt these norms to
have universal global standards
to avoid any inconvenience in
overseas transactions. Banks
have to infuse an additional
capital of Rs 5 lakh crore to
meet the Basel III norms out of
which share of equity capital
has to be 1.75 lakh crore and
non-equity Rs 3.25 lakh crore.
The Government of India,
which owns 70 per cent of the
banking system, has to incorpo-
rate Rs 90,000 crore into the
state-run banks which looks
tough at this point in time so it
will take some more time to im-
plement.
Q: What is the most challeng-
ing role in your career so far?
Ans: My role in Mizuho is
quite challenging as the quan-
tum of money involved in lend-
ing is huge and you have to do
the ground work properly so
that you can get the approvals.
On the other hand while doing
the operational work; you have
to interact with people at differ-
ent hierarchical levels. On one
hand you would be interacting
with Director of any large cor-
porate and on the other hand
some person at really lower
level in your own organization.
So you have to apply interper-
sonal skills and deal differently
with people at different levels
of hierarchy. In corporate world
always follow top to bottom
approach to get your work
done.
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 16 | DOMINATION, SEPTEMBER 2013
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
………………………………………………………
DoMS-da-Evince ………………………………………………………
Q: Would you like to share an
interesting incident with us?
Ans: While we were at DoMS
we wanted to organize an event
and we discussed it with
Thomso organizing committee.
They gave us CORPORATA. I,
along with Prashant, Rahul, Ab-
hishek and Tushar (my batch
mates) formed a team, roped in
AIMA and started working on
it. We were worried about the
registrations but due to our
marketing efforts, we got really
good response and had to close
the registration half way
through. On the day of the
event, we came to know that
MPH has been allotted to some
other event and we were left
high and dry. Left with no other
options, we had to split the par-
ticipants into two groups as the
place we got finally was very
small. Therefore, we had to re-
conduct the whole exercise
twice but at the end of the day it
was very satisfactory.
Q: Any message for readers,
especially for the current
batch of DoMS?
Ans: I would advise you guys
to increase your participation in
the events held at other B-
schools. You have to participate
so that you can win. Keep try-
ing. It also adds value to your
resume. Secondly, at the start of
the career you can experiment
with career opportunities and 2-
3 years down the line when you
become aware of what actually
you are looking for you can
build your career in it. Thirdly,
I had a tough time clearing the
interviews particularly HR
round and somewhere found
this 64 interview questions
(type on google you will get it).
This questionnaire takes care of
everything except technical.
Must read. Any of you if inter-
ested in Banking then credit is
good platform to start your ca-
reer. You will have opportuni-
ties as credit is very basic pro-
file and is offered in almost
every bank.
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 17 | DOMINATION, SEPTEMBER 2013
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
“Strive not to be a success, but rather to be of value.” Albert Einstein
Success Story ………………………………………………………
………………………………………………………
Peter Drucker once said
that “The best way to predict
the future is to create it”. And
here is a man Mr. Sunil Handa
who is silently following the
rule. In spite of being an alum-
nus of top rated institutions of
the country he chose to pursue
the less chosen path. Mr. Sunil
Handa an entrepreneur, a
teacher, a motivator and a main
man beh ind the LEM
(Leadership and Entrepreneu-
rial Motivator) course at IIM
Ahmedabad.
In his childhood days he was an
average student and scored only
45% marks in class X. However
a radical change happened in
class XII when he was one of
the of the top ICSE students.
This score had helped him to
get admission into BITS Pi-
lani.During his days in BITS
Pilani, he got so much mesmer-
ized and attracted by solar en-
ergy that at one point of time he
wanted to pursue careers in Re-
search.He along with his
friends has written a paper on
their research work which got
published in an international
conference in Italy. They also
got the opportunity to present
the paper in Italy. In his final
year of graduation he has job
offers from USA, Australia,
New Zealand and Israel. At that
time he was not interested in
management education. His
perception got changed only
after meeting Mr. Vijay Vanni-
kar, Personnel Manager of Jyoti
R&D and an MBA from IIM A.
In year 1977, he himself got
admitted into IIM Ahmedabad.
After graduating from IIMA in
1979, he joined FAIR –
„Foundation to Aid Industrial
Recovery‟. FAIR used to take
sick industries and turn around
the industry without firing any
employee. During his stint at
FAIR he worked with many in-
dustries. After that he and his
brother Sushil started a com-
pany called Core Consultancy
Services whose main area of
business a management con-
sulting and consulting related to
computers. Within one year the
company turnover crossed Rs 1
crore with a profit of Rs 60
lakh. His entrepreneurial spirit
had motivated him to close the
consultancy company and
opened a pharmaceutical com-
pany named Core Laboratories
Ltd.By 1994 Core Laboratories
was an Rs 600 crore company
with five huge factories.
After 1994 he got separated
from his brother. The separa-
tion has a massive impact on
his life and he lost his interest
in doing business. He even got
into depression. After being in
depression for 10 months he
decided not to do a normal
business but to open a school
and the idea of Eklayva School
came to his mind.
Eklavya is a non-profit making
company but is very entrepre-
Mr. Sunil Handa is Chairman of Evlavya Education Foundation, Ahmedabad – a nongovernmental and not for profit organization.
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 18 | DOMINATION, SEPTEMBER 2013
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
Success Story
………………………………………………………DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
………………………………………………………neurial. Before opening school
he did a lot of research on
schools. He visited nearly 150
schools situated in seven coun-
tries. He has also put lots of in-
novation at Eklavya like finan-
cial assistance to poor students,
small classroom, mother in-
volvement and other small
things which helped Eklavya to
become most sought out school
in Ahmedabad. Beside this, he
has also affected the entrepre-
neurship environment at IIM
Ahmedabad. He is taking LEM
(Laboratory in Entrepreneurial)
course in IIM Ahmedabad since
1992. Sunil believes many of
his students will turn entrepre-
neurs one day. Sunil is not only
encouraging entrepreneurs
among young graduates but
also embedding value and eth-
ics among them. Truly speaking
nation needs more of such peo-
ple.
19 | DOMINATION, SEPTEMBER 2013
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
………………………………………………………
Regardez I’economie ………………………………………………………
Infrastructure is among
the fastest growing sectors in
India. It has been accorded high
priority by the government of
India and the total investment is
envisioned to be around $1 tril-
lion in 12th Five year plan. The
infrastructure projects are a
capital intensive business with
long payback periods and fi-
nancing is a key concern in
these initiatives. The funding
for such projects is usually
done by two methods, Debt and
Equity. Both have their own
advantages and disadvantages
and a mix of the two is em-
ployed to meet the capital re-
quirement. Debt is given prefer-
ence as it is cheaper than Eq-
uity. However considerable de-
fault risk and regulatory pres-
sures have compelled banks to
put a ceiling on the debt financ-
ing. Adding to this, the no re-
course or limited recourse fac-
tor makes the situation worse.
Equity, by virtue of being a
costlier source, is always a not-
so-preferred choice. In light of
such situation, there is a need of
financing methods which lie in
between the above two modes.
Such types of modes are called
Mezzanine Financing.
Mezzanine Financing for Infrastructure Projects
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 20 | DOMINATION, SEPTEMBER 2013
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
………………………………………………………
MEZANNINE FINANCING FOR INFRASTRUCTURE PROJECT ………………………………………………….
Mezzanine Financing is done
through instruments that have
features of both debt and equity
and occupies a middle position
in terms of risk-return spec-
trum. In terms of hierarchy of
creditors, it comes after debt
but before equity. Overall, Mez-
zanine capital could be under-
stood as the layer of finance
which bridges the gap between
debt and equity and therefore
helps in optimizing overall
capital structure. It has several
advantages such as minor dilu-
tion of existing ownership, free-
ing up equity which can be de-
ployed in the project and thus
reducing the risk and increasing
the return on equity. Addition-
ally, Mezzanine Finance is
treated like equity capital on
balance sheet and hence facili-
tates smoother standard bank
financing procedure. The most
popular instruments for Mezza-
nine Financing are subordinate
unsecured debts, convertible se-
curities or preferred stocks.
Among them subordinate debt
is the most common form of
financing. The lender of this
instrument is in a junior or sub-
ordinate, lien position to senior
lenders and has no equity par-
ticipation in the project‟s cash
flow and do not have any role
in the management of the pro-
ject. The advantages and disad-
vantages are listed in the figure.
Mezzanine Finance is in prac-
tice for more than two decades
but limited mainly to USA and
European markets. With the
growing Indian economy and
infrastructure sector becoming
a hot spot, it is gaining accep-
tance here as well. ICICI Ven-
ture‟s Mezzanine Finance was
first to concentrate on such fi-
nance opportunities. Recently
Mytrah Energy India Limited
has raised Rs. 1200 million
($17.5 million) by mezzanine
financing which will be sub-
scribed for by Bindu Urja Infra-
structure Ltd. and Mytrah Wind
Developers Pvt. Ltd. Another
Asian example is of China‟s
Zhuhai Highway Company
Ltd., which succeeded in rais-
ing $115 million in the form of
subordinated notes in interna-
tional capital markets. The
Manilla Skyway project in Phil-
ippines, acquired a substantial
amount of capital through mez-
zanine financing.
Currently, India is viewed as a
flag bearer of the developing
world, with sufficient scope for
financial investments into infra-
structural sector. Therefore in-
vestors across the globe are ey-
ing this sector for investment
which has huge growth poten-
tial. Considering the unique
benefits offered by the Mezza-
nine Finance it is poised to see
the growth as already evident
from few examples.
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 21 | DOMINATION, SEPTEMBER 2013
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
By-
Sharad Srivastava
DoMS, IIT Roorkee (2012-2014)
………………………………………………………
Spotlight
Alumni meet is always an emo-
tional subject for students, be it
current students or passed out
ones. The passed out students
are eager to go back and feel
the life where it all started and
on the other hand, current stu-
dents have a chance to meet the
seniors and learn from them.
We, at DoMS, had such an ex-
perience on 20th Sep 2013. The
occasion was Reminiscence
where three batches (first year,
second year and recently passed
out) of the department came to-
gether. It was one of the most
awaited events for the students.
The pass out students were
looking for their degrees and
reunion whereas second year
students were having an oppor-
tunity to meet their seniors
again and revisit the good
times. First year students were
more enthusiastic about meet-
ing their seniors.
The event was organized by
Alumni committee of DoMS,
IIT Roorkee. It started with a
welcome speech and then our
Head of the Department Dr.
Santosh Rangnekar addressed
the students. The event was also
graced by Dr. M. K. Barua who
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 22 | DOMINATION, SEPTEMBER 2013
Reminiscence
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
………………………………………………………
REMINISCENCE appreciated the efforts of the
students. After the addresses it
was the time for thrilling per-
formances. A series of high
voltage and enthralling per-
formances were given by the
first year batch. Meanwhile the
alumni are entertained by vari-
ous fun games.
After the performances, it was
the time for alumni to come for-
ward and share their experi-
ences. It was a pleasure to listen
to their stories. Meanwhile din-
ner was also served. Finally a
note of thanks was delivered
and it marked the conclusion of
the event. Now it was the time
to rock the stage. The past and
present students danced to their
heart. They lived once again
what they called as “Life”.
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 23 | DOMINATION, SEPTEMBER 2013
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
………………………………………………………
SpotLight ………………………………………………………
VIPANAN
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 24 | DOMINATION, SEPTEMBER 2013
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
Big data is already a buzzword in the field of Marketing. Marketers are getting increasingly interested and involved in capturing and analyzing Big Data for a variety of reasons. For a management stu-dent, it is of vital importance to understand about this new con-cept. DoMS, IIT Roorkee found such an opportunity to discuss the topic and learn from the industry leaders. The event was marketing summit, Vipanan which was or-ganized on 15-Sep-2013 at De-partment of Management Stud-ies, IIT Roorkee in association with ISTD Dehradun chapter. The event was sponsored by brands such as Namo Alloy & Indian Oil and con-ducted by MarkIIT, the marketing club of DoMS, IIT Roorkee. There was an aura of excitement in the department and students were
enthusiastic about the same. The event saw participation of some of the industry stalwarts. A total of four eminent personalities joined the occasion and shared their experience with the stu-dents. Their brief profiles are mentioned below: Mr. D. Bhattacharyya – Sr. Ex-
ecutive Director (HR), IFFCO Mr. Shushobhan Chowdhury –
VP and Head of Digital Strat-egy India, JWT
Mr. Raghu Iyer – Head Mar-keting (Vaccine Business), Panacea Biotech Ltd.
Mr. Divyang Gupta – Account Manager, IBM
The summit was also attended by the head of the department Dr. S. Rangnekar and Dr. J. K. Nayak.
The event took off by welcoming all our guests and lightening of the lamp. Then batch profiles of DoMS, IIT Roorkee were pre-sented. Then a welcome note was delivered by Dr. Rangnekar, HoD where he touched upon various activities of the department. He elaborated on the four basic ob-jectives of teaching, training, con-sulting and research and the ini-tiatives taken by the department in these areas. It was now the time for renowned speakers to enrich us. The first speaker was Mr. D. Bhat-tacharyya who expressed his hap-piness to be with the youth. He took us a few years back when an Indian was contributing to around 70% of the total wealth of the world. He also recalled how
………………………………………………………
VIPANAN
rupees and the dollar was equiva-lent 70 years ago. He shared his concern that now a days Indian people do not follow its own his-tory. He explained further by cit-ing an example of a Bangladeshi youth and his ignorance about his own history and leaders. He com-pared the similar situation for In-dia as well. According to him, peo-ple now are more open to the leadership of Jack Welch rather than Mahatma Gandhi. This has led to a shift in the overall value system which is now centered around “only we win”. He stressed on the fact that inclusive growth is essential for the nation and need of the hour. This can be achieved by focussing on the ru-ral India and he shared some sta-tistics on the condition of rural India. In this backdrop he intro-duced his organization IFFCO, the largest marketer of chemical fer-tilizer in the world. He revealed the fact that IFFCO is owned by 5.5 crore farmers of the country. If we include their families the figure reaches to one fifth (20-22%) of the total population of the country. This way IFFCO is a direct stakeholder in the food se-curity bill which is expected to provide subsidy to 75% of the ru-ral population and 67% of the to-tal population (82 crore people).
The scheme would cost approx. 130 lakh crore to the government. Overall he opined that rural mar-ket is expected to see high growth and it should be the area of focus. Another issue he touched was the gender diversity i.e., participation of women in the labor force. He supported greater participation of women and gave the example of the matured economies. The speaker was also a great admirer of Swami Vivekananda and quoted him several times in his speech. As a whole it was a great inspiring speech and a treat to listen to. The next speaker was Mr. Shushobhan Chowdhury who ini-tiated his dialogue with the quo-tation “Be the change you want to bring”.
He narrated his own story how he went through many adverse con-ditions before tasting the success. Mr. Shushobhan is an in and out marketing guy and he reflected upon the role of marketing. He said that it is more important how to see than what you sell. He then ran through a presentation which explained the digital media revo-lution. It also contained informa-tion about Big Data and sup-ported by insights from the
speaker who said that Big Data is actually a rehashing of the term business intelligence. He also ex-plained how digital marketing is helping in bringing loyalty. An ex-ample of Pepsi was given. Accord-ing to the guest, 72% of the peo-ple who drink Pepsi are also a cus-tomer for Coke hence hinting that there is no absolute loyalty. The data can only give us details such as what share of people of using a product but can’t tell us how to induce loyalty. Big Data can help us to predict, analyze and narrow-ing our decision making but can’t help with sales, creativity and marketing. We can have insights from the data but not at the cost of marketing. Therefore he con-cluded that data could not replace the marketing, at least not in the visible future. Nevertheless he acknowledged the power of data and quoted example of retail sec-tor where Big Data is extremely helpful in increasing efficiency. He also encouraged students to study about digital media and shared few sources where we could learn from. The third speaker was Mr. Raghu Iyer, an alumnus of SIES Mumbai. His areas of specializations are brand management, marketing
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 25 | DOMINATION, SEPTEMBER 2013
Perspective| Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
………………………………………………………
VIPANAN
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 26| DOMINATION, SEPTEMBER 2013
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight
and product analysis for pharma-ceutical products. He first explained us the distinc-tion between generic and branded drugs and some patent laws related to that. He also spoke about how cost of R&D is growing day by day and there should be a pipeline of future pro-jects. He mentioned that now the complete lifetime of a product is around 8-9 years which used to
be 12-13 years earlier. This also contributed towards growth in the R&D costs and on top of it, there is no guarantee of success (actually the success rate is one in one thousand). He then went on to describe the pharmaceutical industry in India which is domi-nated by local players, although foreign companies are catching up. It is a recession proof industry
and poised to be $70 billion mar-ket by 2020. He also introduced his organization Panacea Biotech Ltd. which is at number 3 in words as far as no. of tablet consump-tion is concerned. He also shared that India is hub of clinical trials too as per patient recruitment cost is low here. The speaker then discussed the delivery network in which doctors play a central role. The marketing is very different as well due to the fact that medi-cines are considered a need in a negative sense. The sales repre-sentative becomes a key player in overall marketing efforts. Opinion leaders are other important play-ers of the game. In this context, he talked about the digital social media marketing and how is changing the landscape. Lastly he enumerated the main features of a brand plan and its key elements. The fourth and final speaker of the day was Mr. Divyang Gupta. He is a 2005 batch alumnus of DoMS, IIT Roorkee and currently associated with IBM. He has also worked with organizations like TCS, PwC and E&Y in the past. The speaker briefed us about the IT industry. He also deliberated upon the changing nature of the
industry in which customers are at the center now. He explained us the various products and ser-vices offered in IT industry and also introduced us to the world of ERP. Then he went on to social media and what kind of role it is playing. He also walked through the different functions of IT com-panies. This marked the end of the event. A note of thanks was delivered and mementos were presented to the guests. This was a very well organized session with the well known names of the industry. The topic of the summit was as rele-vant as it could be. The take-away from the session was immense and students were very apprecia-tive of the same. The Vipanan is over now however the learning is
there to stay.
Department of Management Studies
IIT Roorkee
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
ROORKEE - 247667, INDIA
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