9 steps to positive 9% GDP growth rate in 9 months in Rs 900 crores p.a !

NDA Election Manifesto implemented! ( Spend 9 minutes

with an open mind! )

India’s Investment Climate and Ease of doing Business!Rank 136 in world!

Congratulations to PM Modi for improving Investment climate

• Winning Elections in Centre and 2 states!• Right now only PM Modi, BJP President and Sh

Mohan Bhagwat,RSS Chief in positive action all over the world.

• Congratulations to GOI in controlling and taming Inflation

• Setting up SIT on Black Money in compliance with Hon’ble Supreme Court orders.

• Improved Decision making in Govt.• Oil prices have cooled for the moment !• GDP growth expected at 5.5 % per annum.

Importance of Strategy

• “Strategy is about making choices, trade-off’s;it is about deliberately choosing to be different.”-Michael Porter.Eg :Smart Decisions produce a Reward to Risk ratio of 10:1 or more!

• They produce a force multiplier effect!.• They produce a money multiplier effect and

profitable cash flows for a number of years!• Examples: IPR’s, Exclusive Marketing

Rights, Invention, Mining Rights, First to Market ,Fuel efficient technologies ,Smart City Technology, Foreign Technology Tieup’s, Energy efficient technologies ,Joint Venture companies etc

Positive Agenda not crises management alone!

• “Good Leaders need a positive agenda ,not just an agenda of dealing with crises.”

• Michael PorterGood Leaders need constructive agenda

Field Marshal- Sam Manekshaw-Leadership• “ Ladies and Gentlemen, according to the law

of averages, if you take ten decisions, five ought to be right. If you have professional knowledge and professional competence, nine will be right, and the one that might not be correct will probably be put right by a subordinate officer or a colleague.”

• But if you do not take a decision, you are doing something wrong.

• “An act of omission is much worse than an act of commission. An act of commission can be put right. An act of omission cannot.”

Set Goals for Economic Ministries to grow @ 10% per annum!• Starting from this year• Only Meritorious, Competent, Result oriented Bureaucrats

with Integrity to be trusted with key Economic Ministries.• Create Quarterly Roadmap with Milestones!• Every Ministry must have a public greivance cell headed

by Joint Secretary which should settle public complaints/problems in 15 days flat!

• All data including Complaints/Action taken to be displayed on website

• Will reduce Civil litigation in courts as well by 30%!• Create new efficient and responsible organization

structure in Govt Departments!• All Ministries make unproductive expenditures of 10% per

annum with little or no output!• See detailed Presentation for Implementation.

Increase PSU Profitability/Turnover Targets by 10% this year!• Profitability in PSU’s this year has gone down by

10%,Management Lax!See BHEL Ratio analysis for example for the last 5 years.

• Organize Training for PSU GM’s/ED’s for 4 days at HQ to achieve this.

• Implement new Business Models• Move up the value chain by Quality Research and

Development• Cost Rs 14-15 crores only!• Cut down cost of production by 10%.• Close permanent loss making PSU’s or sell their assets.• For details-see detailed Presentation

BHEL profitabilty declining!• Key Financial Ratios of Bharat Heavy Electricals• Mar '14Mar '13Mar '12Mar '11Mar '10Investment Valuation

RatiosFace Value2.002.002.0010.0010.00Dividend Per Share2.835.406.4031.1523.30Operating Profit Per Share (Rs)18.4738.3640.48175.38122.49Net Operating Profit Per Share (Rs)159.78197.85196.02863.02678.75Free Reserves Per Share (Rs)--------315.11Bonus in Equity Capital50.0050.0050.0050.0050.00Profitability RatiosOperating Profit Margin(%)11.5519.3920.6420.3218.04Profit Before Interest And Tax Margin(%)8.6817.0218.4918.5816.13Gross Profit Margin(%)9.0417.4218.9819.0316.66Cash Profit Margin(%)10.9215.2715.9515.1513.80Adjusted Cash Margin(%)10.9215.2715.9515.1513.80Net Profit Margin(%)8.4913.3514.2913.8912.55

Banks should increase lending by 10% this year onwards!• Cut down NPA’s by 10%• Train the GM’s/ED’s for 3 days• Cost Rs 15 crores• Create list of Wilful defaulters and

circulate to other banks,SEBI display on bank websites

• Managers/GM’s should be given targets for Retail/Corporate Loans

• For Implementation plan-see detailed Presentation.

NRI’s are fond of investing in” USD/Euro Infra bonds”

• Risk free bonds for NRI’s/Pension funds

• Value USD 100 billion per annum.• Interest Rates 7% p.a plus bonus

payable in USD.• Duration-5-10 years• See detailed presentation

Recover Black Money of USD 50 billion per annum

• From this year itself!• As per CBI estimates USD 500

billion is the figure submitted to SC/Parliament

• See detailed Presentation for How!

Truth and Honesty!

Speed up delayed Projects by Quick clearances

• India annually loses USD 25 Billion in Project delays…GOI statistics!

• Instead of floating tenders for goods ,it may be a better idea to float tender for services instead of pollution equipment eg Ganga Cleanup Action Plan, Smart Cities!

• How-See detailed Presentation ! For tools, techniques ,training and Management of inefficiencies.

Increase Power, Coal Oil/Gas production • By 15% per annum domestically• Put Competent CMD’s/MD’s with

Integrity on top!• Cut Transmission and Distribution losses

by 10% this year• Cut Oil/Gas imports by 10% p.a and

increase domestic production by 10% per annum

• How-See detailed Presentation

All National tenders should also have provision for L/C payments!• This will improve investment climate, bank

lending,industry cash flows and reduction in bank’s NPA’s

• Reduce corruption and Inspector Raj!• Improve Quality of Asset under construction.• Increase efficiency as Indian companies are

cash starved or try to expand too fast without funds and get stuck in adventurism.

• Payments to SME’s must be made within 30 days!

Create 1 crore jobs p.a, call 50 Fortune 1000 companies, 50 PSU’s p.a to set up shop in North East

• Make in India campaign of PM Modi• 1000 SME’s per year in joint sector to set up shop in

North East states to prevent migration.• 10 Smart cities or Tourism based Infra in North East• All orders to SME’s should have L/C provision• Link them to all major metros and Industry associations• Link them to NIT’s/ITI’s/MBA /Hospitals institutions/Retd

Defence Personnel associations/PSU’s/MSME Ministry/DRDO’s/CSIR.

• Cost Rs 500 crores .See detailed presentation

Increase Applied Research budget, IPR mechanism

• Our Education, Applied Research and student placements are a permanent weak link.

• We teach only “Theory” and not” Theory plus practice”….Even the Former PM said it at IIT, Delhi convocation. Nobody listens leave alone implementation

• Budget required Rs 200 crores per annum for applied projects, applied Research.

• See Detailed Presentation-How!

Mr Barack Obama,US President

Investment Climate in India!

Lotus Blooms!Hope and hype everywhere!

Catalyst for Change

• “As Times change ,people change, businesses change ,strategies change, competition changes, business models and business plans change, processes change.

• Therefore ,Think ahead of Time, Think ahead of Competition (China).

• Give better value proposition to customers before competition does! Offer solutions.

• Do more Research .Do more Innovation” !• …….Sanjeev Bahadur/Raman Tondon

Risks

• High CPI Inflation in India• Poor Govt department’s productivity• Poor PSU profitability• Poor Tax Collections/ Low Tax Payer base• High NPA’s in Indian Banking• Lack of innovation/IPR’s/Applied Research• Only Theory being taught in our colleges instead of” Theory

plus Practice”• Poor Center-State coordination.• Poor Manufacturing and high cost Manufacturing!• High wastages in Agriculture sector• High levels of Black Money generated• Poor Infrastructure and delayed Projects• High unemployment!Poor skill development facilities

India can become a superpower like China in 5 years in GDP per capita or PPP basis!

• Remember ,both India and China’s GDP have grown at 8-10% GDP growth in the past.

• India is a cash starved, opportunity starved , efficiency, productivity ,research starved nation.

• Executive Summary by……….• Sanjeev Bahadur,• Raman Tondon (all School pass out’s!)• New Delhi• See Slideshare……Sanjeev Bahadur,Raman

Tondon,Ravi Mathur