According to the study done by NCAER along with the University of Maryland ,nearly one third of the muslims in the nation live below the poverty line on less than Rs.550 a month, and those in villages survive on Rs. 338 a month .
Same study also revealed that over 50 % of the Adivasi and 32 of the Dalits are leaving below the poverty despite quotas for over 60 years .
Mandal battle started and was won on the Gangetic plains , but the reservations have failed to raise the standards and serve its purpose .
Two questions :
Why are the quotas only asked for Muslims even in the recent debate on reservations for Women ?
Have quotas lived upto their expectations ?
Should we not do away with caste or religion based quotas and move to a financial denominator driven reservation system that does not discriminate on the basis of caste but on financial status ?
Time to evolve
Rajendra Pratap Gupta
Email : office@rajendragupta.in
Saturday, April 24, 2010
Demystifying retail FDI
All the major retailers be it Pantaloon , RPG ,Reliance or Bharti . All are shouting from the top of their retail roofs about their demand that India needs to become more liberal and allow Foreign Direct Investment ( FDI ) in retail
Let’s study where retail is, and why do we need FDI ?
A lot of people jumped into retail around 2000 including Pantaloons, Subhiksha , Vishal , Adani group etc . A few years later, excited by the ‘unsubstantiated reports’ from the top consulting firms about the fantastic retail sector , every major corporate houses like RPG, TATA , Birla’s and Reliance also joined the bandwagon. It lead to competitive retail . All Retailers were vying for the same space , same people & same vendors for a much higher price . Marketing costs increased but margins decreased .
Finally , everyone in retail burned their fingers and lost hundreds of Crores . A few merged or died a natural death !!
I have written earlier ( in 2007 ) in my column that retail in the current form and format was unviable . We see that , when we look at the closures of stores at all major retailers. I think that the way forward is clear , either you have to get into Hypermarkets or small ( Kirana ) format . There is no place for medium ( so called super market ) retail format . I see that the Indian customer’s fondness for variety and prices coupled with the entertainment options within the retail super space !! No other format except Hypermarket will succeed
Back to my main topic why do we need FDI :
What do retailers need to succeed ?
Technical knowhow – This can be had by hiring experienced people from abroad who are happily willing to come and work in India or through the franchising route
Vendor or sourcing arrangements – can be done via franchising tie ups
Merchandising mix- Actually , this is the least of problems as one can go around and see what all is visible and can be copied
Brand value – Franchising tie ups can bring brands like Wal-mart etc
Training the retail staff – Can be locally developed in collaboration with international tie ups
Money to grow – Here is where the answer lies – Retailers in India are loss making and even if a few who are reporting profits , they have uncertainty over the consistent growth and profits . Retailers know that they need to make the best of the opportunity with major foreign retailers entering India. Whenever FDI is allowed, it is a foregone conclusion that major foreign retailers would either pick up a stake or buy the local retailers out at ‘Decent valuations’ and the promoters will cash out with big bucks .
I do not understand if the retailers are successful , why should they have problems with raising money locally ? Any investor would be keen to invest in a profitable venture or the money can be raised from the stock markets. Rest all can be had as mentioned above via tie up or recruitment of experienced people from abroad
PE / VC's are not investing in retail as it is not profitable, and the successful model is still to be seen. Government must be firm that it will not allow FDI in retail , as it will definitely kill smaller retailers . Government should evaluate what the retailers need and understand their reasons for asking FDI to open in retail sector. These ‘failed retailers’ will cash on and exit , and the Indian retail scene will get dominated by biggies in retail like Wal-mart or Carrefour or Tesco’s of the world . I see more deaths in retail in the times ahead. Indian retailers have still not figured out a successful retail format and that is the challenge, and FDI in retail does not have an answer . Indian government should only allow franchising in retail and nothing else. If retailers want to raise money they must either raise it privately or through the stock market
If we allow FDI in retail at this point , it will be like creating another East India company and India will lose heavily
Rajendra Pratap Gupta
emai: office@rajendragupta.in
Let’s study where retail is, and why do we need FDI ?
A lot of people jumped into retail around 2000 including Pantaloons, Subhiksha , Vishal , Adani group etc . A few years later, excited by the ‘unsubstantiated reports’ from the top consulting firms about the fantastic retail sector , every major corporate houses like RPG, TATA , Birla’s and Reliance also joined the bandwagon. It lead to competitive retail . All Retailers were vying for the same space , same people & same vendors for a much higher price . Marketing costs increased but margins decreased .
Finally , everyone in retail burned their fingers and lost hundreds of Crores . A few merged or died a natural death !!
I have written earlier ( in 2007 ) in my column that retail in the current form and format was unviable . We see that , when we look at the closures of stores at all major retailers. I think that the way forward is clear , either you have to get into Hypermarkets or small ( Kirana ) format . There is no place for medium ( so called super market ) retail format . I see that the Indian customer’s fondness for variety and prices coupled with the entertainment options within the retail super space !! No other format except Hypermarket will succeed
Back to my main topic why do we need FDI :
What do retailers need to succeed ?
Technical knowhow – This can be had by hiring experienced people from abroad who are happily willing to come and work in India or through the franchising route
Vendor or sourcing arrangements – can be done via franchising tie ups
Merchandising mix- Actually , this is the least of problems as one can go around and see what all is visible and can be copied
Brand value – Franchising tie ups can bring brands like Wal-mart etc
Training the retail staff – Can be locally developed in collaboration with international tie ups
Money to grow – Here is where the answer lies – Retailers in India are loss making and even if a few who are reporting profits , they have uncertainty over the consistent growth and profits . Retailers know that they need to make the best of the opportunity with major foreign retailers entering India. Whenever FDI is allowed, it is a foregone conclusion that major foreign retailers would either pick up a stake or buy the local retailers out at ‘Decent valuations’ and the promoters will cash out with big bucks .
I do not understand if the retailers are successful , why should they have problems with raising money locally ? Any investor would be keen to invest in a profitable venture or the money can be raised from the stock markets. Rest all can be had as mentioned above via tie up or recruitment of experienced people from abroad
PE / VC's are not investing in retail as it is not profitable, and the successful model is still to be seen. Government must be firm that it will not allow FDI in retail , as it will definitely kill smaller retailers . Government should evaluate what the retailers need and understand their reasons for asking FDI to open in retail sector. These ‘failed retailers’ will cash on and exit , and the Indian retail scene will get dominated by biggies in retail like Wal-mart or Carrefour or Tesco’s of the world . I see more deaths in retail in the times ahead. Indian retailers have still not figured out a successful retail format and that is the challenge, and FDI in retail does not have an answer . Indian government should only allow franchising in retail and nothing else. If retailers want to raise money they must either raise it privately or through the stock market
If we allow FDI in retail at this point , it will be like creating another East India company and India will lose heavily
Rajendra Pratap Gupta
emai: office@rajendragupta.in
Monday, April 19, 2010
IPL- Politicians are where the money is
Why are people so surprised at the disclosures coming out of IPL ?
We all know that politicians get into anything that makes money ( read only big money ). Why is Sharad Pawar left out in this scandal- he is the king pin . ? He would have made less money than Lalit and allowed him to stay ? Money making in politics is hierarchical ! If you all think that only Lalit made money , you are fooling yourselves ?
Imagine , that a person of the stature of Shashi Tharoor could not resist the big bucks , what about petty politicians who are in this game ? Let CBI investigate everyone on the board of IPL. I am aware who all are there on the board and still i am asking this inquiry .
It is a big ‘white collar crime’ - an organized corporate corruption racket . Bust it and send the chaps to jail
Rajendra Pratap Gupta
We all know that politicians get into anything that makes money ( read only big money ). Why is Sharad Pawar left out in this scandal- he is the king pin . ? He would have made less money than Lalit and allowed him to stay ? Money making in politics is hierarchical ! If you all think that only Lalit made money , you are fooling yourselves ?
Imagine , that a person of the stature of Shashi Tharoor could not resist the big bucks , what about petty politicians who are in this game ? Let CBI investigate everyone on the board of IPL. I am aware who all are there on the board and still i am asking this inquiry .
It is a big ‘white collar crime’ - an organized corporate corruption racket . Bust it and send the chaps to jail
Rajendra Pratap Gupta
Thursday, April 8, 2010
Water Tanker Mafia's at work
To : Ashok Chavan , Murli Manohar Joshi and Rahul Gandhi via Email
Mumbai under Siege by water mafia
It is quite disappointing to see that every week water pipelines are getting damaged in Mumbai. More people live in Delhi and water is carried by pipes there as well !!
“In 2007, the ‘redefined’ Delhi urban agglomeration has (a population of) 21.5 million people against 19.3 million in Greater Mumbai. Why do the pipes burst only in Mumbai so frequently, and that too, during the peak demand time ?
Now the BMC will spend Crores of rupees to repair the pipes . Water tankers ( read water mafia ) will use this opportunity to supply water in the affected areas. Is it not a calculated move by the water dons ?
I suggest that a CBI inquiry be instituted in this matter . It is a 1000 crore scandal with the connivance of local government , BMC & Water mafia .
Rajendra Pratap Gupta
Email: office@rajendragupta.in
Office.rajendra@gmail.com
Mumbai under Siege by water mafia
It is quite disappointing to see that every week water pipelines are getting damaged in Mumbai. More people live in Delhi and water is carried by pipes there as well !!
“In 2007, the ‘redefined’ Delhi urban agglomeration has (a population of) 21.5 million people against 19.3 million in Greater Mumbai. Why do the pipes burst only in Mumbai so frequently, and that too, during the peak demand time ?
Now the BMC will spend Crores of rupees to repair the pipes . Water tankers ( read water mafia ) will use this opportunity to supply water in the affected areas. Is it not a calculated move by the water dons ?
I suggest that a CBI inquiry be instituted in this matter . It is a 1000 crore scandal with the connivance of local government , BMC & Water mafia .
Rajendra Pratap Gupta
Email: office@rajendragupta.in
Office.rajendra@gmail.com
Tuesday, April 6, 2010
73 murders , one land mine blast - A tribute to our Home Minister
Naxalites kill 73 CRPF personnel:
It is a big loss for each family member who lost these innocent hard workers. My sincere heartfelt condolence and i do hope that our political leaders wake up to reality than making a show travelling in the high security areas. I also hope that the government has given the actual figure on the causalities . 73 CRPF personnel are not ordinary public without arms , if they get killed in such large numbers , it is a warning sign !!
I just need to comment on two points today
First comment that our Home Minister made to the CM of West Bengal that the ‘Buck ends at the CM’. For the entire nation, the buck stops at the PM and his council of Ministers !! We need an answer that why these 73 people were killed ? What kind of democracy is this >
Gun salute that the Home minister has got has shown what it means for the future? Imagine how the villagers must be living under the fear of guns – Naxalites? How many loots, rapes and murders these naxalites must be committing every day? No one has a clue as there are no officials or police stations functioning in naxals hit areas.
Second comment :i think Vineet Jain (Managing Director, The Times of India) is the best fit for being the home minister of India. Reason - A reporter of the Times of India can reach the naxalites leader Koteshwara Rao and meet him whenever TOI wants, but not our force headed by the Home Minister! Time to wake up friends!
Rajendra Pratap Gupta
Email: office@rajendragupta.in
It is a big loss for each family member who lost these innocent hard workers. My sincere heartfelt condolence and i do hope that our political leaders wake up to reality than making a show travelling in the high security areas. I also hope that the government has given the actual figure on the causalities . 73 CRPF personnel are not ordinary public without arms , if they get killed in such large numbers , it is a warning sign !!
I just need to comment on two points today
First comment that our Home Minister made to the CM of West Bengal that the ‘Buck ends at the CM’. For the entire nation, the buck stops at the PM and his council of Ministers !! We need an answer that why these 73 people were killed ? What kind of democracy is this >
Gun salute that the Home minister has got has shown what it means for the future? Imagine how the villagers must be living under the fear of guns – Naxalites? How many loots, rapes and murders these naxalites must be committing every day? No one has a clue as there are no officials or police stations functioning in naxals hit areas.
Second comment :i think Vineet Jain (Managing Director, The Times of India) is the best fit for being the home minister of India. Reason - A reporter of the Times of India can reach the naxalites leader Koteshwara Rao and meet him whenever TOI wants, but not our force headed by the Home Minister! Time to wake up friends!
Rajendra Pratap Gupta
Email: office@rajendragupta.in
Subscribe to:
Posts (Atom)
Posts
