Sunday, 26 July 2015

If Mohamed cannot go to Mountain



There is an old saying:

" If Mohamed cannot go to Mountain , let Mountain go to Mohamed "

In today's internet era , an equivalent would be :

" If people cannot go to where jobs are , let jobs go to where people live "


Remember , in 2015 , it is much easier / cheaper to import " digital service " based jobs into India , then to export people to foreign countries , where they will face a lot of resistance / animosity from local citizens

Examples :

Call Canters  /  BPO  /  RPO  / LPO  /  KPO ....any PO ( Process Outsourcing )


May be this is what was in the mind of Shri Ravi Shankar Prasad ( Minister for Communication and Information Technology ) , when he proposed setting up of 480 Call Centers ( @ 100 seats each )


As per Minister ,

>  These will be set up in smaller towns

>  These will be distributed State-Population wise

>  Union Government will give Rs 1 lakh subsidy per seat

>  Established Company will hand-hold a local entrepreneur for setting up
    the Call Center

>  Local entity can be an agency ,society ,individual ,partnership ,Company

>  State Governments will need to provide electricity / security

>  Center will soon issue call for expression of interest



But with 100 persons working in each shift , that would generate employment for only ,

480*100*3 = 1,44,000  youth 

And we have 12 million people joining our work force every year  !

Can we find ways to generate in small towns , millions of jobs for 3.5 million students graduating from our colleges , each year ?


It is possible , with following  " OUT OF THE BOX " thinking :


#   SPACE

India boasts of over 1.3 million schools . These school buildings are occupied for only 8/10 hours per day

Let Government frame rules which encourage these school-buildings to turn into Call Centers after 5 pm

For a 100 seat Center , Government is planning to give a subsidy of Rs 100 lakhs

If 25 % of this subsidy is passed onto a school , it will be happy to lease out its premises to a Call Center



#   BROAD-BAND

Under " Digital India " program , let Union Government provide a 100 Mb broadband connection to each such " School-cum- Call Center " , free of cost

That will also help the students to freely access digital education content throughout the day



#   BLACK  MONEY


Launch an Amnesty Scheme under which black money is permitted to be invested into setting up such Call Centers

No questions asked as to the source . No penalty to be paid . No income tax on earnings for 10 years

There can be no better way to put these money to a mainstream and productive use !

All that debate of " Rewarding " the tax-evaders while " Penalizing " the honest tax payers , is merely academic

India's problems are unlikely to be solved by academicians !

These can be solved , only by pragmatists  !

Luck happens when " preparedness " meets " opportunity "

My suggestions will prepare us to make 21st Century , an Indian Century !

-------------------------------------------------------------------------------------

hemen  parekh

27  July  2015

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Saturday, 25 July 2015

Building Castles in Air ?



Somewhere I read :

"  It is alright to build castles in air , as long as you know how to place a foundation underneath , later on  "

Here are some examples of castles that our Governments have built ( - in air ? ) , recently :


CASTLES

Government  /  No of houses to be built / Period / Ave No per day


#   Maharashtra  /  1.1 Million  /  2015 - 20  /  602 per day

#   Gujarat         /  5  Million   /  2013 - 18   /   2,740 per day

#   Centre         /   20  Million  /  2015 - 22  /  7,827  per day


I assume that it will take , at least  ONE YEAR  to organize :


#  Land

     Find / acquire , thousands of vacant plots all over State / Country


#   Funds

     Arrange loans / borrowings as follows :

     *  Maharashtra...............  Rs  1,00,000  Crores
     *  Gujarat....................... Rs  5,00,000  Crores
     *  All India...................... Rs  20,00,000  Crores


#  Contractors

    Invite tenders / negotiate / sign building contracts with hundreds of really
    big contractors , who can mobilize billions of rupees worth of construction
    machinery , crores of rupees of working capital and lakhs of manpower


So , if ONE year is lost before construction starts , then the " Average Number of houses to be built per day " will substantially go up from above mentioned figures


I leave it to you to work out how many houses ( - 500 sq ft flats ? ) will need to be built EVERY HOUR  !


FOUNDATION

Invite WinSun Decoration Design Engineering Company of China , to bring its 3D house printing technology to India , by setting up 100 factories for pre-fabricating 3D printed houses

Then leave it to thousands of small builders to " Assemble "  on site , a few thousands houses each, on a " Rate Contract " basis

Both , in " Pre-fabrication "  and in " On site Assembly " , mass production is the only foundation !


Why   WinSun  ?


#    On 29 March 2014 , WinSun constructed TEN , 3D printed houses ( 200 sq meter each ) in Shanghai , each costing $ 4,800 ( approx Rs 3 lakh ! )


#    On 17 July 2015 , using its 3D printing technology , WinSun built a 2 storey villa , in just 3 HOURS  !


#    WinSun holds 98 patents for construction materials


#    For 3D printing of houses , WinSun , mostly uses recycled construction materials


#    3D house-printing technology saves,

      *  30% -60 % of building materials

      *  70 % of production time

      *  80 %  of construction cost


#   Egypt Government has placed on WinSun , an order for supplying 20,000 pre-fabricated , 3D printed houses

#   In Egypt , WinSun will establish 12 Dream Factories ( to build pre-fabricated houses ) , within 2 years

     These factories will mostly use desert sand as its main construction material , which was found ideal for 3D printing of houses !


#   In next 3 years , WinSun will set up ( in JV with local parties ) , similar factories in 20 countries , including Saudi Arabia , UAE , Qatar , Mexico , S. Korea , Russia , Morocco , Tunisia , and USA


It is high time , we implement  " Look East " policy of Shri Narendra Modi-ji


I hope this suggestion will reach the people responsible for building those castles in air !


And , I hope Senior Executives of all the big Construction Companies of India ( L&T / Godrej / Tata / Shapoorji Pallonji / Shirke / Mahindra / Gammons / HCC etc ) will take the next flight to China !


---------------------------------------------------------------------------------
hemen  parekh

26  July  2015

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Friday, 24 July 2015

If You cannot lick them ; Join them





CAIT stands for Confederation of All India Traders


It has over 4.5 million retailers as its members


Till a few weeks back , CAIT was opposed to e-commerce in retail trade


But when it realized that the e-Commerce tide was unstoppable , it decided to join it !


Recently , CAIT General Secretary , Khandelwal said :


" E-commerce is a reality. We cannot be blind to it. Through ‘e-Lala’, our aim is to retain consumers who were traditionally with brick-and-mortar outlets but are now shifting away to online stores 

We are being forced by circumstances to get into this. We have to move with the times ”


By October 2015 , CAIT plans to launch its own e-Commerce portal " e-Lala" to take on the likes of Amazon / Flipkart / Snapdeal / Myntra etc


But unlike these existing e-Commerce portals , CAIT does not have a war-chest of billions of dollars , to


>   Set up Fulfillment Centers ( Warehouses ) all over the country

>   Advertise online / offline , in a big way



But when you have 4.5 million Fulfillment Centers ( of course small ) , spread all over the entire country , covering every street , then why do you need to build central warehouses ?


And when 10 million delivery boys / girls , deliver a billion packages every day to millions of households , with a plastic bag / card-box carton that reads " YOUR  e-LALA DELIVERY  " , then why do you need to waste money on advertising  ?


Now the bad news :


>   How will e-Lala control the quality of products being delivered by 4.5

     million retailers  ?

>   How will it ensure timely delivery  ?

>   How will it ensure that Member-Retailers do not overcharge ?

>   Existing e-Commerce portals buy in bulk , directly from the         manufacturers ; then offer heavy discounts over the printed MRP . 
     How will e-Lala counter this  ?


>  Today , barely 5 % of the retail buyers , pay thru Credit Cards . 95 % pay in cash

     If e-Lala insists on advance payment using Credit Card thru a online Payment Gateway , will this put-off buyers from using e-Lala portal  ?

          Again , today , almost all buyers pay " Cash Against Delivery " to their neighborhood retailer.

      They may not like to pay in advance of the delivery !

>   To- day, buyers do refuse to accept deliveries for various reasons , such as :

     #   Wrong product or labeling or package size or brand

     #   Expiry date exceeded or about to expire

     #   Even , change of mind !


     All because , there is no online advance payment , and nothing is lost by refusing !

>  To-day , buyers are even able to return the purchased goods to their neighborhood retailer , a couple of days later.

     And the retailer usually accepts the " Return " , in order to retain the

    client on a long-term basis - a client whom , he knows personally !

    This will not be easy to duplicate in E-Lala ecosystem !


This is not to say that CAIT's e-Lala experiment is doomed  !


If anything , e-Lala would do well to think through these issues , then provide answers thru a FAQ page on its e-com web site


And in order to crystallize this thinking , it may not be too late even now , for CAIT to host: TRUE / FALSE : YES/ NO : MULTIPLE CHOICE : online Questionnaires , on its existing web site


One questionnaire for the End-Consumers  and another one for its 4.5 million member retailers


In today's " Dog it Dog " world of e-commerce , one can neither dictate nor predict , a competitor's actions


That kind of wishful thinking just does not work


To stay two steps ahead of the Competitors , you need to think and decide :


"  What am I going to do this morning ? "


-------------------------------------------------------------------------------------

hemen  parekh

25  July  2015

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Thursday, 23 July 2015

WILL YOU HELP MSME EXPORT ?



A recently released report by Google + Deloitte is titled :

" Connected Small Business : Unlocking India's Digital Potential "

If India's 30 million MSME get connected digitally , the report sees following changes in MSME eco-system :

>   Growth
     -  revenues could grow up to 27 %

>   Job Creation
    -  employment could grow up to 84 %

>   Innovation
    -  New product offering could go up to 450 %

>   Morale
    -  employee satisfaction could go up by 600 %

>   Productivity
    -  employee collaboration could go up by 900 %

>   Exports
    -  access to International Markets could go up by 65 %


Talking of exports by MSME , I wish report  had mentioned the following annual average export values by :

>  Singapore MSME............ $ 6,700,000

>  Indian MSME.................  $       4,000


Can " Digital Connectivity " help Indian MSME to boost their exports ? If yes , then  by how much ?


That would depend upon our MSMEs to be able to compose a Marketing Message , such as follows and then blast it to the Foreign Importers :


>  I exist and this is where ( Email ID / Phone No ) you can reach me

>  These are my products / services ( attaching photo / video to message )

>  Here are my FOB prices for you to compare with your current suppliers


Then blast it to 8,000 + International Chambers of Commerce ( located in 5,332 cities around the World ), requesting the Chamber Presidents to forward their message to their 8,000,000 Member Firms !


They would be happy to oblige


www.B2BmessageBlaster.com ( B2B ) , will deliver such a message to those 8,000 + International Chambers , within 24 hours


And a MSME would need no more than ONE HOUR to blast it !


You can help MSME exports to go up by 100 % within one year , by just telling them about www.B2BmessageBlaster.com ( B2B ) !


B2B is their " Digital Connection " to International Buyers


Help them announce to the World : Here I come  !


-----------------------------------------------------------------------------------

hemen parekh

24 July 2015

B2BmessageBlaster

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Wednesday, 22 July 2015

Close in India ?



Writing in Hindustan Times ( 23 July 2015 ) , Timsy Jaipuria
provides following information about Scooters India Ltd (SIL) :

*   SIL employs 1000 persons
*   Incurred losses from 2002 to 2012
*   Given Rs 200 crore revival package in 2013
*   Expected to make loss in 2015
*   Government could not find a buyer for SIL in2011
*   If SIL fails to revive , Government will try to divest again

All of these reminded me of the following letter that I wrote to 7,500 employees of L&T Powai Works ( individual copies in English and Marathi ), some 30 years back :
------------------------------------------------------------------------

28 Feb 1986



Dear Friends :

FLOGGING A DYING HORSE

The correct  idiom is  "flogging a dead  horse" but  there is every possibility that  the horse ( Scooters India )  is dead by now.

This is because  the enclosed article ( Dying Horse ) about  SIL  is almost 18 months old.

And  as of  Dec.  31, 1985,  we have  such  93,282 dying  (or dead?)  horses in  our  country.  

These are  known as  " Sick Units " 

 What  I do not  know is whether  the above mentioned figure  includes  public-sector ( Govt.  owned ) sick-units  or not. 

Most of  these are sick - in fact VERY SICK.  If you wish to know how "sick", here are some  "temperature-readings" :

-----------------------------------------------------------------------

Government Unit ( PSU ).......... Loss in last 3 years ( Rs Crores )

------------------------------------------------------------------------

1.
Engineering Projects India Ltd. (EPI)...............90

2.
Hindustan Steelworks Const. Ltd. (HSCL)..........67

3.
Cycle Corporation of India Ltd. (CCIL)............   8.8

4.
Scooters India Ltd. (SIL)..............................  50

5.
Tanneries & Footwear Corp. of India Ltd.(TAFCO)..5

----------------------------------------------


I  understand   that  the  Govt.   is  planning   to  wind-up (close-down) the  first  3 units  and merge  the  remaining 2 units with some successful public or private sector company.

From the  "Dying Horse" article, we  find that neither  Bajaj nor HMT wants to even touch Scooters India !


And no  wonder

A similar  company in America  would perhaps employ  500 persons whereas Scooters India  has employed 3500 persons .

Reminds me of Bombay Municipality ! 

IBMC can sack (terminate/retrench)  half  of  its  employees,  productivity would go up FOUR TIMES ! 

If you  do not believe me, next time stop  and count  the number of  persons  pretending to  dig a hole for a faulty telephone cable !

And  talking surplus  labour  (?)  HSCL  has  12000 !  ( See following article )

How long before some of us muster enough courage to ask

"Am I my brother's keeper?"


H C Parekh
General Manager ( Powai )

------------------------------------------------------------------------


It seems , since I wrote the above-listed letter , things have not changed ! May be the " Industrial Sickness " has spread

May be we need to launch another initiative called , " Close in India "  !


And permitting 100 % FDI in sick units could be another " Out of Box " solution worth considering  ! Nothing to lose but something to gain


And , the beauty is , no political party will oppose such " Privatization " !


---  hemen  parekh

      23  July  2015


      B2BmessageBlaster

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