I attended an Indian Classical & Fusion concert at Carnegie Hall earlier this year. A review of a concert in the series can be found here:
http://www.nytimes.com/2009/05/01/arts/music/01huss.html
My reaction to the concert: I was blown away.
I will admit to being a little starved of good classical performances of any sort for while, let alone live Indian classical. For someone with an untrained ear, I was really counting on flashes of brilliance from the performers to (re)capture my interest. A bit like a how an impossible volley at a crazy angle reminds you how much fun watching a Wimbledon final can be. Based on the names performing, I knew there would be at least a few flashes of brilliance.
The concert was all brilliance AND class. It was like being touched by God. It displayed Masters on top of their game, completely immersed, and reveling, in their trade. It was humbling, as all great displays of skill are, but I felt more like a wide eyed kid in a candy store.
The power of music! The patterns within a musical piece! The patterns within the music of the individual performers! The story that the interplay of instruments in a piece tell you and the story that a sequence of pieces tell you! Wow!
Like a little piece of art you like a little more than others, it even found a little bit of me to connect with. All this coming from an ear as untrained as mine.
I blame it all on the performers.
My jaw still drops (scrapes the floor, really) every time I think about the evening.
Showing posts with label India. Show all posts
Showing posts with label India. Show all posts
Thursday, April 30, 2009
Sunday, April 05, 2009
Is Private Equity The American Industry that protects American Enterprise?
Here’s a potential title for future historians to consider for the Private Equity industry in this decade:
Flush with liquidity, which you could call a “Greenspan Blessing”, the Private Equity industry, a truly American Industry, invested over a trillion dollars into American enterprises that were/ are strategic players in their industries, protecting them from a future downturn that would make many vulnerable to hostile takeovers from international buyers.
My thoughts went down this path thanks to a question posed by David Rubenstein from the Carlyle Group.
While lobbyists in D.C. would be salivating at this spin- the idea behind the headline is to answer David's question on the Private Equity industry's place in the economy.
I have an answer that's more an essay, however, I am sharing below some questions that I structured to effectively, and comprehensively answer David's question. Hope this helps you in understanding the Private Equity industry better.
Back to our headline- does it really make sense?
1> Would America’s rebound from the downturn have to lag that of other economies (discounting the opportunities for Brazilian, Chinese and Indian companies) for this to even be a potential story?
2> Can we prove the industry’s deal making and execution can have this unintended, headline making, consequence?
3> Could this unintended consequence have happened as an explicit strategy to protect, store and manage American value? Would this strategy have worked if it were run by the American government?
4> Given America’s history and promise as the land of reinvention and rejuvenation, does this unintended consequence or strategy make sense? Specifically, why save and protect when failure makes you better and stronger?
5> Or couldit truly be an example of reinvention and rejuvenation?
6> Can the Private Equity industry even be called a truly American industry? Could we truly say "Only in America!"?
How would this trend of over a trillion dollars in Private Equity investment have worked out during the 1981-82 recessions? Are the market structures today substantially different than they were in 1981 for the comparison to be odious?
While I have an opinion and can weave a story…
What do you think?
Flush with liquidity, which you could call a “Greenspan Blessing”, the Private Equity industry, a truly American Industry, invested over a trillion dollars into American enterprises that were/ are strategic players in their industries, protecting them from a future downturn that would make many vulnerable to hostile takeovers from international buyers.
My thoughts went down this path thanks to a question posed by David Rubenstein from the Carlyle Group.
While lobbyists in D.C. would be salivating at this spin- the idea behind the headline is to answer David's question on the Private Equity industry's place in the economy.
I have an answer that's more an essay, however, I am sharing below some questions that I structured to effectively, and comprehensively answer David's question. Hope this helps you in understanding the Private Equity industry better.
Back to our headline- does it really make sense?
1> Would America’s rebound from the downturn have to lag that of other economies (discounting the opportunities for Brazilian, Chinese and Indian companies) for this to even be a potential story?
2> Can we prove the industry’s deal making and execution can have this unintended, headline making, consequence?
3> Could this unintended consequence have happened as an explicit strategy to protect, store and manage American value? Would this strategy have worked if it were run by the American government?
4> Given America’s history and promise as the land of reinvention and rejuvenation, does this unintended consequence or strategy make sense? Specifically, why save and protect when failure makes you better and stronger?
5> Or couldit truly be an example of reinvention and rejuvenation?
6> Can the Private Equity industry even be called a truly American industry? Could we truly say "Only in America!"?
How would this trend of over a trillion dollars in Private Equity investment have worked out during the 1981-82 recessions? Are the market structures today substantially different than they were in 1981 for the comparison to be odious?
While I have an opinion and can weave a story…
What do you think?
Tuesday, April 29, 2008
Conference Panel: Healthcare in India
Before stepping into the panel, I had a pretty linear approach to the Indian healthcare business:
1> Regulatory frameworks -> IP, constraints.
2> Industry-> market structures, services, and maturity of symbiotic players.
3> Consumers and Markets-> segmentation.
4> Companies-> Revenues-> Products and Services; Costs -> Manufacturing, Distribution, Licensing.
5> Distribution models.
Listening to the panelists from Pfizer, a healthcare company (Apollo Hospitals), a generic drugs company (Dr. Reddys) and Carlyle, I began to focus on 2 takeaways:
1> Healthcare Framework and Policy Innovation: The parallel here is the effort in the Indian Financial Services sector to develop frameworks given the results in the US financials "market". Another parallel is the U.S. music and film industry.
2> Business Model Innovation: Focused on access to healthcare services and drugs. Access equates not just to distribution, but also to price points. The parallel here is the U.S. (global?) music industry.
Healthcare Policy Framework Innovation
1> The "Access" Case for Policy Frameworks:
Amit Patel from Dr. Reddy's made an interesting point that bringing down price points in drugs, patented or otherwise, may bring about increases in revenues, due to increases in volumes of users. He carefully avoided talking about elasticity, but he was effectively driving at segmentation and managing the segments.
How is this thought process relevant in the Indian Healthcare context? Unlike in the U.S.- given the context of healthcare insurance in the US- the price of a drug effectively forms an access barrier to those who need it. Healthcare in India invariably involves a large out of pocket expense component.
These access issues roll up into a need for policy frameworks that develop multiple markets and multiple market entities that collaborate to serve unmet demand.
2> The IP Case for Healthcare Frameworks:
Again, the panelist from Dr.Reddy's pointed out that a patent regime is an outcome of a particular economic environment and necessity. The U.S. music industry is coming to grips with markets evolution driven by technology. Do the U.S. music and film industries need to rethink how they look at IP and its enforcement? Would they have to take another look in the future?
3> Policy Roadmaps:
How about applying an idea, similar to product roadmaps for agile development, that I suggested here:
http://randomjunkyramblings.blogspot.com/2008/03/conference-panel-infrastructure-in.html
Business Model Innovation
On distribution, the value chain, and operations, I find parallels between the music industry and the healthcare industry. Supply needs to innovate to stoke Demand.
More about this as I add to this blog.
1> Regulatory frameworks -> IP, constraints.
2> Industry-> market structures, services, and maturity of symbiotic players.
3> Consumers and Markets-> segmentation.
4> Companies-> Revenues-> Products and Services; Costs -> Manufacturing, Distribution, Licensing.
5> Distribution models.
Listening to the panelists from Pfizer, a healthcare company (Apollo Hospitals), a generic drugs company (Dr. Reddys) and Carlyle, I began to focus on 2 takeaways:
1> Healthcare Framework and Policy Innovation: The parallel here is the effort in the Indian Financial Services sector to develop frameworks given the results in the US financials "market". Another parallel is the U.S. music and film industry.
2> Business Model Innovation: Focused on access to healthcare services and drugs. Access equates not just to distribution, but also to price points. The parallel here is the U.S. (global?) music industry.
Healthcare Policy Framework Innovation
1> The "Access" Case for Policy Frameworks:
Amit Patel from Dr. Reddy's made an interesting point that bringing down price points in drugs, patented or otherwise, may bring about increases in revenues, due to increases in volumes of users. He carefully avoided talking about elasticity, but he was effectively driving at segmentation and managing the segments.
How is this thought process relevant in the Indian Healthcare context? Unlike in the U.S.- given the context of healthcare insurance in the US- the price of a drug effectively forms an access barrier to those who need it. Healthcare in India invariably involves a large out of pocket expense component.
These access issues roll up into a need for policy frameworks that develop multiple markets and multiple market entities that collaborate to serve unmet demand.
2> The IP Case for Healthcare Frameworks:
Again, the panelist from Dr.Reddy's pointed out that a patent regime is an outcome of a particular economic environment and necessity. The U.S. music industry is coming to grips with markets evolution driven by technology. Do the U.S. music and film industries need to rethink how they look at IP and its enforcement? Would they have to take another look in the future?
3> Policy Roadmaps:
How about applying an idea, similar to product roadmaps for agile development, that I suggested here:
http://randomjunkyramblings.blogspot.com/2008/03/conference-panel-infrastructure-in.html
Business Model Innovation
On distribution, the value chain, and operations, I find parallels between the music industry and the healthcare industry. Supply needs to innovate to stoke Demand.
More about this as I add to this blog.
Monday, March 24, 2008
Conference Panel: Investing in India- The Maturation Process, whats next?
The amazing panel, drawing from PE, management consulting and IB firms emphasized that they are taking a long term view of the Indian market and are doing well thought out due diligence on deals to make the best decisions for the funds. Deals have been quite competitive and negotiated.
This approach raises a line of thought regarding the non-core (?) activities of a PE fund. Why am I calling them non-core? Well, most folks would say that the only core activity for GPs is to find good investments and fund them, the rest can go for a toss. Performance is the cornerstone of success. The "official" lore is that the high performing GPs do not really have to bother much about non-core activities.
This query on capital deployment and how much GPs think about it is still worth considering as it seems to be closely tied with fund raising. The response to the query by the GPs can be that they do not really care about capital deployment as they tap into their funds on an deal by deal basis. However, I am inclined to think the GPs have a sense of what the LPs are thinking of when LPs make investments in the PE funds. Sounds like business development, doesn't it?
Anyhow, non-core or otherwise, lets dig into some aspects of the PE business. How do the GPs:
1> Handle uneven deal flow?
2> Manage different relative risk levels across deals?
3> Manage different rates of returns on their deals?
4> Set LP expectations on deal flow and deal sizes, across business environments, while still keeping LPs on board?
What do you think?
From the LP point of view, How do LPs:
1> Manage cash (e.g. lack of predictability in drawdowns)?
2> Allocate capital, from the asset allocation policy and portfolio management point of view, between drawdowns, and for drawdowns?
What do you think?
This approach raises a line of thought regarding the non-core (?) activities of a PE fund. Why am I calling them non-core? Well, most folks would say that the only core activity for GPs is to find good investments and fund them, the rest can go for a toss. Performance is the cornerstone of success. The "official" lore is that the high performing GPs do not really have to bother much about non-core activities.
This query on capital deployment and how much GPs think about it is still worth considering as it seems to be closely tied with fund raising. The response to the query by the GPs can be that they do not really care about capital deployment as they tap into their funds on an deal by deal basis. However, I am inclined to think the GPs have a sense of what the LPs are thinking of when LPs make investments in the PE funds. Sounds like business development, doesn't it?
Anyhow, non-core or otherwise, lets dig into some aspects of the PE business. How do the GPs:
1> Handle uneven deal flow?
2> Manage different relative risk levels across deals?
3> Manage different rates of returns on their deals?
4> Set LP expectations on deal flow and deal sizes, across business environments, while still keeping LPs on board?
What do you think?
From the LP point of view, How do LPs:
1> Manage cash (e.g. lack of predictability in drawdowns)?
2> Allocate capital, from the asset allocation policy and portfolio management point of view, between drawdowns, and for drawdowns?
What do you think?
The Usual Disclaimer: This is purely a knowledge sharing resource and I have been careful to protect panelist interests. Ethically, context is everything, and I will gladly retract anything that affects the parties mentioned. Call this my mini OpenCourseWare, if you will, where Open signifies life experiences.
Conference Panel: Selling to the Indian Consumer
Amazing insights from consumer electronics and retail consulting. A consumer electronics company was focusing on the top 30 cities, despite indicates that the rural market had as much disposable income as the urban market. This raised a couple of questions from me during the panel.
What kind of innovations in distribution do we see in India in the next 5 years?
What do you think?
Can the Consumer Electronics companies contribute to more active usage of the cellphone screen? This query had an interesting response and an unexpected fact component- India uses only about a third of the spectrum that the US currently uses.
Does the Indian cellphone consumer need an industry association comprising of consumer electronics companies, software companies, infrastructure companies and investors to encourage more active usage of the cellphone screen?
What do you think?
What kind of innovations in distribution do we see in India in the next 5 years?
What do you think?
Can the Consumer Electronics companies contribute to more active usage of the cellphone screen? This query had an interesting response and an unexpected fact component- India uses only about a third of the spectrum that the US currently uses.
Does the Indian cellphone consumer need an industry association comprising of consumer electronics companies, software companies, infrastructure companies and investors to encourage more active usage of the cellphone screen?
What do you think?
The Usual Disclaimer: This is purely a knowledge sharing resource. Ethically, context is everything, and I will gladly retract anything that affects the parties mentioned. Call this my mini OpenCourseWare, if you will, where Open signifies life experiences.
Keynote address: Vinod Dham, NEA- Indo-US Ventures
The amazing keynote by Vinod Dham has parallels with a keynote (different conference) by Alan Patricof, Managing Director, Greycroft, with respect to his experience in Venture Capital in Africa. Vinod was bullish about opportunities in India.
His talk raise a query. What is the difference in managing a $200 MM fund in Silicon Valley vs. a $200 MM fund in India?
On the dealmaking end:
1> Do you do more deals?
2> Do you invest in companies that are more late stage?
3> Do you invest in companies that can bring in and ramp up revenue pretty quickly?
From personal experience, Indian startups are able to keep costs pretty low.
On the investing end, what kind of support do you need to provide to startup leadership?
The Indian technology clusters- Mumbai, Delhi, Bangalore, Hyderabad, Chennai- are not as mature as the Silicon Valley cluster.
What do you think?
His talk raise a query. What is the difference in managing a $200 MM fund in Silicon Valley vs. a $200 MM fund in India?
On the dealmaking end:
1> Do you do more deals?
2> Do you invest in companies that are more late stage?
3> Do you invest in companies that can bring in and ramp up revenue pretty quickly?
From personal experience, Indian startups are able to keep costs pretty low.
On the investing end, what kind of support do you need to provide to startup leadership?
The Indian technology clusters- Mumbai, Delhi, Bangalore, Hyderabad, Chennai- are not as mature as the Silicon Valley cluster.
What do you think?
The Usual Disclaimer: This is purely a knowledge sharing resource. Ethically, context is everything, and I will gladly retract anything that affects the parties mentioned. Call this my mini OpenCourseWare, if you will, where Open signifies life experiences.
Conference Panel and Keynote: Managing Local vs Global
Ravi Venkatesan, Chairman, Microsoft India, talked about how the Indian market and how its challenges were different from those in the US.
How does the local leadership deal with a global company's priorities while "tending" to the local market? Does the company's DNA allow for a global/ local market trade-off based on the type of market (socio-politico-economic environment)?
What do you think?
How does the local leadership deal with a global company's priorities while "tending" to the local market? Does the company's DNA allow for a global/ local market trade-off based on the type of market (socio-politico-economic environment)?
What do you think?
The Usual Disclaimer: This is purely a knowledge sharing resource. Ethically, context is everything, and I will gladly retract anything that affects the parties mentioned. Call this my mini OpenCourseWare, if you will, where Open signifies life experiences.
Conference Panel: Infrastructure in India
Commenting on the delays in getting infrastructure projects off the ground toward creating a project pipeline, G.V.Sanjay Reddy, Vice Chairman, GVK Industries Ltd., pointed out that it is more important to get decisions made in getting infrastructure projects off the ground as opposed to developing detailed policy frameworks. That's the 30,000 foot eyeview of the problems in execution.
This, coming from an India company, seems to make sense. The India company has expertise in managing vested interests throughout the project lifecycle and a greater appetite for management risks.
Could there also be a realization that once Indian firms develop core capabilities and differentiate, a network of firms/ contractors/ sub-contractors model would become feasible?
Another thought that I would have like to pose to the policymakers is the consideration they give to developing policy roadmaps.
What do you think?
This, coming from an India company, seems to make sense. The India company has expertise in managing vested interests throughout the project lifecycle and a greater appetite for management risks.
Could there also be a realization that once Indian firms develop core capabilities and differentiate, a network of firms/ contractors/ sub-contractors model would become feasible?
Another thought that I would have like to pose to the policymakers is the consideration they give to developing policy roadmaps.
What do you think?
The Usual Disclaimer: This is purely a knowledge sharing resource. Ethically, context is everything, and I will gladly retract anything that affects the parties mentioned. Call this my mini OpenCourseWare, if you will, where Open signifies life experiences.
Conference Panel: Media & Entertainment in India
TATA Sky setup a nationwide support structure in India, flat. It is growing at a pace that is set to drive the company to leadership in satellite TV subscriber base.
How does a company manage operational decisionmaking, organization structure, core competencies, vendor relationships, training, and breakeven in such a context?
What do you think?
Given that India has over 250 MM cellphone screens, versus upto 50 MM in PC screens, how do service providers support the growth of applications and products for the cellphone screens? Does a Microsoft-Facebook dealmaking approach work in an Indian context?
What do you think?
1> India seems to have a lack of startup oriented risk-taking despite a large pool of enterpreneurs.
2> The Indian market does not have mature "competitive" technology clusters and mature financial players that support various stages of a company's lifecycle in a cluster.
3> Leaders from Microsoft India, pointed to a lack of expertise in business models.
This lack of business model innovation may be impeding a ramping up of local application/ product based activity. Would a Microsoft-Facebook type deal-making model- as a means for service providers to support cellphone market development- work in India?
What do you think?
How does a company manage operational decisionmaking, organization structure, core competencies, vendor relationships, training, and breakeven in such a context?
What do you think?
Given that India has over 250 MM cellphone screens, versus upto 50 MM in PC screens, how do service providers support the growth of applications and products for the cellphone screens? Does a Microsoft-Facebook dealmaking approach work in an Indian context?
What do you think?
1> India seems to have a lack of startup oriented risk-taking despite a large pool of enterpreneurs.
2> The Indian market does not have mature "competitive" technology clusters and mature financial players that support various stages of a company's lifecycle in a cluster.
3> Leaders from Microsoft India, pointed to a lack of expertise in business models.
This lack of business model innovation may be impeding a ramping up of local application/ product based activity. Would a Microsoft-Facebook type deal-making model- as a means for service providers to support cellphone market development- work in India?
What do you think?
The Usual Disclaimer: This is purely a knowledge sharing resource. Ethically, context is everything, and I will gladly retract anything that affects the parties mentioned. Call this my mini OpenCourseWare, if you will, where Open signifies life experiences.
Sunday, January 13, 2008
Product tracking: TATA Nano Part Hahaha Duh
I recommend you read part I of this post here:
http://randomjunkyramblings.blogspot.com/2008/01/product-tracking-tata-nano.html
Some publications that talked about the TATA Nano since I last posted on it:
1> http://www.time.com/time/magazine/article/0,9171,1702264,00.html
2> http://wheels.blogs.nytimes.com/2008/01/10/tata-nano-the-worlds-cheapest-car/?hp
3> http://news.independent.co.uk/business/analysis_and_features/article3331789.ece
I usually avoid talking about reaction to news, and I wanted to cover the car rental market and the used car market in India. However, the reaction to the TATA Nano provides irresistible grist for the mill. So here goes.
My friend V. (who I respect a lot for staying true to our computer science roots, unlike me who sold out to the management brigade), made some interesting points about the TATA Nano:
1. A cheap car does not mean you have the roads and infrastructure to drive it on.
2. Fuel is super expensive. According to his calculations, driving 20 miles/ 30 KM/ day would cost about a third of the car's price in a year.
3. The launch of the car will lead to increased pollution, traffic congestion, and fuel prices.
These are all great points, and I would start looking at them in the reverse order.
On point 3: Why is TATA Nano being singled out and slapped with these objections? Some more drivers (TATA would certainly hope that a lot of drivers) would join the global brotherhood of high-falutin' gas guzzlers to enjoy the priviledge of driving, and some would say, enjoy the right of getting from Point A to Point B. Only, the procession of Newbies in their shiny new Nanos would be doing it at 50 MPG.
Perhaps the though of achieving 50 MPG so easily is giving the hybrid hippies (before the greens come after me, I know someone who claimed she was a hippie for owning a Prius)- who've probably pawned off their Jordan XX3s to go green- sleepless nights.
However, I do accept the reality that driving conditions would change, for a start, in India. That family of 4 that would make you suddenly brake by appearing in front of you out of nowhere? They would now suddenly appear in front of you out of nowhere in a TATA Nano. Only, given the Nano's limitations, it would not be so sudden anymore. So congratulations, you, driving that more expensive car, will now find more reason to exercise the horn.
As an added benefit, you will feel happier that you don't have to worry about that family of 4, riding a scooter with the baby hanging loose by the sari's "dupatta" at the back ,while you drive.
Now, coming to point 2: fuel being super expensive. Would you trade in your more expensive car for the Nano? I hope you make the smart move and dump the Fords, Suzukis and the Hondas of the world, given that high gas prices are only going to get higher. Oil is $100/ barrel and some are betting it will reach $200/ barrel by end of 2008. A couple of lakhs in rupees/ a few grand in dollars saved in upfront car cost will fuel your current lifestyle for a few years.
Let's expand that to TCO (Total Cost of Ownership). Someone joked that in a couple of years, the engine might have to be replaced by bullocks. Well, more power to bullocks then! In a few years, even used cars would be too difficult to fix in the owners' backyards. That should be fodder for thought right there.
As for point 1, infrastructure: Look at how crazy traffic is in Bombay. The price of the car is really not going to be the key driver in terms of reaching an equilibrium on the Quantity of cars on Bombay streets (until we hit a tipping point, of course, and given Bombayites bottomless ability to endure, the tipping point will take some time coming, I assure you). The city that contributes over a quarter of the country's taxes has horrid infrastructure. Pointing to the quantity of cars on Bombay is really a misdirection for a lack of planning and infrastructure.
Before I wrap up, I would like to quote an incredibly funny take on this by my friend Sameer Gaunekar. This has Bombay and Bollywood references, and if you have seen "Thank you for smoking", the parallel is the senator trying to remove references to smoking in old movies:
Remember the motorbikes with the side carriers; with the advent of Nanos they surely will disappear, so if Ram Gopal Varma or even if the Sippy’s ever had to direct a re-make of Sholay then the “Yeh Dosti” song would be shot in a Nano instead of a motorbike with a side carrier….
End quote.
Borrowing Bono's phrase, Sameer's brilliant. :-)
Wrapping up: The reaction to this car from some quarters seems to be similar to the reaction to Negroponte's One Laptop per Child. The issues raised are those we have been grappling with since the first oil crisis in the 1970s, an will continue to work to resolve.
If this car makes people put money where their mouth is (instead of their foot), and do something about transport- decent public transport/ improved roads/ alternative energy sources/ whatever - then its more than served its purpose of being the "People's car". :-) What this "Freedom of Movement" does to India and its economy down the line is something I would like to see.
What do you think, my friend?
http://randomjunkyramblings.blogspot.com/2008/01/product-tracking-tata-nano.html
Some publications that talked about the TATA Nano since I last posted on it:
1> http://www.time.com/time/magazine/article/0,9171,1702264,00.html
2> http://wheels.blogs.nytimes.com/2008/01/10/tata-nano-the-worlds-cheapest-car/?hp
3> http://news.independent.co.uk/business/analysis_and_features/article3331789.ece
I usually avoid talking about reaction to news, and I wanted to cover the car rental market and the used car market in India. However, the reaction to the TATA Nano provides irresistible grist for the mill. So here goes.
My friend V. (who I respect a lot for staying true to our computer science roots, unlike me who sold out to the management brigade), made some interesting points about the TATA Nano:
1. A cheap car does not mean you have the roads and infrastructure to drive it on.
2. Fuel is super expensive. According to his calculations, driving 20 miles/ 30 KM/ day would cost about a third of the car's price in a year.
3. The launch of the car will lead to increased pollution, traffic congestion, and fuel prices.
These are all great points, and I would start looking at them in the reverse order.
On point 3: Why is TATA Nano being singled out and slapped with these objections? Some more drivers (TATA would certainly hope that a lot of drivers) would join the global brotherhood of high-falutin' gas guzzlers to enjoy the priviledge of driving, and some would say, enjoy the right of getting from Point A to Point B. Only, the procession of Newbies in their shiny new Nanos would be doing it at 50 MPG.
Perhaps the though of achieving 50 MPG so easily is giving the hybrid hippies (before the greens come after me, I know someone who claimed she was a hippie for owning a Prius)- who've probably pawned off their Jordan XX3s to go green- sleepless nights.
However, I do accept the reality that driving conditions would change, for a start, in India. That family of 4 that would make you suddenly brake by appearing in front of you out of nowhere? They would now suddenly appear in front of you out of nowhere in a TATA Nano. Only, given the Nano's limitations, it would not be so sudden anymore. So congratulations, you, driving that more expensive car, will now find more reason to exercise the horn.
As an added benefit, you will feel happier that you don't have to worry about that family of 4, riding a scooter with the baby hanging loose by the sari's "dupatta" at the back ,while you drive.
Now, coming to point 2: fuel being super expensive. Would you trade in your more expensive car for the Nano? I hope you make the smart move and dump the Fords, Suzukis and the Hondas of the world, given that high gas prices are only going to get higher. Oil is $100/ barrel and some are betting it will reach $200/ barrel by end of 2008. A couple of lakhs in rupees/ a few grand in dollars saved in upfront car cost will fuel your current lifestyle for a few years.
Let's expand that to TCO (Total Cost of Ownership). Someone joked that in a couple of years, the engine might have to be replaced by bullocks. Well, more power to bullocks then! In a few years, even used cars would be too difficult to fix in the owners' backyards. That should be fodder for thought right there.
As for point 1, infrastructure: Look at how crazy traffic is in Bombay. The price of the car is really not going to be the key driver in terms of reaching an equilibrium on the Quantity of cars on Bombay streets (until we hit a tipping point, of course, and given Bombayites bottomless ability to endure, the tipping point will take some time coming, I assure you). The city that contributes over a quarter of the country's taxes has horrid infrastructure. Pointing to the quantity of cars on Bombay is really a misdirection for a lack of planning and infrastructure.
Before I wrap up, I would like to quote an incredibly funny take on this by my friend Sameer Gaunekar. This has Bombay and Bollywood references, and if you have seen "Thank you for smoking", the parallel is the senator trying to remove references to smoking in old movies:
Remember the motorbikes with the side carriers; with the advent of Nanos they surely will disappear, so if Ram Gopal Varma or even if the Sippy’s ever had to direct a re-make of Sholay then the “Yeh Dosti” song would be shot in a Nano instead of a motorbike with a side carrier….
End quote.
Borrowing Bono's phrase, Sameer's brilliant. :-)
Wrapping up: The reaction to this car from some quarters seems to be similar to the reaction to Negroponte's One Laptop per Child. The issues raised are those we have been grappling with since the first oil crisis in the 1970s, an will continue to work to resolve.
If this car makes people put money where their mouth is (instead of their foot), and do something about transport- decent public transport/ improved roads/ alternative energy sources/ whatever - then its more than served its purpose of being the "People's car". :-) What this "Freedom of Movement" does to India and its economy down the line is something I would like to see.
What do you think, my friend?
Thursday, January 10, 2008
Product tracking: TATA Nano.
Here we go!:
http://timesofindia.indiatimes.com/articleshowpics/2689238.cms
And more, if you can't get enough:
http://timesofindia.indiatimes.com/articleshow/2687930.cms
1. Would the family of 4 riding the motorcycle/ scooter switch to the TATA Nano?
2. Would those able to afford cars 3x the TATA Nano pricepoint switch to the car?
3. Would this car develop the market further than where it stands right now?
Over a decade ago, I found myself (by chance) sitting across an Ex MD of IFCI in the Rajdhani train. During our conversation, he mentioned that Pepsi had signed the document to enter India in his office. The talk then flowed to the struggle MNCs faced in India, and how their market estimation as well as consumer behavior analysis had been off target.
One reason for MNCs struggling in India, he pointed out, was that the Indian consumer was conservative and did not really believe in disposable products. i.e. consumers would evaluate alternatives and go for the cheapest option after factoring in TCO (Total Cost of Ownership). Consumers would pick products that lasted long, and could be fixed quickly by the local handyman, over jazzy products without as much ROI (return on investment).
A lot has changed since then- and that includes Pepsi becoming "the choice of the new generation". India's youth could be called the "liberalization youth"/ "satellite channel youth". As we learn more about the product, about the people buying (as well as not buying) this product, we are likely to find a huge indicator of India today; also specifically, an indicator of TATA Motors as a business, and of India's consumers.
Of course, I have not even touched upon the next step- going global.
What do you think?
P.S. The Part Hahaha Duh (a.k.a. Part II of this post on reaction to the car) is here:
http://randomjunkyramblings.blogspot.com/2008/01/product-tracking-tata-nano-part-hahaha.html
http://timesofindia.indiatimes.com/articleshowpics/2689238.cms
And more, if you can't get enough:
http://timesofindia.indiatimes.com/articleshow/2687930.cms
1. Would the family of 4 riding the motorcycle/ scooter switch to the TATA Nano?
2. Would those able to afford cars 3x the TATA Nano pricepoint switch to the car?
3. Would this car develop the market further than where it stands right now?
Over a decade ago, I found myself (by chance) sitting across an Ex MD of IFCI in the Rajdhani train. During our conversation, he mentioned that Pepsi had signed the document to enter India in his office. The talk then flowed to the struggle MNCs faced in India, and how their market estimation as well as consumer behavior analysis had been off target.
One reason for MNCs struggling in India, he pointed out, was that the Indian consumer was conservative and did not really believe in disposable products. i.e. consumers would evaluate alternatives and go for the cheapest option after factoring in TCO (Total Cost of Ownership). Consumers would pick products that lasted long, and could be fixed quickly by the local handyman, over jazzy products without as much ROI (return on investment).
A lot has changed since then- and that includes Pepsi becoming "the choice of the new generation". India's youth could be called the "liberalization youth"/ "satellite channel youth". As we learn more about the product, about the people buying (as well as not buying) this product, we are likely to find a huge indicator of India today; also specifically, an indicator of TATA Motors as a business, and of India's consumers.
Of course, I have not even touched upon the next step- going global.
What do you think?
P.S. The Part Hahaha Duh (a.k.a. Part II of this post on reaction to the car) is here:
http://randomjunkyramblings.blogspot.com/2008/01/product-tracking-tata-nano-part-hahaha.html
Saturday, July 22, 2006
This is my Bombay.
Note: This blog post was written after the train blasts in Mumbai in 2006 that senselessly killed hard working Mumbai residents heading home. Even though I have seen the city brave tougher attacks before, and since, it was tough writing this post, starting from finding cogent ways to string together an expression of all the thoughts crossing my mind. My reference to Bombay here is nostalgia for a rose-tinted-glasses view, growing up, of the city we now call Mumbai.
Bombay has suffered many attacks on its spirit and its body. However, for the first time, the flood of comments in the media about the Bombay Spirit, about carrying on bravely in the face of adversity, have evoked a mixed response. Having grown up in the city, and havin borne witness to some of its trails and tribulations, I can understand the mixed feelings about the Bombay Spirit.
After the ghastly train attacks, frustration with the inability to stem the attacks has not only taken on an extra edge, but has also led to a few negative reactions at the mention of the Bombay Spirit. To some, words about the Bombay Spirit have become just pithy comments that gloss over the horrific loss of life.
In line with Bombay's natural response to terror attacks, I have noted some, like the deputy editor of the Times of India (attributed to Sudip Ghosh, attached forward below), who continue to take pride in the city's response. They believe Bombay's stoicism allows it to function through India's chaotic reality.
I share some common ground with the ToI writer about the response to this tragedy. For starters, these terrorists need to get a hard message. However this message will be delivered through gritted teeth, and without pride. Let me segway into this city's past to illustrate my concerns about the incessant talk of the Bombay Spirit.
The communal riots were Bombay's darkest hour. I remember standing at the balcony and watching a convoy of army trucks pass by. Each truck was open, with soldiers, looking, and pointing their guns, at all angles. Each truck had a red flag, which meant shoot at sight.
As a teenager who saw the city he called home go crazy, I felt glad that the army had stepped in to restore order. As I gazed at the soldiers, I felt like celebrating their presence by waving the flag for them. The soldiers felt like the magic bullet the city needed to return to its old, bold ways.
One wrong move and I could have been shot.
Even though I had seen people run for their life and cars burn, realizing this simple truth is when I realized how wrong things had gone.
I felt cheer, relief, and a bit of pride, when I should have been saddened that the army had to step in. I am glad sanity returned to the city during those troubled times. Now, as I look back at those troubled times, I have also come to a sad realization that the wheels could come off this fast paced city again.
I understand that the Bombay Spirit is supposed to be the antidote to this fear. For Bombayites, it is real, as real as life itself, and is called upon often.
I love the brave city's spirit. I love the way it bounces back from the monsoon floods every year. As a college kid in a trainee role, I have walked four hours in pouring rain to get back home and gone back to work the next day, just like millions of fellow Bombayites.
I am sure Bombayites consider options, like skipping work the next day, or venting their frustration in a million ways. Nevertheless, they make a choice to return to business-as-usual. While they are at this business of The Usual, Bombayites will even find it within them to lend a hand to a random stranger who is struggling a little more than them to cope.
Bombayites take out-of-ordinary events as a matter-of-fact, look at what they can do to change things around them and then, dispensing with the song-and-dance, stoically return to business-as-usual. Better than usual. I like to call this the Bombay Spirit. It embodies enterprise, tenacity and an unfettered pursuit of dreams.
Whenever I distance myself from the cacophony of being a Bombayite, this combination of Bombay personality traits that create the Legend of The Bombay Spirit never ceases to amaze me. This amazing Spirit, is based on the ability to endure and keep on going. This Spirit is based on the ability to adapt to a hostile environment that rachets up the hostility every time you blink and still deliver.
Perhaps, that's where the problem lies too. I now begin to not just question whether the Bombay Spirit can take these punches, but also question the value of the Bombay Spirit itself.
Is Bombay a city too busy making money to worry about itself? Does Bombay truly believe it is so good at what it does that it will run forever without pausing to catch its breath? Does Bombay believe in its own immortality and invincibility so much that fixing its problems looks like a losing proposition?
Another, more disturbing, question creeps into my mind. One my heart is not willing to accept and one my mind rebels against. Does Bombay believe, like a lunatic caricature of the stereotypical, fatalistic Indian, that it is inexorably headed toward the end, and is greedily gasping its last breaths, snatching at the last sparks of warmth from the dying embers of brilliant flame in a murderous freeze, and wringing the last chunk of change out of a dying "sone ki chiriya" (golden goose)? Surely, this is not Bombay Meri Jaan.
I would dearly love to keep the Bombay spirit going in Bombay. However, I want someone, or a group of people, to stand up for Bombay, be accountable to the people of Bombay, and work towards solving the problems that plague Bombay.
I hope that group is a group of Bombayites who, in true Bombay fashion, see the opportunity there and rise to the occasion to put in the blood, sweat and tears.
This would be the true manifestation of the Bombay Spirit.
It is sad when a terrorist group goes after soft targets. I will be just as sad when Bombay loses its Spirit. This is just me, but I think that's when the Bombayites would have given up. I hope I don't see the day anytime soon.
Long live Bombay!
---------- Forwarded message ----------
From:
Dear all,
Today's Mid-Day edit begins by saying that you don't need to be arocket scientist to understand that the chain of events starting fromthe Bhiwandi riots to the desecration of Meenatai's statue and whathappened as an aftermath, to the serial blasts on the trainsyesterday, means somebody somewhere wants Mumbaikar's to spill out onthe streets and grab each other by the throats.
Incidentally, these same somebody-- the faceless outcasts that theystill are-- have at least succeeded in one part of their plan.Mumbaikars have actually spilled out on to the streets.
The catch here is that they have failed to succeed in the second andmost important part of their plan: that of getting Mumbaikars to grabeach other by the throats. Mumbaikars spilled onto the streets-- in acollective show of the middle finger to those who proposed otherwise.
I know very well that you are already aware of how Mumbai stormed ontothe streets to help the injured, the stranded and soothe the injuriesthat were still gaping along its life line.
There were capsules and capsules of streaming video that showed themoffering water and refreshments to people stranded on SV Road and theEastern and Western Express Highways.
There were captures of students of Sydenham and SNDT college, whocamped at Churchgate station with the sole purpose of offering a bedto those stranded at the starting node of the life line.
And there was also that memorable grab of people standing patiently infront of KEM Hospital-- all in a serpentine queue, to donate blood. Aresult of which has been a no-shortage syndrome, when it comes toblood at all the hospitals where the injured are being treated or arerecuperating.
But this is not about all that. And yet, it is about all that andmore. It is about the sights I saw and the people I met with, whiletravelling along the Western Express Highway to Kandivali yesterday,between 7 in the evening and one in the morning.
It is about that little kid and his grandfather near Dadar, who,perhaps in the absence of anybody else in the household, took to thestreets with bottles of water and packets of biscuits to contribute inwhatever way possible in managing the crisis. "Uncle, you must bethirsty," the kid told me while offering the bottle. A parched medrank gratefully. And I saw in those eyes no fear. So what did thoseterrorists think while planting the bomb? That was at least the silentway of making one statement-- "Terror, my foot.!"
It is also about those housewives in front of a housing society nearSanta Cruz, who were standing with pots of piping tea, water and Godonly knows what else to help those passing by. And they had this boardbeside them which read "Beyond Borivli, Can Stay'. I was lucky to geta cab, but there were people who were trying to make it on foot. Andthey needed succor. Rest. Shelter. It was raining.
It is about the autorickshaw driver, who finally reached me home inthe interiors of Kandivali at 1 in the morning. And refused to takethe night fare, despite being legally empowered to charge extra. "Nehisaab, aaj ki baat alag hai. Aap thik thak ghar pohuj gaye, yeh hi kafihai," he bade me goodbye at my doorstep.
It is also about the dabbawala who provides me with my dinnereveryday. His shop is near the Borivli station, where there was one ofthe biggest blasts at 6:34 in the evening. Yet, at one o clock in themorning, the dabba was there waiting at my doorstp to be picked up. Itdidn't need a note. The piping hot food at such an unearthly hour saidit all.
The terrorists succeeded in synchronising a series of blasts thatstopped the Mumbai lifeline for somewhere around seven hours. That wasall that they achieved on 7/11. The trains were back on track by 1:30in the morning and they plied all through the night. I wonder if themasterminds will consider this before planning their next attack. Iwould urge them to-- if this reaches any one of them-- to rethink.After all, what did a year of planning, six months of smugglingdangerous explosives, extensive netwroking and crores achieve at theend-- arond 200 lives and just seven hours of disruption? Bus! I won'tbudge for that. In the deal they united more than they dreamt to ripapart.
And by the way, I did not spot any member of the celebrated Readers'Digest survey team yesterday on the roads. Or perhaps they werethere-- reconsidering their statement.
I request whoever receives this, to forward it to as many people aspossible. At least that way, we will build an opinion against thesefaceless faces of terror
--Sudip Ghosh
Deputy Editor
Medianet
Times of India, Mumbai
Bombay has suffered many attacks on its spirit and its body. However, for the first time, the flood of comments in the media about the Bombay Spirit, about carrying on bravely in the face of adversity, have evoked a mixed response. Having grown up in the city, and havin borne witness to some of its trails and tribulations, I can understand the mixed feelings about the Bombay Spirit.
After the ghastly train attacks, frustration with the inability to stem the attacks has not only taken on an extra edge, but has also led to a few negative reactions at the mention of the Bombay Spirit. To some, words about the Bombay Spirit have become just pithy comments that gloss over the horrific loss of life.
In line with Bombay's natural response to terror attacks, I have noted some, like the deputy editor of the Times of India (attributed to Sudip Ghosh, attached forward below), who continue to take pride in the city's response. They believe Bombay's stoicism allows it to function through India's chaotic reality.
I share some common ground with the ToI writer about the response to this tragedy. For starters, these terrorists need to get a hard message. However this message will be delivered through gritted teeth, and without pride. Let me segway into this city's past to illustrate my concerns about the incessant talk of the Bombay Spirit.
The communal riots were Bombay's darkest hour. I remember standing at the balcony and watching a convoy of army trucks pass by. Each truck was open, with soldiers, looking, and pointing their guns, at all angles. Each truck had a red flag, which meant shoot at sight.
As a teenager who saw the city he called home go crazy, I felt glad that the army had stepped in to restore order. As I gazed at the soldiers, I felt like celebrating their presence by waving the flag for them. The soldiers felt like the magic bullet the city needed to return to its old, bold ways.
One wrong move and I could have been shot.
Even though I had seen people run for their life and cars burn, realizing this simple truth is when I realized how wrong things had gone.
I felt cheer, relief, and a bit of pride, when I should have been saddened that the army had to step in. I am glad sanity returned to the city during those troubled times. Now, as I look back at those troubled times, I have also come to a sad realization that the wheels could come off this fast paced city again.
I understand that the Bombay Spirit is supposed to be the antidote to this fear. For Bombayites, it is real, as real as life itself, and is called upon often.
I love the brave city's spirit. I love the way it bounces back from the monsoon floods every year. As a college kid in a trainee role, I have walked four hours in pouring rain to get back home and gone back to work the next day, just like millions of fellow Bombayites.
I am sure Bombayites consider options, like skipping work the next day, or venting their frustration in a million ways. Nevertheless, they make a choice to return to business-as-usual. While they are at this business of The Usual, Bombayites will even find it within them to lend a hand to a random stranger who is struggling a little more than them to cope.
Bombayites take out-of-ordinary events as a matter-of-fact, look at what they can do to change things around them and then, dispensing with the song-and-dance, stoically return to business-as-usual. Better than usual. I like to call this the Bombay Spirit. It embodies enterprise, tenacity and an unfettered pursuit of dreams.
Whenever I distance myself from the cacophony of being a Bombayite, this combination of Bombay personality traits that create the Legend of The Bombay Spirit never ceases to amaze me. This amazing Spirit, is based on the ability to endure and keep on going. This Spirit is based on the ability to adapt to a hostile environment that rachets up the hostility every time you blink and still deliver.
Perhaps, that's where the problem lies too. I now begin to not just question whether the Bombay Spirit can take these punches, but also question the value of the Bombay Spirit itself.
Is Bombay a city too busy making money to worry about itself? Does Bombay truly believe it is so good at what it does that it will run forever without pausing to catch its breath? Does Bombay believe in its own immortality and invincibility so much that fixing its problems looks like a losing proposition?
Another, more disturbing, question creeps into my mind. One my heart is not willing to accept and one my mind rebels against. Does Bombay believe, like a lunatic caricature of the stereotypical, fatalistic Indian, that it is inexorably headed toward the end, and is greedily gasping its last breaths, snatching at the last sparks of warmth from the dying embers of brilliant flame in a murderous freeze, and wringing the last chunk of change out of a dying "sone ki chiriya" (golden goose)? Surely, this is not Bombay Meri Jaan.
I would dearly love to keep the Bombay spirit going in Bombay. However, I want someone, or a group of people, to stand up for Bombay, be accountable to the people of Bombay, and work towards solving the problems that plague Bombay.
I hope that group is a group of Bombayites who, in true Bombay fashion, see the opportunity there and rise to the occasion to put in the blood, sweat and tears.
This would be the true manifestation of the Bombay Spirit.
It is sad when a terrorist group goes after soft targets. I will be just as sad when Bombay loses its Spirit. This is just me, but I think that's when the Bombayites would have given up. I hope I don't see the day anytime soon.
Long live Bombay!
---------- Forwarded message ----------
From:
Dear all,
Today's Mid-Day edit begins by saying that you don't need to be arocket scientist to understand that the chain of events starting fromthe Bhiwandi riots to the desecration of Meenatai's statue and whathappened as an aftermath, to the serial blasts on the trainsyesterday, means somebody somewhere wants Mumbaikar's to spill out onthe streets and grab each other by the throats.
Incidentally, these same somebody-- the faceless outcasts that theystill are-- have at least succeeded in one part of their plan.Mumbaikars have actually spilled out on to the streets.
The catch here is that they have failed to succeed in the second andmost important part of their plan: that of getting Mumbaikars to grabeach other by the throats. Mumbaikars spilled onto the streets-- in acollective show of the middle finger to those who proposed otherwise.
I know very well that you are already aware of how Mumbai stormed ontothe streets to help the injured, the stranded and soothe the injuriesthat were still gaping along its life line.
There were capsules and capsules of streaming video that showed themoffering water and refreshments to people stranded on SV Road and theEastern and Western Express Highways.
There were captures of students of Sydenham and SNDT college, whocamped at Churchgate station with the sole purpose of offering a bedto those stranded at the starting node of the life line.
And there was also that memorable grab of people standing patiently infront of KEM Hospital-- all in a serpentine queue, to donate blood. Aresult of which has been a no-shortage syndrome, when it comes toblood at all the hospitals where the injured are being treated or arerecuperating.
But this is not about all that. And yet, it is about all that andmore. It is about the sights I saw and the people I met with, whiletravelling along the Western Express Highway to Kandivali yesterday,between 7 in the evening and one in the morning.
It is about that little kid and his grandfather near Dadar, who,perhaps in the absence of anybody else in the household, took to thestreets with bottles of water and packets of biscuits to contribute inwhatever way possible in managing the crisis. "Uncle, you must bethirsty," the kid told me while offering the bottle. A parched medrank gratefully. And I saw in those eyes no fear. So what did thoseterrorists think while planting the bomb? That was at least the silentway of making one statement-- "Terror, my foot.!"
It is also about those housewives in front of a housing society nearSanta Cruz, who were standing with pots of piping tea, water and Godonly knows what else to help those passing by. And they had this boardbeside them which read "Beyond Borivli, Can Stay'. I was lucky to geta cab, but there were people who were trying to make it on foot. Andthey needed succor. Rest. Shelter. It was raining.
It is about the autorickshaw driver, who finally reached me home inthe interiors of Kandivali at 1 in the morning. And refused to takethe night fare, despite being legally empowered to charge extra. "Nehisaab, aaj ki baat alag hai. Aap thik thak ghar pohuj gaye, yeh hi kafihai," he bade me goodbye at my doorstep.
It is also about the dabbawala who provides me with my dinnereveryday. His shop is near the Borivli station, where there was one ofthe biggest blasts at 6:34 in the evening. Yet, at one o clock in themorning, the dabba was there waiting at my doorstp to be picked up. Itdidn't need a note. The piping hot food at such an unearthly hour saidit all.
The terrorists succeeded in synchronising a series of blasts thatstopped the Mumbai lifeline for somewhere around seven hours. That wasall that they achieved on 7/11. The trains were back on track by 1:30in the morning and they plied all through the night. I wonder if themasterminds will consider this before planning their next attack. Iwould urge them to-- if this reaches any one of them-- to rethink.After all, what did a year of planning, six months of smugglingdangerous explosives, extensive netwroking and crores achieve at theend-- arond 200 lives and just seven hours of disruption? Bus! I won'tbudge for that. In the deal they united more than they dreamt to ripapart.
And by the way, I did not spot any member of the celebrated Readers'Digest survey team yesterday on the roads. Or perhaps they werethere-- reconsidering their statement.
I request whoever receives this, to forward it to as many people aspossible. At least that way, we will build an opinion against thesefaceless faces of terror
--Sudip Ghosh
Deputy Editor
Medianet
Times of India, Mumbai
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