ISB Breaks into the Big Leagues!

The UK based newspaper "Financial Times" released its annual list of global rankings for Business schools.

European business schools and their US counterparts have fallen victim to a growing number of ever-improving Asian, South American and Australian schools in global rankings as evidenced in the list. This year sees three Chinese schools and one Indian one in the rankings.

The relatively young business school "Indian Business School (ISB)" in Hyderabad was ranked #20. It was set up in 2001 as a private B-school with the blessings of Fortune 500 companies and top Indian organizations. It collaborates with the world's leading business schools like the Kellogg School of Management, the Wharton School and the London Business School. These associate schools actively participate in curriculum design, research, conferences and teaching. According to the school's Deputy Dean Ajit Rangneker, the school is set to increase class size by over 100 students in the next academic year. There is also an anticipation of increased applications from international students. Rangneker estimates around 5% of the students are from abroad.

ISB; the only B-school from India to be ever ranked among the top 20, is not an institution recognized by the All India Council for Technical Education (AICTE), the regulatory body for technical education.

Until now the IIMs were considered most likely to be ranked in such international rank orders.

"US news" releases its list of top B schools later in the year. This highly regarded ranking list ignores Asian Business schools. Only schools from Europe and North America are ranked. In the Wall Street Journal/Harris Interactive Survey of how recruiters eye International B schools, only schools from Europe, North America and Central America were ranked. (Check the list at "IIMs not eyed by US Recruiters - or are they?")

Cadbury to get Indian kids chewing its gum

Cadbury is stepping up its game with plans to steal a large share of the bubble gum/chewing gum market in India.
It will use aggressive market researched tactics to attract both young and old consumers. Apparently Indian kids prefer strawberry flavoring and the teenagers; mixed fruit. We also prefer to have a liquid center to a dry piece of gum. So in keeping with the research, Cadbury will introduce a Strawberry and mixed fruit flavored gum with soft liquid filled centers in specially created wrapping to withstand the rigors of heat and transport in India. And if that does not get the kids emptying their pocket change for the gum, it hopes Bubba, the sunglass wearing cat appearing in ads will lure them further.
Just in case you are worried about how this might effect growing obesity in India, Cadbury's marketing director, Sanjay Purohit, assures us that the issue is " limited to a very, very tiny section of the extremely well-to-do people in large cities".

Source: Wall Street Journal "Cadbury's new Bubble-Gum Battle" Oct 4th, 2007

Rupee out-performs other Asian currencies

The Wall Street Journal quoted the rupee as being "Asia's best performing currency this year" in today's Political and Economics section. The investment firm Credit Suisse bank had said back in April that Indian GDP at the current price level (under 41) was a 1 trillion dollar economy. As recently as 2001 India's economy was 500 billion dollars. India is the 12th country to reach this milestone. While India's growth is something to take great pride in unfortunately this growth has not been evenly distributed among all sections of its population.

The American Suburb comes to India

Ever heard how almost every American suburb looks the same, cookie cutter homes assembled neatly along linear roads leading to the premier housing at the cul-de-sac. Well, it seems India is destined for such homogeneity too with several town ships being built outside city centers.

Chennai based Shriram properties is partnering with U.S. real estate private-equity firms Walton Street Capital and Starwood Capital Group to develop a $1.25 billion township outside of Kolkata. (Source: Forbes - Market Scan)

While the size of the investment is garnering more attention than usual, there are already other American real estate equity firms investing in the booming real estate market. Although the townships might rob India of its unique building style and character it will provide for more attractive housing for the middle class and new rich.

Indian Governance at 58%

The World Bank defines Governance as the set of traditions and institutions by which authority in a country is exercised. Earlier this year it released the paper “Governance Matters VI: Governance Indicators for 1996-2006”. The paper is the 6th in a series that evaluates Governance in 212 countries based on 6 dimensions: Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness; Regulatory Quality, Rule of Law and Control of Corruption. The data for the indicators are gathered from a number of survey institutes, think tanks, non-governmental organizations, and international organizations.

There is increasing attention to the quality of governance in developing countries by foreign investors, aid donors, domestic and international enterprises. Good numbers improve the perceptions of the country and might facilitate more activity from the aforementioned entities within the country.

Among the aggregates higher values indicate better governance ratings with a 100 being the best (percentiles). India has shown improvement since 1996 in all but the "Rule of Law" indicator. India had 4 of the indicators in the 50-60 percentile, and 1 (political stability) in the 20-30 percentile for 2006. On the whole it did mostly better than China.

In the overall averages China scored 4.8% , US 83.7% and India 58%.
Denmark topped the list with a 100% and Myanmar (Burma) took bottom slot with 0%.

Graphic Source: Time

Indian Credit history to be scored

The average Indian who has long loathed credit is now in favor of credit for its convenience in shopping and financing housing, automobiles and consumer durables. As the stigma attached to debt subsides, the Indian credit industry has boomed. Until now lenders in India have not had a single tool to evaluate the potential risk posed by lending money to consumers so as to mitigate losses due to bad debt.

Enter the "Credit Score"

The "Credit score" is a three digit number assigned to an individual and is an indicator of his credit worthiness. The Credit Information Bureau (India) Limited established by the government of India will assign and maintain the scores. The scores are based on previous loan history including the debt-income ratios and default history.Lenders will use the scores to determine interest rates and could even reject applications if scores are too low. Indian's have been used to receiving a uniform interest on loans but now that is about to change. In the US the three digit score is ubiquitous and financial gurus like Suze Orman even go so far as to insist that the score is something partners must agree to share before marriage.

Considering how competitive and ambitious most of us Indians are I don't think its too much of a stretch to see the credit score as becoming a symbol of pedigree even in matrimonial columns.

Indian Companies Crowd Forbes "ASIAN FAB 50"

12 of the companies on FORBES third annual Fabulous 50 - The Best of Asia-Pacific's biggest listed companies are from India. The other countries with a good number of companies making the list included China, Australia, Hong Kong, Japan and Taiwan. Below are the 12 Indian companies in the order in which they appeared on the list.

1. Bharat Heavy Electricals
2. Bharti Airtel
3. Grasim Industries
4. HDFC Bank
5. ICICI Bank
6. Infosys Technologies
7. Larsen & Toubro
8. Reliance Industries
9. Satyam Computer Services
10. Tata Consultancy Services
11. Tata Steel
12. Wipro

See the entire list at The Asian Fab 50

Is Aziz Premji Muslim Enough?

In an article published in the Wall Street Journal, Sept 11, 2007 "How a Muslim Billionaire Thrives in Hindu India", the author Yaroslav Trofimov discusses how Mr.Premji's secular principles are at odds with the general Indian Muslim population.

Trofimov says that in a country where Muslims often fair worse than Dalits in some economic and social measures Aziz Premji, CEO of Wipro Inc, is a huge anomaly.
The question posed is should he embrace his heritage at least as far as promoting development and education to the under privileged Muslim masses. He is secular to the extent of rarely mentioning his Muslim ethnicity, not observing Islamic holidays at his work places and in not particularly favoring Muslims (or any religious group) in his private philanthropy or hiring practices. He claims he is an India first rather than a Muslim or Hindu. But with an estimated net worth of $17 billion is there a motive behind his lack of religious identity, charity or support. Is he being socially irresponsible when he could make a huge difference in uplifting Muslims and helping them be better prepared for a modern India? Or does he feel that by embracing globalization, capitalization and modernism he clashes to severely with the conservative Muslim ideology to be able to help or have his help accepted readily. Care to venture?

A Tata Jaguar X-type anyone?

Ratan Tata, Chairman of the Tata group plans a major boost to his portfolio of companies with an intent to bid for world renowned automotive brands Jaguar and Land Rover.

Tata already has an impressive list of international acquisitions under its belt that include the Teltey group of United Kingdom, Daewoo Commercial Vehicle Co. of South Korea, Eight O'clock Coffe of the US and Corus Group of Britain.

The purchase will give Tata's automotive group access to networks, factories and expertise to further develop its own automotive line in India, which by most standards has not had a stellar market performance.

No word if Tata will tag its name on to the models, somehow Tata Jaguar and Tata Land Rover just dont have a ring to it!